Aircraft systems
Classified in Technology
Written at on 
English with a size of 104.39 KB.
E-Commerce 2014, 10e (Laudon/Traver)
Chapter 1 The Revolution Continues
1) Retail e-commerce is expected to continue growing at double-digit growth rates in 2013-2014.
Answer TRUE
2) Over 50% of the world's population is now online.
Answer FALSE
3) E-business involves commercial transactions involving an exchange of value across organizational boundaries.
Answer FALSE
4) Ubiquity decreases cognitive energy outlays.
Answer TRUE
5) The fact that e-commerce is conducted on the basis of universal standards decreases market entry costs for merchants.
Answer TRUE
6) Price transparency refers to the ability of merchants to segment the market into groups willing to pay different prices.
Answer FALSE
7) Cost transparency refers to the ability of consumers to discover the actual costs merchants pay for products.
Answer TRUE
8) Customization involves changing a delivered product or service based upon a consumer's preferences or past purchasing behavior.
Answer TRUE
9) Web 2.0 describes a set of applications and technologies that encourage and rely on user- and consumer-generated interactivity and content.
Answer TRUE
10) Social e-commerce is the largest type of e-commerce.
Answer FALSE
11) E-commerce as we know it today would not exist without the Internet.
Answer TRUE
12) The emergence of entrepreneurial social and local firms is one of the hallmarks of the Consolidation period of e-commerce.
Answer FALSE
13) The Reinvention period of e-commerce is as much a sociological phenomenon as it is a technological or business phenomenon.
Answer TRUE
14) As economists had envisioned, prices of products sold on the Web are consistently lower than elsewhere, and the online marketplace is characterized by decreasing price dispersion.
Answer FALSE
15) The future of e-commerce will include an increase in regulatory activity both in the United States and worldwide.
Answer TRUE
16) Which of the following statements about e-commerce in the United States in 2013 is not true?
A) Mobile e-commerce generates more revenue than social e-commerce.
B) Approximately 155 million Americans are expected to make at least one purchase online.
C) The amount of data that the average American consumes continues to increase.
D) Growth rates for B2C e-commerce are higher in the United States than in Europe.
Answer D
17) In 2013, roughly ________ million people in the United States access the Internet via tablets.
A) 23
B) 43
C) 123
D) 143
Answer C
18) Which of the following is not a major business trend in e-commerce in 2013-2014?
A) Social e-commerce continues to grow.
B) Small businesses and entrepreneurs are hampered by the rising cost of market entry caused by increased presence of industry giants.
C) Facebook grows to more than 1.1 billion users.
D) Social and mobile advertising begins to challenge search engine marketing.
Answer B
19) All of the following are major technology trends in e-commerce in 2013-2014 except
A) cloud computing enables the creation of "big data."
B) apps create a new platform for online marketing and commerce.
C) the mobile computing platform begins to rival the PC platform.
D) real-time advertising becomes a reality with gains in computing power and speeds.
Answer A
20) E-commerce can be defined as
A) the use of the Internet, the Web, and mobile apps to transact business.
B) the use of any Internet technologies in a firm's daily activities.
C) the digital enablement of transactions and processes within an organization.
D) any digitally enabled transactions among individuals and organizations.
Answer A
21) Which of the following is not a unique feature of e-commerce technology?
A) interactivity
B) social technology
C) global broadcasting
D) richness
Answer C
22) The integration of video, audio, and text marketing messages into a single marketing message and consuming experience is an example of which of the following?
A) richness
B) ubiquity
C) information density
D) personalization
Answer A
23) Which of the following qualities is least likely to decrease a consumer's search costs?
A) ubiquity
B) global reach
C) information density
D) richness
Answer D
Analytical thinking
24) Which of the following is the best definition of transaction cost?
A) the cost of changing prices
B) the cost of participating in a market
C) the cost of finding suitable products
D) the cost merchants pay to bring their goods to market
Answer B
25) In 2013, the world's online population was roughly
A) 250 million.
B) 2.5 billion.
C) 25 billion.
D) 250 billion.
Answer B
26) Which of the following is not one of the current major social trends in e-commerce in 2013-2014?
A) Concerns about online privacy decline.
B) Controversy over content regulation and controls continues.
C) E-books gain wide acceptance.
D) Internet security continues to decline.
Answer A
27) Network externalities are related to which of the following features of e-commerce technology?
A) richness
B) interactivity
C) universal standards
D) information density
Answer C
28) E-commerce technologies have changed the traditional tradeoff between the richness and reach of a marketing message. Prior to the development of the Web
A) marketing messages had little richness.
B) the smaller the audience reached, the less rich the message.
C) the larger the audience reached, the less rich the message.
D) richness equaled reach.
Answer C
29) Which of the following is not an example of a social network?
A) Wikipedia
B) Twitter
C) Pinterest
D) Tumblr
Answer A
30) All of the following are major business trends in e-commerce in 2013-2014 except for
A) the growth of a new app-based online economy.
B) the expansion of the localization of e-commerce.
C) the emergence of a new social e-commerce platform.
D) the eclipse of search engine marketing by the mobile advertising platform.
Answer D
31) 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?
A) consumer-to-consumer (C2C)
B) social e-commerce
C) mobile e-commerce
D) business-to-business (B2B)
Answer C
32) Which of the following is a mobile photo-sharing application?
A) WordPress
B) Tumblr
C) Wikipedia
D) Instagram
Answer D
33) Which of the following describes the basic Web policy of large firms during the Invention period?
A) Integrate social networking and mobile platform with Web site marketing.
B) Use the Web to connect with suppliers.
C) Include additional channels to market products.
D) Maintain a basic, static Web site.
Answer D
Analytical thinking
34) The size of the B2B market in 2013 is estimated to be around
A) $470 million.
B) $4.7 billion.
C) $470 billion.
D) $4.7 trillion.
Answer D
35) Interactivity in the context of e-commerce can be described as the
A) ability to physically touch and manipulate a product.
B) complexity and content of a message.
C) ability of consumers to create and distribute content.
D) enabling of two-way communication between consumer and merchant.
Answer D
36) Which of the following statements about the Web is not true?
A) It is the technology upon which the Internet is based.
B) It was developed in the early 1990s.
C) It provides access to pages written in HTML.
D) It provides access to Web pages that incorporate graphics, sound, and multimedia.
Answer A
37) In 2013, there were an estimated ________ Internet hosts.
A) 1 million
B) 10 million
C) 100 million
D) 1 billion
Answer D
38) All of the following can be considered a precursor to e-commerce except
A) DNS.
B) Baxter Healthcare's remote order entry system.
C) the French Minitel.
D) Electronic Data Interchange.
Answer A
39) In the B2C arena, ________ was the first truly large-scale digitally enabled transaction system.
A) Telex
B) the Baxter Healthcare system
C) the French Minitel
D) EDI
Answer C
40) E-commerce can be said to have begun in
A) 1983.
B) 1985.
C) 1995.
D) 2001.
Answer C
41) Business-to-consumer (B2C) e-commerce in the United States
A) has grown at double-digit rates between 2010 and 2013.
B) is expected to account for about $40 billion in total sales in 2013.
C) constitutes over 30% of the overall U.S. Retail market.
D) is growing more slowly as it confronts its own fundamental limitations.
Answer A
42) Which of the following is not true about the use of apps?
A) The average U.S. Consumer spends about 2 hours a day using apps.
B) Users spend more time using apps than they do using desktops or mobile Web sites.
C) Apps are easier to control and monetize than Web sites.
D) Google can use Web crawlers to index apps.
Answer D
43) All of the following are issues facing Pinterest except
A) copyright infringement.
B) inability to attract users.
C) competition.
D) spam.
Answer B
44) Which of the following is a characteristic of e-commerce during the Invention period?
A) mobile technology
B) earnings and profit emphasis
C) distintermediation
D) extensive government surveillance
Answer C
45) All of the following are characteristics of Web 2.0 sites and applications except
A) they are inherently highly interactive.
B) they rely on mobile access to the Web.
C) they tend to rely on user-generated content.
D) they present marketers with extraordinary opportunities for targeted marketing and advertising.
Answer B
46) Which of the following is not a characteristic of a perfect competitive market?
A) Price, cost, and quality information are equally distributed.
B) A nearly infinite set of suppliers compete against one another.
C) Customers have access to all relevant information worldwide.
D) It is highly regulated.
Answer D
Analytical thinking
47) All of the following were visions of e-commerce expressed during the early years of e-commerce except
A) a nearly perfect competitive market.
B) friction-free commerce.
C) disintermediation.
D) fast follower advantage.
Answer D
Analytical thinking
48) Unfair competitive advantages occur when
A) one competitor has an advantage others cannot purchase.
B) market middlemen are displaced.
C) information is equally distributed and transaction costs are low.
D) firms are able to gather monopoly profits.
Answer A
49) The early years of e-commerce were driven by all of the following factors except
A) an emphasis on exploiting traditional distribution channels.
B) a huge infusion of venture capital funds.
C) an emphasis on quickly achieving a very high market visibility.
D) visions of profiting from new technology.
Answer A
Analytical thinking
50) The early years of e-commerce are considered
A) the most promising time in history for the successful implementation of first mover advantages.
B) an economist's dream come true, where for a brief time consumers had access to all relevant market information and transaction costs plummeted.
C) a stunning technological success as the Internet and the Web increased from a few thousand to billions of e-commerce transactions per year.
D) a dramatic business success as 85% of dot-coms formed since 1995 became flourishing businesses.
Answer C
Analytical thinking
51) Which of the following best describes the early years of e-commerce?
A) They were a technological success but a mixed business success.
B) They were a technological success but a business failure.
C) They were a technological failure but a business success.
D) They were a mixed technological and business success.
Answer A
Analytical thinking
52) The early years of e-commerce were driven by all of the following factors except
A) an emphasis on exploiting traditional distribution channels.
B) a huge infusion of venture capital funds.
C) an emphasis on quickly achieving a very high market visibility.
D) visions of profiting from new technology.
Answer A
Analytical thinking
53) Which of the following is a characteristic of the Reinvention phase of e-commerce?
A) massive proliferation of dot-com start-ups
B) widespread adoption of broadband networks
C) rapid growth of search engine advertising
D) widespread adoption of consumer mobile devices
Answer D
Analytical thinking
54) Which of the following is a characteristic of the Consolidation phase of e-commerce?
A) predominance of pure online strategies
B) emphasis on revenue growth versus profits
C) first mover advantages
D) shift to a business-driven approach
Answer D
Analytical thinking
55) Which of the following is not true regarding e-commerce today?
A) Economists' visions of a friction-free market have not been realized.
B) Consumers are less price-sensitive than expected.
C) There remains considerable persistent price dispersion.
D) The market middlemen disappeared.
Answer D
Analytical thinking
56) Which of the following statements is not true?
A) Information asymmetries are continually being introduced by merchants and marketers.
B) Intermediaries have not disappeared.
C) Overall transaction costs have dropped dramatically.
D) Brands remain very important in e-commerce.
Answer C
Analytical thinking
57) Which of the following types of merchants has the highest share of retail online sales?
A) virtual (Web only)
B) catalog/call center
C) retail chain
D) consumer brand manufacturer
Answer A
58) Retail chains account for around ________ % of online retail firm revenues.
A) 15
B) 35
C) 75
D) 95
Answer B
59) One of the predictions for the future of e-commerce is that
A) overall revenues from e-commerce will grow at an annualized rate of about 14% a year through 2017.
B) the first movers from the early years of e-commerce will retain or increase their market share as they continue to exploit economies of scale and switching costs.
C) prices will lower enough to encourage more consumers to engage in online shopping.
D) the number of online shoppers will continue to grow at double-digit rates.
Answer A
60) Which of the following is the top-selling online retail category?
A) apparel/accessories
B) computers/electronics
C) mass merchant/department stores
D) office supplies
Answer B
61) Which of the following is the top online retailer ranked by online sales?
A) Apple
B) Amazon
C) Staples
D) Walmart
Answer B
62) Above all, e-commerce is a ________ phenomenon.
A) technology-driven
B) finance-driven
C) sociological
D) government-driven
Answer A
63) Which business application is associated with the technological development of local area networks and client/server computing?
A) transaction automation (e.G., payroll)
B) desktop automation (e.G., word processing)
C) industrial system automation (e.G., supply chain management)
D) workgroup automation (e.G., document sharing)
Answer D
64) Which of the following is one of the three primary societal issues related to e-commerce?
A) liability
B) anonymity
C) equity
D) individual privacy
Answer D
65) Which of the following statements is not true?
A) No one academic perspective dominates research about e-commerce.
B) Information systems researchers take a purely technical approach to e-commerce.
C) There are two primary approaches to e-commerce behavioral and technical.
D) Management scientists are interested in e-commerce as an opportunity to study how business firms can exploit the Internet to achieve more efficient business operations.
Answer B
Analytical thinking
66) 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 ________ costs.
Answer menu
67) ________ refers to any disparity in relevant market information among parties in a transaction.
Answer Information asymmetry
Reflective thinking
68) A(n) ________ extends the marketplace beyond traditional boundaries.
Answer marketspace
69) The total number of users or customers an e-commerce business can obtain is a measure of its ________.
Answer reach
70) ________ refers to the complexity and content of a message.
Answer Richness
71) The targeting of marketing messages to specific individuals by adjusting the message to a person's name, interests, and past purchases is called ________.
Answer personalization
72) The ________ was the original "killer app" that made the Internet commercially interesting and extraordinarily serviceable.
Answer World Wide Web, Web
73) E-commerce is available just about everywhere and anytime. This is known as ________.
Answer ubiquity
74) ________ refers to the displacement of market middlemen.
Answer Disintermediation
75) In ________ commerce, information is equally distributed, transaction costs are low, prices can be dynamically adjusted to reflect actual demand, intermediaries decline, and unfair competitive advantages are eliminated.
Answer friction-free
76) A(n) ________ occurs when everyone in a group receives value because all participants use the same tool or product.
Answer network effect
77) A firm that is first to market in a particular area and that moves quickly to gather market share is referred to as a(n) ________.
Answer first mover
78) The first evolutionary phase of e-commerce, from 1995 to 2000, characterized as technology-driven and ungoverned, was a period of ________.
Answer innovation, invention
79) An economist is most likely to be interested in a(n) ________, rather than technical, approach to studying e-commerce.
Answer behavioral
80) ________ is the world's largest online consumer-generated video posting site.
Answer YouTube, YouTube.Com
Chapter 2 E-commerce Business Models and Concepts
1) A value proposition defines how a company's product or service fulfills the needs of a customer.
Answer TRUE
2) The terms revenue model and financial model can be used interchangeably.
Answer TRUE
3) In order to be considered successful, a firm must produce returns greater than alternative investments.
Answer TRUE
4) An asymmetry exists whenever one participant in a market has more resources than other participants.
Answer TRUE
5) Most first movers have the complementary resources needed to sustain their advantage.
Answer FALSE
6) All firms need an organization to efficiently implement their business plans and strategies.
Answer TRUE
7) Visitors to specialized niche vortals tend to spend less money than the average visitor to a horizontal portal.
Answer FALSE
8) Barriers to entry into the e-tail marketplace are high.
Answer FALSE
9) The JOBS Act allows a start-up company to use crowdfunding to raise up to $10 million within a one-year period.
Answer FALSE
10) Scale economies are efficiencies that result from flattening the hierarchy of an organization.
Answer FALSE
11) Service providers primarily use the advertising revenue model.
Answer FALSE
12) The Internet's universal standards decrease the cost of industry and firm operations.
Answer TRUE
13) Interactivity that enables product customization alters industry structure by reducing the threat of substitutes.
Answer TRUE
14) Interfirm rivalry is one area of the business environment where e-commerce technologies have had an impact on most industries.
Answer TRUE
15) Social technologies change industry structure by shifting programming and editorial decisions to consumers.
Answer TRUE
16) ________ and ________ are typically the most easily identifiable aspects of a company's business model.
A) Market strategy; market opportunity
B) Value proposition; revenue model
C) Value proposition; competitive environment
D) Revenue model; market strategy
Answer B
17) All of the following are key elements of a business model except
A) competitive environment.
B) organizational development.
C) strategy.
D) market strategy.
Answer C
18) Which element of the business model addresses the question of why a customer should buy from the firm?
A) revenue model
B) competitive advantage
C) market strategy
D) value proposition
Answer D
19) Which element of the business model examines who else occupies the firm's intended marketspace?
A) value proposition
B) competitive environment
C) competitive advantage
D) market strategy
Answer B
20) Which of the following are Amazon's primary value propositions?
A) personalization and customization
B) selection and convenience
C) reduction of price discovery cost
D) management of product delivery
Answer B
Analytical thinking
21) Your solar-panel manufacturing firm has developed a unique and patented process for creating high-efficiency solar panels at a fraction of current costs. This will enable your firm to adopt a strategy of
A) cost competition.
B) scope.
C) scale.
D) focus.
Answer A
Analytical thinking
22) A firm's ________ describes how a firm will produce a superior return on invested capital.
A) value proposition
B) revenue model
C) market strategy
D) competitive advantage
Answer B
23) Which of the following is an example of the subscription revenue model?
A) Ancestry.Com
B) eBay
C) Amazon
D) Twitter
Answer A
24) Stickiness is an important attribute for which revenue model?
A) advertising revenue model
B) subscription revenue model
C) transaction fee revenue model
D) sales revenue model
Answer A
25) Which of the following companies utilizes a transaction fee revenue model?
A) WSJ.Com
B) E*Trade
C) Twitter
D) Sears.Com
Answer B
26) Which of the following is an example of the affiliate revenue model?
A) Yahoo
B) eBay
C) Gap.Com
D) MyPoints
Answer D
27) Assume you are analyzing the market opportunity of a distance learning company, Learnmore.Com, that creates education courses delivered over the Internet for the Fortune 1000 corporate market. Assume that the overall size of the distance learning market is $25 billion. The overall market can be broken down into three major market segments Corporate, College, and Elementary/High School, each of which accounts for a third of the market. Within the Corporate market, there are two market niches Fortune 1000, which accounts for 60%(15 million) of the market, and all others, which together account for 40%(10million) of the market. What is Learnmore.Com's realistic market opportunity, approximately?
A) $5 billion
B) $6.6 billion
C) $165 billion
D) $25 billion
Answer A
Analytical thinking
28) Which of the following factors is not a significant influence on a company's competitive environment?
A) how many competitors are active
B) what the market share of each competitor is
C) the availability of supportive organizational structures
D) how competitors price their products
Answer C
29) Which of the following would be considered an indirect competitor of American Airlines?
A) JetBlue
B) Zipcar
C) Orbitz
D) British Airways
Answer B
Analytical thinking
30) The existence of a large number of competitors in any one market segment may indicate
A) an untapped market niche.
B) the market is saturated.
C) no one firm has differentiated itself within that market.
D) a market that has already been tried without success.
Answer B
31) All of the following can be considered a direct or indirect competitor of Amazon.Com except
A) eBay.
B) Apple's iTunes Store.
C) Barnesandnoble.Com.
D) Starbucks.
Answer D
Analytical thinking
32) 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.
B) one firm develops an advantage based on a factor of production that other firms cannot purchase.
C) one participant in the market has more resources than the others.
D) competition is at a minimum, as each niche market within an industry is served by the company with the greatest competitive advantage.
Answer A
33) The business model of e-distributors is quite similar to that of
A) e-tailers.
B) transaction brokers.
C) exchanges.
D) service providers.
Answer A
Analytical thinking
34) All of the following use an advertising revenue model except
A) Facebook.
B) Yahoo.
C) Google.
D) Amazon.
Answer D
35) Organizations that provide not only funding but also an array of services to start-up companies are referred to as
A) angel investors.
B) crowdfunders.
C) incubators.
D) venture capital investors.
Answer C
36) Which of the following is not considered a portal?
A) Yahoo
B) MSN
C) WSJ.Com
D) AOL
Answer C
37) Horizontal or general portals primarily generate revenue in all of the following ways except
A) charging advertisers for ad placement.
B) collecting transaction fees.
C) sales of goods.
D) charging subscription fees.
Answer C
38) A business document that specifically details how you plan on selling your product and find new customers is called a
A) sales analysis.
B) business plan.
C) competitive strategy.
D) market strategy.
Answer D
39) Which of the following is not a community provider?
A) LinkedIn
B) Facebook
C) Priceline
D) Pinterest
Answer C
40) Which of the following is not a variation of the e-tailer business model?
A) bricks-and-clicks
B) virtual merchant
C) market creator
D) manufacturer-direct
Answer C
41) An example of a company using the content provider model is
A) Priceline.
B) Rhapsody.Com.
C) Dell.
D) eBay.
Answer B
42) Which of the following is not an example of the bricks-and-clicks e-tailing business model?
A) Walmart.Com
B) JCPenney.Com
C) Dell.Com
D) Staples.Com
Answer C
43) The overall retail market in the United States in 2013 was estimated at about
A) $39 trillion.
B) $3.9 trillion.
C) $390 billion.
D) $39 billion.
Answer B
44) In general, the key to becoming a successful content provider is to
A) own the content being provided.
B) own the technology by which content is created, presented, and distributed.
C) provide online content for free.
D) provide other services as well as online content.
Answer A
45) Which of the following was not able to successfully implement a freemium business model?
A) Pandora
B) MailChimp
C) Evernote
D) Ning
Answer D
46) All of the following may lead to a competitive advantage except
A) less expensive suppliers.
B) better employees.
C) fewer products.
D) superior products.
Answer C
47) 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.
B) they offer consumers valuable, convenient, time-saving, and low cost alternatives to traditional service providers.
C) they create a digital electronic environment for buyers and sellers to meet, agree on a price, and transact.
D) they increase customers' productivity by helping them get things done faster and more cheaply.
Answer A
48) All of the following are examples of business-to-business (B2B) business models except
A) e-distributors.
B) e-procurement.
C) private industrial networks.
D) e-tailers.
Answer D
49) What is the primary revenue model for an e-distributor?
A) sales
B) transaction fee
C) advertising
D) subscription
Answer A
50) Grainger.Com is an example of which of the following business models?
A) B2B service provider
B) exchange
C) e-distributor
D) industry consortia
Answer C
51) ________ create and sell access to digital electronic markets.
A) E-distributors
B) Portals
C) E-procurement firms
D) Market creators
Answer C
52) One of the competitive advantages of a B2B service provider is that it can spread the cost of an expensive software system over many users, achieving efficiencies referred to as
A) application efficiencies.
B) network efficiencies.
C) scale economies.
D) network externalities.
Answer C
53) Over the past decade, the number of exchanges has
A) greatly increased.
B) diminished sharply.
C) stayed about the same.
D) increased slowly but steadily.
Answer B
54) Exostar is an example of a(n)
A) private industrial network.
B) exchange.
C) industry consortium.
D) e-distributor.
Answer C
55) Which of the following is an unfair competitive advantage?
A) brand name
B) access to global markets
C) lower product prices
D) superior technology
Answer A
56) The element of a business model that is responsible for making the model work is
A) the management team.
B) the organizational structure.
C) the firm's key competitive advantage.
D) the market strategy.
Answer A
57) eBay uses all of the following business models except
A) B2C market creator.
B) C2C market creator.
C) content provider.
D) e-commerce infrastructure provider.
Answer C
58) Your startup firm has developed Web-based note-taking software that allows participants to create and share virtual notes attached to existing Web pages. You anticipate marketing your online application to Web development and design companies. Which of the following revenue models is the most appropriate for your new company?
A) advertising
B) transaction fee
C) affiliate
D) subscription
Answer D
Analytical thinking
59) Which type of investor typically becomes interested in a start-up company after it has begun generating revenue?
A) incubators
B) angel investors
C) crowdfunders
D) venture capital investors
Answer D
60) Which of the following features of e-commerce technology changes industry structure by lowering barriers to entry but greatly expands the market at the same time?
A) global reach
B) richness
C) interactivity
D) personalization
Answer A
61) All of the following are business models employed by the music industry except
A) subscription.
B) peer-to-peer streaming.
C) download-and-own.
D) cloud streaming.
Answer B
62) Which of the following is not a primary activity in a firm value chain?
A) inbound logistics
B) finance/accounting
C) operations
D) sales and marketing
Answer B
63) A ________ coordinates a firm's suppliers, distributors, and delivery firms with its own production needs using an Internet-based supply chain management system.
A) value chain
B) value system
C) value web
D) business strategy
Answer C
64) If you wished to leverage the ubiquitous nature of the Web to differentiate your product, you would
A) enable individual customization of the product by consumers.
B) implement a strategy of commoditization.
C) adopt a strategy of cost competition.
D) develop a scope strategy to compete within a narrower market segment.
Answer A
Analytical thinking
65) A strategy designed to compete within a narrow market or product segment is called a ________ strategy.
A) scope
B) differentiation
C) cost
D) focus
Answer D
66) A(n) ________ is a set of planned activities designed to result in a profit in the marketplace.
Answer business model
67) In the ________ revenue model, a Web site that offers users content or services charges a fee for access to some or all of its offerings.
Answer subscription
68) The strategy of customer intimacy focuses on developing strong ties with customers in order to increase ________ costs.
Answer switching
69) A(n) ________ is a company that sells products and services that are very similar and in the same market segment.
Answer direct competitor
70) The use by a company of its competitive advantage to achieve more advantage in surrounding markets is known as ________.
Answer leverage
71) A wealthy individual who invests personal funds in a start-up in exchange for an equity stock in the business is referred to as a(n) ________.
Answer angel investor
72) The financial services, travel services, and job placement services industries use the ________ business model.
Answer transaction broker
73) In the ________ business model, a Web-based business builds a digital environment in which buyers and sellers can meet, display products, search for products, and establish prices.
Answer market creator
74) Personal funds derived from savings, credit card advances, home equity loans, and loans from family and friends are examples of ________ that an entrepreneur may use to get a business off the ground.
Answer seed capital
75) A(n) ________ marketplace supplies products and services of interest to particular industries.
Answer vertical
76) ________ is a social network based on 140-character messages.
Answer Twitter
77) An industry ________ is an effort to understand and describe the nature of competition in an industry, the nature of substitute products, the barriers to entry, and the relative strength of consumers and suppliers.
Answer structural analysis
78) A(n) ________ is the set of activities performed in an industry or in a firm that transforms raw inputs into final products and services.
Answer value chain
79) ________ occurs when there are no differences among products or services and the only basis for choosing a particular product or service is price.
Answer Commoditization
80) A(n) ________ strategyis a strategy to compete in all markets around the globe rather than merely in local, regional, or national markets.
Answer scope
Chapter 3 E-commerce Infrastructure The Internet, Web, and Mobile Platform
1) Packet switching requires a dedicated circuit.
Answer FALSE
2) Transmission Control Protocol is the protocol that provides the Internet addressing scheme.
Answer FALSE
3) IPv6 provides for 64-bit IP addresses.
Answer FALSE
4) Tablet computers rely on the Internet cloud for processing and storage.
Answer TRUE
5) Google Apps is an example of cloud computing.
Answer TRUE
6) HTML is the Internet protocol used to transfer Web pages.
Answer FALSE
7) The major hubs in the United States where the Internet backbone intersects with regional and local networks are now commonly referred to as Internet Exchange Points (IXPs).
Answer TRUE
8) T1 and T3 refer to international telephone standards for digital communication.
Answer TRUE
9) One of Internet2's projects is a nationwide 100 gigabit-per-second network.
Answer TRUE
10) WLAN-based Internet access derives from the same technological foundations as telephone-based wireless Internet access.
Answer FALSE
Use of IT
11) Every device connecting to the Internet must have a unique address.
Answer TRUE
12) XML is used to format the structure and style of a Web page.
Answer FALSE
13) FTP is a protocol used to transfer files to and from a server.
Answer TRUE
14) Internet access providers typically provide faster download speeds than upload speeds to consumers.
Answer TRUE
15) RSS is an XML format that allows users to have digital content automatically sent to their computers over the Internet.
Answer TRUE
16) During which period of time did the Institutionalization phase of Internet development take place?
A) 1950-1960
B) 1961-1974
C) 1975-1995
D) 1995-through the present
Answer C
17) Which of the following occurred during the Commercialization phase of Internet development?
A) The fundamental building blocks of the Internet were realized in actual hardware and software.
B) Large mainframes on different college campuses were linked.
C) The Domain Name System was introduced.
D) NSF privatized the operation of the Internet's backbone.
Answer D
18) During which phase of the development of the Internet was ARPANET invented?
A) Commercialization phase
B) Institutional phase
C) Innovation phase
D) Consolidation phase
Answer B
19) Which of the following is not one of the basic technological foundations of the Internet?
A) client/server computing
B) Tracert
C) TCP/IP communications protocol
D) packet-switching hardware
Answer B
20) The process of slicing digital messages into parcels, sending them along different communication paths as they become available, and reassembling them at the destination point is called
A) routing.
B) the Transmission Control Protocol.
C) packet switching.
D) the File Transfer Protocol.
Answer C
21) Which of the following is the core communications protocol for the Internet?
A) Telnet
B) FTP
C) TCP/IP
D) SSL
Answer C
22) The Transport Layer of TCP/IP is responsible for which of the following?
A) placing packets on and receiving them from the network medium
B) addressing, packaging, and routing messages
C) providing communication with the application by acknowledging and sequencing the packets to and from the application
D) providing a variety of applications with the ability to access the services of the lower layers
Answer C
23) The Internet Layer of TCP/IP is responsible for which of the following?
A) placing packets on and receiving them from the network medium
B) addressing, packaging, and routing messages
C) providing communication with the application by acknowledging and sequencing the packets to and from the application
D) providing a variety of applications with the ability to access the services of the lower layers
Answer B
24) Which of the following allows users to communicate visually and aurally in real-time, and uses high-resolution monitors to simulate the presence of participants?
A) telepresence
B) videoconferencing
C) VOIP
D) IP telephony
Answer A
25) An IPv4 address is expressed as a
A) 32-bit number that appears as a series of four separate numbers separated by semicolons.
B) 64-bit number that appears as a series of four separate numbers separated by semicolons.
C) 64-bit number that appears as a series of four separate numbers separated by periods.
D) 32-bit number that appears as a series of four separate numbers separated by periods.
Answer D
26) The natural language convention used to represent IP addresses is called the
A) uniform resource locator system.
B) Internet protocol addressing schema.
C) domain name system.
D) assigned numbers and names (ANN) system.
Answer C
27) The addresses used by browsers to identify the location of content on the Web are called
A) domain names.
B) uniform resource locators.
C) IP addresses.
D) file paths.
Answer B
28) Which of the following organizations coordinates the Internet's systems of unique identifiers, such as IP addresses and top-level domain systems?
A) IETF
B) IAB
C) W3C
D) ICANN
Answer C
29) Which of the following is not an advantage of client/server computing over centralized mainframe computing?
A) It is to expand capacity by adding servers and clients.
B) Each client added to the network increases the network's overall capacity and transmission speeds.
C) Client/server networks are less vulnerable, in part because the processing load is balanced over many powerful smaller computers rather than concentrated in a single huge computer.
D) There is less risk that a system will completely malfunction because backup or mirror servers can pick up the slack if one server goes down.
Answer B
30) ________ is a model of computing in which firms and individuals obtain computing power and software applications over the Internet, rather than purchasing and installing it on their own computers.
A) Client/server computing
B) P2P computing
C) Mobile computing
D) Cloud computing
Answer D
31) Which of the following protocols is used to send mail to a server?
A) SMTP
B) FTP
C) HTTP
D) SSL
Answer A
32) Where does TSL operate within TCP/IP?
A) between the Internet Layer and the Transport Layer
B) between the Transport Layer and the Application Layer
C) between the Network Interface Layer and the Transport Layer
D) between the Internet Layer and the Application Layer
Answer B
33) A(n) ________ is an audio presentation stored as an audio file and posted to the Web for users to download.
A) podcast
B) RSS subscription
C) weblog
D) widget
Answer A
34) ________ is one of the original Internet services and is used to transfer files from a server computer to a client computer and vice versa.
A) SMTP
B) FTP
C) HTTP
D) SSL
Answer B
35) ________ is a utility program that allows you to check the connection between your client and a TCP/IP network.
A) Ping
B) Telnet
C) Tracert
D) Finger
Answer A
36) ________ is a unique virtual laboratory for exploring future internets at scale, to promote innovations in network science and technologies.
A) Internet of Things
B) Internet2
C) ARPANET
D) GENI
Answer D
37) TCP/IP operates in which layer of Internet architecture?
A) Network Technology Substrate layer
B) Middleware Services layer
C) Transport Services and Representation Standards layer
D) Applications layer
Answer C
38) An Internet-enabled media player would run in which layer of Internet architecture?
A) Network Technology Substrate layer
B) Middleware Services layer
C) Transport Services and Representation Standards layer
D) Applications layer
Answer D
39) The layer of Internet architecture that ties the applications to the communications network and includes such services as security and authentication is called the
A) Network Technology Substrate layer.
B) Middleware Services layer.
C) Transport Services and Representation Standards layer.
D) Applications layer.
Answer B
40) The backbone of the Internet is formed by
A) Internet Exchange Points (IXPs).
B) Network Service Providers (NSPs).
C) Internet Service Providers (ISPs).
D) Metropolitan Area Exchanges (MAEs).
Answer B
41) When talking about the physical elements of the Internet, the term redundancy refers to
A) transmitting multiple copies of a single packet to safeguard against data loss.
B) the use of tiered high-speed switching computers to connect the backbone to regional and local networks.
C) delays in messages caused by the uneven flow of information through the network.
D) multiple duplicate devices and paths in a network built so that data can be rerouted if a breakdown occurs.
Answer D
42) Which source of e-commerce revenues has grown from nearly zero prior to 2007 to over $38 billion in 2013?
A) search engine advertising
B) mobile retail purchases
C) streaming video subscriptions
D) social network advertising
Answer B
43) Local area networks that operate within a single organization that leases access to the Web directly from regional and national carriers are called
A) wide area networks.
B) extranets.
C) campus area networks.
D) private exchanges.
Answer C
44) The ________ is a consortium of corporations, government agencies, and nonprofit organizations that monitors Internet policies and practices.
A) Internet Engineering Steering Group (IESG)
B) World Wide Web Consortium (W3C)
C) Internet Engineering Task Force (IETF)
D) Internet Society (ISOC)
Answer D
45) The ________ helps define the overall structure of the Internet.
A) IAB
B) IESG
C) W3C
D) ITU
Answer A
46) Which of the following is not a limitation of the current Internet?
A) the continued reliance on cables and wires for connectivity
B) limited bandwidth, which causes congestion and cannot adequately handle video and voice traffic
C) architectural restrictions, which stipulate that numerous requests for the same file must each be answered individually, slowing network performance
D) the in expanding capacity by adding servers and clients
Answer D
47) Which of the following is not true about the mobile platform?
A) Most smartphones use Microsoft's operating system, Windows Mobile.
B) The number of cell phones worldwide exceeds the number of PCs.
C) About a third of the world's cell phones are smartphones.
D) Unlike PCs, smartphones do not need fans.
Answer A
48) Which of the following statements about fiber-optic cable is not true?
A) It consists of twelve or sixteen strands of glass.
B) It is thinner and lighter than coaxial or twisted pair cable.
C) It enables better data security than coaxial cable.
D) Telecommunications firms have made substantial investments in cross-country fiber optic systems in the last decade.
Answer A
49) The model of computing in which firms and individuals obtain computing power and software over the Internet is called ________ computing.
A) mobile
B) mainframe
C) client/server
D) cloud
Answer D
50) Which of the following technologies has enabled the Internet to grow exponentially to support millions of users, without overloading the network architecture?
A) fiber optics
B) Wi-Fi
C) IPv6
D) client/server networking
Answer D
51) The major technologies used with wireless local area networks are
A) Wi-Fi and Bluetooth.
B) Wi-Fi and WiMax.
C) Bluetooth and 3G.
D) WiMax and 3G.
Answer A
52) Akamai offers all of the following services except
A) instant messaging.
B) targeted advertising.
C) security services.
D) global traffic management.
Answer A
53) Which of the following is a high-speed, medium-range, broadband wireless metropolitan area network?
A) Wi-Fi
B) WiMAX
C) Bluetooth
D) ZigBee
Answer B
54) Siri is a type of
A) intelligent personal assistant.
B) widget.
C) gadget.
D) social network.
Answer A
55) The first Web browser to make it possible to view documents on the Web with colored background, images, and animations was
A) Netscape Navigator.
B) Mosaic.
C) Mozilla.
D) Internet Explorer.
Answer B
56) In the address http//www.Company.Com/clients.Html, which of the following is the top-level domain?
A) .Com
B) company.Com
C) www
D) http
Answer A
57) You could expect to find all of the following services in a Web server software package except
A) security services.
B) FTP.
C) data capture.
D) an RSS aggregator.
Answer D
58) Which of the following is currently the most popular Web browser?
A) Internet Explorer
B) Netscape
C) Chrome
D) Firefox
Answer A
59) The concept behind document formatting had its roots in which of the following?
A) XML
B) SGML
C) HTML
D) GML
Answer D
60) Which of the following is a Web application that enables Internet users to communicate with each other, although not in real time?
A) online chat
B) online forum
C) IM
D) VoIP
Answer B
61) Which of the following is a Web 2.0 service or application?
A) wikis
B) e-mail
C) IM
D) online forums
Answer A
62) A(n) ________ is a Web application that allows users to easily add and edit content on a Web page.
A) wiki
B) podcast
C) blog
D) RSS feed
Answer A
63) The protocol that enables the transmission of voice and other forms of audio communication over the Internet is called
A) VoIP.
B) IPTP.
C) VTP.
D) IP.
Answer A
64) All of the following are characteristics of HTML5 except
A) a video element that replaces plug-ins such as Flash, QuickTime, and RealPlayer.
B) use of CSS3.
C) ability to access built-in functionality of mobile devices, such as GPS and swiping.
D) support for digital rights management.
Answer D
65) All of the following are true about iPhone apps except
A) They are distributed through Apple's App Store.
B) They are cross-platform, open-source applications.
C) They were estimated to generate over $1 billion in 2013.
D) Apple's goal of offering apps is to increase retail sales of iPhones, iPads, and iPods.
Answer B
66) Also known as the Industrial Internet, the ________ describes the use of Internet technologies and networking to enable the multitudes of nontraditional devices that are equipped with data-generating sensors to connect to the Internet.
Answer Internet of Things
67) Specialized computers that interconnect the thousands of computers that make up the Internet in order to transmit message parcels along available communication paths and on to their destinations are called ________.
Answer routers
68) A set of rules for transferring data is called a(n) ________.
Answer protocol
69) TCP/IP is divided into four separate ________, each handling a different aspect of the communication problem.
Answer layers
70) ________ are central directories that list all domain names currently in use for specific domains.
Answer Root servers
71) A small application that you embed in a Web page in order to include content and functionality from a different Web site is called a(n) ________.
Answer widget
72) ________ is a utility program that allows you to track the path of a message you send from your client to a remote computer on the Internet.
Answer Tracert
73) A TCP/IP network located within a single organization for the purposes of communication and information processing is called a(n) ________.
Answer intranet
74) ________ refers to delays in messages caused by the uneven flow of information packets through the network.
Answer Latency
75) ________ is a way of formatting pages with embedded links that connect documents to one another and that also link pages to other objects.
Answer Hypertext
76) An iPad is an example of a(n) ________ computer.
Answer tablet
77) ________softwarerefers to the software that enables a computer to deliver Web pages written in HTML to client computers on a network that request this service by sending an HTTP request.
Answer Web server
78) Computing devices attached to the Internet that are capable of making HTTP requests and displaying HTML pages are referred to as ________.
Answer Web clients
79) Outside of e-mail, using a(n) ________ is the most common online daily activity.
Answer search engine
80) A(n) ________ is a personal Web page of chronological entries created by an individual or corporation to communicate with readers.
Answer blog
Chapter 4 Building an E-commerce Presence Web Sites, Mobile Sites, and Apps
1) The systems development life cycle methodology is useful when creating an e-commerce Web site.
Answer TRUE
2) One of the most important challenges in developing an e-commerce presence is understanding that the technology must drive the business.
Answer FALSE
3) Using prebuilt templates is typically one of the most cost-effective choices when building a Web site.
Answer TRUE
4) The annual maintenance cost for a Web site is likely to be as high as its development cost.
Answer TRUE
5) In a two-tier architecture, a Web server is linked to one middle-tier layer that typically includes a series of application servers, as well as to another back-end layer.
Answer FALSE
6) Apache Web server software is based on Microsoft's Windows operating system.
Answer FALSE
7) The Web server software used does not significantly impact how a Web site's Web pages look on users' computers.
Answer TRUE
8) Prior to the development of e-commerce, Web sites primarily delivered static content.
Answer TRUE
9) Dynamic page generation makes market segmentation easier.
Answer TRUE
10) A list server is an application server used to provide a database for product descriptions and prices.
Answer FALSE
11) Upgrading a server from a single processor to multiple processors is an example of scaling a site horizontally.
Answer FALSE
12) Storing HTML pages in RAM rather than on a server's hard drive is an inexpensive way to fine-tune the processing architecture of a Web site.
Answer TRUE
13) A "native" app is one designed to specifically operate using a mobile device's hardware and operating system.
Answer TRUE
14) Accessibility rules help to ensure that low-bandwidth users can access your Web site.
Answer FALSE
15) Mobile Web apps are typically built using HTML5 and Java.
Answer TRUE
16) What are the two most important management challenges in building a successful e-commerce presence?
A) developing a clear understanding of business objectives and knowing how to choose the right technology to achieve those objectives
B) having an accurate understanding of your business environment and an achievable business plan
C) building a team with the right skill sets and closely managing the development process
D) identifying the key components of your business plan and selecting the right software, hardware, and infrastructure for your site
Answer A
17) In order from beginning to end, the major steps in the SDLC, are
A) systems analysis/planning; systems design; building the system; testing; and implementation.
B) systems design; testing; building the system; and implementation.
C) systems analysis/planning; systems design; building the system; implementation; and testing.
D) systems analysis/planning; implementation; building the system; and testing.
Answer A
18) ________ are the types of information systems capabilities needed to meet business objectives.
A) Information requirements
B) System functionalities
C) System design specifications
D) Physical design specifications
Answer B
19) Which of the following basic system functionalities is used to display goods on a Web site?
A) product database
B) digital catalog
C) shopping cart system
D) customer database system
Answer B
20) Which system functionality must your Web site have in order to be able to personalize or customize a product for a client?
A) an ad server
B) a site tracking and reporting system
C) an inventory management system
D) customer on-site tracking
Answer D
21) A system design has two main components
A) a logical design and a physical design.
B) a behavioral design and a technological design.
C) business objectives and technology requirements.
D) front-end systems and back-end systems.
Answer A
22) Which of the following helps you understand the marketing effectiveness of your e-commerce site?
A) shopping cart
B) product database
C) site tracking and reporting system
D) inventory management system
Answer C
23) Which of the following is not one of the basic business objectives for an e-commerce site?
A) display goods
B) execute a transaction
C) provide production and supplier links
D) optimize system architecture
Answer D
24) All of the following are basic information requirements for a product database except
A) product descriptions.
B) stock numbers.
C) customer ID numbers.
D) inventory levels.
Answer C
25) Which of the following typically includes a data flow diagram to describe the flow of information for an e-commerce site?
A) physical design
B) logical design
C) testing plan
D) co-location plan
Answer B
26) Which of the following details the actual hardware components to be used in a system?
A) architecture plan
B) system functionalities plan
C) logical design
D) physical design
Answer D
27) ________ verifies that the business objectives of the system as originally conceived are in fact working.
A) System testing
B) Acceptance testing
C) Unit testing
D) Implementation testing
Answer B
28) ________ involves testing a site program's modules one at a time.
A) System testing
B) Acceptance testing
C) Unit testing
D) Implementation testing
Answer C
29) Most of the time required to maintain an e-commerce site is spent on
A) debugging code.
B) responding to emergency situations.
C) general administration and making changes and enhancements to the system.
D) changes in reports, data files, and links to backend databases.
Answer C
30) An e-commerce site that cost $25,000 to develop is likely to require a yearly maintenance budget of approximately
A) $5,000.
B) $10,000.
C) $25,000.
D) $50,000.
Answer C
31) All of the following are simple steps for optimizing Web page content that can reduce response times except
A) reducing unnecessary HTML comments.
B) segmenting computer servers to perform dedicated functions.
C) using more efficient graphics.
D) avoiding unnecessary links to other pages on the site.
Answer B
32) In a SWOT analysis, you describe all of the following except
A) the business's strengths.
B) the business's weaknesses.
C) the business's opportunities.
D) the business's technology.
Answer D
33) Offline media is typically used for all of the following marketing activities except
A) education.
B) exposure.
C) conversation.
D) branding.
Answer C
34) All of the following might be part of a Web site's middle-tier layer except
A) a database server.
B) an ad server.
C) legacy corporate applications.
D) a mail server.
Answer C
35) The leading Web server software is
A) Apache.
B) Microsoft Internet Information Server.
C) Linux.
D) Google Enterprise Server.
Answer A
36) All of the following are basic functionality provided by Web servers except
A) site management tools.
B) data capture tools.
C) security services.
D) a shopping cart.
Answer D
37) Which of the following is used to process certificates and private/public key information?
A) HTTP
B) SSL
C) FTP
D) data capture tools
Answer B
38) Which of the following would you use to identify orphan files?
A) HTTP
B) FTP
C) data capture tools
D) site management tools
Answer D
39) Which of the following is an example of a CMS?
A) Apache
B) WordPress
C) Oracle
D) WebTrends Analytics
Answer B
40) Advantages of dynamic page generation include all of the following except
A) lowered menu costs.
B) market segmentation.
C) nearly cost-free price discrimination.
D) client-side execution of programming.
Answer D
41) Which of the following cannot be used to retrieve objects from a database?
A) CGI
B) ASP
C) JSP
D) HTML
Answer D
42) Which of the following types of servers monitors and controls access to a main Web server and implements firewall protection?
A) proxy server
B) list server
C) groupware server
D) mail server
Answer A
43) Which of the following technologies could you use to place the content of your Web site in a database so that you can then dynamically generate requests for pages?
A) Apache web server
B) proxy server
C) shopping cart
D) CMS
Answer D
44) Which of the following is not a type of application server?
A) proxy server
B) mail server
C) ad server
D) FTP server
Answer D
45) All of the following are basic functionality provided by e-commerce merchant server software except
A) a product catalog.
B) marketing software.
C) a shopping cart.
D) credit card processing.
Answer B
46) Which of the following is not one of the main factors in Web site optimization?
A) page content
B) page generation
C) page delivery
D) page stickiness
Answer D
47) An e-commerce Web site that processes orders requires, at minimum, a ________ system architecture.
A) single-tier
B) two-tier
C) three-tier
D) multi-tier
Answer B
48) All of the following are Web site design features that annoy customers except
A) slow-loading pages.
B) pop-under ads.
C) splash pages.
D) redundant navigation.
Answer D
Analytic skills
49) Which of the following is not an open source software tool?
A) WebSphere
B) Apache
C) MySQL
D) PHP
Answer A
50) The term stateless refers to the fact that
A) no one government entity controls the Internet.
B) the server does not have to maintain an ongoing dedicated interaction with the client computer.
C) system performance degrades as more simultaneous users require service.
D) Web servers may maintain multiple instances of server software to handle requests.
Answer B
51) The structure of a market is described in terms of all of the following except
A) direct competitors.
B) suppliers.
C) customers.
D) substitute products.
Answer C
52) Which of the following types of sites typically tends to have high to very high page views (hits)?
A) Web services
B) customer self-service
C) trading
D) publishing/subscription
Answer D
53) Which of the following types of sites typically needs a high percentage of secure pages?
A) Web services
B) customer self-service
C) trading
D) publishing/subscription
Answer C
54) Which of the following is not a main factor in determining overall demand for an e-commerce site?
A) static file sizes
B) number of items in inventory
C) security required
D) type of content
Answer A
55) The cost of hardware, software, and telecommunications services needed to build a Web site have ________ over the last decade.
A) increased dramatically
B) increased ly
C) decreased dramatically
D) decreased slightly
Answer C
56) Which of the following is the final stage suggested for a six-phase plan to develop an e-commerce presence?
A) mobile plan
B) maintenance
C) testing plan
D) Twitter plan
Answer A
57) Which of the following is not an example of one of the four kinds of e-commerce presence?
A) e-mail list
B) customer management system
C) Twitter feed
D) print ad that refers to a Web site
Answer B
58) All of the following are steps one can take to right-size a Web site's hardware platform and meet demands for service except
A) scaling hardware vertically.
B) scaling hardware horizontally.
C) replacing static pages with dynamically generated pages.
D) improving processing architecture.
Answer C
59) All of the following are methods of improving the processing architecture of a Web site except
A) separating static content from dynamic content.
B) optimizing ASP code.
C) optimizing the database schema.
D) adding Web servers.
Answer D
60) Which of the following is the least expensive path to creating a mobile Internet presence?
A) developing a native app
B) resizing an existing Web site for mobile use
C) building a mobile Web app using HTML
D) building a mobile Web app using Java
Answer B
61) All of the following are important factors in Web site optimization except
A) selecting keywords and page titles.
B) identifying market niches for your services or products.
C) buying search engine ads.
D) adhering to accessibility guidelines.
Answer D
62) ________ provides a set of standards for communicating between a browser and a program running on a server that allows for interaction between the user and server.
A) CGI
B) ColdFusion
C) JavaScript
D) VBScript
Answer A
63) ________ is a programming language invented by Netscape used to control the objects on an HTML page and handle interactions with the browser.
A) VBScript
B) ActiveX
C) ColdFusion
D) JavaScript
Answer D
64) The primary way a Web site is able to personalize the content presented to a visitor is through the use of
A) privacy policies.
B) cookies.
C) accessibility rules.
D) site management tools.
Answer B
65) Which of the following is an example of dynamic content?
A) product photographs
B) product descriptions
C) home page graphic
D) blog posts
Answer D
66) The information elements that the system must produce to achieve its business objectives are called ________.
Answer information requirements
67) Hiring an external vendor to provide services that you cannot perform with in-house personnel is known as ________.
Answer outsourcing
68) The practice of owning (or leasing) and managing your own Web servers but housing them in a vendor's physical facility is known as ________.
Answer co-location
69) ________ involves testing the site as a whole, in the same way a typical user would when using the site.
Answer System testing
70) ________ is the process of comparing a Web site with that of its competitors in terms of response speed, quality of layout, and design.
Answer Benchmarking
71) ________refers to the arrangement of software, machinery, and tasks in an information system needed to achieve a specific functionality.
Answer System architecture
72) A standard known as ________ makes it possible to access data from any application regardless of what database is used.
Answer ODBC
73) With ________, the contents of a Web page are stored as objects in a database, rather than being hard-coded in HTML.
Answer dynamic page generation
74) The development of a(an) ________ is the major milestone of the planning phase of developing an e-commerce presence.
Answer mission statement, Web mission statement
75) To automatically adjust the layout of a Web site depending on user screen resolution, developers are now using ________ Web design tools and techniques.
Answer responsive
76) A SWOT analysis describes strengths, weaknesses, opportunities, and ________.
Answer threats
77) A(n) ________ is an application designed specifically to operate using a mobile device's hardware and operating system.
Answer native app
78) A(n) ________ is a small, prebuilt chunk of code that executes automatically in your HTML Web page to perform a specific task such as providing weather information.
Answer widget
79) ________ is a programming language that Microsoft created to compete with JavaScript.
Answer VBScript
80) A(n) ________ is a set of public statements to customers declaring how you will treat any personal information that you gather from them on your Web site.
Answer privacy policy
Chapter 5 E-commerce Security and Payment Systems
1) Typically, the more security measures added to an e-commerce site, the slower and more it becomes to use.
Answer TRUE
2) A worm does not need to be activated by a user in order for it to replicate itself.
Answer TRUE
3) A Trojan horse appears to be benign, but then does something other than expected.
Answer TRUE
4) Phishing attacks rely on browser parasites.
Answer FALSE
5) Insiders present a greater security threat to e-commerce sites than outsiders.
Answer TRUE
6) Spoofing involves attempting to hide a true identity by using someone else's e-mail or IP address.
Answer FALSE
7) Drive-by downloads are now the most common method of infecting computers.
Answer TRUE
8) Smishing attacks exploit SMS messages.
Answer TRUE
9) TLS does not guarantee server-side authentication.
Answer FALSE
10) The easiest and least expensive way to prevent threats to system integrity is to install anti-virus software.
Answer TRUE
11) The U.S. Federal government has historically not been in favor of the development and export of strong encryption systems.
Answer TRUE
12) Credit cards are the dominant form of online payment throughout the world.
Answer FALSE
13) In order to accept payments by credit card, online merchants typically must have a merchant account established with a bank or financial institution.
Answer TRUE
14) Digital cash is legal tender that is instantly convertible into other forms of value without the intermediation of any third parties.
Answer FALSE
15) PayPal requires the recipient of a payment to have a PayPal account to receive funds.
Answer TRUE
16) All of the following are factors in contributing to the increase in cybercrime except
A) the ability to remotely access the Internet.
B) the Internet's similarity to telephone networks.
C) the ability to anonymously access the Internet.
D) the Internet is an open, vulnerable design.
Answer B
Analytical thinking
17) Bitcoins are an example of
A) digital cash.
B) virtual currency.
C) a stored value payment system.
D) an EBPP system.
Answer A
18) The overall rate of online credit card fraud is ________ % of all online card transactions.
A) less than 1
B) around 1
C) around 5
D) around 10
Answer A
19) In the United States, the primary form of online payment is
A) PayPal.
B) credit cards.
C) debit cards.
D) Google Wallet.
Answer B
20) The six key dimensions to e-commerce security are nonrepudiation, authenticity, availability, integrity, privacy, and
A) confidentiality.
B) usability.
C) functionality.
D) viability.
Answer A
21) ________ refers to the ability to ensure that e-commerce participants do not deny their online actions.
A) Nonrepudiation
B) Authenticity
C) Availability
D) Integrity
Answer A
22) ________ refers to the ability to identify the person or entity with whom you are dealing on the Internet.
A) Nonrepudiation
B) Authenticity
C) Availability
D) Integrity
Answer B
23) Which of the following is an example of an integrity violation of e-commerce security?
A) A Web site is not actually operated by the entity the customer believes it to be.
B) A merchant uses customer information in a manner not intended by the customer.
C) A customer denies that he or she is the person who placed the order.
D) An unauthorized person intercepts an online communication and changes its contents.
Answer D
Analytical thinking
24) ________ refers to the ability to ensure that an e-commerce site continues to function as intended.
A) Nonrepudiation
B) Authenticity
C) Availability
D) Integrity
Answer C
25) An example of a privacy violation of e-commerce security is
A) your e-mail being read by a hacker.
B) your online purchasing history being sold to other merchants without your consent.
C) your computer being used as part of a botnet.
D) your e-mail being altered by a hacker.
Answer B
Analytical thinking
26) ________ refers to the ability to ensure that messages and data are only available to those authorized to view them.
A) Confidentiality
B) Integrity
C) Privacy
D) Availability
Answer A
27) Which of the following is not a key point of vulnerability when dealing with e-commerce?
A) the client computer
B) the server
C) the communications pipeline
D) the credit card companies
Answer D
28) Which of the following did Dropbox implement after a series of security snafus in 2011 and 2012?
A) anti-virus software
B) two-factor authentication
C) SSL/TLS
D) firewall
Answer B
29) Which of the following is a prominent hacktivist group?
A) Anonymous
B) Anti-Phishing Working Group
C) IC3
D) Symantec
Answer A
30) Most of the world's spam is delivered via which of the following?
A) viruses
B) worms
C) Trojan horses
D) botnets
Answer D
31) Botnets are typically used for all of the following except
A) DDoS attacks.
B) phishing attacks.
C) storing network traffic for analysis.
D) stealing information from computers.
Answer B
32) 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.
B) a backdoor.
C) pupware.
D) adware.
Answer A
33) Online bill payments are believed to cost ________ to process compared to ________ for paper bills.
A) 20 to 30 cents, $3 to $7
B) $1 to $2, $10 to $20
C) 3 to $7, 20 to 30 cents
D) $10 to $20, $ 1 to $2
Answer A
34) Reventon is an example of
A) a macro virus.
B) ransomware.
C) a backdoor.
D) a bot program.
Answer B
35) What is the most frequent cause of stolen credit cards and card information today?
A) lost cards
B) the hacking and looting of corporate servers storing credit card information
C) sniffing programs
D) phishing attacks
Answer B
36) Which dimension(s) of security is spoofing a threat to?
A) integrity
B) availability
C) integrity and authenticity
D) availability and integrity
Answer C
Analytical thinking
37) All of the following are examples of malicious code except
A) viruses.
B) bots.
C) worms.
D) sniffers.
Answer D
38) Symmetric key encryption is also known as
A) public key encryption.
B) secret key encryption.
C) PGP.
D) PKI.
Answer B
39) All the following statements about symmetric key encryption are true except
A) in symmetric key encryption, both the sender and the receiver use the same key to encrypt and decrypt a message.
B) the Data Encryption Standard is a symmetric key encryption system.
C) symmetric key encryption is computationally slower.
D) symmetric key encryption is a key element in digital envelopes.
Answer C
40) The Data Encryption Standard uses a(n) ________-bit key.
A) 8
B) 56
C) 256
D) 512
Answer B
41) All of the following statements about public key encryption are true except
A) public key encryption uses two mathematically related digital keys.
B) public key encryption ensures authentication of the sender.
C) public key encryption does not ensure message integrity.
D) public key encryption is based on the idea of irreversible mathematical functions.
Answer B
42) Which of the following is the current standard used to protect Wi-Fi networks?
A) WEP
B) TLS
C) WPA2
D) WPA3
Answer C
43) All of the following statements about PKI are true except
A) The term PKI refers to the certification authorities and digital certificate procedures that are accepted by all parties.
B) PKI is not effective against insiders who have a legitimate access to corporate systems including customer information.
C) PKI guarantees that the verifying computer of the merchant is secure.
D) The acronym PKI stands for public key infrastructure.
Answer C
44) A digital certificate contains all of the following except the
A) subject's private key.
B) subject's public key.
C) digital signature of the certification authority.
D) digital certificate serial number.
Answer A
45) Which of the following dimensions of e-commerce security is not provided for by encryption?
A) confidentiality
B) availability
C) message integrity
D) nonrepudiation
Answer B
46) All of the following are methods of securing channels of communication except
A) SSL/TLS.
B) certificates.
C) VPN.
D) FTP.
Answer D
47) A ________ is hardware or software that acts as a filter to prevent unwanted packets from entering a network.
A) firewall
B) virtual private network
C) proxy server
D) PPTP
Answer A
48) Proxy servers are also known as
A) firewalls.
B) application gateways.
C) dual home systems.
D) packet filters.
Answer C
49) All of the following are used for authentication except
A) digital signatures.
B) certificates of authority.
C) biometric devices.
D) packet filters.
Answer D
50) What is the first step in developing an e-commerce security plan?
A) Create a security organization.
B) Develop a security policy.
C) Perform a risk assessment.
D) Perform a security audit.
Answer C
51) An intrusion detection system can perform all of the following functions except
A) examining network traffic.
B) setting off an alarm when suspicious activity is detected.
C) checking network traffic to see if it matches certain patterns or preconfigured rules.
D) blocking suspicious activity.
Answer D
52) Which of the following is not an example of an access control?
A) firewalls
B) proxy servers
C) digital signatures
D) login passwords
Answer C
53) Online bill payment now accounts for ________ of all bill payments.
A) 10%
B) 25%
C) 50%
D) 100%
Answer C
54) To allow lower-level employees access to the corporate network while preventing them from accessing private human resources documents, you would use
A) access controls.
B) an authorization management system.
C) security tokens.
D) an authorization policy.
Answer B
55) Which of the following left the WikiLeaks Web site effectively inoperable in August 2012?
A) SQL injection attack
B) browser parasite
C) DDoS attack
D) botnet
Answer C
56) The research firm Cybersource estimated that online credit card fraud in the United States amounted to about ________ in 2012.
A) $35 million
B) $350 million
C) $3.5 billion
D) $35 billion
Answer C
57) P2P payment systems are a variation on what type of payment system?
A) stored value payment system
B) digital checking system
C) accumulating balance system
D) digital credit card system
Answer A
58) Which of the following countries has been found to have engaged in cyberespionage against Google?
A) Russia
B) China
C) Iran
D) Iraq
Answer B
59) Rustock is an example of which of the following?
A) worm
B) botnet
C) phishing
D) hacktivism
Answer B
60) None of the following payment systems offers immediate monetary value except
A) personal checks.
B) credit cards.
C) stored value/debit card.
D) accumulating balance.
Answer C
61) Malware that comes with a downloaded file that a user requests is called a
A) Trojan horse.
B) backdoor.
C) drive-by download.
D) PUP.
Answer C
62) Which of the following is not an example of a PUP?
A) adware
B) browser parasite
C) drive-by download
D) spyware
Answer C
63) All of the following are limitations of the existing online credit card payment system except
A) poor security.
B) cost to consumers.
C) cost to merchant.
D) social equity.
Answer B
64) Linden Dollars, created for use in Second Life, are an example of
A) digital cash.
B) virtual currency.
C) EBPP.
D) peer-to-peer payment systems.
Answer B
65) Which of the following is a set of short-range wireless technologies used to share information among devices within about 2 inches of each other?
A) DES
B) NFC
C) IM
D) text messaging
Answer B
66) The ________ worm was designed to disarm computers that control the centrifuges in Iran's uranium enrichment process.
Answer Stuxnet
67) To allow employees to connect securely over the Internet to their corporate network, you would use a(n) ________.
Answer VPN, virtual private network
68) The exploitation of human fallibility and gullibility to distribute malware is known as ________.
Answer social engineering
69) A(n) ________ is a hacker that believes he or she is pursing some greater good by breaking in and revealing system flaws.
Answer grey hat
70) Automatically redirecting a Web link to a different address is called ________.
Answer pharming
71) A(n) ________ vulnerability involves a vulnerability unknown to security experts that is actively exploited before there is a patch available.
Answer zero-day
72) The study of measurable biological or physical characteristics is called ________.
Answer biometrics
73) In encryption, the method used to transform plain text to encrypted text is called a(n) ________.
Answer key, cipher
74) ________ involves cybervandalism and data theft for political purposes.
Answer Hacktivism
75) The most common form of securing a digital channel of communication is ________.
Answer SSL/TLS, Secure Sockets Layer/Transport Layer Security
76) A(n) ________ is a feature of viruses, worms, and Trojans that allows an attacker to remotely access a compromised computer.
Answer backdoor
77) To internal computers, a proxy server is known as the ________.
Answer gateway
78) ________ typically handle verification of accounts and balances in the credit card system.
Answer Processing centers, Clearinghouses
79) Malicious code that is designed to take advantage of a security hole in computer software or operating system is called a(n) ________.
Answer exploit
80) ________ is a form of online payment system for monthly bills.
Answer EBPP, Electronic billing presentment and payment
Chapter 6 E-commerce Marketing and Advertising Concepts
1) In the United States today, single, white, young college-educated males with high income dominate the Internet in terms of percentage of Internet usage.
Answer FALSE
2) Research has found that of all the standard formats of display ads, wide skyscraper ads are the most effective at holding a user's attention.
Answer FALSE
3) Price is more important than convenience as a factor in online purchase decisions.
Answer FALSE
4) E-commerce is a major conduit and generator of offline commerce.
Answer TRUE
5) Online shoppers tend to browse for available products rather than search for specific products they have determined in advance.
Answer FALSE
6) Research shows that the two most important factors shaping the decision to purchase online are utility and trust.
Answer TRUE
7) In 2013, mobile marketing grew at nearly the same rate as traditional online marketing.
Answer FALSE
8) Evidence suggests that real-time customer chat increases sales.
Answer TRUE
9) Transaction logs are built into Web server software.
Answer TRUE
10) Cookies, when combined with Web beacons, can be used to create cross-site profiles.
Answer TRUE
11) An interstitial ad is typically contained in a pop-up window that the user must close in order to continue.
Answer FALSE
12) The digital divide still persists along age, income, ethnic, and education dimensions.
Answer TRUE
13) The cost of sending 10,000 e-mails in an advertising campaign is about the same as sending 5,000.
Answer TRUE
14) The concept of "customer satisfaction" is broader than the concept of "customer experience."
Answer FALSE
15) 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
16) On a typical day, approximately ________ % of adult users in the United States logs on to the Internet.
A) 50
B) 60
C) 70
D) 80
Answer D
17) Which of the following online advertising formats is the most effective?
A) banner ads
B) rich media ads
C) video ads
D) e-mail
Answer C
18) Which of the following online advertising formats attracted the least amount of spending in 2013?
A) search
B) classifieds
C) rich media
D) e-mail
Answer D
19) Which of the following would you implement to collect and analyze your company's big data?
A) data warehouse
B) Hadoop
C) SQL
D) profiling
Answer B
20) Which of the following is not one of the main stages of the online purchasing process?
A) post-purchase service and loyalty
B) awareness
C) interaction
D) browsing
Answer D
21) Which of the following forms of online advertising is growing the fastest?
A) paid search
B) sponsorships
C) video
D) rich media
Answer C
22) If you want to determine the size of your Web site's audience, the metric you will use for the most accurate measurement will be
A) page views.
B) unique visitors.
C) hits.
D) reach.
Answer B
23) In 2013, what was the approximate Internet penetration rate for individuals that have attained less than a high-school education?
A) 45%
B) 60%
C) 75%
D) 90%
Answer B
24) Which of the following is not one of the four main methods advertisers use to behaviorally target ads?
A) Nielsen ratings
B) data collected from social networks
C) integration of offline data
D) clickstream data
Answer A
25) Search engine advertising and marketing expenditures in 2013 were approximately
A) $19 million.
B) $195 million.
C) $1.95 billion.
D) $19.5 billion.
Answer D
26) Which of the following is not true about search engine advertising?
A) Spending on search engine advertising constitutes almost half of all online advertising spending.
B) The top three search engine providers supply over 95% of all online searches.
C) The click-through rate for search engine marketing has been fairly steady over the years.
D) Search engine advertising is the fastest growing type of online advertising.
Answer D
27) Which of the following is not a practice that degrades the results and usefulness of search engines?
A) social search
B) link farms
C) content farms
D) click fraud
Answer A
28) All of the following are online communications that are used to support the evaluation of alternatives stage of the consumer decision process except
A) search engines.
B) online catalogs.
C) social networks.
D) targeted banner ads.
Answer D
29) "Shoppers" constitute approximately ________ % of the online Internet audience.
A) 60
B) 70
C) 80
D) 90
Answer D
30) A Crayola arts-and-crafts column on a parenting Web site is an example of what form of advertising?
A) sponsorship
B) banner swapping
C) affiliate relationship
D) public relations
Answer A
31) Which of the following is the top concern of Internet users about purchasing online?
A) inability to see and touch before buying
B) of returning products
C) shipping costs
D) lack of trust in the purchase process
Answer D
32) Studies of the effects of social "connectedness" on Internet purchases indicate that the more "connected" an individual
A) the less purchasing that individual does.
B) the less that individual is influenced by friends' purchases.
C) the more that individual shares purchasing decisions with friends.
D) the more purchasing that individual does.
Answer B
33) A typical response rate for an e-mail campaign would be ________ %.
A) 2
B) 5
C) 25
D) 50
Answer B
34) In modeling online consumer behavior, the concept of "consumer skills" refers to the
A) education level of the consumer.
B) communication skills of the consumer.
C) knowledge consumers have about how to conduct online transactions.
D) product evaluation skills of the consumer.
Answer C
35) Which of the following statements about CAN-SPAM is not true?
A) CAN-SPAM went into effect in January 2004.
B) CAN-SPAM prohibits unsolicited e-mail (spam).
C) CAN-SPAM prohibits the use of deceptive subject lines and false headers.
D) Large spammers are among CAN-SPAM's biggest supporters.
Answer B
36) Approximately ________ of annual offline retail sales is influenced by online browsing.
A) one-quarter
B) one-third
C) one-half
D) three-quarters
Answer B
37) Which of the following is the most important tool in establishing a relationship with the customer?
A) company Web site
B) company CRM system
C) Facebook
D) search engine display ads
Answer A
38) Impressions are a measure of the
A) number of times an ad is clicked.
B) number of times an ad is served.
C) number of http requests.
D) number of pages viewed.
Answer B
39) View-through rate measures the ________ response rate to an ad.
A) 30-minute
B) 24-hour
C) 7-day
D) 30-day
Answer D
40) Which of the following is not one of the main elements of a comprehensive multi-channel marketing plan?
A) local marketing
B) offline marketing
C) social marketing
D) mobile marketing
Answer A
41) Hits are a measure of the
A) number of times an ad is clicked.
B) number of times an ad is served.
C) number of http requests.
D) number of pages viewed.
Answer C
42) Which of the following statements about the Internet's impact on marketing is not true?
A) The Internet has broadened the scope of marketing communications.
B) The Internet has decreased the impact of brands.
C) The Internet has increased the richness of marketing communications.
D) The Internet has expanded the information intensity of the marketplace.
Answer B
43) Which of the following features of e-commerce technology has reduced the cost of delivering marketing messages and receiving feedback from users?
A) ubiquity
B) richness
C) interactivity
D) universal standards
Answer D
44) Which of the following features of e-commerce technology allows fine-grained, highly detailed information on consumers' real-time behavior to be gathered and analyzed?
A) personalization/customization
B) information density
C) social technology
D) interactivity
Answer B
45) The richness made possible by e-commerce technologies does which of the following?
A) It reduces the cost of delivering marketing messages and receiving feedback from users.
B) It allows consumers to become co-producers of the goods and services being sold.
C) It allows video, audio, and text to be integrated into a single marketing message and consuming experience.
D) It enables worldwide customer service and marketing communications.
Answer C
46) For a Web site that has 5 million visitors a month, and where on average, a visitor makes 10 page requests per visit, there will be ________ entries in the transaction log each month.
A) 50
B) 500,000
C) 5 million
D) 50 million
Answer D
47) Purchasing an online ad on a CPA basis means that the advertiser
A) pays for impressions in 1,000 unit lots.
B) pays a prenegotiated fee for each click an ad receives.
C) pays only for those users who perform a specific action, such as registering, purchasing, etc.
D) exchanges something of equal value for the ad space.
Answer C
48) All of the following statements about cookies are true except
A) cookies can be used with Web bugs to create cross-site profiles of users.
B) the data typically stored in cookies includes a unique ID and e-mail address.
C) cookies make shopping carts possible by allowing a site to keep track of a user's actions.
D) the more cookies are deleted, the less accurate ad server metrics become.
Answer B
49) A Web beacon is
A) a cookie that carries a virus.
B) an executable cookie.
C) an automated applet for performing Web searches.
D) a tiny graphics file embedded in an e-mail or Web page.
Answer D
50) ________ is an industry-standard database query and manipulation language.
A) SQL
B) PHP
C) DBMS
D) JSP
Answer A
51) All of the following are traditional online marketing tools except
A) affiliate marketing.
B) e-mail and permission marketing.
C) social marketing.
D) sponsorship marketing.
Answer C
52) Which of the following examples illustrates the "Long Tail" phenomenon?
A) Rhapsody music streaming service reported that its no play rate had increased to over 20%.
B) The number of blockbuster "winner take all" video titles is declining.
C) Over 50% of Netflix's 100,000 titles are rented at least once a day by someone.
D) The average blog has a readership of slightly more than 1.
Answer C
53) A ________ is a repository of customer information that records all of the contacts that a customer has with a firm and generates a customer profile available to everyone in the firm with a need to know the customer.
A) customer service chat system
B) CRM system
C) data warehouse
D) transactive content system
Answer B
54) Which of the following measures the average length of stay at a Web site?
A) loyalty
B) stickiness
C) recency
D) retention rate
Answer B
55) Acquisition rate is a measure of the
A) percentage of visitors who indicate an interest in a site's products by registering or visiting a product's pages.
B) percentage of visitors who become customers.
C) percentage of existing customers who continue to buy on a regular basis.
D) percentage of shoppers who do not return within a year after their initial purchase.
Answer A
56) The marketing technique known as ________ involves merchants offering products or services for a very low price for a short period of time.
A) search engine marketing
B) flash marketing
C) yield management
D) bait-and-switch
Answer B
57) Recency refers to the
A) percentage of customers who do not return during the next year after an initial purchase.
B) time elapsed since the last action taken by a customer.
C) percentage of existing customers who continue to buy on a regular basis.
D) percentage of customers who return to the site within a year to make additional purchases.
Answer B
58) Which of the following is not a feature that is driving the growth of social marketing and advertising?
A) social sign-on
B) network notification
C) collaborative shopping
D) affiliate programs
Answer D
59) Conversion rate is a measure of the
A) percentage of visitors who indicate an interest in a site's products by registering or visiting a product's pages.
B) percentage of visitors who become customers.
C) percentage of existing customers who continue to buy on a regular basis.
D) percentage of shoppers who do not return within a year after their initial purchase.
Answer B
60) Which of the following measures the ratio of items purchased to product views?
A) conversion rate
B) cart conversion rate
C) browse-to-buy ratio
D) view-to-cart ratio
Answer C
61) The Nike iD program is an example of which of the following marketing techniques?
A) customer co-production
B) transactive content
C) price discrimination
D) permission marketing
Answer A
62) The incremental cost of building the next unit of a good is called the
A) demand curve.
B) variable cost.
C) marginal cost.
D) fixed cost.
Answer C
63) Which of the following statements about a free pricing strategy is false?
A) Free products and services can knock out potential and actual competitors.
B) The free pricing strategy was born in the early days of the Web.
C) It is to convert free customers into paying customers.
D) Free products and services can help build market awareness.
Answer B
64) Creating multiple variations of information goods and selling these to different market segments at different prices is called
A) bundling.
B) customization.
C) dynamic pricing.
D) versioning.
Answer D
65) All of the following are fixed price strategies except
A) bundling.
B) versioning.
C) free pricing.
D) yield management.
Answer D
66) In a(n) ________ search, the inclusion and ranking of Web sites depends on a more or less "unbiased" application of a set of rules (an algorithm) imposed by the search engine.
Answer organic
67) Google's AdSense is an example of network keyword or ________ advertising.
Answer context
68) ________behaviorrefers to the transaction log that consumers establish as they move about the Web from site to site.
Answer Clickstream
69) The ________ asserts that, with complete price transparency in a perfect information marketplace, one world price for every product will emerge.
Answer Law of One Price
70) A common form of ________ is targeted content (or advertorials), in which editorial content is combined with an ad message to make the message more valuable and attractive to its intended audience.
Answer sponsorship
71) ________ ads involves showing the same or similar ad to individuals across multiple Web sites.
Answer Retargeting
72) Adjustments to a Web site's programming and content in order to improve its rank in search engine results is called search engine ________.
Answer optimization
73) ________ ratemeasures the percentage of customers who purchase once but never return within a year.
Answer Attrition
74) To answer a question such as "At what time of day does our company sell the most products?" you would use ________ data mining.
Answer query-driven
75) Specialized marketing firms called ________ sell ad opportunities from a range of participating sites that receive payment for displaying ads.
Answer advertising networks
76) In ________, one Web site agrees to pay another Web site a commission for new business opportunities it refers to the site.
Answer affiliate marketing
77) ________ is the process of getting customers to pass along a company's marketing message to friends, family, and colleagues.
Answer Viral marketing
78) The________rate is an e-mail campaign metric that measures the percentage of e-mails that could not be delivered.
Answer bounce-back
79) ________use a real-time bidding process in which marketers bid for slots based on their marketing criteria.
Answer Ad exchanges
80) ________ occurs when a new venue for selling products or services threatens to destroy existing venues.
Answer Channel conflict