Final - E-Commerce 2019 Flashcards
(500 cards)
1
Q
1) ________ and ________ are typically the most easily identifiable aspects of a company’s business model.
A
B) Value proposition; revenue model
2
Q
1) All of the following were popular types of online marketing before 2007 except:
A
C) mobile marketing.
3
Q
1) Analysts predict that B2B e-commerce in the United States will grow to approximately ________ by 2022.
A
D) 7.3 trillion
4
Q
1) Confidentiality is sometimes confused with:
A
A) privacy.
5
Q
1) E-commerce can be defined as:
A
A) digitally enabled commercial transactions between and among organizations and individuals.
6
Q
1) One of the first online virtual communities was:
A
A) The Well.
7
Q
1) Which of the following e-commerce technology dimensions creates greater opportunities for cyberbullying?
A
C) social technology
8
Q
1) Which of the following is a simple but powerful method for strategizing about a business?
A
C) SWOT analysis
9
Q
1) Which of the following is not a current trend in online content?
A
B) Readership of newspapers in print form continues to exceed online readership.
10
Q
1) Which of the following is not a major trend in online retail for 2018-2019?
A
D) The number of online buyers begins to plateau.
11
Q
1) Which of the following statements about Internet usage in the United States is not true?
A
D) Adults in the 25-to-54-age group have the highest percentage of Internet use.
12
Q
10) All of the following are advantages of online retail except:
A
D) faster delivery of goods.
13
Q
10) All of the following are potential benefits of B2B e-commerce except:
A
C) lower price transparency.
14
Q
10) Online traffic is driven by offline brands and shopping.
A
Answer: TRUE
15
Q
10) Which ethical principle tells you that it is wise to assume perfect information markets?
A
B) the New York Times test
16
Q
10) Which of the following basic system functionalities is used to display goods on a website?
A
B) digital catalog
17
Q
10) Which of the following is a leading social network in Germany?
A
A) Xing
18
Q
10) Which of the following is an example of the affiliate revenue model?
A
D) MyPoints
19
Q
10) Which of the following is the best definition of transaction cost?
A
B) the cost of participating in a market
20
Q
10) Which of the following is the first step in the social marketing process?
A
C) fan acquisition
21
Q
10) Which of the following occurs first in the process of content convergence related to books?
A
B) media migration
22
Q
10) Which of the following statements about data breaches in 2017 is not true?
A
C) According to the Identity Theft Resource Center, employee error was the leading cause of data breaches.
23
Q
11) All of the following are examples of cryptocurrencies except:
A
C) Zelle.
24
Q
11) Each of the following is one of the top seven social network sites in the United States, in terms of monthly unique visitors, except:
A
B) Myspace.
25
11) EDI began as a(n) ________ system.
A) document automation
26
11) Encouraging users to click a Like button is an example of which step in the social marketing process?
D) amplification
27
11) The majority of online shoppers find vendors by clicking on display ads.
Answer: FALSE
28
11) The world's online population was estimated to be around ________ in 2018.
B) 3.6 billion
29
11) Which ethical principle states that when confronted with an ethical dilemma, an individual should take the action that produces the least harm, or the least potential cost?
B) Risk Aversion
30
11) Which of the following involves a company giving away a certain level of product or service without charge, but then charging a fee for premium levels of the product or service?
C) freemium strategy
31
11) Which of the following is not an example of industry structure convergence?
D) Apple?s development of the iPad
32
11) Which of the following is not one of the central challenges facing the online retail industry?
A) lack of physical store presence
33
11) Which system functionality must your website have to be able to personalize or customize a product for a client?
D) customer on-site tracking
34
12) A social consequence of the richness of Internet information is:
C) very persuasive messages might reduce the need for multiple independent sources of information.
35
12) All of the following are potential benefits of B2B e-commerce except:
B) increased product cycle time.
36
12) Facebook owns which of the following?
C) WhatsApp
37
12) The overall rate of online credit card fraud is ________ of all online card transactions.
A) less than 1%
38
12) Which of the following are the two main components of a systems design?
A) logical design and physical design
39
12) Which of the following factors is not a significant influence on a company's competitive environment?
C) the availability of supportive organizational structures
40
12) Which of the following features of e-commerce technology is related to the concept of network externalities?
C) universal standards
41
12) Which of the following is not one of the methods used by traditional retailers to develop omni-channel integration?
C) online supply-push
42
12) Which of the following online advertising formats attracted the least amount of spending in 2018?
D) e-mail
43
12) Which of the following types of online content is consumed by the lowest percentage of U.S. Internet users?
B) magazines
44
12) Your Facebook News Feed includes all of the following except:
D) Tweets.
45
13) All of the following can be considered a direct competitor of Priceline except:
D) ESPN.
46
13) All of the following have led to the development of outsourcing of manufacturing around the world except:
C) environmental concerns.
47
13) Downloading a music track owned by a record company without paying for it is an example of a violation of:
B) copyright law.
48
13) Google introduced which of the following changes to its search algorithm to weed out low quality sites from search results?
C) Panda
49
13) In 2017, Fortune 500 companies used ________ more than Facebook.
C) LinkedIn
50
13) The merger of media enterprises into powerful, synergistic combinations that can cross-market content on many different platforms is referred to as:
D) industry convergence.
51
13) Which of the following did the Internet Advertising Bureau urge advertisers to abandon?
C) Adobe Flash
52
13) Which of the following helps you engage your customers in a conversation?
C) on-site blog
53
13) Which of the following statements about Facebook Exchange is not true?
C) It is a social search engine.
54
13) Which of the following statements is not true about the automobile, and automobile parts and accessories, online retail category?
A) Most of the revenue in this category is generated from the sales of automobiles.
55
13) Which of the following statements is true about the traditional tradeoff between the richness and reach of a marketing message prior to the development of the Web?
C) The larger the audience reached, the less rich the message.
56
14) Accessing data without authorization on Dropbox is an example of a:
B) cloud security issue.
57
14) Ads that appear in a Facebook user's News Feed are called:
C) Page Post Ads.
58
14) Apart from Amazon, the top online retail firms in terms of online sales are all primarily ______ firms.
B) omni-channel
59
14) DRM refers to a combination of ________ for protecting digital content.
B) technical and legal means
60
14) Interactivity in the context of e-commerce provides which of the following functionalities?
D) the enabling of two-way communication between consumer and merchant
61
14) On which of the following do users spent the least amount of time per day?
C) LinkedIn
62
14) The existence of many competitors in any one market segment may indicate:
B) the market is saturated.
63
14) Which of the following features of e-commerce technology can result in work and shopping invading family life?
B) ubiquity
64
14) Which of the following forms of online advertising is expected to grow the most between 2018 and 2022?
D) video
65
14) Which of the following is not one of the basic business objectives for an e-commerce site?
D) optimize system architecture
66
14) Which of the following statements about B2B marketing is not true?
B) Only 10% of B2B marketers use mobile marketing technologies.
67
15) ________ convergence describes the development of hybrid devices that can combine the functionality of two or more existing media platforms into a single device.
A) Technological
68
15) About how many hours a month do online social network users spend, on average, on all social networks combined?
C) 25
69
15) All of the following are basic information requirements for a product database except:
C) customer ID numbers.
70
15) All of the following can be considered a direct or indirect competitor of Amazon except:
D) Priceline.
71
15) Liability is a feature of political systems in which a body of law is in place that permits individuals to recover damages done to them by other actors, systems, or organizations.
Answer: TRUE
72
15) Supply chain ________ refers to differentiating a firm's products or prices on the basis of superior supply chain management.
C) competition
73
15) The costs incurred by merchants in having to change product prices (such as the costs of reentering prices into computer systems) are referred to as which of the following?
C) menu costs
74
15) When did the first online communities form?
B) the 1980s
75
15) Which of the following is not a digitally native vertical brand?
B) Wayfair
76
15) Which of the following is not a key factor for establishing e-commerce security?
A) data integrity
77
15) Which of the following is not one of the four main methods advertisers use to behaviorally target ads?
A) Nielsen ratings
78
16) A perfect market is one in which:
A) there are no competitive advantages or asymmetries because all firms have equal access to all the factors to production.
79
16) A(n) ________ market is one that provides expertise and products for a specific industry (i.e., automobiles).
A) vertical
80
16) BlackPlanet is an example of a(n) ________ social network.
C) affinity-based
81
16) Conficker is an example of a:
B) worm.
82
16) Content convergence describes convergence in the design, production, and ________ of content.
B) distribution
83
16) Online retail constitutes about 20% of the total retail market today.
Answer: FALSE
84
16) The principle of responsibility means that individuals, organizations, and societies should be held accountable to others for the consequences of their actions.
Answer: FALSE
85
16) Which of the following is a history of your actions on Facebook?
B) Timeline
86
16) Which of the following refers to any disparity in relevant market information among parties in a transaction?
A) information asymmetry
87
16) Which of the following search engine algorithm updates targets websites that violate Google?s guidelines?
D) Fred
88
16) Which of the following typically includes a data flow diagram (DFD) to describe the flow of information for an e-commerce site?
B) logical design
89
17) A business model that uses advertising revenue to provide some content for free, combined with an option to obtain additional content for a price is called a(n) ________ model.
D) freemium
90
17) In 2018, the number of online buyers in the United States was over 190 million.
Answer: TRUE
91
17) Organizations that typically provide an array of services to startup companies along with a small amount of funding are referred to as:
C) incubators.
92
17) Sprout Social helped Wahl Professional improve its social media presence on which of the following?
B) Instagram
93
17) The essential characteristic of ________ is that they bring hundreds to thousands of suppliers into a single Internet-based environment to conduct trade.
C) Net marketplaces
94
17) The ethical principle of Universalism states that if an action is not right for all situations, then it is not right for any situation.
Answer: TRUE
95
17) Which of the following details the actual hardware components to be used in a system?
D) physical design
96
17) Which of the following is a physical place you visit in order to transact?
B) marketplace
97
17) Which of the following is an example of a practice network?
D) Doximity
98
17) Which of the following is not true about search engine advertising?
D) Search engine advertising is the slowest growing type of online advertising.
99
17) Which of the following is the leading cause of data breaches?
C) hackers
100
18) A ________ specifically details how you plan to find customers and to sell your product.
D) market strategy
101
18) All of the following marketing tools on Facebook require payment except:
A) Brand Pages.
102
18) B2B e-commerce websites tend to serve horizontal markets.
Answer: TRUE
103
18) Discuss in depth one ethical, social, or political issue that is presently in the news surrounding the Internet and e-commerce.
Answer: A student might answer this issue by focusing on any one of a number of ethical, social, or political issues currently surrounding the Internet and e-commerce. Possible topics include privacy issues, intellectual property rights issues (copyright, patents, or trademarks), taxation, Internet governance issues such as net neutrality and the impact of ?big tech,? and Internet public safety and welfare issues such as the regulation of online pornography, gambling, or the sale of drugs.
104
18) Personal consumption of retail goods and services accounts for over 80% of total gross domestic product (GDP).
Answer: FALSE
105
18) Software that is used to obtain private user information such as a user's keystrokes or copies of e-mail is referred to as:
A) spyware.
106
18) The total number of users or customers an e-commerce business can obtain is a measure of which of the following?
C) reach
107
18) Total music consumption in hours of day listening to music has increased even as sales of CDs have drastically declined.
Answer: TRUE
108
18) Which of the following has the highest penetration of social network usage among the general population?
A) North America
109
18) Which of the following is not a practice that degrades the results and usefulness of search engines?
A) social search
110
18) Which of the following verifies that the business objectives of the system are in fact working?
B) acceptance testing
111
19) According to Symantec, almost half of the e-mail addresses involved in business e-mail compromise (BEC) phishing that it analyzed had an IP address originating in:
C) Nigeria.
112
19) Amazon's Associates program is an example of which of the following?
C) affiliate marketing
113
19) Describe the five-step process that can be used to analyze an ethical dilemma. What other guidelines are there to help in understanding a complicated ethical or moral situation?
Answer: The five-step process is:1. Identify and describe the facts. Find out who did what to whom, and where, when, and how. It helps to get the opposing parties involved in an ethical dilemma to agree on the facts.2. Define the conflict or dilemma and identify the higher-order values involved. Ethical, social, and political issues always reference higher values. Otherwise, there would be no debate. The parties to a dispute all claim to be pursuing higher values (e.g., freedom, privacy, protection of property, and the free enterprise system).3. Identify the stakeholders. Every ethical, social, and political issue has stakeholders: players in the game who have an interest in the outcome, who have invested in the situation, and usually who have vocal opinions. Find out the identity of these groups and what they want. This will be useful later when designing a solution.4. Identify the options that you can reasonably take. You may find that none of the options satisfies all the interests involved, but that some options do a better job than others. Sometimes, arriving at a "good" or ethical solution may not always be a balancing of consequences to stakeholders.5. Identify the potential consequences of your options. Some options may be ethically correct, but disastrous from other points of view. Other options may work in this one instance, but not in other similar instances. Always ask yourself, "What if I choose this option consistently over time?"Other things to consider when appraising an ethical dilemma include basic ethical concepts such as responsibility, accountability, and liability and how these play into the situation. Additionally, you can judge the situation against candidate ethical principles, such as the Golden Rule, the Slippery Slope theory, Universalism, the Collective Utilitarian principle, Risk Aversion theory, the No Free Lunch theory, the New York Times test (Perfect Information rule), and the Social Contract rule. Actions that do not easily pass these guidelines deserve some very close attention and a great deal of caution because the appearance of unethical behavior may do as much harm to you and your company as the actual behavior.
114
19) Few large firms today have Electronic Data Interchange (EDI) systems.
Answer: FALSE
115
19) In 2018, over 90% of online buyers were expected to make a purchase using a mobile device.
Answer: FALSE
116
19) In 2018, which age group had the fastest growing rate of Facebook usage?
D) adults over 65
117
19) The average American adult spends twice as much time-consuming media than time spent at work.
Answer: TRUE
118
19) The ratio of impressions to fans is a measure of:
D) fan acquisition.
119
19) Which of the following involves testing a site's program modules one at a time?
C) unit testing
120
19) Which of the following is not a community provider?
C) Blue Nile
121
19) Which of the following refers to the complexity and content of a message?
A) richness
122
2) ________ is the ability to ensure that e-commerce participants do not deny their online actions.
A) Nonrepudiation
123
2) Cord cutters and cord shavers are shrinking the number of pay TV subscribers yearly by approximately:
A) 3%.
124
2) In 2018, B2B e-commerce accounted for approximately \_\_\_% of all B2B commerce.
C) 46
125
2) Research shows the two key factors shaping the decision to purchase online are utility and trust.
Answer: TRUE
126
2) The cost of hardware, software, and telecommunications services needed to build a website have ________ over the last decade.
C) decreased dramatically
127
2) The MOTO sector of the retail industry is most similar to the ________ sector.
C) online retail sales
128
2) The technology used by early online communities was limited to mostly:
D) bulletin boards.
129
2) Which of the following e-commerce technology dimensions has the potential to reduce cultural diversity in products?
D) global reach
130
2) Which of the following is an example of e-business?
A) Amazon's inventory control system
131
2) Which of the following is not true about social marketing?
A) More than 50% of Twitter's ad revenues are generated by desktop users.
132
2) Which of the following uses a subscription revenue model for books?
B) Amazon Kindle Unlimited
133
20) Ad blockers operate in a manner similar to which of the following?
B) firewalls
134
20) Contrary to predictions of analysts made during the early days of e-commerce, the Internet has led to both disintermediation and hypermediation on a widespread basis.
Answer: FALSE
135
20) E-commerce is available just about everywhere and anytime. This is known as:
C) ubiquity.
136
20) Most of the time required to maintain an e-commerce site is spent on:
C) general administration and making changes and enhancements to the system.
137
20) The proliferation of mobile device has led to a decrease in the total amount of time spent with media.
Answer: FALSE
138
20) What is the most frequent cause of stolen credit cards and card information today?
B) the hacking and looting of corporate servers storing credit card information
139
20) Which of the following basic ethical concepts plays an important role in defining privacy?
D) due process
140
20) Which of the following early leaders in social networking has been reinvented as a music-oriented social network?
B) Myspace
141
20) Which of the following is not a variation of the e-tailer business model?
C) market creator
142
20) Which of the following Twitter marketing tools provides marketers with a real-time digital dashboard so they can see tweet activity about a TV show, commercial, or brand?
B) Amplify
143
20) Why is B2B e-commerce seen as a potential revenue source for B2B firms?
Answer: B2B e-commerce shows promise because purchasing supplies for a firm is a costly process. For example, firms estimate that each corporate purchase order costs at least in overhead. Using B2B e-commerce to automate B2B purchasing could save, overall, trillions of dollars. In turn, this could enable lower prices, increased productivity, and even greater wealth for a nation.
144
21) All of the following are simple steps for optimizing web page content except:
B) segmenting computer servers to perform dedicated functions.
145
21) Consumers are primarily price-driven when shopping on the Internet.
Answer: FALSE
146
21) Define and discuss the terms B2B commerce, B2B e-commerce, and supply chains in the context of the history and significance of B2B e-commerce.
Answer: Before the Internet, business-to-business transactions were referred to simply as trade or the procurement process. The term B2B commerce refers to all types of inter-firm trade to exchange value across organizational boundaries. B2B commerce includes the following business processes: customer relationship management, demand management, order fulfillment, manufacturing management, procurement, product development, returns, logistics/transportation, and inventory management.The term B2B e-commerce (or B2B digital commerce) refers to that portion of B2B commerce that is enabled by the Internet (including mobile apps) to assist firms in buying and selling a variety of goods to each other. The links that connect business firms in the production of goods and services are referred to as the supply chain.Supply chains are a complex system of organizations, people, business processes, technology, and information, all of which need to work together to produce products efficiently. The process of conducting trade among businesses consumes many business resources. Across the economy this amounts to trillions of dollars spent annually on procurement processes. If a significant portion of this inter-firm trade could be automated and parts of the procurement process assisted by the Internet, millions or even trillions of dollars could be freed up for other uses resulting in increased productivity and increased national economic wealth.
147
21) The video game industry accounts for the second highest amount of U.S. media revenues.
Answer: TRUE
148
21) Ubiquity increases the cognitive energy required to transact in a marketspace.
Answer: FALSE
149
21) Which dimension(s) of security is spoofing a threat to?
C) integrity and authenticity
150
21) Which of the following is an example of a company using the content provider model?
B) Netflix
151
21) Which of the following is not a primary source of ad fraud?
D) native advertising that is displayed on a social media site
152
21) Which of the following is not aimed at strengthening the ability of law enforcement agencies to monitor Internet users without their knowledge?
D) USA Freedom Act
153
21) Which of the following now owns LinkedIn?
C) Microsoft
154
21) Which of the following Twitter marketing tools involves a coupon or other promotional offer that appears in users' Twitter timeline?
D) Twitter Card
155
22) Identify and describe the major stages in the development of B2B commerce.
Answer: B2B commerce has evolved over a 45-year period through several technology-driven stages. The major stages in this evolution were the development of automated order entry systems, electronic data interchange (EDI), digital storefronts, private industrial networks, and Net marketplaces.Automated order entry systems began in the mid-1970s with the use of telephone modems to send digital orders to health care products companies. Modems were eventually replaced by personal computers using private networks in the late 1980s, and by Internet workstations accessing electronic online catalogs in the late 1990s.By the late 1970s, a new form of computer-to-computer communication called electronic data interchange (EDI) emerged. EDI is a communications standard for sharing business documents such as invoices, purchase orders, shipping bills, product stocking numbers (SKUs), and settlement information among a small number of firms. Virtually all large firms have EDI systems, and most industry groups have industry standards for defining documents in that industry.B2B e-commerce websites emerged in the mid-1990s along with the commercialization of the Internet. These storefronts are online catalogs of products made available to the public marketplace by a single supplier.Net marketplaces emerged in the late 1990s as a natural extension and scaling up of the electronic storefronts. These marketplaces bring hundreds to thousands of suppliers ? each with electronic catalogs and potentially thousands of purchasing firms ? into a single Internet-based environment to conduct trade.Private industrial networks also emerged in the late 1990s as natural extensions of EDI systems and the existing close relationships that developed between large industrial firms and their suppliers. Private industrial networks (also referred to as private trading exchanges, or PTXs) are Internet-based communication environments that extend far beyond procurement to encompass truly collaborative commerce. Private industrial networks permit buyer firms and their principal suppliers to share product design and development, marketing, inventory, production scheduling, and unstructured communications. These networks are the most prevalent form of Internet-based B2B commerce, and this will continue into the foreseeable future.
156
22) Online retailing provides an example of the powerful role that intermediaries continue to play in retail trade.
Answer: TRUE
157
22) The fact that e-commerce is conducted based on universal standards decreases search costs for consumers.
Answer: TRUE
158
22) The percentage of all e-mail that is spam averaged around ________ in 2017.
A) 55%
159
22) The time spent on desktop computers and mobile devices now exceeds time spent in front of the television.
Answer: TRUE
160
22) Which of the following companies purchased Instagram?
C) Facebook
161
22) Which of the following is not an example of malicious code?
D) sniffer
162
22) Which of the following is not an example of the bricks-and-clicks e-tailing business model?
C) Bluefly
163
22) Which of the following is the minimum system architecture requirement for an e-commerce website that processes orders?
B) two-tier architecture
164
22) Which of the following is used to track individuals as they move among thousands of websites?
C) advertising networks
165
22) Which of the following statements about Pinterest is not true?
D) Pinterest is the only one of the major social networks that does not accept paid advertising.
166
23) Barkbox is an example of a subscription-based retail revenue model.
Answer: TRUE
167
23) In 2018, the overall retail market in the United States was estimated to be about:
B) 5.3 trillion.
168
23) The a la carte revenue model allows users to pay only for what they use.
Answer: TRUE
169
23) The attack on Dyn Inc. in 2016 is an example of which of the following?
C) DDoS attack
170
23) The concept of a ?sprint? is related to which of the following development methodologies?
B) Scrum
171
23) Universal standards make price discovery more costly, slower, and less accurate.
Answer: FALSE
172
23) What is the first step in the procurement process?
D) search for suppliers
173
23) Which of the following are features of both Pinterest and Twitter?
B) hashtags
174
23) Which of the following statements about CAN-SPAM is not true?
B) CAN-SPAM prohibits unsolicited e-mail (spam).
175
23) Which of the following statements about Instagram is not true?
D) Instagram users spend more time on Instagram than Facebook users spend on Facebook.
176
23) Which of the following uses software installed at the ISP level to track user clickstream behavior?
C) deep packet inspection
177
24) All of the following are Pinterest marketing tools except:
D) Promoted Accounts.
178
24) Beebone is an example of which of the following?
B) botnet
179
24) Big data plays an important role in predictive marketing.
Answer: TRUE
180
24) Howard Rheingold, one of The Well's early participants, coined the term ________ to refer to "cultural aggregations that emerge when enough people bump into each other often enough in cyberspace."
B) virtual communities
181
24) In general, the key to becoming a successful content provider is to:
A) own the content being provided.
182
24) Millennials are the first generation to be born into the digital revolution of the 20th century.
Answer: TRUE
183
24) Price transparency refers to the ease with which consumers can find out what merchants pay for products.
Answer: FALSE
184
24) The last step in the procurement process is:
A) sending a remittance payment.
185
24) Which of the following involves creating a skeleton version that focuses on functionality rather than design?
B) wireframing
186
24) Which of the following statements about Canada's anti-spam law is not true?
B) The law has no impact on companies located within the United States.
187
24) Which of the following statements about industry self-regulation regarding privacy is not true?
D) Critics argue that the most effective form of industry self-regulation to safeguard privacy are online seal programs that attest to a company's privacy policies.
188
25) A(n) ________ offers members focused discussion groups, help, information, and knowledge related to an area of shared interest.
A) practice network
189
25) Malware that comes with a downloaded file that a user requests is called a:
C) drive-by download.
190
25) Office supplies are an example of:
B) indirect goods.
191
25) Personalization involves targeting marketing messages to specific individuals by adjusting the message based upon a consumer's preferences or past purchasing behavior.
Answer: TRUE
192
25) Revenue generated by online TV and movies is expected to grow by nearly 30% between 2018 and 2021.
Answer: TRUE
193
25) The number of people exposed to pins on Pinterest is a measure of which of the following?
D) fan acquisition
194
25) The Spokeo case involved a claim for damages based on which of the following?
A) Fair Credit Reporting Act
195
25) What are the challenges faced by automobile manufacturers in selling online?
Answer: Currently, U.S. franchising law prohibits automobile manufacturers from selling cars directly to consumers, so automobile retailing is dominated by dealership networks. Automobile manufacturers use the Internet to deliver branding advertising, while dealers focus on generating leads. Consumers typically focus on product and pricing research, which they then use to negotiate with dealers. Direct online automobile sales are currently not common due to the complexity of the vehicle purchasing process.
196
25) Which form of testing compares a control page with one that is very different?
B) new concept test
197
25) Which of the following is the most important tool in establishing a relationship with the customer?
A) company website
198
25) Which of the following uses a subscription-based sales revenue model?
D) Dollar Shave Club
199
26) A template test is a form of which type of testing?
D) A/B testing
200
26) All of the following are "traditional" online marketing tools except:
C) social marketing.
201
26) All of the following may lead to a competitive advantage except:
C) fewer products.
202
26) Describe the vision of online retailing during the early days of e-commerce. Did these predictions and assumptions turn out to be true?
Answer: In the early days of e-commerce, entrepreneurial online retailers saw the Web as one of the largest market opportunities in the United States economy. They believed that entering the online retail market would be an easy proposition because the new marketing channel would revolutionize the retail industry. The belief was that the Internet would greatly reduce both search costs and transaction costs, causing consumers to use the Internet to find the lowest prices for products. This would result in consumers being increasingly drawn to the new channel, and only the low-cost, high-service quality e-tailers would survive. Economists assumed that online consumers would be rational and cost-driven rather than brand-name and perceived-value driven.Entrepreneurs also believed that entry costs to the online retail market would be much lower than the costs to establish a physical store, and that they could be more efficient at marketing and order fulfillment than their offline counterparts. They believed they could inexpensively create compelling websites that would attract customers and that these costs would no doubt be far less than the costs of warehouses, fulfillment centers, and physical stores. They severely underestimated the costs to build sophisticated order entry, shopping cart, and fulfillment systems because they believed the technology had already been developed and furthermore believed with technology prices falling every year, updating and building any other necessary systems would be economical.With search engines almost instantaneously connecting consumers to relevant online vendors, customer acquisition costs would also be negligible. As prices fell, the unwieldy and outdated offline merchants would be driven out of business and the new entrepreneurs of the efficient online marketplace would take over. Smart entrepreneurs would exploit first mover advantages to take their place at the head of the online merchant class and the old general merchandisers would be locked out of the market.In some industries, such as apparel, electronics, and digital content, the market would be disintermediated, eliminating the traditional "middlemen" as manufacturers and distributors built a direct relationship with the consumer. The Web would become the dominant channel replacing the physical stores, sales clerks, and sales forces. In other industries, retailers would outsource the warehousing and order-fulfillment functions and a kind of hypermediation would occur in which many intermediaries would perform the functions for the virtual firm.Unfortunately for many failed businesses and investors, these assumptions did not turn out to be correct. The structure of the retail marketplace remained intact, and consumers have proven to be less price sensitive than the economists expected. In online merchandising, the importance of brand names to consumers' perceptions of quality and service has been extended rather than decreased or eliminated. The retail marketplace was neither disintermediated nor revolutionized. Although an entirely new channel emerged, it today belongs not just to the pure-play, online- only, first movers, but also to omni-channel firms with established brand names.
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26) E-commerce technologies provide a unique, many-to-many model of mass communication.
Answer: TRUE
204
26) Smartphones are an example of technological convergence.
Answer: TRUE
205
26) The amount of time visitors spend on a site is a measure of:
D) engagement.
206
26) The majority of inter-firm trade involves:
C) contract purchasing of direct goods.
207
26) Which of the following is an online service specifically aimed at measuring the impact of Pinterest and other visual social media?
B) Curalate
208
26) Which of the following is not an example of a potentially unwanted program (PUP)?
C) drive-by download
209
26) Which of the following requires financial institutions to inform consumers of their privacy policies and permits consumers some control over their records?
B) Gramm-Leach-Bliley Act
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27) All of the following are among those most frequently affected by ad-blocking except:
D) online retailers.
211
27) All of the following are examples of direct goods in the auto industry except:
D) desktop computers.
212
27) Cannibalization is a major challenge facing book publishers.
Answer: FALSE
213
27) Describe the state of the online retail sector today.
Answer: Although the online retail sector is one of the smallest segments of the total retail market, constituting only about 10% of the total retail market in 2018, it is growing faster than its offline counterparts, with new functionality and product lines being added every day. During the recession of 2008-2009, online retail revenues were basically flat, but have since resumed their upward trajectory. More people than ever are shopping online, and for most consumers, the advantages of online shopping overcome the disadvantages. While the number of new Internet users in the United States is not growing as rapidly as it was, this slowdown will not necessarily reduce the growth in online retail e-commerce because the average shopper is spending more on the Internet each year and finding many new categories of items to buy. For instance, in 2003, the average annual amount spent online by users was , but by 2018, it had jumped an estimated ,955. Millions of additional consumers more look for information online about purchases they make at offline stores.Offline retailers who have the brand-name recognition, supportive infrastructure, and financial resources have entered the online marketplace successfully and continue to integrate their online operations with their physical store operations to provide an integrated shopping customer experience and leverage the value of their physical stores. Some of the most significant changes in retail e-commerce in 2018 were the continuing growth in social e-commerce, the growing ability of firms to market local services and products using location-based marketing, and, not least, the rapidly growing mobile platform composed of smartphones and tablet computers. In retail circles, smartphones have become a leading shopping tool, while tablets are increasingly both shopping and purchase platforms. Social networks like Facebook, Twitter, Pinterest, Instagram, Snapchat and others have developed into major marketing and advertising platforms. After trials, Facebook, Pinterest, and Instagram have all introduced their own versions of "buy buttons" that allow consumers to more easily purchase goods on a much wider scale. In addition, location-based mobile marketing and advertising solutions such as Groupon have enabled local merchants to inexpensively enter local mobile marketing. Social and local e-commerce are enabled by the tremendous growth in mobile Internet devices, both smartphones and tablet computers. In 2018, U.S. retail m-commerce was expected to generate over billion overall. In 2018, over 80% of online buyers were expected to make a purchase using a mobile device, and it is estimated that this percentage will grow to over 85% by 2022.
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27) More than two-thirds of Internet users worldwide participate in social networks.
Answer: TRUE
215
27) When using multivariate testing, if you wish to test two different versions of an image, a button, and a piece of text, how many combinations will you need to test?
D) 8
216
27) Which of the following is a core Fair Information Practices (FIP) principle?
A) Choice/Consent
217
27) Which of the following is an unfair competitive advantage?
A) brand name
218
27) Which of the following is another term for amplification?
B) reach
219
27) Which of the following was designed to cripple Iranian nuclear centrifuges?
A) Stuxnet
220
27) Why study e-commerce?
Answer: E-commerce is a disruptive innovation that is different and more powerful than any of the other technologies we have seen in the past century. E-commerce technologies?and the digital markets that result?have brought about some fundamental, unprecedented shifts in commerce. While other technologies transformed economic life in the twentieth century, the evolving Internet and other information technologies are shaping the twenty-first century.
221
28) All of the following are examples of dark social except:
B) tweets.
222
28) An example of an indirect good in the fast-food industry is:
B) paper napkins.
223
28) Automatically redirecting a web link to a different address is an example of which of the following?
C) pharming
224
28) Facebook is the fastest growing of the most popular social networks.
Answer: FALSE
225
28) Identify the eight unique features of e-commerce technology and explain how these features set e-commerce apart from more traditional ways of conducting commercial transactions.
Answer: The eight unique features of e-commerce technology are ubiquity, global reach, universal standards, richness, interactivity, information density, personalization/customization, and social technology. The fact that e-commerce is available nearly everywhere, at any time, (ubiquity) extends the marketplace beyond traditional boundaries and removes it from a temporal and geographic location. A marketspace is created in which shopping can take place anywhere, enhancing consumer convenience and reducing shopping costs, whereas in traditional commerce the marketplace is a physical place you must visit in order to transact.The global reach of e-commerce means that commerce is enabled across national and cultural boundaries as never before, with potentially billions of consumers and millions of businesses worldwide included in the marketspace. Traditional commerce, by contrast, is local or regional involving local merchants or national merchants with local outlets.Universal standards (one set of technical media standards) also allow for the seamless enablement of global commerce. In contrast, most traditional commerce technologies differ from one nation to the next. In traditional markets, national sales forces and small retail stores can provide a complex and content-rich message. However, there is generally a trade-off between the richness of the message and the number of consumers who can be reached with the marketing message. In e-commerce the trade-off is no longer necessary.An information rich environment is extended globally. Unlike any other commercial technology of the twentieth century, except perhaps the telephone, e-commerce technologies are interactive, allowing for two-way communication between the seller and the consumer. E-commerce technologies reduce information collection, storage, processing, and communication costs, thereby greatly increasing the prevalence, accuracy, and timeliness of information. This information density (information that is more plentiful, cheaper, and of higher quality) sets e-commerce apart from all other traditional methods of conducting transactions.E-commerce technologies also permit the personalization and customization of marketing messages on a level that was impossible with previous commerce technologies. Marketing messages can be targeted to specific individuals based on their interests and past purchasing behavior, and the product or service can be altered to suit a customer's preferences and prior behavior. Social technology allows users to easily generate and share content and permits a many-to-many model of mass communications that is different from previous technologies. This supports the creation of new business models and products that support social network services.
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28) The Nike iD program is an example of which of the following marketing techniques?
A) customer co-production
227
28) The process of comparing a website with that of its competitors in terms of response speed, quality of layout, and design is known as:
C) benchmarking.
228
28) What is DRM and why is it used?
Answer: Digital rights management (DRM) refers to a combination of technical (both hardware and software), and legal means for protecting digital content from unlimited reproduction and distribution without permission. DRM hardware and software encrypt content so it cannot be used without some form of authorization, typically based on a payment. The objective is to control the uses of content after its been sold or rented to consumers. Essentially, DRM can prevent users from purchasing and making copies for widespread distribution over the Internet without compensating the content owners.
229
28) Which of the following gives a business model the most credibility with outside investors?
A) the firm's management team
230
28) Which of the following is not a key industry strategic factor?
A) synergies
231
28) Which of the FTC's Fair Information Practices (FIP) principles requires identification of the collector of data?
A) Notice/Awareness
232
29) A community site created by a corporation is called a sponsored community site.
Answer: TRUE
233
29) According to the Identity Theft Resource Center, the number of data breaches in 2017 increased by ________ compared to 2016.
C) 55%
234
29) All of the following are strategic factors that pertain specifically to a firm and its related businesses except:
D) power of customers.
235
29) An ________ is an independently owned, online marketplace that connects hundreds to potentially thousands of suppliers and buyers in a dynamic, real-time environment.
A) exchange
236
29) As discussed in the chapter-opening case, Hubble used all of the following Facebook marketing tools except:
D) Facebook?s Lookalike Audience lead generation tool.
237
29) Explain the concept of media convergence.
Answer: The term media convergence refers to digitally based changes in technology platform, content, and industry structure. Technological convergence means the integration of previously separate platform functionality into hybrid devices that can combine the functionality of many different existing media platforms such as books, newspapers, television, radio, and stereo equipment.Content convergence has three dimensions: design, production, and distribution. Content design convergence occurs as content created in an older media technology is transferred into a new technology. Historically the initial transference involves little artistic change, but as the artists and producers learn how to use the new tools and how to deliver content more efficiently in the new media, the new capabilities can be fully exploited, and the art becomes measurably different. Content production convergence occurs when content, which is the most significant cost of content, is developed only once using technology that can deliver it to multiple different platforms. Production convergence drives content convergence as new tools are developed for economically producing content for delivery to multiple platforms. For example, the text produced in a word processing program can be easily converted to an HTML or PDF file for online delivery. Distribution convergence occurs when the distributors and ultimate consumers have the devices needed to receive, store, and experience the product.Industry convergence refers to the merger of media enterprises into powerful synergistic combinations that can cross-market content on many different platforms and create new works that use multiple platforms. Traditionally, each type of media ? film, text, music, television ? had its own separate industry, typically composed of very large players. However, the Internet has created forces that make the merger of traditionally separate firms in separate media industries a plausible ? perhaps necessary ? business proposition.
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29) How has e-commerce changed the marketing of goods?
Answer: E-commerce has greatly changed the marketing of goods. Before e-commerce was developed, the marketing and sale of goods was a mass-marketing and sales force-driven process. Marketers viewed consumers as passive targets of advertising campaigns. E-commerce has brought many new possibilities for marketing. The Internet and Web can deliver, to an audience of millions, rich marketing messages with text, video, and audio in a way not possible with traditional commerce technologies such as radio, television, or magazines. Merchants can target their marketing messages to specific individuals by adjusting the message to a person's name, interests, and past purchases. In addition, much information about the consumer can be gathered from the website the consumer visits. With the increase in information density, a great deal of information about the consumer's past purchases and behavior can be stored and used by online merchants. The result is a level of personalization and customization unthinkable with existing commerce technologies.
239
29) The incremental cost of building the next unit of a good is called the:
C) marginal cost.
240
29) The SDLC methodology helps developers to understand the business objectives of a system and design an appropriate solution.
Answer: TRUE
241
29) Which of the following statements about Foursquare is not true?
C) The growth in Foursquare?s revenue since 2015 has been driven primarily by significant increases in the numbers of users of its Swarm app.
242
29) Which of the FTC's Fair Information Practices (FIP) principles requires opt-in or opt-out policies to be in place?
B) Choice/Consent
243
3) ________ is the ability to identify the person or entity with whom you are dealing on the Internet.
B) Authenticity
244
3) How much time a month does the average person spend using the Facebook app on mobile devices?
C) about 13 hours
245
3) Which element of the business model addresses what a firm provides that other firms do not and cannot?
D) value proposition
246
3) Which of the following can be considered synonymous with the term e-commerce?
B) digital commerce
247
3) Which of the following is a community of members who self-identify with a demographic or geographic category?
C) affinity community
248
3) Which of the following is not one of the four basic principles shared by ethical schools of thought in western culture?
B) privacy
249
3) Which of the following is not one of the main stages of the online purchasing process?
D) conversation
250
3) Which of the following is not one of the seven major segments of the retail industry?
A) electronics and computers
251
3) Which of the following types of e-commerce presence is best suited for creating an ongoing conversation with one's customers?
C) social media
252
3) Which of the following U.S. media channels generates the most revenue?
A) broadcast television/pay TV
253
3) Which of the following was the first step in the development of B2B e-commerce?
B) automated order entry systems
254
30) According to Ponemon Institute's 2017 survey, which of the following was not among the causes of the most costly cybercrimes?
D) botnets
255
30) An ________ primarily serves businesses that primarily buy direct goods on a spot purchasing basis.
C) exchange
256
30) Describe the evolution of social networks from their earliest appearance.
Answer: The earliest social networks, in the mid-1980s and 1990s were community bulletin boards, or discussion groups, like The Well. In the early 2000s, technology changed, bringing in blogging, photo sharing features. As the Internet user population expanded, more and more socially oriented sites appeared, including Facebook, allowing users to share content directly with each other. More recently, in the late 2000s and early 2010s, as the Internet became available to browse (and post to) via mobile devices, more and more photo and video sharing social networks have emerged, such as Pinterest and Instagram. A new crop of social networks launched since 2008 (i.e., Snapchat and WhatsApp) focus on messaging.
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30) Describe the three basic revenue models for digital content delivery.
Answer: There are three revenue models for delivering content on the Internet. The two "pay" models are subscription (usually "all you can eat," meaning the amount of content that you can consume is unlimited), and a la carte (pay only for what you use). The third model uses advertising revenue to provide content for free, often with a "freemium" option, which makes additional content available for a cost. In many cases, all three of the models work in tandem and cooperatively: free content can drive customers to paid content, as streaming services like Pandora and Spotify have discovered.
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30) Scrum is a type of agile development.
Answer: TRUE
259
30) The lower the ________ compared to revenue, the higher the gross profit.
B) cost of sales
260
30) What is the FTC recommendation regarding choice as it relates to personally identifiable information (PII)?
A) Require firms to have consumers affirmatively opt-in before PII is collected.
261
30) Which of the following allows Facebook to track user behavior on other sites?
B) Like button
262
30) Which of the following statements about a free pricing strategy is false?
B) The free pricing strategy was born in the early days of the Web.
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30) Which type of e-commerce is distinguished by the type of technology used in the transaction rather than by the nature of the market relationship?
C) mobile e-commerce
264
30) Which type of investor typically becomes interested in a startup company after it has begun generating revenue?
D) venture capital investors
265
31) "Do Not Track" falls under which of the following principles in the FTC's current privacy framework?
B) Simplified Choice
266
31) ________ typically attack governments, organizations, and sometimes individuals for political purposes.
D) Hacktivists
267
31) Creating multiple variations of information goods and selling these to different market segments at different prices is called:
D) versioning.
268
31) Discuss the structure of the U.S. media content industry.
Answer: The U.S. media content industry prior to 1990 was composed of many smaller independent corporations specializing in content creation and distribution in the separate industries of film, television, book and magazine publishing, and newspaper publishing. During the 1990s and into this century, after an extensive period of consolidation, huge entertainment and publishing media conglomerates emerged. The U.S. media industry is still organized largely into three separate vertical stovepipes: print, movies, and music. Each segment is dominated by a few key players. Generally, there is very little crossover from one segment to another. Typically, newspapers do not also produce Hollywood films, and publishing firms do not own newspapers or film production studios. The purchase of the Washington Post in 2013 by Jeff Bezos, the founder of Amazon, and an Internet mogul in his own right, was an anomaly. Even within media conglomerates that span several different media segments, separate divisions control each media segment. In the past, delivery content firms, such as Comcast, Altice, AT&T, Verizon, Sprint, and Dish Network were not involved in content creation, but instead just moved content produced by others across cable, satellite, and telephone networks. However, within the last several years, this has begun to change. Comcast led the way with the acquisition of a majority interest in NBC Universal. AT&T's merger with Time Warner and Verizon's purchase of Yahoo, along with its previous acquisition of AOL, are signs that the telecommunications companies are moving into the content and distribution market, as well as the Internet advertising industry, in a major way as revenues from traditional cable Internet and wireless business slow.
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31) Gross margin is defined as gross profit:
B) divided by net sales revenues.
270
31) The liquidity of a market is measured by all of the following except:
A) price transparency.
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31) Using prebuilt templates is typically one of the most inexpensive options when building an e-commerce site.
Answer: TRUE
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31) Which of the following is a leading platform for social e-commerce?
D) Facebook
273
31) Which of the following is another name for a revenue model?
C) financial model
274
31) Which of the following is not true about Facebook News Feed Page Post Ads?
C) They cannot contain links.
275
32) ________ purchasing involves the purchase of goods based on immediate needs in larger marketplaces that involve many suppliers.
A) Spot
276
32) All of the following are fixed price strategies except:
D) yield management.
277
32) All of the following can be considered examples of the market creator business model except:
D) Twitter.
278
32) Business-to-consumer (B2C) e-commerce in the United States:
A) grew at double-digit rates between 2010 and 2018.
279
32) If a large number of Internet users set Facebook as their primary destination on their web browser, should Facebook be considered a portal?
Answer: Student answers will vary but should include reference to social networks broadening their offerings to become more portal-like. An example answer is: While Facebook can be a primary destination, the goal of Facebook is to keep users occupied and communicating with each other. One of the main goals of a portal is to provide avenues to third party content and other areas of the Internet. Although social networks are aiming to include portal-like features, to keep and grow audiences, the primary goals of a portal currently don't include social sharing.
280
32) In general, the annual system maintenance cost will roughly parallel the development cost.
Answer: TRUE
281
32) IoT botnets became the preferred platform for launching DDoS attacks in 2017.
Answer: TRUE
282
32) Which of the following has not been purchased or invested in by a wealthy individual with ties to the technology industry?
D) The New Yorker
283
32) Which of the following is a micro-blogging social network site that allows users to send and receive 280-character messages, as well as news articles, photos, and videos?
B) Twitter
284
32) Which of the following is not categorized as an operating expense?
A) the cost of products being sold
285
32) Which of the following technologies reduces the ability to merge different files and de-anonymize consumer data?
C) differential privacy software
286
33) ________ is defined by company using its competitive advantage to gain in surrounding markets.
C) Leverage
287
33) A multi-tier architecture typically includes only a web server and a database server.
Answer: FALSE
288
33) A Trojan horse appears to be benign, but then does something other than expected.
Answer: TRUE
289
33) Companies are not permitted to collect personal information from children under the age of ________ without parental consent.
C) 13
290
33) MRO goods are also known as direct goods.
Answer: FALSE
291
33) Operating margin is defined as:
A) operating income or loss divided by net sales revenues.
292
33) What business models do social networks use?
Answer: The most popular general social networks, such as Facebook, have adopted an advertising model, and make money from ads displayed to users. There are number for profit and non-profit networks that stay afloat from user donations, member dues, premium services, or through sponsorship financing.
293
33) Which of the following has the highest share of the e-book market?
A) Amazon
294
33) Which of the following involves getting customers to pass along a company's marketing message to friends, family, and colleagues?
B) viral marketing
295
33) Which of the following is an example of a pay-for-privacy (PFP) approach?
A) AT&T?s GigaPower service
296
33) Which of the following is not true about the use of apps?
B) Users still spend less time using apps than they do using desktops or mobile websites.
297
34) A wealthy individual who invests personal funds in a startup in exchange for an equity share in the business is referred to as a(n):
B) angel investor.
298
34) All of the following are required for information to be considered a trade secret except:
C) it must be unique.
299
34) Discuss the impact social networks have had on how businesses operate, communicate, and serve their customers.
Answer: Social networks have had an important impact on how businesses operate, communicate, and serve their customers. The most visible business firm use of social networks is as a marketing and branding tool. The most popular social network tool for large corporate businesses is LinkedIn, with 98% of the Fortune 500 using LinkedIn. Twitter is the second most popular, used by 88%, while 85% use Facebook. A less visible marketing use of networks is as a powerful listening tool which has strengthened the role of customers and customer feedback systems. Social networks are where corporate brands and reputations are formed, and firms today take very seriously the topic of "online reputation," as evidenced by social network posts, commentary, chat sessions, and Likes. In this sense, social network sites have become an extension of corporate customer relationship management systems and extend existing market research programs. Beyond branding, social network sites are being used increasingly as advertising platforms to contact a somewhat younger audience than websites and e-mail, and as customers increasingly shift their eyeballs to social networks. Rosetta Stone, for instance, uses its Facebook page to display videos of its learning technology, encourage discussions and reviews, and post changes in its learning tools. Public social networks like Facebook have not been used extensively in firms as collaboration tools thus far. However, in 2016, Facebook launched its Workplace app, designed to spur collaboration and networking inside large firms. Over 14,000 organizations worldwide use this relatively new app.
300
34) Group M, the world?s largest advertising buyer, requires which of the following in order for an ad to be considered viewable?
C) 100% of the pixels must be in view for at least one second
301
34) Phishing attacks rely on browser parasites.
Answer: FALSE
302
34) Purchasing managers are key players in the procurement process.
Answer: TRUE
303
34) Web services are loosely coupled, reusable software components based on XML and other open protocols and standards that enable an application to communicate with another application without requiring any custom programming.
Answer: TRUE
304
34) What is another name for pro forma earnings?
C) earnings before income taxes, depreciation, and amortization (EBITDA)
305
34) Which of the following happened during the time period when newspapers used a print-centric business model?
A) Google launched its search engine.
306
34) Which of the following is an example of an on-demand service company?
B) Airbnb
307
34) Which of the following was the object of the FTC's highest penalty for a COPPA violation to date?
A) Disney's Playdom
308
35) ________ of procurement officers use auctions to purchase goods.
C) Over one third
309
35) ________ were the most troubled segment of the print publishing industry in 2017.
C) Newspapers
310
35) According to data from Pew Research Center, which of the following is the action which the highest percentage of Internet users has taken to preserve their privacy online?
C) cleared web browser history and cookies
311
35) Describe the major issues surrounding the decision to build and/or host your own e-commerce site or to outsource some aspects of site development. Include the advantages and disadvantages of each decision.
Answer: If you decide to build an e-commerce site in-house, you will need a multi-skilled staff including programmers, graphic artists, web designers, and project managers. You will also have to select and purchase software and hardware. Building a site from scratch involves a great deal of risk, and the costs can be high because many of the required elements of an e-commerce site such as shopping carts, credit card authentication and processing, inventory management, and order processing are quite complex. Specialized firms have already perfected these tools and your staff will often have to learn to build these features themselves. The advantage is that you and your staff may be able to build a site that exactly suits the specific needs of your company. Another advantage is that you will be developing a skilled staff and consequently acquiring an invaluable supply of in-house knowledge that will enable your firm to change the site if necessary due to the rapidly changing business environment.If, on the other hand, you decide to purchase an expensive site-building package, you will have to evaluate different packages to decide which one will be best suited to your firm's needs. This can be a lengthy process and some packages may have to be modified. Additional vendors may have to be hired to execute the modifications, and this can cause the costs to mount rapidly.You can also purchase less expensive, prebuilt templates, but you will be limited to the functionality already built into the template. You can choose templates from merchant-solution vendors such as Yahoo Small Business or use the templates from a site-building tool such as WordPress. Brick-and-mortar retailers can generally design a site themselves because they have a skilled staff in place and have made large investments in information technology, such as databases and telecommunications. They will usually use outside vendors to build the e-commerce applications for the site. Medium-size startups will often purchase a prepackaged site-building tool and make modifications as necessary. Small startups that only require a simple virtual storefront will usually use a template.The hosting decision is independent from the building decision, but the two are usually considered at the same time. Most businesses choose to outsource hosting because it is generally less expensive than it would be for them to purchase the hardware and the physical space, lease the communications lines, and hire the staff. Large hosting firms can build the telecommunication links and emergency power supplies and achieve economies of scale by establishing huge "server farms" in strategic locations around the country. If you host your own site, you must also build the security and backup capabilities yourself.Another option is co-location in which a firm purchases or leases a web server and has total control over its operation, but the server is located in the vendor's physical facility. In a co-location agreement, the vendor maintains the facility, the machinery, and the communication lines. Small ISPs may not be able to provide service that is as reliable as the large providers. The disadvantage of outsourcing hosting is that as your business grows, you may need more power or services than the hosting company can provide. This is the main reason that firms will decide to host their own sites, but the costs will almost always be higher than if they had chosen an outsourcing firm.
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35) WannaCry is an example of ransomware.
Answer: TRUE
313
35) What does the term supply chain visibility refer to and what benefits does it bring?
Answer: The term supply chain visibility refers to the ability of a firm to monitor the output of its first and second tier suppliers, track and manage supplier orders, and manage transportation and logistics suppliers who are moving the products. When a supply chain is visible, you know when suppliers' products will arrive, and you have accurate tracking of your goods. The benefit of a visible supply chain is that the firm can produce accurate production schedules and develop more accurate financial forecasts.
314
35) Which of the following is a platform for B2B e-commerce?
D) Go2Paper
315
35) Which of the following is based on the idea of complete price transparency in a perfect information marketplace?
A) the Law of One Price
316
35) Which of the following is most similar to Pinterest?
B) Instagram
317
35) Which of the following is not a key element of an elevator pitch?
C) legal structure
318
35) Which of the following is not considered a current asset?
A) long-term investments
319
36) A value proposition defines how a company's product or service will generate revenue for the firm.
Answer: FALSE
320
36) All of the following are benefits of auctions except:
C) decreased price transparency.
321
36) All of the following are platforms for C2C e-commerce except:
A) Walmart
322
36) All of the following might be part of a website's middle-tier layer except:
C) legacy corporate applications.
323
36) Current liabilities are debts of the firm that will be due within:
C) one year.
324
36) Define the procurement process. What are the seven basic steps in the procurement process?
Answer: The procurement process refers to the way business firms purchase the goods they need to produce the goods they will ultimately sell to consumers. Firms purchase goods from a set of suppliers that in turn purchase their inputs from another set of suppliers. These firms are linked in a series of connected transactions. The supply chain refers to this series of transactions, which links sets of firms that do business with each other. It includes not only the firms themselves but also the relationships between them and the processes that connect them. There are seven steps in the procurement process: searching for suppliers for specific products; qualifying the sellers and the products they sell; negotiating prices; credit terms, escrow requirements, quality, and scheduling delivery; issuing purchase orders; sending invoices; goods are shipped; and the buyer sends a payment. Each step is composed of separate substeps that must be recorded in the information systems of the buyer, seller, and shipper.
325
36) Spoofing is the attempt to hide a hacker's true identity by using someone else's e-mail or IP address.
Answer: TRUE
326
36) Which of the following industries accounts for the highest percentage of spending on online advertising?
B) retail
327
36) Which of the following statements about the General Data Protection Regulation (GDPR) is not true?
C) The GDPR eliminate the right to be forgotten.
328
36) Which of the following statements about the newspaper industry is not true?
D) Newspaper circulation revenues have declined dramatically since 2000.
329
36) Which social marketing proved the most effective for ExchangeHunterJumper.com?
A) Facebook
330
37) ________ is the market leader in C2C auctions.
B) eBay
331
37) All of the following are examples of social networks except:
C) Y Combinator.
332
37) All of the following are major trends in B2B e-commerce in 2018-2019, except:
A) a movement toward implementing highly centralized supply chains to reduce risk.
333
37) Exploit kits can be purchased by users to protect their computers from malware.
Answer: FALSE
334
37) For a quick check of a firm's short-term financial health, examine its:
A) working capital.
335
37) Real markets are imperfect.
Answer: TRUE
336
37) The leading web server software is:
A) Apache.
337
37) Which of the following is not a privacy advocacy group?
B) TIO
338
37) Which of the following refers to the number of interactions among members of a group and reflects the "connectedness" of the group, even if these connections are forced on users?
C) social density
339
37) Which of the following statements about native advertising is not true?
B) Native advertising is a new form of advertising found only online.
340
37) Which of the following statements about online magazine publishing is not true?
B) Only about 10% of tablet computer owners read magazine content once a week.
341
38) A drive-by download is malware that comes with a downloaded file that a user intentionally or unintentionally requests.
Answer: TRUE
342
38) All of the following are basic functionality provided by web servers except:
D) a shopping cart.Answer: D
343
38) All of the following are weaknesses of EDI except:
B) EDI lacks universal standards.
344
38) B2B e-commerce is the largest type of e-commerce.
Answer: TRUE
345
38) Information asymmetries enable some firms to have an edge over others.
Answer: TRUE
346
38) Magazine digital advertising revenues are expected to _______ for the next few years.
A) remain relatively flat
347
38) Which of the following is an automated, auction-based method for matching demand and supply for online display ads?
C) programmatic advertising
348
38) Which of the following is not a risk or cost of Internet auctions?
C) price transparency
349
38) Which of the following measures the percentage of sales revenue a firm can retain after all expenses are deducted from gross revenues?
B) net margin
350
38) Which of the following refers to those forms of social sharing that occur off the major social networks, through alternative communication tools?
B) dark social
351
38) Which of the following was the first state law in the United States requiring owners of commercial websites or online services to post a privacy policy.
D) California Online Privacy Protection Act
352
39) FREAK is an example of a software vulnerability.
Answer: TRUE
353
39) In the United States, Google is not required to remove results from its search engine if requested.
Answer: TRUE
354
39) List and briefly explain the main types of e-commerce.
Answer: The main types of e-commerce are business-to-consumer (B2C), in which online businesses attempt to reach individual consumers; business-to-business (B2B), in which businesses focus on selling to other businesses; consumer-to-consumer (C2C), which provides a market in which consumers can sell goods to each other; mobile e-commerce (m-commerce), which refers to the use of wireless digital devices to enable online transactions; social e-commerce, which is commerce enabled by social networks and online social relationships; and local e-commerce, which is e-commerce that is focused on engaging the customer based on his or her geographical location.
355
39) Research has found that most of the ad impressions served across display advertising platforms are not viewable.
Answer: TRUE
356
39) Slow followers are sometimes more successful than first movers.
Answer: TRUE
357
39) The fact that participating in an Internet auction means that you will need to purchase a computer, learn to use it, and pay for Internet access, is an example of ________ costs.
A) equipment
358
39) Which of the following is a method of inventory cost management that seeks to eliminate excess inventory?
C) just-in-time production
359
39) Which of the following is a real-time bidding system that allows advertisers to target their ads to specific users based on personal information provided by Facebook?
B) FBX
360
39) Which of the following is not one of the top three players in e-book publishing?
D) Google
361
39) Which of the following is used to process certificates and private/public key information?
B) Secure Sockets Layer/Transport Layer Security
362
39) Which of the following provides a financial snapshot of a company's assets and liabilities (debts) on a given date?
C) balance sheet
363
4) All of the following statements about the MOTO sector are true except:
B) the MOTO sector is also referred to as the specialty store sector.
364
4) By 2020, it is estimated that advertisers will be spending which of the following amounts on mobile marketing?
D) 113 billion
365
4) In 2017, the various entertainment industries together accounted for about \_\_% of total media industry revenues, while the print media industries collectively accounted for about \_\_\_%.
B) 76%, 24%
366
4) In developing an e-commerce presence, what questions must be asked and answered about the firm's target audience?
Answer: Without a clear understanding of a firm's target audience, it is difficult to develop a successful e-commerce presence. There are two primary questions: who is the target audience and where can they best be reached? A target audience can be described in several ways: demographics, behavior patterns (lifestyle), current consumption patterns (online vs. offline purchasing), digital usage patterns, content creation preferences (blogs, social networks, sites like Pinterest), and buyer personas (profiles of your customer). Understanding the demographics of the firm's target audience is usually the first step. Demographic information includes age, income, gender, and location.
367
4) PredictWallStreet is an example of a(n):
A) interest-based social network.
368
4) The term e-commerce refers to the digital enabling of business processes both inside and outside the firm.
Answer: FALSE
369
4) What is the approximate Internet penetration rate for individuals that have attained less than a high-school education?
B) 65%
370
4) What is the first step in analyzing an ethical dilemma?
D) Identify and describe the facts.
371
4) Which element of the business model refers to the presence of substitute products in the market?
B) competitive environment
372
4) Which of the following is an example of an integrity violation of e-commerce security?
D) An unauthorized person intercepts an online communication and changes its contents.
373
4) Which of the following terms refers to the links that connect business firms with one another to coordinate production?
A) supply chain
374
40) All of the following are solutions to the problem of high monitoring costs except:
A) seller rating systems.
375
40) All of the following statements about e-commerce in the United States in 2018 are true except:
A) social e-commerce generated more revenue than mobile e-commerce.
376
40) In the subscription revenue model, a company primarily generates income from the display of ads.
Answer: FALSE
377
40) The existence of substitute products is a key industry strategic factor.
Answer: TRUE
378
40) The highest amount of online advertising spending is for online video ads.
Answer: FALSE
379
40) The main objective of the GDPR is to strengthen the rights of citizens to their own personal information and to strengthen oversight of firms to ensure that they implement these individual rights.
Answer: TRUE
380
40) What is the Internet of Things (IoT) and what security issues and challenges does it raise?
Answer: The Internet of Things (IoT) involves the use of the Internet to connect a wide variety of sensors, devices, and machines, and is powering the development of a multitude of smart connected things, such as home electronics (smart TVs, thermostats, home security systems, and more). IoT also includes connected cars, medical devices and industrial equipment that supports manufacturing, energy, transportation, and other industrial sectors.Unfortunately, IoT raises a host of security issues similar to existing security challenges, but even more challenging, given the need to deal with a wider range of devices, operating in a less controlled, and global environment. In a world of connected things, the devices, the data produced and used by the devices, and the systems and applications supported by those devices, can all potentially be attacked. For instance, many IoT devices, such as sensors, are intended to be deployed on a much greater scale than traditional Internet-connected devices, creating a vast quantity of interconnected links that can be exploited. Existing tools, methods, and strategies need to be developed to deal with this unprecedented scale. Many instances of IoT consist of collections of identical devices that all have the same characteristics, which magnifies the potential impact of security vulnerabilities.Many IoT devices are anticipated to have a much longer service life than typical equipment, which raises the possibility that devices may "outlive" the manufacturer, leaving them without long-term support that creates persistent vulnerabilities. Many IoT devices are intentionally designed without the ability to be upgraded, or the upgrade process is difficult, which raises the possibility that vulnerable devices cannot or will not be fixed, leaving them perpetually vulnerable. Many IoT devices do not provide the user with visibility into the workings of the device or the data being produced, nor alert the user when a security problem arises, so users may believe an IoT device is functioning as intended when in fact, it may be performing in a malicious manner. Finally, some IoT devices, such as sensors, are unobtrusively embedded in the environment such that a user may not even be aware of the device, so a security breach might persist for a long time before being noticed.
381
40) Which of the following is not an example of a native digital news site?
D) USA Today
382
40) Which of the following social networks allows a user to buy products directly on its site and pay with Apple Pay?
C) Pinterest
383
40) Which of the following statements about cloud-based B2B systems is not true?
A) Much of the expense of the system is shifted from the B2B network provider to the firm.
384
40) Which of the following would you use to verify that links on web pages are valid?
D) site management tools
385
41) ________ is a method for ensuring that suppliers precisely deliver ordered parts at a specific time and to a particular location.
B) Tight coupling
386
41) All of the following are examples of open source CMSs except:
D) WordPress
387
41) Define the term economic viability and explain the factors involved in assessing a firm's economic viability.
Answer: Economic viability refers to the ability of a firm to survive during a specified time period as a profitable business firm. To analyze the economic viability of a firm, both strategic and financial assessments are conducted.Strategic approaches to economic viability focus on both the industry in which a firm operates and the firm itself. Industry factors to examine include barriers to entry, which are expenses such as high capital costs, or intellectual property such as patents or copyrights held by other firms, and make it difficult for new entrants to join the industry.The power of the suppliers and power of the customers in the industry must also be considered. If suppliers are sufficiently powerful, they can charge higher prices, whereas if the manufacturers or retailers are more powerful, they can bargain effectively for lower prices from their suppliers. The relative power of the customers determines whether they will be able to shop among the firm's competitors, thus keeping prices down. The existence of substitute products in an industry can also drive prices down if consumers have access to products with a similar function that they determine will fill their needs just as adequately. The industry value chain must be evaluated to determine if the chain of production and distribution for the industry is changing in ways that will benefit or harm the firm. Finally, the nature of the intra-industry competition must be evaluated to determine if the competition within the industry is based on differentiated products and services, price, the scope of the offerings or the focus of the offerings, and whether any imminent changes in the nature of the competition will benefit or harm the firm.The strategic factors to analyze include the firm value chain, the core competencies of the firm, the synergies available to the firm, the technology used by the firm, and the social and legal challenges facing the firm. The firm value chain must be evaluated to determine if the firm has adopted business systems that will enable it to operate at peak efficiency and whether there are any looming technological changes that might force the firm to change its processes or methods. The core competencies of a firm are its unique skills that cannot be easily duplicated. When analyzing the economic viability of a firm it is important to consider whether technological changes might invalidate these competencies. Synergies refer to the availability to the firm of the competencies and assets of related firms that it owns or with which it has formed strategic partnerships. The firm's current technology must be evaluated to determine if it has proprietary technologies that will allow it to scale with demand and if it has developed the customer relationship, fulfillment, supply chain management, and human resources systems that it will need to be viable. Finally, the social and legal challenges facing the firm should be examined to determine if the firm has considered consumer trust issues such as the privacy and security of personal information and if the firm may be vulnerable to legal challenges.The financial factors to analyze are the firm's revenues, cost of sales, gross margin, operating expenses, operating margin, and net margin. Revenues must be examined to determine if they are growing and at what rate. Cost of sales is the cost of the products sold including all related costs. The lower the cost of sales compared to revenue, the higher the gross profit. Gross margin is calculated by dividing gross profit by net sales. If the gross margin is improving consistently, the economic outlook for the firm is enhanced. Operating expenses such as marketing, technology, and administrative costs should be evaluated to determine if the firm's needs in the near interim will necessitate increased outlays. Large increases in operating expenses may result in net losses for the firm. Operating margin tells us if the firm's current operations are covering its operating expenses, not including interest expenses and other non-operating expenses. Net margin is calculated by dividing net income or net loss by net sales. It evaluates the net profit or loss for each dollar in sales. For example, a net margin of 12% indicates that a firm is making 12 cents on each dollar in sales. These figures can be found on a firm's consolidated statement of operations and summary balance sheet. A thorough strategic and financial analysis will often reveal the true economic prospects for a firm in the near to medium term.
388
41) Define the terms tiger team, white hat, black hat, and grey hat and discuss the difference between them.
Answer: Groups of hackers called tiger teams are sometimes used by corporate security departments to test their own security measures. By hiring hackers to break into the system from the outside, the company can identify weaknesses in the computer system?s armor. These ?good hackers? became known as white hats because of their role in helping organizations locate and fix security flaws. White hats do their work under contract, with agreement from the target firms that they will not be prosecuted for their efforts to break in. Hardware and software firms such as Apple, Microsoft, Intel, HP, and many others pay bounties of ,000 to ,000 to white hat hackers for discovering bugs in their software and hardware.In contrast, black hats are hackers who engage in the same kinds of activities but without pay or any buy-in from the targeted organization, and with the intention of causing harm. They break into websites and reveal the confidential or proprietary information they find. These hackers believe strongly that information should be free, so sharing previously secret information is part of their mission.Somewhere in the middle are the grey hats, hackers who believe they are pursuing some greater good by breaking in and revealing system flaws. Grey hats discover weaknesses in a system?s security, and then publish the weakness without disrupting the site or attempting to profit from their finds. Their only reward is the prestige of discovering the weakness. Grey hat actions are suspect, however, especially when the hackers reveal security flaws that make it easier for other criminals to gain access to a system.
389
41) Evidence suggests that real-time customer chat increases the dollar value of transactions.
Answer: TRUE
390
41) In 2018, about ________ of Americans accessed the Internet solely via a mobile device.
B) 16%
391
41) The Jumpstart Our Business Startups (JOBS) Act, and issuance of enabling regulations by the Securities and Exchange Commission, allows a start-up company to use crowdfunding to solicit investors to invest in small and early-stage startups.
Answer: TRUE
392
41) The opt-in model for informed consent requires an affirmative action by the consumer before a company can collect and use information.
Answer: TRUE
393
41) Which of the following involves using a variety of tools to encourage users to interact with content and brand?
B) engagement
394
41) Which of the following magazines underwent a digital remaking following the introduction of a metered paywall in 2014?
B) The New Yorker
395
41) Which of the following types of auctions "shields the brand" of the seller?
B) Name Your Own Price auction
396
42) Advantages of dynamic page generation include all of the following except:
D) client-side execution of programming.
397
42) Consumers tend to look at native ads more frequently than they look at display ads.
Answer: TRUE
398
42) The Federal Communications Commission's privacy rules, applicable to broadband ISPs, were repealed by Congress in 2017.
Answer: TRUE
399
42) What is a sniffing attack and how does it differ from a MitM attack?
Answer: A sniffer is a type of eavesdropping program that monitors information traveling over a network. When used legitimately in a sniffing attack, hackers use sniffers to steal proprietary information from a network, including passwords, e-mail messages, company files, and confidential reports. A man-in-the-middle (MitM) attack also involves eavesdropping but is more active than a sniffing attack, which typically involves passive monitoring. In a MitM attack, the attacker can intercept communications between two parties who believe they are directly communicating with one another, when in fact the attacker is controlling the communications.
400
42) Which of the following allows the consumer to enter a maximum price and the auction software automatically places incremental bids, up to that maximum price, as their original bid is surpassed?
B) proxy bidding
401
42) Which of the following involves using the inherent strength of social networks to encourage visitors and fans to share their Likes and comments with friends?
C) amplification
402
42) Which of the following is not a major business trend in e-commerce in 2018-2019?
B) Retail e-commerce revenues exceed B2B e-commerce revenues for the first time.
403
42) Which of the following is not an example of a virtual merchant?
D) Dell
404
42) Which of the following is the most common model for online newspaper access for U.S. newspapers with circulations over 50,000?
D) metered subscription model
405
42) Why is the management team such an important element of a business model?
Answer: A strong management team gives a model instant credibility to outside investors, immediate market-specific knowledge, and experience in implementing business plans. A strong management team may not be able to salvage a weak business model, but the team should be able to change the model and redefine the business as it becomes necessary.
406
43) ________ occurs when sellers agree informally or formally to set floor prices below which they will not sell on auction items.
B) Price matching
407
43) A(n) ________ system continuously links the activities of buying, making, and moving products from suppliers to purchasing firms, as well as integrating order entry systems.
D) SCM
408
43) Discuss and explain the various types of malicious code and how they work. Include the different types of viruses.
Answer: Malicious code includes a variety of threats such as viruses, worms, Trojan horses, ransomware, and bot programs. A virus is a computer program that can replicate or make copies of itself and spread to other files. Viruses can range in severity from simple programs that display a message or graphic as a "joke" to more malevolent code that will destroy files or reformat the hard drive of a computer, causing programs to run incorrectly. Worms are designed to spread not only from file to file but from computer to computer and do not necessarily need to be activated in order to replicate. A Trojan horse is not itself a virus because it does not replicate but it is a method by which viruses or other malicious code can be introduced into a computer system. It appears benign and then suddenly does something harmful. For example, it may appear to be only a game and then it will steal passwords and mail them to another person. A backdoor is a feature of worms, viruses, and Trojans that allow attackers to remotely access compromised computers. Ransomware is a type of malware (often a worm) that locks your computer or files to stop you from accessing them. Bot programs are a type of malicious code that can be covertly installed on a computer when it is attached to the Internet. Once installed, the bot responds to external commands sent by the attacker, and many bots can be coordinated by a hacker into a botnet.
409
43) Lead generation marketing firms specialize in inbound marketing.
Answer: TRUE
410
43) Omni-channel merchants are also referred to as:
B) bricks-and-clicks companies.
411
43) The TrustArc program is an industry-sponsored initiative to encourage websites to be more transparent about how they use personal information, and to make it more likely that appropriate ads are shown to users.
Answer: FALSE
412
43) Which of the following cannot be used to retrieve objects from a database?
D) HTML
413
43) Which of the following is a Facebook feature that allows app developers to integrate their apps into the Facebook pages of users who sign up for the app?
D) Open Graph
414
43) Which of the following is not a major technology trend in e-commerce in 2018-2019?
D) Growth of the Internet of Things slows down.
415
43) Which of the following statements about the online newspaper audience is not true?
B) Online readership of newspapers is growing at more than 30% a year
416
43) Who are the e-commerce enablers and why are they important?
Answer: E-commerce enablers provide the hardware, operating system software, networks and communications technology, applications software, web design, consulting services, and other tools required for e-commerce. While these firms may not be conducting e-commerce per se (although in many instances, e-commerce in its traditional sense is in fact one of their sales channels), as a group they have perhaps profited the most from the development of e-commerce.
417
44) ________ is a subscription-based retailer using predictive marketing and Big Data?
B) Stitch Fix
418
44) All of the following are major social trends in e-commerce in 2018-2019 except for:
C) concerns about the U.S. Supreme Court ruling that online businesses do not need to collect state sales tax.
419
44) Collaborative commerce systems:
D) foster sharing sensitive internal information with suppliers and purchasers.
420
44) Define elevator pitch and describe its key elements.
Answer: An elevator pitch is a short two-to-three-minute presentation aimed at convincing investors to invest. The key elements of an elevator pitch are an introduction, in which you state your name and position, your company's name and a tagline in which you compare what your company does to a well-known company; background, in which you state the origin of your idea, and the problem you are trying to solve, the industry size/market opportunity, in which you provide brief facts about the size of the market; revenue model/numbers/growth metrics, in which you provide insight into your company's revenue model and results thus far, how fast it is growing, and early adopters, if there are any; funding, in which you state the amount of funds you are seeking and what it will help you achieve; and finally exit strategy, in which you explain how your investors will achieve a return on their investment.
421
44) Facebook's Messenger app allows users to make payments to advertisers via Stripe or PayPal without having to leave the app.
Answer: TRUE
422
44) In what ways has the European environment turned against American firms such as Facebook and Google?
Answer: The EU General Data Protection Regulation (GDPR) is clearly aimed at Facebook, Google, Twitter, and other ad-based online businesses that build collections of personal data by tracking individuals across the Web, merging that data with data from firms and data brokers in order to build comprehensive digital images (profiles) and to target these persons with ads. Google and Facebook are both extremely popular in Europe, and dominate their markets, but at the same time are widely criticized for invading privacy and not protecting PII. European regulators and politicians point to Facebook allowing Cambridge Analytica, a political consulting firm, to gain access to over 100 million user accounts in 2016 and a 2018 data breach of 50 million Facebook accounts as evidence that Facebook is unable to protect the privacy of Europeans. Google is also in the cross-hairs of EU regulators for its monopoly on search in the EU, abuse of that monopoly by ranking Google services above others on its search pages, and abuse of its ownership of the Android operating system by requiring smartphone manufacturers to pre-install Google apps on Android phones, as well as evading taxes on revenues earned in EU countries. Both firms, along with Microsoft?s Windows 10 operating system, are accused of ?deceit by design? through the use of threats against users who choose strong privacy protections on their services, and screen designs that encourage users to give up as much personal information as possible.
423
44) Next generation firewalls provide all of the following except:
C) the ability to automatically update applications with security patches.
424
44) The top four display ad companies together account for almost 60% of U.S. display ad revenues.
Answer: TRUE
425
44) Which of the following monitors and controls access to a main web server, and implements firewall protection?
A) proxy server
426
44) Which of the following types of auctions is perfect for sellers that have many identical items to sell?
C) Dutch Internet auctions
427
44) Who was the first major fiction writer to create an e-book-only volume of a new work?
B) Stephen King
428
45) All of the following types of auctions involve single units except:
B) a Dutch Internet auction.
429
45) Asymmetric key cryptography is also known as:
A) public key cryptography.
430
45) Define organizational development and describe its importance in relation to the implementation of a business plan and strategy.
Answer: Organizational development is a plan that describes how the company will organize the work that needs to be accomplished in the business plan or strategy. Typically, work is divided into functional departments, such as production, shipping, marketing, customer support, and finance. Jobs within these functional areas are defined, and then recruitment begins for specific job titles and responsibilities. Typically, in the beginning, generalists who can perform multiple tasks are hired. As the company grows, recruiting becomes more specialized. For instance, at the outset, a business may have one marketing manager. But after two or three years of steady growth, that one marketing position may be broken down into seven separate jobs done by seven individuals.All firms ? new ones in particular ? need an organization to efficiently implement their business plans and strategies. Many e-commerce firms and many traditional firms that attempt an e-commerce strategy have failed because they lacked the organizational structures and supportive cultural values required to support new forms of commerce.
431
45) Facebook's Search functionality includes everyone's public posts, Likes, photos, and interests, and makes them available to all users of Facebook, even those who are not friends.
Answer: TRUE
432
45) How is it possible to measure the strength of privacy policies?
Answer: Very little attention has been paid to measuring the strength of privacy policies for individual companies, comparing them to other companies, and understanding how privacy policies have changed over time at a specific company. However, researchers have developed a measure of privacy policies by applying 10 privacy policy principles when reviewing policies. These principles are as follows:? Can the privacy policy be easily found, reviewed, and understood by users?? Does the privacy policy fully disclose how personal information will and will not be used by the organization? Is information about users ever shared or sold without users' explicit permission?? Can users decide if they want to participate?? Can users decide and actively indicate that they agree to be profiled, tracked, or targeted?? Can users decide how and if their sensitive information is shared?? Are users able to change any information that they input about themselves?? Can users decide who can access their information?? Are users notified promptly if their information is lost, stolen, or improperly accessed?? Can users easily report concerns and get answers?? Do users receive a copy of all disclosures of their information?The dimensions are measured on a four-point scale from 0 to 4 (0 meaning the privacy policy fails to meet the criterion and 4 indicating the criterion was fully achieved).
433
45) The concept of "customer satisfaction" is broader than the concept of "customer experience."
Answer: FALSE
434
45) Together Amazon and Apple account for ________ of the e-book market.
D) 92%
435
45) Virtual merchants face potentially large costs for all of the following except:
B) building and maintaining physical stores.
436
45) Which of the following is not a characteristic of the use of social networks in B2B e-commerce?
D) They are always private.
437
45) Which of the following statements about the mobile platform is not true?
B) Over 220 Americans used tablet computer apps in 2018.
438
45) Which of the following technologies is used to separate the design and presentation of content from the content creation process?
D) CMS
439
46) A(n) \_\_\_\_\_\_\_\_, in which the highest bidder wins, is the most common form of auction.
C) English auction
440
46) All of the following are important trends in B2B e-commerce in 2018-2019, except:
B) the migration of B2B hardware and software to cloud computing and cloud apps.
441
46) All of the following statements about Amazon are true except:
A) in 2016, Amazon purchased Jet.com, one of its discount competitors.
442
46) All the following statements about symmetric key cryptography are true except:
C) symmetric key cryptography is computationally slower.
443
46) Around what percentage of Amazon's top 100 selling e-books are now self-published?
D) 44%
444
46) Bundling is the process of selling two or more products together for a price that is less than the sum of the two product's individual prices.
Answer: TRUE
445
46) Describe the fantasy sport business and the issues it raises.
Answer: Two firms dominate the online fantasy sports market: DraftKings and FanDuel. Both firms advertise heavily during college and professional sports games. In fantasy sports, players assemble their ideal fantasy teams, drafting real-life athletes to their team, and then, based on the performance of those players in real games, they can win significant prizes. The most popular sports are college football and basketball, and professional football and baseball. Players are given a budget that they can use to draft players, and some of the combined fees for each game make up the pool for which players compete. Entry fees range widely from less than a dollar, to over ,000. Fantasy sports were exempted from the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) under industry pressure from the then much smaller fantasy sports business. The industry argued that fantasy sports are not gambling, but instead games of skill like chess or Scrabble.As the industry has grown to billion-dollar venture capital valuations, however, and with allegations of cheating customers, deceptive practices, lack of transparency, and insider irregularities, state and federal legislators are holding hearings and considering regulations. In 2015, the New York State attorney general told both DraftKings and FanDuel to stop taking entries from New York State residents because, in the state's opinion, their operations constituted illegal gambling and the sites engaged in false and misleading advertising. Citibank cut off credit card processing for both sites.After lengthy legislative hearings and strong support from sports fans, New York reversed its position, agreeing that when played fairly, fantasy sports is a game of skill, not gambling. The governor signed legislation legalizing fantasy sports as a state regulated industry, claiming it would add billion to the state's education fund. The sites also agreed to pay million in fines. In November 2016, DraftKings and FanDuel proposed to merge. Together the two companies control more than 90% of the U.S. market. In June 2017, the FTC, along with the attorneys general of California and the District of Columbia, sued to block the merger and in July 2017 the companies decided to abandon the plan.
446
46) Facebook does not sell display ads.
Answer: FALSE
447
46) First movers often fail because:
B) they lack complementary resources needed to sustain their advantages.
448
46) MySQL is which of the following?
A) open source database software
449
46) Which of the following describes the basic web policy of large firms during the Invention period?
D) Maintain a basic, static website depicting the firm's brand.
450
47) According to Amazon, around how many indie authors have sold more than 1 million copies of their books?
B) 100
451
47) All of the following are basic functionality provided by e-commerce merchant server software except:
B) marketing analytics.
452
47) All of the following are challenges faced by bricks-and-clicks firms except:
D) building a brand name.
453
47) All of the following use an advertising revenue model except:
D) Walmart.
454
47) Brand pages on Facebook typically attract more visitors than a brand's website.
Answer: TRUE
455
47) Define privacy, information privacy, the right to be forgotten, and informed consent.
Answer: Privacy is the moral right of individuals to be left alone, free from surveillance or interference from other individuals including the state.Information privacy includes both the right to prohibit certain information from being collected by either governments or businesses, and the right to control the use of whatever information is collected about you. The core concept is the control of your own personal information.The right to be forgotten is the claim of individuals to be able to edit and delete personal information online.Informed consent means that an individual has knowledge of all the material facts needed to make a rational decision and consent has been given to collect information. In the United States, business firms and government agencies can gather transaction data from the marketplace and use it for other marketing purposes without the informed consent of the individual. In Europe, on the other hand, this is illegal. European businesses can only use transaction data to support the current transaction if they have asked for and received the informed consent of the individual.
456
47) EDI document structures are defined by:
C) industry committees.
457
47) How are blogs being used for marketing?
Answer: Blogs have been around for a decade and are a part of the mainstream online culture. Around 30 million people write blogs, and around 84 million read blogs. Blogs play a vital role in online marketing. Although more firms use Twitter and Facebook, these sites have not replaced blogs, and in fact often point to blogs for long-form content. Because blog readers and creators tend to be more educated, have higher incomes, and be opinion leaders, blogs are ideal platforms for ads for many products and services that cater to this kind of audience. Because blogs are based on the personal opinions of the writers, they are also an ideal platform to start a viral marketing campaign. Advertising networks that specialize in blogs provide some efficiency in placing ads, as do blog networks, which are collections of a small number of popular blogs, coordinated by a central management team, and which can deliver a larger audience to advertisers.
458
47) It is estimated that by 2022, the size of the B2B market will reach:
D) 7.3 trillion.
459
47) Priceline is an example of a(n):
D) Name Your Own Price auction.
460
47) The Data Encryption Standard uses a(n) \_\_\_\_\_\_\_\_-bit key.
B) 56
461
48) ________ are a kind of middleware software that provides the glue connecting traditional corporate systems to the customer as well as all the functionality needed to conduct e-commerce.
A) Application servers
462
48) ________ was sued by the Justice Department for violating antitrust laws in connection with e-books.
C) Apple
463
48) A(n) ________ supply chain is one in which the labor conditions in low-wage, underdeveloped producer countries are visible and morally acceptable to ultimate consumers in more developed industrial societies.
D) accountable
464
48) All of the following are challenges for catalog merchants except:
D) building sophisticated order entry and fulfillment systems.
465
48) All of the following statements about public key cryptography are true except:
B) public key cryptography ensures authentication of the sender.
466
48) Discuss the Authors Guild's lawsuit against Google with respect to Google's Library Project and explain why the courts ultimately ruled in Google's favor.
Answer: Google's Library Project involved an effort by Google to scan all the books in several university and public libraries, and then make snippets and parts of the book available online without receiving permission from the publishers or paying royalties. Google said it would never show a full page, just relevant portions of a page in response to searches. In 2005, the Authors Guild and the large book publishers filed a lawsuit seeking to prevent Google from implementing the Library Project. Google argued that the Library Project constituted fair use of publishers' copyrighted works because it only published snippets. Moreover, Google claimed that it was simply helping libraries do what they are intended to do, namely, lend books. Library lending is considered a fair use following an agreement in the late 1930s with publishers, and such lending was codified into the Copyright Act of 1976. Google claimed that helping libraries make books more available to the public was in the broader public interest and extended existing rights of libraries to encourage book availability. In 2013, a federal court finally found in favor of Google without reservation by ruling that Google's scanning and making snippets of text available to the public was "fair use" under U.S. copyright law. The judge believed the project had a broad public purpose of making it easier for students, researchers, teachers, and the general public to find books, while also preserving consideration for author and publisher rights. The Google project was "transformative" in the court's view, giving books a new character and purpose, making it easier to discover old books, and leading to increased sales. The Supreme Court ruled in 2016 that Google's Library Project was fair use, and the matter is settled from a legal perspective. In the meantime, the project itself has stalled, and efforts to scan so-called orphan books in libraries where the copyright holder could not be identified have ended. Google now appears less than enthusiastic about pursuing the project, in part, analysts believe, because the project offered no hope of ever making a return on the investment and created a rift with the author and publishing community upon which it depends for content against which to show ads.
467
48) How do the Interactive Advertising Bureau?s new standard ad unit portfolio and guidelines released in July 2017 differ from its earlier guidelines for display ads.
Answer: For many years, IAB categorized display ads based on fixed pixel sizes, such as a medium rectangle (300 x 250 pixels), large rectangle (336 x 280 pixels), leaderboard (728 x 90 pixels), and half-page (300 x 600 pixels) (the top performing sizes, according to Google). However, in July 2017, the IAB released the final version of its new standard ad unit portfolio, based on aspect ratio and size range, rather than fixed pixel size, allowing for flexible sizing and delivery of a more consistent ad experience across multiple screen sizes and devices. Ad types are now identified as horizontal (typically placed at the top or bottom of the screen), vertical (typically placed on the right or left edge of the screen), tiles (typically placed in a grid layout), or full page (which cover the full screen of the device in either a portrait or landscape layout). The guidelines are based on HTML5 technology and cover all types of display ads, as well as new ad experiences such as augmented reality, virtual reality, 360-degree ads, and emoji ads, among others. Another important aspect of the new guidelines is their incorporation of LEAN principles. LEAN is an acronym that stands for lightweight, encrypted, AdChoices-supported, and non-invasive advertising. In an attempt to enhance consumer acceptance of advertising, the standard contains guidelines with respect to animations, ad expansions, close buttons, user initiation, interstitials (ads that appear before, in-between, or after the primary content), video and auto-play video and audio. LEAN also includes a list of disruptive ad experiences that are no longer permitted, such as pop-up ads (ads that overlay or cover the content after the user has started viewing the content), auto expansion (ads that expand without user initiation), auto-play video with audio, and flashing animations.
468
48) Promoted Video is the source of over 50% of Twitter?s ad revenue.
Answer: TRUE
469
48) Which of the following is not considered a portal?
C) Amazon
470
48) Which of the following is not one of the top factors a business should consider when planning an Internet auction?
C) location of auction
471
48) Which of the following statements about the Web is not true?
A) The Web is the technology upon which the Internet is based.
472
49) ________ production is a set of production methods that focuses on the elimination of waste throughout the customer value chain.
C) Lean
473
49) All of the following are features of WPA3 except:
B) it enables the creation of a VPN.
474
49) Discuss the changes that Google has made to its search algorithms to improve search results and user experience.
Answer: Google makes frequent changes to their search algorithms to improve search results and user experience. Google, for instance, reportedly makes over 600 search engine changes in a year. Most are small unannounced tweaks. Recent major changes have included Panda, Penguin, Hummingbird, Knowledge Graph, an unnamed algorithm that has been nicknamed Mobilegeddon, and Possum. Panda was introduced in 2011 to weed out low quality sites from search results. Those sites with thin content, duplicate content, content copied from elsewhere on the Web, and content that did not attract high-quality hits from other sources were systematically pushed down in the search results. Google introduced Penguin in 2012 to punish websites and their SEO marketing firms who were manipulating links to their site in order to improve their rankings. The Google search engine rewards sites that have links from many other sites. What some marketers discovered is that Google could not tell the quality of these back links, and they began to manufacture links by putting their clients onto list sites, creating multiple blogs to link to their clients' site, and paying others to link to their clients' sites. Penguin evaluates the quality of links to a site and pushes down in the rankings those sites that have poor-quality back links. Google introduced Hummingbird in September 2013. Rather than evaluate each word separately in a search, Google's semantically informed Hummingbird will try to evaluate an entire sentence.Semantic search more closely follows conversational search, or search as you would ordinarily speak it to another human being. Google introduced Knowledge Graph in 2012 as an effort to anticipate what you might want to know more about as you search on a topic or answer questions you might not thought of asking. Since 2013, results of Knowledge Graph appear on the right of the screen and contain more information about the topic or person you are searching on. Not all search terms have a Knowledge Graph result. Google displays information based on what other users have searched for in the past, as well as its database on over 500 million objects (people, places, and things), and some 18 billion facts. In 2015, Google released a new algorithm update (nicknamed Mobilegeddon) that made the "mobile-friendliness" of websites a much stronger ranking factor for mobile searches. Websites that are not optimized for mobile now have a much lower ranking in mobile search results. Starting in November 2015, Google also began lowering the search rank of mobile websites that display an ad that obscures the screen and asks users whether they would like to install the site's mobile app, because such ads are less mobile-friendly. In 2016, Google introduced Possum, an algorithm update that varies search results based on the user's location; so, for example, the closer a user is to a business's address, the more likely it is to appear among the local results. In 2017, Google released the Fred algorithm, which targets websites that violate Google's guidelines, primarily blogs with low-value, ad-centered content. Throughout 2018, Google also released several unnamed core algorithm updates, about which it did not provide many details.
475
49) How does Apple?s Intelligent Tracking Prevention (ITP) technology work?
Answer: ITP uses machine learning techniques in the browser (not on a central server) to identify which cookies represent a tracking threat and prevents them from communicating with their servers, disarming them. Safari notifies the user when a cookie attempts to connect to a third-party server, asking users if they want to allow it. If tracking cookies make three attempts to communicate with external servers in 24 hours despite user choices, they are eliminated from the browser.
476
49) In 2017, book publishing revenues:
C) experienced a sizeable decrease.
477
49) In 2018, there were more than ________ Internet hosts.
D) 1 billion
478
49) Pinterest's users are predominantly women.
Answer: TRUE
479
49) Portals primarily generate revenue in all of the following ways except:
C) sales of goods.
480
49) The profit a seller makes at auction is a function of all of the following except:
D) watch lists.
481
49) The term supply-push refers to:
A) making products prior to orders being received based on estimated demand.
482
49) Which of the following is a standard that makes it possible to access data from any application regardless of the database and operating system software being used?
B) ODBC
483
5) ________ is the ability to ensure that an e-commerce site continues to function as intended.
C) Availability
484
5) A website designed around a community of members who self-identify with a demographic or geographic category is classified as a(n):
B) affinity community.
485
5) All of the following are online communications used to support the evaluation of alternatives stages of the consumer decision process except:
D) targeted banner ads.
486
5) All of the following were factors that precipitated the growth of MOTO except:
B) the growth of the cellular phone industry.
487
5) Automated order entry systems:
A) show goods from a single seller.
488
5) By 2020, spending on social marketing will triple the amount spent on mobile marketing.
Answer: FALSE
489
5) E-commerce and e-business systems blur together at the business firm boundary, where internal business systems link up with suppliers or customers.
Answer: TRUE
490
5) What are the phases, activities, and milestones for developing an e-commerce presence for a typical start-up website over a one-year period?
Answer: A one-year e-commerce presence timeline might include the following phases, activities, and milestones. Phase 1/Planning, in which an e-commerce presence would be envisaged and personnel developed, with a milestone of creating a mission statement; Phase 2/Website development, in which content would be acquired, a site design developed, and hosting arranged for the site, with a milestone of creating a website plan; Phase 3/Web implementation, in which keywords and metatags would be developed, search engine optimization strategies deployed, and potential sponsors identified, with a creation of a functional website as the milestone; Phase 4/Social media plan, in which appropriate social platforms and content for products and services would be identified, with the creation of a social media plan as the milestone; Phase 5/Social media implementation, in which a Facebook, Twitter, Pinterest and other social media presence would be developed, with a functioning social media presence as the milestone; and Phase 6/Mobile plan, in which a mobile plan would be developed with options for porting the website to the mobile platform considered, and with a mobile media plan as the relevant milestone. Phase 6/Mobile plan might also be the first phase for a firm that wanted to employ mobile first design.
491
5) Which ethical principle states that, when confronted with an ethical dilemma, individuals should take the action that achieves the greater value for all of society?
C) the Collective Utilitarian principle
492
5) Which of the following are Amazon's primary value propositions?
B) selection and convenience
493
5) Which of the following statements about Millennials is not true?
B) Millennials overwhelmingly prefer e-books to printed books.
494
50) ________ is defined as the use of digital technologies to permit organizations to work together to design, develop, build, and manage products through their life cycles.
D) Collaborative commerce
495
50) ________ is the tendency to gravitate toward, and bid for, auction listings with one or more existing bids.
C) Herd behavior
496
50) All of the following are examples of the challenges that traditional manufacturers experience when using the Internet to sell directly to the consumer except:
B) high cost structures.
497
50) All of the following can be considered a precursor to e-commerce except:
A) the development of the smartphone.
498
50) All of the following statements about PKI are true except:
C) PKI guarantees that the verifying computer of the merchant is secure.
499
50) In 2018, Millennials made up almost 65% of Snapchat's monthly active U.S. users.
Answer: FALSE
500
50) The basic value proposition of community providers is:
A) they offer a fast, convenient one-stop site where users can focus on their most important concerns and interests.
