TEST BANK Principles of Information Systems, 13th Edition Ralph M. Stair and George Reynolds
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Chapter 1 Overview of Electronic Commerce
1-According to Peter Drucker, e-commerce is profoundly changing markets, industry
structures, products and services, consumer segmentation, consumer values and consumer
behavior; jobs, and labor markets.
2-By purchasing a textbook from Amazon.com and having the merchandise physically
delivered, Amazon.com would be considered a click-and-mortar organization because pure
EC did not occur.
3-In the field, a sales representative writes notes with a mobile handwriting-recognition
computer immediately after a sales call. This can be viewed as an EC activity.
4-In addition to EC being conducted via the Internet, EC can be conducted over local area
5-An example of business-to-consumer (B2C) is when Dell provides customer service online
by collaborating electronically with its partners.
6-An internal corporate network that uses Internet tools, such as Web browsers, is known
as an intranet.
7-An extranet is a network that uses the Internet to link together multiple intranets.
8-Purchasing a Dell computer online for use at home is an example of e-tailing.
9-Networked computing connects multiple computers and other electronic devices that are
located in various locations by telecommunications networks, including wireless ones.
10-When Dell purchases Godiva chocolates as gifts for its employees and has Godiva mail
them directly to the recipient Dell is engaged in B2B2C.
11-Peer-to-peer (P2P) technology can be used in C2C, B2B, and B2C.
12-The final participants in B2B transactions are consumers.
13-Doing your banking on an Internet-enabled cell phone is an example of m-commerce.
14-Despite the many e-tailing EC companies that have failed in the past, the dot-com
failure rate has recently declined sharply.
15-Since 2001, no other company has had more of an impact on EC than MySpace.
16-Wikipedia.com, a Web site that allows people to work together online and share
information, is an example of Web 2.0.
17-The digital economy refers to an economy based on digital communication networks,
computers, software, and other related information technologies that provide a global
platform over which people and organizations interact, communicate, collaborate, and
search for information.
18-Economic, legal, societal, and technological factors have created a highly competitive
business environment in which customers are becoming less powerful.
19-Strong competition and increased power of consumers are two of the major market
pressures in today's business environment.
20-Business models are a subset of a business plan or business case and refer to methods of
doing business by which a company can generate revenue.
21-A business model outlines how the organization or the EC project will generate revenue
through sales, transaction fees, advertising fees, affiliate fees, or other revenue sources.
22-A value proposition refers to the tangible and intangible benefits that a company can
derive from using EC making it an important part of the marketing plan.
23-Affiliate marketing is an EC business model of word-of-mouth marketing in which
customers promote a product or service to friends or other people.
24-Social networks, such as Facebook, YouTube, and MySpace, are Web sites that connect
people with specific interests by providing free services such as photo sharing, e-mail, and
25-Many companies used a corporate portal, which is a gateway for customers, employees,
and partners to reach corporate information and communicate with the company.
26-Dell's cornerstone business model is based on the concept of:
selling directly to
small and medium
build-to-order which allows
customers to configure their
own customized systems.
e-collaboration with a
few select business
27-________ refers to the buying and selling of goods and services; servicing of customers;
collaborating with business partners; and conducting electronic transactions within an
Partial EC E-business Pure EC E-commerce
28-EC can take several forms depending on the degree of digitization of the following three
the product or
service sold, the
process, and the
the marketing channel,
the agent, and the
the payment method,
the delivery method,
and the production
the business process,
the collaboration, and
29-Purely physical companies are referred to as ________ companies, whereas companies
that are engaged only in EC are considered ________ companies.
virtual; pure play click-and-mortar; click-and-brick brick-and-mortar; virtual pure play; virtual
30-The ways in which EC is done include:
the Internet, value-added networks, on
local area networks using intranets, or on
a single computerized machine.
the Internet and
31-________ are systems where only routine transaction processing and information flow
take place between two or more organizations using a standard protocol, such as electronic
data interchange (EDI).
Intrabusiness EC E-CRM Interorganizational information systems B2B
32-A business such as Apple Computers making online transactions with its trading
partners is an example of:
e-CRM EDI B2B B2C
33-EC applications are supported by infrastructure and by each of the following support
People Marketing and advertisement Mobile devices Public policy
34-Intrabusiness EC is usually performed over intranets and/or ________.
P2P networks exchanges mobile networks corporate portals
35-A technology that is used to electronically transfer routine documents, such as invoices
and purchase orders, and for financial transactions is ________.
Exchange-to-exchange Electronic data interchange Electronic funds transfer Peer-to-peer
36-Challenges that Boeing faced with its global collaboration for the design and assembly
process of its new Dreamliner passenger plane included each of the following EXCEPT:
Information security Lag time Teams working across various time zones Data management
37-A large number of EC companies, especially e-tailing and B2B ones, failed from 1999 to
2005 for each of the following reasons EXCEPT:
The companies failed to ensure
they had sufficient inventory and
a distribution setup to meet
The companies had
The companies failed to
register with search
engines, such as
38-________ refers to the second-generation of Internet-based services that let people
collaborate and share information online in new ways, such as social networks and wikis.
Virtual Web Social Web Web 2.0 Media Web
39-Which of the following is not a characteristic of the Digital Revolution?
A high rate of
Intelligent search agents to
help manage information
Fraud and other
cybercons carried out
via the Internet.
Many business processes
are expedited by up to
40-Because the rate of change and the level of uncertainty are expected to accelerate,
operating under increasing
pressures to produce more
products, faster, and with
unable to react quickly
enough to threats and
41-According to the Business Environment Impact Model, ________ provide support to
organizations' activities and to actual performance, countering business pressures.
core competencies and critical response
42-A ________ is a company's method of doing business to generate revenue to sustain
marketing strategy business model business plan value chain
43-According to the ________ revenue model, companies receive commissions for referring
customers to others' EC Web sites.
affiliate fees advertising fees subscription fees transaction fees
44-According to the ________ revenue model, customers page a fixed amount, usually
monthly, to receive some type of service.
transaction fees affiliate fees subscription fees advertising fees
45-Large private organizational buyers and government agencies make large-volume or
large-value purchases through ________, also known as reverse auctions.
46-According to the ________ model, an organization can increase brand awareness or
even generate sales by Web-based word-of-mouth marketing or promoting a product or
service to other people.
47-Online group purchasing organizations are known as:
e-co-ops SMEs exchanges barters
48-Major barriers to EC include all of the following EXCEPT:
implementation difficulties lack of technology lack of potential customers cost
49-Which of the following is a technological limitation of EC?
Security and privacy
concerns that deter
customers from buying.
public policy, and legal
requirements of largescale
50-A job opening in the Sales Department posted on the company's Intranet by the Human
Resources Department is an example of:
B2E B2S E2C B2B
51-Boeing designing a product together with a business partner is this type of interaction:
B2B2C Nonbusiness EC B2B. Collaborative Commerce
52-A corporation uses the Internal Revenue Service's Web site to learn how to pay its
estimated quarterly income taxes. This is an example of:
G2G E2E. G2C G2B
53-The second-generation of Internet-based services that lets people collaborate and share
information online is known as Web 2.0. An example of this is:
mp3.com DoubleClick Evite blogging
54-The digital enterprise shifts the focus from managing individual information resources
such as devices, applications, and data to ________ that define the business and ultimately
deliver value to customers and end users.
orchestrating the services and
55-Many companies employ a(n) ________, which is a gateway for customers, employees,
and partners to reach corporate information and to communicate with the company.
corporate portal intranet social network extranet
Chapter 2 E-Marketplaces
1-The functions and efficiency of an e-market are the same as that of a physical
2-The emergence of electronic marketplaces has resulted in lower information search costs
for buyers and lower transaction and distribution costs for sellers.
3-Although both marketplaces and marketspaces can sell physical products, the
marketspace also can sell digital products, which are goods that can be transformed to
digital format and delivered instantly over the Internet.
4-Front end refers to the activities that support online order fulfillment, inventory
management, purchasing from suppliers, payment processing, packaging, and delivery.
5-In marketing, an intermediary is a third party that operates between sellers and buyers.
Intermediaries of all kinds offer their services on the Web.
6-WebMD, which is the largest U.S. medical services company, is known mainly for its
webmd.com consumer portal, but its core business is being an e-intermediary.
7-The major B2B e-marketplaces are electronic storefronts, Internet malls, and exchanges.
8-A portal is an information gateway that attempts to address information overload by
enabling people to search and access relevant information from disparate IT systems and
the Internet, using advanced search and indexing techniques, such as Google's desktop.
9-Intermediaries are human or electronic agents that play an important role in EC by
providing value-added services such as making payment arrangements to buyers and
10-Travelers using airline Web sites to book their flights directly without the use of travel
agents is resulting in the reintermediation of travel agents.
11-Search engines not only "search and match," but also have capabilities that can be used
to perform routine tasks that require intelligence.
12-An electronic shopping cart is an order-processing technology that allows customers to
accumulate items they wish to buy while they continue to shop.
13-Shopping carts for B2B are fairly simple, but a shopping cart for B2C may be more
14-An auction is a competitive process and market mechanism that uses a competitive
process by which a seller solicits consecutive bids from buyers or a buyer solicits bids from
15-Negotiation and bargaining are two types of auctions where prices are not fixed, but
rather are allowed to fluctuate as market supply and demand change.
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