Electronic Commerce 9th Edition (Turban / Lee / King / Liang /
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Turban)Chapter 1 Overview of Electronic Commerce
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1.1 True/False
1) Radio frequency identification (RFID) chips were used to prevent counterfeit tickets and
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to ensure the safety of the athletes' food at the 2008 Olympics in Beijing.
q q q q q q q q q q q q q q
Answer: TRUE q
Diff: 2 Page Ref: 2
q q q
AACSB Standard: Use of Information Technology
q q q q q
2) Electronic commerce (EC) is the process ofbuying, selling, transferring, or
q q q q q q q q q
exchanging products, services, and/or information via the Internet only.
q q q q q q q q q
Answer: FALSE
Diff: 2
q Page Ref: 4
q q q
AACSB Standard: Use of Information Technology
q q q q q
3) EC can be conducted over the public Internet or privately-owned intranets.
q q q q q q q q q q
Answer: TRUE
q q
Diff: 1 Page Ref: 4
q q q
4) Inthe field, a sales representative writes notes with a mobile handwriting-recognition computer
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immediately after a sales call. This can be viewed as an business-to-business EC activity.
q q q q q q q q q q q q q q
Answer: FALSE
q q
Diff: 2 Page Ref: 5
q q q
AACSB Standard: Reflective Thinking
q q
5) Froma service perspective, EC allow governments, firms, consumers, and management to
q q q q q q q q q q
both cut service costs and improve the quality and speed of customer service.
q q q q q q q q q q q q q
Answer: TRUE q
Diff: 2 Page Ref: 5
q q q
AACSB Standard: Use of Information Technology
q q q q q
6) An extranet isa networkthat uses private corporate networks to link together multiple intranets.
q q q q q q q q q q q q
Answer: FALSE
q q
Diff: 2 Page Ref: 7
q q q
7) An example ofbusiness-to-consumer (B2C) is when Dell provides customer service online
q q q q q q q q q q
by collaborating electronically with its partners.
q q q q q q
Answer: FALSE
Diff: 2
q Page Ref: 7
q q q
,8) eMarketer estimated that retail e-commerce sales would decrease approximately 1.6 percent in
q q q q q q q q q q q
2009.
q
Answer: FALSE
Diff: 2
q Page Ref: 7
q q q
9) Network infrastructures include cell phones and other electronic devices that are located in
q q q q q q q q q q q q
various locations by telecommunications networks, including wireless ones.
q q q q q q q q
Answer: TRUE q
Diff: 2 Page Ref: 8
q q q
AACSB Standard: Use of Information Technology
q q q q q
10) The final participants in B2B transactions are
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consumers.Answer: FALSE
q q q
Diff: 1 Page Ref: 9
q q q
11) When RetroMedia Inc. purchases Godiva chocolates as gifts for its employees and has Godiva
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mail them directly to the recipient, RetroMedia is engaged in B2B2C.
q q q q q q q q q q q
Answer: TRUE q
Diff: 2 Page Ref: 9, 10
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12) Doing your banking on an iPhone is an example of m-commerce.
q q q q q q q q q q
Answer: TRUE
q q
Diff: 2 Page Ref: 11
q q q
AACSB Standard: Use of Information Technology
q q q q q
13) EC's future is now being shaped largely by the worldwide oil and financial
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crises.Answer: FALSE
q q q
Diff: 3 Page Ref: 13
q q q
AACSB Standard: Reflective Thinking
q q
14) Despite the failures of individual companies, the total volume of EC has been growing by 5 to
q q q q q q q q q q q q q q q q
7percent every year.
q q q q
Answer: FALSE
Diff: 2 Page Ref: 13
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15) E-commerce 2.0 is based primarily on blogs and corporate-sponsored q q q q q q q q
collaboration. Answer: FALSE
q q q
Diff: 1 Page Ref: 13
q q q
16) In effect, in a social network there are online and offline communities ofpeople with
q q q q q q q q q q q q q
similarinterests.
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Answer: FALSE
Diff: 2 qPage Ref: 17 q q
,17) Enterprise-oriented networks are social networks whose primaryobjective is to q q q q q q q q
qfacilitate business. q
Answer: TRUE q
Diff: 1 qPage Ref: 17 q q
18) Economic, legal, societal, and technological factors have created a highlycompetitive
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qbusiness environment in which customers are becoming less powerful.
q q q q q q q q
Answer: FALSE
Diff: 2 Page Ref: 27
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19) The financial/economic crisis of 2008-2009 has resulted in many companies going out
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qof business or being acquired by other companies.
q q q q q q q
Answer: TRUE q
Diff: 1 Page Ref: 27
q q q
20) Business models are a subset ofa business plan or business case and refer to methods of
q q q q q q q q q q q q q q q
qdoingbusiness by which a company can generate revenue.
q q q q q q q q
Answer: TRUE q
Diff: 2 Page Ref: 30
q q q
21) A business model outlines how the organization or the EC project will generate revenue
q q q q q q q q q q q q q
through sales, transaction fees, advertising fees, affiliate fees, or other revenue sources.
q q q q q q q q q q q q
qAnswer: FALSE q
Diff: 2 Page Ref: 30
q q q
22) A value proposition refers to the tangible and intangible benefits that a companycan derive
q q q q q q q q q q q q q
from using EC—making it an important part of the marketing plan.
q q q q q q q q q q q
Answer: TRUE q
Diff: 2 Page Ref: 33
q q q
23) Affiliate marketing is an EC business model of word-of-mouth marketing in which customers
q q q q q q q q q q q q
promote a product or service to friends or other people.
q q q q q q q q q q
Answer: FALSE
Diff: 2 qPage Ref: 34 q q
24) The Web site http://chemconnect.com for the chemical industry is an example of special
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qinterest vertical marketplaces that concentrate on one industry.
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Answer: TRUE q
Diff: 1 Page Ref: 34
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25) The branch ofphilosophy that deals with what is considered to be right and wrong is known
q q q q q q q q q q q q q q q
qascorporate governance.
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Answer: FALSE
Diff: 1 Page Ref: 34
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, 1.2 Multiple Choice q
1) The 2008 Olympics in Beijing was the most digital Olympics to date for each of the
q q q q q q q q q q q q q q q
qfollowingreasons except: q q
A) Many of the tickets were purchased online by people worldwide, using Beijing
q q q q q q q q q q q
qGehueTicketmaster, in what is called business-to-business (B2B) e-commerce.
q q q q q q q q
B) The International Olympic Committee launched a YouTube channelto broadcast clips that
q q q q q q q q q q
qwere accessible in many developing countries.
q q q q q
C) Millions watched the Olympics through online videos and Internet-enabled cell phones
q q q q q q q q q q
qand other mobile devices.
q q q
D) Global Positioning Systems (GPS) were used to track the position ofsailing and rowing
q q q q q q q q q q q q
qboats. Answer: A q q
Diff: 3 Page Ref: 2
q q q
AACSB Standard: Use of Information Technology
q q q q q
2) RFID technology was used to support each of the following activities at the 2008
q q q q q q q q q q q q q
qBeijingOlympics except: q q
A) ensuring safety of athletes' food q q q q
B) blogging on social networks q q q
C) preventing the sale ofcounterfeit tickets q q q q
D) tracking marathon runners q q
Answer: B
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Diff: 2 Page Ref: 2,3
q q q
AACSB Standard: Use of Information Technology
q q q q q
3) q refers to the buying and selling of goods and services; servicing of q q q q q q q q q q q
customers;collaborating with business partners; and conducting electronic transactions
q q q q q q q q q
within an organization.
q q q
A) E-commerce
B) E-business
C) Pure e-commerce q
D) Partial e-commerce q
Answer: B
q q
Diff: 1 qPage Ref: 5 q q
4) EC can take several forms depending on the degree of digitization ofthe following
q q q q q q q q q q q q
qthreedimensions:
q
A) the product or service sold, the process, and the delivery method.
q q q q q q q q q q
B) the business process, the collaboration, and the transaction.
q q q q q q q
C) the payment method, the delivery method, and the production method.
q q q q q q q q q
D) the marketing channel, the agent, and the collaboration
q q q q q q q
qmethod.Answer: A q q
Diff: 2 Page Ref: 5
q q q
q q q q q q q q q q q
Turban)Chapter 1 Overview of Electronic Commerce
q q q q q q
1.1 True/False
1) Radio frequency identification (RFID) chips were used to prevent counterfeit tickets and
q q q q q q q q q q q
to ensure the safety of the athletes' food at the 2008 Olympics in Beijing.
q q q q q q q q q q q q q q
Answer: TRUE q
Diff: 2 Page Ref: 2
q q q
AACSB Standard: Use of Information Technology
q q q q q
2) Electronic commerce (EC) is the process ofbuying, selling, transferring, or
q q q q q q q q q
exchanging products, services, and/or information via the Internet only.
q q q q q q q q q
Answer: FALSE
Diff: 2
q Page Ref: 4
q q q
AACSB Standard: Use of Information Technology
q q q q q
3) EC can be conducted over the public Internet or privately-owned intranets.
q q q q q q q q q q
Answer: TRUE
q q
Diff: 1 Page Ref: 4
q q q
4) Inthe field, a sales representative writes notes with a mobile handwriting-recognition computer
q q q q q q q q q q q
immediately after a sales call. This can be viewed as an business-to-business EC activity.
q q q q q q q q q q q q q q
Answer: FALSE
q q
Diff: 2 Page Ref: 5
q q q
AACSB Standard: Reflective Thinking
q q
5) Froma service perspective, EC allow governments, firms, consumers, and management to
q q q q q q q q q q
both cut service costs and improve the quality and speed of customer service.
q q q q q q q q q q q q q
Answer: TRUE q
Diff: 2 Page Ref: 5
q q q
AACSB Standard: Use of Information Technology
q q q q q
6) An extranet isa networkthat uses private corporate networks to link together multiple intranets.
q q q q q q q q q q q q
Answer: FALSE
q q
Diff: 2 Page Ref: 7
q q q
7) An example ofbusiness-to-consumer (B2C) is when Dell provides customer service online
q q q q q q q q q q
by collaborating electronically with its partners.
q q q q q q
Answer: FALSE
Diff: 2
q Page Ref: 7
q q q
,8) eMarketer estimated that retail e-commerce sales would decrease approximately 1.6 percent in
q q q q q q q q q q q
2009.
q
Answer: FALSE
Diff: 2
q Page Ref: 7
q q q
9) Network infrastructures include cell phones and other electronic devices that are located in
q q q q q q q q q q q q
various locations by telecommunications networks, including wireless ones.
q q q q q q q q
Answer: TRUE q
Diff: 2 Page Ref: 8
q q q
AACSB Standard: Use of Information Technology
q q q q q
10) The final participants in B2B transactions are
q q q q q q
consumers.Answer: FALSE
q q q
Diff: 1 Page Ref: 9
q q q
11) When RetroMedia Inc. purchases Godiva chocolates as gifts for its employees and has Godiva
q q q q q q q q q q q q q
mail them directly to the recipient, RetroMedia is engaged in B2B2C.
q q q q q q q q q q q
Answer: TRUE q
Diff: 2 Page Ref: 9, 10
q q q q
12) Doing your banking on an iPhone is an example of m-commerce.
q q q q q q q q q q
Answer: TRUE
q q
Diff: 2 Page Ref: 11
q q q
AACSB Standard: Use of Information Technology
q q q q q
13) EC's future is now being shaped largely by the worldwide oil and financial
q q q q q q q q q q q q
crises.Answer: FALSE
q q q
Diff: 3 Page Ref: 13
q q q
AACSB Standard: Reflective Thinking
q q
14) Despite the failures of individual companies, the total volume of EC has been growing by 5 to
q q q q q q q q q q q q q q q q
7percent every year.
q q q q
Answer: FALSE
Diff: 2 Page Ref: 13
q q q
15) E-commerce 2.0 is based primarily on blogs and corporate-sponsored q q q q q q q q
collaboration. Answer: FALSE
q q q
Diff: 1 Page Ref: 13
q q q
16) In effect, in a social network there are online and offline communities ofpeople with
q q q q q q q q q q q q q
similarinterests.
q q
Answer: FALSE
Diff: 2 qPage Ref: 17 q q
,17) Enterprise-oriented networks are social networks whose primaryobjective is to q q q q q q q q
qfacilitate business. q
Answer: TRUE q
Diff: 1 qPage Ref: 17 q q
18) Economic, legal, societal, and technological factors have created a highlycompetitive
q q q q q q q q q
qbusiness environment in which customers are becoming less powerful.
q q q q q q q q
Answer: FALSE
Diff: 2 Page Ref: 27
q q q
19) The financial/economic crisis of 2008-2009 has resulted in many companies going out
q q q q q q q q q q q
qof business or being acquired by other companies.
q q q q q q q
Answer: TRUE q
Diff: 1 Page Ref: 27
q q q
20) Business models are a subset ofa business plan or business case and refer to methods of
q q q q q q q q q q q q q q q
qdoingbusiness by which a company can generate revenue.
q q q q q q q q
Answer: TRUE q
Diff: 2 Page Ref: 30
q q q
21) A business model outlines how the organization or the EC project will generate revenue
q q q q q q q q q q q q q
through sales, transaction fees, advertising fees, affiliate fees, or other revenue sources.
q q q q q q q q q q q q
qAnswer: FALSE q
Diff: 2 Page Ref: 30
q q q
22) A value proposition refers to the tangible and intangible benefits that a companycan derive
q q q q q q q q q q q q q
from using EC—making it an important part of the marketing plan.
q q q q q q q q q q q
Answer: TRUE q
Diff: 2 Page Ref: 33
q q q
23) Affiliate marketing is an EC business model of word-of-mouth marketing in which customers
q q q q q q q q q q q q
promote a product or service to friends or other people.
q q q q q q q q q q
Answer: FALSE
Diff: 2 qPage Ref: 34 q q
24) The Web site http://chemconnect.com for the chemical industry is an example of special
q q q q q q q q q q q q
qinterest vertical marketplaces that concentrate on one industry.
q q q q q q q
Answer: TRUE q
Diff: 1 Page Ref: 34
q q q
25) The branch ofphilosophy that deals with what is considered to be right and wrong is known
q q q q q q q q q q q q q q q
qascorporate governance.
q q
Answer: FALSE
Diff: 1 Page Ref: 34
q q q
, 1.2 Multiple Choice q
1) The 2008 Olympics in Beijing was the most digital Olympics to date for each of the
q q q q q q q q q q q q q q q
qfollowingreasons except: q q
A) Many of the tickets were purchased online by people worldwide, using Beijing
q q q q q q q q q q q
qGehueTicketmaster, in what is called business-to-business (B2B) e-commerce.
q q q q q q q q
B) The International Olympic Committee launched a YouTube channelto broadcast clips that
q q q q q q q q q q
qwere accessible in many developing countries.
q q q q q
C) Millions watched the Olympics through online videos and Internet-enabled cell phones
q q q q q q q q q q
qand other mobile devices.
q q q
D) Global Positioning Systems (GPS) were used to track the position ofsailing and rowing
q q q q q q q q q q q q
qboats. Answer: A q q
Diff: 3 Page Ref: 2
q q q
AACSB Standard: Use of Information Technology
q q q q q
2) RFID technology was used to support each of the following activities at the 2008
q q q q q q q q q q q q q
qBeijingOlympics except: q q
A) ensuring safety of athletes' food q q q q
B) blogging on social networks q q q
C) preventing the sale ofcounterfeit tickets q q q q
D) tracking marathon runners q q
Answer: B
q q
Diff: 2 Page Ref: 2,3
q q q
AACSB Standard: Use of Information Technology
q q q q q
3) q refers to the buying and selling of goods and services; servicing of q q q q q q q q q q q
customers;collaborating with business partners; and conducting electronic transactions
q q q q q q q q q
within an organization.
q q q
A) E-commerce
B) E-business
C) Pure e-commerce q
D) Partial e-commerce q
Answer: B
q q
Diff: 1 qPage Ref: 5 q q
4) EC can take several forms depending on the degree of digitization ofthe following
q q q q q q q q q q q q
qthreedimensions:
q
A) the product or service sold, the process, and the delivery method.
q q q q q q q q q q
B) the business process, the collaboration, and the transaction.
q q q q q q q
C) the payment method, the delivery method, and the production method.
q q q q q q q q q
D) the marketing channel, the agent, and the collaboration
q q q q q q q
qmethod.Answer: A q q
Diff: 2 Page Ref: 5
q q q
