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