Exam (elaborations) TEST BANK Principles of Information Systems, 13th Edition Ralph M. Stair and George Reynolds

Exam (elaborations) TEST BANK Principles of Information Systems, 13th Edition Ralph M. Stair and George Reynolds Chapter 1 Overview of Electronic Commerce 1-According to Peter Drucker, e-commerce is profoundly changing markets, industry structures, products and services, consumer segmentation, consumer values and consumer behavior; jobs, and labor markets. True False 2-By purchasing a textbook from A and having the merchandise physically delivered, A would be considered a click-and-mortar organization because pure EC did not occur. True False 3-In the field, a sales representative writes notes with a mobile handwriting-recognition computer immediately after a sales call. This can be viewed as an EC activity. True False 4-In addition to EC being conducted via the Internet, EC can be conducted over local area networks (LANs). True False 5-An example of business-to-consumer (B2C) is when Dell provides customer service online by collaborating electronically with its partners. True False 6-An internal corporate network that uses Internet tools, such as Web browsers, is known as an intranet. True False 7-An extranet is a network that uses the Internet to link together multiple intranets. True False 8-Purchasing a Dell computer online for use at home is an example of e-tailing. True False 9-Networked computing connects multiple computers and other electronic devices that are located in various locations by telecommunications networks, including wireless ones. True False 10-When Dell purchases Godiva chocolates as gifts for its employees and has Godiva mail them directly to the recipient Dell is engaged in B2B2C. True False 11-Peer-to-peer (P2P) technology can be used in C2C, B2B, and B2C. True False 12-The final participants in B2B transactions are consumers. True False 13-Doing your banking on an Internet-enabled cell phone is an example of m-commerce. True False 14-Despite the many e-tailing EC companies that have failed in the past, the dot-com failure rate has recently declined sharply. True False 15-Since 2001, no other company has had more of an impact on EC than MySpace. True False 16-W, a Web site that allows people to work together online and share information, is an example of Web 2.0. True False 17-The digital economy refers to an economy based on digital communication networks, computers, software, and other related information technologies that provide a global platform over which people and organizations interact, communicate, collaborate, and search for information. True False 18-Economic, legal, societal, and technological factors have created a highly competitive business environment in which customers are becoming less powerful. True False 19-Strong competition and increased power of consumers are two of the major market pressures in today's business environment. True False 20-Business models are a subset of a business plan or business case and refer to methods of doing business by which a company can generate revenue. True False 21-A business model outlines how the organization or the EC project will generate revenue through sales, transaction fees, advertising fees, affiliate fees, or other revenue sources. True False 22-A value proposition refers to the tangible and intangible benefits that a company can derive from using EC making it an important part of the marketing plan. True False 23-Affiliate marketing is an EC business model of word-of-mouth marketing in which customers promote a product or service to friends or other people. True False 24-Social networks, such as Facebook, YouTube, and MySpace, are Web sites that connect people with specific interests by providing free services such as photo sharing, e-mail, and blogging. True False 25-Many companies used a corporate portal, which is a gateway for customers, employees, and partners to reach corporate information and communicate with the company. True False 26-Dell's cornerstone business model is based on the concept of: selling directly to small and medium sized businesses. build-to-order which allows customers to configure their own customized systems. rapid business growth and threatening competitors. e-collaboration with a few select business partners. 27-________ refers to the buying and selling of goods and services; servicing of customers; collaborating with business partners; and conducting electronic transactions within an organization. Partial EC E-business Pure EC E-commerce 28-EC can take several forms depending on the degree of digitization of the following three dimensions: the product or service sold, the process, and the delivery method. the marketing channel, the agent, and the collaboration method. the payment method, the delivery method, and the production method. the business process, the collaboration, and the transaction. 29-Purely physical companies are referred to as ________ companies, whereas companies that are engaged only in EC are considered ________ companies. virtual; pure play click-and-mortar; click-and-brick brick-and-mortar; virtual pure play; virtual 30-The ways in which EC is done include: the Internet, value-added networks, on local area networks using intranets, or on a single computerized machine. the Internet and extranets. the Internet, extranets, and private networks. the Internet and private networks. 31-________ are systems where only routine transaction processing and information flow take place between two or more organizations using a standard protocol, such as electronic data interchange (EDI). Intrabusiness EC E-CRM Interorganizational information systems B2B 32-A business such as Apple Computers making online transactions with its trading partners is an example of: e-CRM EDI B2B B2C 33-EC applications are supported by infrastructure and by each of the following support areas EXCEPT: People Marketing and advertisement Mobile devices Public policy 34-Intrabusiness EC is usually performed over intranets and/or ________. P2P networks exchanges mobile networks corporate portals 35-A technology that is used to electronically transfer routine documents, such as invoices and purchase orders, and for financial transactions is ________. Exchange-to-exchange Electronic data interchange Electronic funds transfer Peer-to-peer 36-Challenges that Boeing faced with its global collaboration for the design and assembly process of its new Dreamliner passenger plane included each of the following EXCEPT: Information security Lag time Teams working across various time zones Data management 37-A large number of EC companies, especially e-tailing and B2B ones, failed from 1999 to 2005 for each of the following reasons EXCEPT: The companies failed to ensure they had sufficient inventory and a distribution setup to meet initial demand. The companies lacked financial skills. The companies had little marketing experience. The companies failed to register with search engines, such as Google. 38-________ refers to the second-generation of Internet-based services that let people collaborate and share information online in new ways, such as social networks and wikis. Virtual Web Social Web Web 2.0 Media Web 39-Which of the following is not a characteristic of the Digital Revolution? A high rate of obsolescence. Intelligent search agents to help manage information overload. Fraud and other cybercons carried out via the Internet. Many business processes are expedited by up to 50 percent. 40-Because the rate of change and the level of uncertainty are expected to accelerate, organizations are considering less information when making decisions. operating under increasing pressures to produce more products, faster, and with fewer resources. unable to react quickly enough to threats and opportunities. making fewer decisions and/or decisions less frequently. 41-According to the Business Environment Impact Model, ________ provide support to organizations' activities and to actual performance, countering business pressures. core competencies and critical response activities missions and strategies EC and IT markets and government 42-A ________ is a company's method of doing business to generate revenue to sustain itself. marketing strategy business model business plan value chain 43-According to the ________ revenue model, companies receive commissions for referring customers to others' EC Web sites. affiliate fees advertising fees subscription fees transaction fees 44-According to the ________ revenue model, customers page a fixed amount, usually monthly, to receive some type of service. transaction fees affiliate fees subscription fees advertising fees 45-Large private organizational buyers and government agencies make large-volume or large-value purchases through ________, also known as reverse auctions. name-your-own-price models viral marketing online direct marketing electronic tendering systems 46-According to the ________ model, an organization can increase brand awareness or even generate sales by Web-based word-of-mouth marketing or promoting a product or service to other people. electronic tendering systems viral marketing name-your-own-price models online direct marketing 47-Online group purchasing organizations are known as: e-co-ops SMEs exchanges barters 48-Major barriers to EC include all of the following EXCEPT: implementation difficulties lack of technology lack of potential customers cost 49-Which of the following is a technological limitation of EC? Difficulty obtaining venture capital. Security and privacy concerns that deter customers from buying. Unresolved taxation, public policy, and legal issues. Order fulfillment requirements of largescale B2C. 50-A job opening in the Sales Department posted on the company's Intranet by the Human Resources Department is an example of: B2E B2S E2C B2B 51-Boeing designing a product together with a business partner is this type of interaction: B2B2C Nonbusiness EC B2B. Collaborative Commerce 52-A corporation uses the Internal Revenue Service's Web site to learn how to pay its estimated quarterly income taxes. This is an example of: G2G E2E. G2C G2B 53-The second-generation of Internet-based services that lets people collaborate and share information online is known as Web 2.0. An example of this is: DoubleClick Evite blogging 54-The digital enterprise shifts the focus from managing individual information resources such as devices, applications, and data to ________ that define the business and ultimately deliver value to customers and end users. transforming revenue models developing models organizing supply chains orchestrating the services and workflows 55-Many companies employ a(n) ________, which is a gateway for customers, employees, and partners to reach corporate information and to communicate with the company. corporate portal intranet social network extranet Chapter 2 E-Marketplaces 1-The functions and efficiency of an e-market are the same as that of a physical marketplace. True False 2-The emergence of electronic marketplaces has resulted in lower information search costs for buyers and lower transaction and distribution costs for sellers. True False 3-Although both marketplaces and marketspaces can sell physical products, the marketspace also can sell digital products, which are goods that can be transformed to digital format and delivered instantly over the Internet. True False 4-Front end refers to the activities that support online order fulfillment, inventory management, purchasing from suppliers, payment processing, packaging, and delivery. True False 5-In marketing, an intermediary is a third party that operates between sellers and buyers. Intermediaries of all kinds offer their services on the Web. True False 6-WebMD, which is the largest U.S. medical services company, is known mainly for its consumer portal, but its core business is being an e-intermediary. True False 7-The major B2B e-marketplaces are electronic storefronts, Internet malls, and exchanges. True False 8-A portal is an information gateway that attempts to address information overload by enabling people to search and access relevant information from disparate IT systems and the Internet, using advanced search and indexing techniques, such as Google's desktop. True False 9-Intermediaries are human or electronic agents that play an important role in EC by providing value-added services such as making payment arrangements to buyers and sellers. True False 10-Travelers using airline Web sites to book their flights directly without the use of travel agents is resulting in the reintermediation of travel agents. True False 11-Search engines not only "search and match," but also have capabilities that can be used to perform routine tasks that require intelligence. True False 12-An electronic shopping cart is an order-processing technology that allows customers to accumulate items they wish to buy while they continue to shop. True False 13-Shopping carts for B2B are fairly simple, but a shopping cart for B2C may be more complex. True False 14-An auction is a competitive process and market mechanism that uses a competitive process by which a seller solicits consecutive bids from buyers or a buyer solicits bids from sellers. True False 15-Negotiation and bargaining are two types of auctions where prices are not fixed, but rather are allowed to fluctuate as market supply and demand change. True False 16-Reverse auctions are bidding or tendering systems in which the buyer places an item for bid on a request for quote (RFQ) system; then potential suppliers bid on the job, with the price reducing sequentially, and the lowest bid wins. True False 17-E-auctions are becoming less important selling and buying channels for companies and individuals. True False 18-The major limitations of e-auctions are insufficient security, risk of fraud, and a limited pool of participants. True False 19-A limitation of e-bartering for businesses is that excess capacity items such as office space, storage, factory space; idle facilities; and labor cannot be bartered. True False 20-Online negotiation can be facilitated by computer technology for the negotiation process and software agents for searches and comparisons. True False 21-Due to the lack of hurdles, the adoption and growth of m-commerce has been widespread. True False 22-The Internet economy's low barriers to entry are both an opportunity and a threat to businesses. True False 23-Strong competition for commodity-type products, such as toys and CDs, was a major contributor to the collapse of many dot-com companies, which suggests that a company needs to use innovative strategies to survive and prosper in the Internet economy. True False 24-Because the strength of each of Porter's five forces varies considerably from industry to industry, it would be a mistake to draw general conclusions about the impact of the Internet on long-term industry profitability. True False 25-Because of intense competition on the Web, new companies cannot establish good corporate images quickly as A had done when it had few online competitors. True False 26-Fundamentally, the success of the pure-play jewelry e-tailer Blue Nile was due to the company's use of Internet technologies to: offer lower prices than competitors eliminate intermediaries go public provide quality ratings 27-Traditional and electronic markets have three main functions, which include each of the following EXCEPT: matching buyers and sellers. transforming raw materials into finished products. providing an institutional infrastructure, such as a legal and regulatory framework that enables the efficient functioning of the market. facilitating the exchange of information, goods, services, and payments associated with market transactions. 28-Digital products have different cost curves than those of regular products because: in digitization, all of the costs are variable. in digitization, most of the costs are variable and fixed costs are low. in digitization, most of the costs are fixed, but variable costs are high. in digitization, most of the costs are fixed, and variable costs are very low. 29-The portion of an e-seller's business processes through which customers interact, including the seller's portal, electronic catalogs, a shopping cart, a search engine, and a payment gateway is referred to as the ________ of the business. front end infrastructure intermediary back end 30-All the activities that are related to order aggregation and fulfillment, inventory management, purchasing from suppliers, accounting and finance, insurance, payment processing, packaging, and delivery are done in what is termed the ________ of the business. front end back end intermediary infrastructure 31-The major ________ e-marketplaces are storefronts and Internet malls. B2C B2B2C B2B C2B 32-An electronic storefront includes several mechanisms that are necessary for conducting the sale. The most common mechanisms include each of the following EXCEPT: a search engine an electronic catalog; a supply chain a payment gateway 33-________ are online markets owned and operated by a single company and may be either sell-side or buy-side. Commercial portals Private e-marketplaces B2B marketplaces E-malls 34-A(n) ________ is a single point of access through a Web browser to help users find relevant and accurate business information and reduce information overload. intermediary browser search engine information portal 35-Finding relevant and accurate information is often time-consuming and requires access to multiple systems causing organizations to lose a lot of productive employee time. One solution to this problem is the use of: intermediaries. portals. browsers. intranets. 36-A type of broker that helps consumers compare different stores is a: shopping facilitator. metamediary. search agent. virtual mall. 37-Human or electronic intermediaries attempt to address each of the following limitations of direct interaction EXCEPT: lack of privacy for those wanting to remain anonymous. contract risk. product distribution. search costs. 38-The elimination of various types of agents that mediate between buyers and sellers, such as travel and insurance agents, is referred to as: remediation automation e-distribution disintermediation 39-A mode is purchasing where prices are negotiated or discounted is ________, which refers to nonfixed prices, such as those in auctions or stock markets. pre-shopping dynamic pricing commodity pricing negotiation 40-Although used occasionally in B2C commerce, customized catalogs are especially useful in B2B e-commerce for each of the following reasons EXCEPT: e-catalogs can show only the items that the employees in a specific organization are allowed to purchase. e-catalogs can show the buyer's ID number for the item, model, or SKU number rather than the seller's ID numbers. Intranets, in particular, can deliver customized catalogs to different business customers. E-catalogs can be customized to show the same item to different customers at different prices, reflecting discounts or purchase-contract agreements. 41-To be successful and useful, large e-catalogs need a(n) ________. search engine data mining technology enhanced viewing capability directory 42-A ________ has capabilities that can be used to perform routine tasks that require intelligence such as providing customers with assistance based on their movements on a Web site. intelligent engine search engine software engine software agent 43-Popular search engines include all of the following EXCEPT: Google Lycos AltaVista MSN 44-A(n) ________ is an order-processing technology that allows customers to accumulate items they wish to buy while they continue to shop. merchant server e-fulfillment agent electronic shopping cart intelligent agent 45-The most common and traditional form of auctions in which one seller entertains bids from many buyers is referred to as: e-auctions. forward auctions double auction. reverse auctions. 46-An auction in which there is one buyer and many potential sellers; or in which a buyer places an item for bid on an RFQ system and the lowest bid wins is referred to as all of the following EXCEPT: tendering system. forward auctions. bidding system. reverse auctions. 47-What is a benefit of e-auctions to sellers? Anonymity. The optimal price is determined by the market. Convenience since the bidding can occur anywhere and any time. High stickiness to the Web site. 48-Organizations are embracing mobilized computing technologies for several reasons EXCEPT: The prices of notebook computers, Wireless security It improves the