ISDS 351 Exam 2 – practice exam questions with answers and revision material
The exchange of money for goods and services over electronic networks; encompasses many of
an organization's outward-facing processes that touch customers, suppliers, and other business
partners such as sales, marketing, order taking, delivery, procurement of goods and services,
and customer service. - correct answer ✔✔What is e-commerce?
1. Build new revenue streams- this reaches a broader geographic dispersion of customers
2. Create and enhance relationships with customers and business partners- This increase
customers engagement, improves loyalty of customers who initially buy offline, and increase
opportunity to build loyalty through multiple channels.
3. Improve operating efficiencies- This lowers customer acquisition costs, lower operating costs
per sale, reduces the expense of supporting and servicing existing customers. - correct answer
✔✔What are the three benefits of E-commerce and how are they achieved?
To succeed business managers must understand their customers and the fundamentals of the
markets in which they operate. They must then run
their businesses on the basis of those fundamentals. If they are to incorporate e-commerce into
their business, business managers need a clear
Understanding of how the internet differs from the traditional venues of business activity so
they can employ business models appropriate to the
internet. - correct answer ✔✔why must managers understand e-commerce?
The exchange of goods and services between businesses via computer networks. - correct
answer ✔✔What is business to business (b2b)?
True - correct answer ✔✔True or false: The revenue generated via b2b transactions greatly
exceeds b2c revenue.
,True - correct answer ✔✔True or False: The revenue generated via B2B transactions in the U.S.
was estimated to be $559 billion in 2013?
Private stores, customer portals, private company marketplaces, and consortia-sponsored
marketplaces. - correct answer ✔✔What are the different forms of B2B websites?
A Web site that functions as a private store for each of an organization's major customers, with
access provided through a company identification code and password enabling purchases from
a selection of products at prenegotiated prices. - correct answer ✔✔What is a private store?
are private stores that offer additional customer services beyond simply placing an order. The
websites can be accessed online from anywhere in the world. - correct answer ✔✔What is a
customer portal?
A Web site set up by a large manufacturer to manage its purchasing functions. Transactions take
place between
original equipment manufacturers and the companies that sell the final product. - correct
answer ✔✔What is a private company marketplace?
True - correct answer ✔✔True or false: A high percentage of b2b transactions take place
between companies called original equipment manufacturers (OEMs) that supply parts and
components and the companies that do business with OEM suppliers include General Motors,
ford, etc in the automobile industry; Boeing and Cessna in the aircraft industry; etc.
Software that allows a company to create an electronic catalog with search capability. - correct
answer ✔✔What is E-Procurement software?
An electronic marketplace set up by several different companies within one industry that join
forces to gain the advantages of a private company marketplace. - correct answer ✔✔What is
industry consortia-sponsored marketplace?
, The exchange of goods and services between businesses and individual consumers via
computer networks. - correct answer ✔✔What is business to consumer (b2c) E-commerce?
True - correct answer ✔✔True or false: One of the first and most successful B2C retailers is
Amazon?
1. China 84.0 (online market attractiveness score)
2. Japan 83.3
3. U.S. 82.8
4. U.K. 75.7
5. South Korea 72.2
6. Germany 70.4
7. France 65.2
8. Brazil 50.9
9. Australia 50.8
10. Canada 49.7 - correct answer ✔✔What are the top 10 most attractive B2C markets?
They should focus on attracting prospects, converting them into customers, and retaining them
to capture additional future sales. - correct answer ✔✔What should B2C websites focus on?
A new value proposition that states that those products with low sales volume can collectively
make up a market share that rivals or exceeds the relatively few current bestsellers, but only if
the distribution channel is large enough - correct answer ✔✔What is the long tail?
The application of the same business strategy across all marketing channels (e.g., mobile
Internet devices, computers, brick-and-mortar stores, television, radio, direct mail, and catalog),
with each channel using the same database of customer information, products, prices,
promotions, and so on. - correct answer ✔✔What is Omnichannel Retailing?
The exchange of money for goods and services over electronic networks; encompasses many of
an organization's outward-facing processes that touch customers, suppliers, and other business
partners such as sales, marketing, order taking, delivery, procurement of goods and services,
and customer service. - correct answer ✔✔What is e-commerce?
1. Build new revenue streams- this reaches a broader geographic dispersion of customers
2. Create and enhance relationships with customers and business partners- This increase
customers engagement, improves loyalty of customers who initially buy offline, and increase
opportunity to build loyalty through multiple channels.
3. Improve operating efficiencies- This lowers customer acquisition costs, lower operating costs
per sale, reduces the expense of supporting and servicing existing customers. - correct answer
✔✔What are the three benefits of E-commerce and how are they achieved?
To succeed business managers must understand their customers and the fundamentals of the
markets in which they operate. They must then run
their businesses on the basis of those fundamentals. If they are to incorporate e-commerce into
their business, business managers need a clear
Understanding of how the internet differs from the traditional venues of business activity so
they can employ business models appropriate to the
internet. - correct answer ✔✔why must managers understand e-commerce?
The exchange of goods and services between businesses via computer networks. - correct
answer ✔✔What is business to business (b2b)?
True - correct answer ✔✔True or false: The revenue generated via b2b transactions greatly
exceeds b2c revenue.
,True - correct answer ✔✔True or False: The revenue generated via B2B transactions in the U.S.
was estimated to be $559 billion in 2013?
Private stores, customer portals, private company marketplaces, and consortia-sponsored
marketplaces. - correct answer ✔✔What are the different forms of B2B websites?
A Web site that functions as a private store for each of an organization's major customers, with
access provided through a company identification code and password enabling purchases from
a selection of products at prenegotiated prices. - correct answer ✔✔What is a private store?
are private stores that offer additional customer services beyond simply placing an order. The
websites can be accessed online from anywhere in the world. - correct answer ✔✔What is a
customer portal?
A Web site set up by a large manufacturer to manage its purchasing functions. Transactions take
place between
original equipment manufacturers and the companies that sell the final product. - correct
answer ✔✔What is a private company marketplace?
True - correct answer ✔✔True or false: A high percentage of b2b transactions take place
between companies called original equipment manufacturers (OEMs) that supply parts and
components and the companies that do business with OEM suppliers include General Motors,
ford, etc in the automobile industry; Boeing and Cessna in the aircraft industry; etc.
Software that allows a company to create an electronic catalog with search capability. - correct
answer ✔✔What is E-Procurement software?
An electronic marketplace set up by several different companies within one industry that join
forces to gain the advantages of a private company marketplace. - correct answer ✔✔What is
industry consortia-sponsored marketplace?
, The exchange of goods and services between businesses and individual consumers via
computer networks. - correct answer ✔✔What is business to consumer (b2c) E-commerce?
True - correct answer ✔✔True or false: One of the first and most successful B2C retailers is
Amazon?
1. China 84.0 (online market attractiveness score)
2. Japan 83.3
3. U.S. 82.8
4. U.K. 75.7
5. South Korea 72.2
6. Germany 70.4
7. France 65.2
8. Brazil 50.9
9. Australia 50.8
10. Canada 49.7 - correct answer ✔✔What are the top 10 most attractive B2C markets?
They should focus on attracting prospects, converting them into customers, and retaining them
to capture additional future sales. - correct answer ✔✔What should B2C websites focus on?
A new value proposition that states that those products with low sales volume can collectively
make up a market share that rivals or exceeds the relatively few current bestsellers, but only if
the distribution channel is large enough - correct answer ✔✔What is the long tail?
The application of the same business strategy across all marketing channels (e.g., mobile
Internet devices, computers, brick-and-mortar stores, television, radio, direct mail, and catalog),
with each channel using the same database of customer information, products, prices,
promotions, and so on. - correct answer ✔✔What is Omnichannel Retailing?
