Electronic Commerce 9th Edition (Turban / Lee / King / Liang /
tt tt tt tt tt tt tt tt tt tt tt
Turban)Chapter 1 Overview of Electronic Commerce
tt t tt tt tt tt tt
1.1 True/False
1) Radio frequency identification (RFID) chips were used to prevent counterfeit tickets
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
and toensure the safety of the athletes' food at the 2008 Olympics in Beijing.
ttk ttk t
k ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
Answer: TRUE ttk
Diff: 2 ttkPage Ref: 2 ttk ttk
AACSB Standard: Use of Information Technology
ttk ttk ttk ttk ttk
2) Electronic commerce (EC) is the process of buying, selling, transferring, or
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
exchangingproducts, services, and/or information via the Internet only.
ttk t
k ttk ttk ttk ttk ttk ttk ttk
Answer: FALSE t t k
Diff: 2 ttk Page Ref: 4 ttk ttk
AACSB Standard: Use of Information Technology
ttk ttk ttk ttk ttk
3) EC can be conducted over the public Internet or privately-owned
ttk ttk ttk ttk ttk ttk ttk ttk ttk
intranets.Answer: TRUE
ttk t
k ttk
Diff: 1 ttk Page Ref: 4 ttk ttk
4) In the field, a sales representative writes notes with a mobile handwriting-recognition
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
computerimmediately after a sales call. This can be viewed as an business-to-business EC
ttk t
k ttk ttk ttk ttk ttk ttk ttk ttk t tk ttk ttk ttk
activity. Answer: FALSE
ttk ttk ttk
Diff: 2 ttk Page Ref: 5 ttk ttk
AACSB Standard: Reflective Thinking
ttk t t k ttk
5) From a service perspective, EC allow governments, firms, consumers, and management to
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
bothcut service costs and improve the quality and speed of customer service.
ttk t
k ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
Answer: TRUE ttk
Diff: 2 ttkPage Ref: 5 ttk ttk
AACSB Standard: Use of Information Technology
ttk ttk ttk ttk ttk
6) An extranet is a network that uses private corporate networks to link together multiple
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
intranets.Answer: FALSE
ttk t
k ttk
Diff: 2 ttk Page Ref: 7 ttk ttk
7) An example of business-to-consumer (B2C) is when Dell provides customer service
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
online bycollaborating electronically with its partners.
ttk ttk t
k ttk ttk ttk ttk
Answer: FALSE t t k
Diff: 2 ttkPage Ref: 7 ttk ttk
,8) eMarketer estimated that retail e-commerce sales would decrease approximately 1.6
ttk ttk ttk ttk ttk ttk ttk ttk ttk
percent in2009.
ttk t tk t
k
Answer: FALSE t t k
Diff: 2 Page Ref: 7
ttk ttk ttk
9) Network infrastructures include cell phones and other electronic devices that are
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
located invarious locations by telecommunications networks, including wireless ones.
ttk ttk t
k ttk ttk ttk ttk ttk ttk ttk
Answer: TRUE ttk
Diff: 2 Page Ref: 8
ttk ttk ttk
AACSB Standard: Use of Information Technology
ttk ttk ttk ttk ttk
10) The final participants in B2B transactions are
ttk ttk ttk ttk ttk ttk
consumers.Answer: FALSE
ttk t
k ttk
Diff: 1 Page Ref: 9
ttk ttk ttk
11) When RetroMedia Inc. purchases Godiva chocolates as gifts for its employees and has
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
Godivamail them directly to the recipient, RetroMedia is engaged in B2B2C.
ttk t
k ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
Answer: TRUE ttk
Diff: 2 Page Ref: 9, 10
ttk ttk ttk ttk
12) Doing your banking on an iPhone is an example of m-
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
commerce.Answer: TRUE t
k ttk
Diff: 2 Page Ref: 11
ttk ttk ttk
AACSB Standard: Use of Information Technology
ttk ttk ttk ttk ttk
13) EC's future is now being shaped largely by the worldwide oil and financial
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
crises.Answer: FALSE
ttk t
k ttk
Diff: 3 Page Ref: 13
ttk ttk ttk
AACSB Standard: Reflective Thinking
ttk t t k ttk
14) Despite the failures of individual companies, the total volume of EC has been growing
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
by 5 to7 percent every year.
ttk ttk ttk t
k ttk ttk ttk
Answer: FALSE t t k
Diff: 2 Page Ref: 13
ttk ttk ttk
15) E-commerce 2.0 is based primarily on blogs and corporate-sponsored ttk ttk ttk ttk ttk ttk ttk ttk
collaboration.Answer: FALSE
ttk kt ttk
Diff: 1 Page Ref: 13
ttk ttk ttk
16) In effect, in a social network there are online and offline communities of people with
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
similarinterests.
ttk t
k
Answer: FALSE t t k
Diff: 2 Page Ref: 17
ttk ttk ttk
,17) Enterprise-oriented networks are social networks whose primary objective is to ttk ttk ttk ttk ttk ttk ttk ttk ttk
facilitatebusiness.
ttk t
k
Answer: TRUE ttk
Diff: 1 ttk Page Ref: 17 ttk ttk
18) Economic, legal, societal, and technological factors have created a highly competitive
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
businessenvironment in which customers are becoming less powerful.
ttk t
k ttk ttk ttk ttk ttk ttk ttk
Answer: FALSE t t k
Diff: 2 ttkPage Ref: 27 ttk ttk
19) The financial/economic crisis of 2008-2009 has resulted in many companies going
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
out ofbusiness or being acquired by other companies.
ttk ttk t
k ttk ttk ttk ttk ttk ttk
Answer: TRUE ttk
Diff: 1 ttkPage Ref: 27 ttk ttk
20) Business models are a subset of a business plan or business case and refer to methods of
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
doingbusiness by which a company can generate revenue.
ttk t
k ttk ttk ttk ttk ttk ttk ttk
Answer: TRUE ttk
Diff: 2 ttkPage Ref: 30 ttk ttk
21) A business model outlines how the organization or the EC project will generate
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
revenuethrough sales, transaction fees, advertising fees, affiliate fees, or other revenue
ttk t
k ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
sources. Answer: FALSE
ttk ttk ttk
Diff: 2 ttkPage Ref: 30 ttk ttk
22) A value proposition refers to the tangible and intangible benefits that a company can
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
derivefrom using EC—making it an important part of the marketing plan.
ttk t
k ttk ttk ttk ttk ttk t tk ttk ttk ttk ttk
Answer: TRUE ttk
Diff: 2 ttkPage Ref: 33 ttk ttk
23) Affiliate marketing is an EC business model of word-of-mouth marketing in which
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
customerspromote a product or service to friends or other people.
ttk t
k ttk ttk ttk ttk ttk ttk ttk ttk ttk
Answer: FALSE t t k
Diff: 2 ttk Page Ref: 34 ttk ttk
24) The Web site http://chemconnect.com for the chemical industry is an example of
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
specialinterest vertical marketplaces that concentrate on one industry.
ttk t
k ttk ttk ttk ttk ttk ttk ttk
Answer: TRUE ttk
Diff: 1 ttk Page Ref: 34 ttk ttk
25) The branch of philosophy that deals with what is considered to be right and wrong is
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
known ascorporate governance.
ttk ttk t
k ttk
Answer: FALSE t t k
Diff: 1 ttkPage Ref: 34 ttk ttk
, 1.2 Multiple Choice ttk
1) The 2008 Olympics in Beijing was the most digital Olympics to date for each of the
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
followingreasons except:
ttk t
k ttk
A) Many of the tickets were purchased online by people worldwide, using Beijing
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
GehueTicketmaster, in what is called business-to-business (B2B) e-commerce.
ttk kt t tk ttk ttk ttk ttk ttk ttk
B) The International Olympic Committee launched a YouTube channel to broadcast clips that
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
wereaccessible in many developing countries.
ttk t
k ttk ttk ttk ttk
C) Millions watched the Olympics through online videos and Internet-enabled cell phones
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
andother mobile devices.
ttk t
k ttk ttk
D) Global Positioning Systems (GPS) were used to track the position of sailing and rowing
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
boats.Answer: A
ttk t
k ttk
Diff: 3 Page Ref: 2
ttk ttk ttk
AACSB Standard: Use of Information Technology
ttk ttk ttk ttk ttk
2) RFID technology was used to support each of the following activities at the 2008
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
BeijingOlympics except:
ttk t
k ttk
A) ensuring safety of athletes' food ttk ttk ttk ttk
B) blogging on social networks ttk ttk ttk
C) preventing the sale of counterfeit tickets ttk ttk ttk ttk ttk
D) tracking marathon ttk
runnersAnswer: B
ttk t
k ttk
Diff: 2 Page Ref: 2,3
ttk ttk ttk
AACSB Standard: Use of Information Technology
ttk ttk ttk ttk ttk
3) ttk refers to the buying and selling of goods and services; servicing of customers; ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
collaborating with business partners; and conducting electronic transactions within an
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
organization.
ttk
A) E-commerce
B) E-business
C) Pure e-commerce ttk
D) Partial e- ttk
commerceAnswer: B t
k ttk
Diff: 1 Page Ref: 5
ttk ttk ttk
4) EC can take several forms depending on the degree of digitization of the following
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
threedimensions:
ttk t
k
A) the product or service sold, the process, and the delivery method.
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
B) the business process, the collaboration, and the transaction.
ttk ttk ttk ttk ttk ttk ttk
C) the payment method, the delivery method, and the production method.
ttk t tk ttk ttk ttk ttk ttk ttk ttk
D) the marketing channel, the agent, and the collaboration
ttk ttk ttk ttk ttk ttk ttk
method.Answer: A
ttk t
k ttk
Diff: 2 Page Ref: 5
ttk ttk ttk
tt tt tt tt tt tt tt tt tt tt tt
Turban)Chapter 1 Overview of Electronic Commerce
tt t tt tt tt tt tt
1.1 True/False
1) Radio frequency identification (RFID) chips were used to prevent counterfeit tickets
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
and toensure the safety of the athletes' food at the 2008 Olympics in Beijing.
ttk ttk t
k ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
Answer: TRUE ttk
Diff: 2 ttkPage Ref: 2 ttk ttk
AACSB Standard: Use of Information Technology
ttk ttk ttk ttk ttk
2) Electronic commerce (EC) is the process of buying, selling, transferring, or
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
exchangingproducts, services, and/or information via the Internet only.
ttk t
k ttk ttk ttk ttk ttk ttk ttk
Answer: FALSE t t k
Diff: 2 ttk Page Ref: 4 ttk ttk
AACSB Standard: Use of Information Technology
ttk ttk ttk ttk ttk
3) EC can be conducted over the public Internet or privately-owned
ttk ttk ttk ttk ttk ttk ttk ttk ttk
intranets.Answer: TRUE
ttk t
k ttk
Diff: 1 ttk Page Ref: 4 ttk ttk
4) In the field, a sales representative writes notes with a mobile handwriting-recognition
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
computerimmediately after a sales call. This can be viewed as an business-to-business EC
ttk t
k ttk ttk ttk ttk ttk ttk ttk ttk t tk ttk ttk ttk
activity. Answer: FALSE
ttk ttk ttk
Diff: 2 ttk Page Ref: 5 ttk ttk
AACSB Standard: Reflective Thinking
ttk t t k ttk
5) From a service perspective, EC allow governments, firms, consumers, and management to
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
bothcut service costs and improve the quality and speed of customer service.
ttk t
k ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
Answer: TRUE ttk
Diff: 2 ttkPage Ref: 5 ttk ttk
AACSB Standard: Use of Information Technology
ttk ttk ttk ttk ttk
6) An extranet is a network that uses private corporate networks to link together multiple
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
intranets.Answer: FALSE
ttk t
k ttk
Diff: 2 ttk Page Ref: 7 ttk ttk
7) An example of business-to-consumer (B2C) is when Dell provides customer service
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
online bycollaborating electronically with its partners.
ttk ttk t
k ttk ttk ttk ttk
Answer: FALSE t t k
Diff: 2 ttkPage Ref: 7 ttk ttk
,8) eMarketer estimated that retail e-commerce sales would decrease approximately 1.6
ttk ttk ttk ttk ttk ttk ttk ttk ttk
percent in2009.
ttk t tk t
k
Answer: FALSE t t k
Diff: 2 Page Ref: 7
ttk ttk ttk
9) Network infrastructures include cell phones and other electronic devices that are
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
located invarious locations by telecommunications networks, including wireless ones.
ttk ttk t
k ttk ttk ttk ttk ttk ttk ttk
Answer: TRUE ttk
Diff: 2 Page Ref: 8
ttk ttk ttk
AACSB Standard: Use of Information Technology
ttk ttk ttk ttk ttk
10) The final participants in B2B transactions are
ttk ttk ttk ttk ttk ttk
consumers.Answer: FALSE
ttk t
k ttk
Diff: 1 Page Ref: 9
ttk ttk ttk
11) When RetroMedia Inc. purchases Godiva chocolates as gifts for its employees and has
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
Godivamail them directly to the recipient, RetroMedia is engaged in B2B2C.
ttk t
k ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
Answer: TRUE ttk
Diff: 2 Page Ref: 9, 10
ttk ttk ttk ttk
12) Doing your banking on an iPhone is an example of m-
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
commerce.Answer: TRUE t
k ttk
Diff: 2 Page Ref: 11
ttk ttk ttk
AACSB Standard: Use of Information Technology
ttk ttk ttk ttk ttk
13) EC's future is now being shaped largely by the worldwide oil and financial
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
crises.Answer: FALSE
ttk t
k ttk
Diff: 3 Page Ref: 13
ttk ttk ttk
AACSB Standard: Reflective Thinking
ttk t t k ttk
14) Despite the failures of individual companies, the total volume of EC has been growing
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
by 5 to7 percent every year.
ttk ttk ttk t
k ttk ttk ttk
Answer: FALSE t t k
Diff: 2 Page Ref: 13
ttk ttk ttk
15) E-commerce 2.0 is based primarily on blogs and corporate-sponsored ttk ttk ttk ttk ttk ttk ttk ttk
collaboration.Answer: FALSE
ttk kt ttk
Diff: 1 Page Ref: 13
ttk ttk ttk
16) In effect, in a social network there are online and offline communities of people with
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
similarinterests.
ttk t
k
Answer: FALSE t t k
Diff: 2 Page Ref: 17
ttk ttk ttk
,17) Enterprise-oriented networks are social networks whose primary objective is to ttk ttk ttk ttk ttk ttk ttk ttk ttk
facilitatebusiness.
ttk t
k
Answer: TRUE ttk
Diff: 1 ttk Page Ref: 17 ttk ttk
18) Economic, legal, societal, and technological factors have created a highly competitive
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
businessenvironment in which customers are becoming less powerful.
ttk t
k ttk ttk ttk ttk ttk ttk ttk
Answer: FALSE t t k
Diff: 2 ttkPage Ref: 27 ttk ttk
19) The financial/economic crisis of 2008-2009 has resulted in many companies going
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
out ofbusiness or being acquired by other companies.
ttk ttk t
k ttk ttk ttk ttk ttk ttk
Answer: TRUE ttk
Diff: 1 ttkPage Ref: 27 ttk ttk
20) Business models are a subset of a business plan or business case and refer to methods of
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
doingbusiness by which a company can generate revenue.
ttk t
k ttk ttk ttk ttk ttk ttk ttk
Answer: TRUE ttk
Diff: 2 ttkPage Ref: 30 ttk ttk
21) A business model outlines how the organization or the EC project will generate
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
revenuethrough sales, transaction fees, advertising fees, affiliate fees, or other revenue
ttk t
k ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
sources. Answer: FALSE
ttk ttk ttk
Diff: 2 ttkPage Ref: 30 ttk ttk
22) A value proposition refers to the tangible and intangible benefits that a company can
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
derivefrom using EC—making it an important part of the marketing plan.
ttk t
k ttk ttk ttk ttk ttk t tk ttk ttk ttk ttk
Answer: TRUE ttk
Diff: 2 ttkPage Ref: 33 ttk ttk
23) Affiliate marketing is an EC business model of word-of-mouth marketing in which
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
customerspromote a product or service to friends or other people.
ttk t
k ttk ttk ttk ttk ttk ttk ttk ttk ttk
Answer: FALSE t t k
Diff: 2 ttk Page Ref: 34 ttk ttk
24) The Web site http://chemconnect.com for the chemical industry is an example of
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
specialinterest vertical marketplaces that concentrate on one industry.
ttk t
k ttk ttk ttk ttk ttk ttk ttk
Answer: TRUE ttk
Diff: 1 ttk Page Ref: 34 ttk ttk
25) The branch of philosophy that deals with what is considered to be right and wrong is
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
known ascorporate governance.
ttk ttk t
k ttk
Answer: FALSE t t k
Diff: 1 ttkPage Ref: 34 ttk ttk
, 1.2 Multiple Choice ttk
1) The 2008 Olympics in Beijing was the most digital Olympics to date for each of the
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
followingreasons except:
ttk t
k ttk
A) Many of the tickets were purchased online by people worldwide, using Beijing
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
GehueTicketmaster, in what is called business-to-business (B2B) e-commerce.
ttk kt t tk ttk ttk ttk ttk ttk ttk
B) The International Olympic Committee launched a YouTube channel to broadcast clips that
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
wereaccessible in many developing countries.
ttk t
k ttk ttk ttk ttk
C) Millions watched the Olympics through online videos and Internet-enabled cell phones
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
andother mobile devices.
ttk t
k ttk ttk
D) Global Positioning Systems (GPS) were used to track the position of sailing and rowing
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
boats.Answer: A
ttk t
k ttk
Diff: 3 Page Ref: 2
ttk ttk ttk
AACSB Standard: Use of Information Technology
ttk ttk ttk ttk ttk
2) RFID technology was used to support each of the following activities at the 2008
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
BeijingOlympics except:
ttk t
k ttk
A) ensuring safety of athletes' food ttk ttk ttk ttk
B) blogging on social networks ttk ttk ttk
C) preventing the sale of counterfeit tickets ttk ttk ttk ttk ttk
D) tracking marathon ttk
runnersAnswer: B
ttk t
k ttk
Diff: 2 Page Ref: 2,3
ttk ttk ttk
AACSB Standard: Use of Information Technology
ttk ttk ttk ttk ttk
3) ttk refers to the buying and selling of goods and services; servicing of customers; ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
collaborating with business partners; and conducting electronic transactions within an
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
organization.
ttk
A) E-commerce
B) E-business
C) Pure e-commerce ttk
D) Partial e- ttk
commerceAnswer: B t
k ttk
Diff: 1 Page Ref: 5
ttk ttk ttk
4) EC can take several forms depending on the degree of digitization of the following
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
threedimensions:
ttk t
k
A) the product or service sold, the process, and the delivery method.
ttk ttk ttk ttk ttk ttk ttk ttk ttk ttk
B) the business process, the collaboration, and the transaction.
ttk ttk ttk ttk ttk ttk ttk
C) the payment method, the delivery method, and the production method.
ttk t tk ttk ttk ttk ttk ttk ttk ttk
D) the marketing channel, the agent, and the collaboration
ttk ttk ttk ttk ttk ttk ttk
method.Answer: A
ttk t
k ttk
Diff: 2 Page Ref: 5
ttk ttk ttk