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E-commerce 2017: Business, Technology, and Society, 13e (Laudon/Traver)
Chapter 1 The Revolution Is Just Beginning
1) Why study e-commerce?
Answer: E-commerce technology is different and more powerful than any of the other technologies we have seen in the past century. E-commerce technologies—and the digital markets that result—have brought about fundamental, unprecedented shifts in commerce. While other technologies transformed economic life in the twentieth century, the evolving Internet and other information technologies are shaping the twenty-first century.
Diff: Moderate
AACSB: Application of knowledge; Written and oral communication
LO: 1.1: Understand why it is important to study e-commerce.
2) E-commerce can be defined as:
A) the use of the Internet, the Web, and mobile apps to transact business.
B) the use of any Internet technologies in a firm's daily activities.
C) the digital enablement of transactions and processes within an organization.
D) any digitally enabled transactions among individuals and organizations.
Answer: A
Diff: Easy
AACSB: Application of knowledge
LO: 1.2: Define e-commerce, understand how e-commerce differs from e-business, identify the primary technological building blocks underlying e-commerce, and recognize major current themes in e-commerce.
3) ________ is an example of e-business.
A) Amazon's inventory control system
B) The A website
C) An Amazon mobile app
D) Amazon's Pinterest page
Answer: A
Diff: Moderate
AACSB: Application of knowledge
LO: 1.2: Define e-commerce, understand how e-commerce differs from e-business, identify the primary technological building blocks underlying e-commerce, and recognize major current themes in e-commerce.
4) Which of the following terms is synonymous with e-commerce?
A) e-business
B) digital commerce
C) the Internet
D) the Web
Answer: B
Diff: Easy
AACSB: Application of knowledge
LO: 1.2: Define e-commerce, understand how e-commerce differs from e-business, identify the primary technological building blocks underlying e-commerce, and recognize major current themes in e-commerce.
5) Which of the following is not true about the use of apps?
A) The average U.S. consumer spends over three hours a day using apps.
B) Users still spend less time using apps than they do using desktops or mobile websites.
C) Apps are easier to control and monetize than websites.
D) Around 280 million people worldwide launch a smartphone app more than 60 times a day.
Answer: B
Diff: Difficult
AACSB: Application of knowledge
LO: 1.2: Define e-commerce, understand how e-commerce differs from e-business, identify the primary technological building blocks underlying e-commerce, and recognize major current themes in e-commerce.
6) Which of the following statements about e-commerce in the United States in 2016 is not true?
A) Social e-commerce generates more revenue than mobile e-commerce.
B) Over 210 million U.S. consumers use mobile apps.
C) On-demand service firms are fueling the growth of local e-commerce.
D) Growth rates for retail e-commerce are higher in Europe than in the United States.
Answer: A
Diff: Difficult
AACSB: Application of knowledge
LO: 1.2: Define e-commerce, understand how e-commerce differs from e-business, identify the primary technological building blocks underlying e-commerce, and recognize major current themes in e-commerce.
7) In 2016, almost ________ of Americans who access the Internet use a mobile device at least some of the time.
A) 63%
B) 73%
C) 83%
D) 93%
Answer: D
Diff: Difficult
AACSB: Information technology
LO: 1.2: Define e-commerce, understand how e-commerce differs from e-business, identify the primary technological building blocks underlying e-commerce, and recognize major current themes in e-commerce.
8) Which of the following is not a major business trend in e-commerce in 2016-2017?
A) Mobile e-commerce continues to grow.
B) Small businesses and entrepreneurs are hampered by the rising cost of market entry caused by increased presence of industry giants.
C) On-demand service companies garner multi-billion dollar valuations.
D) Mobile advertising continues to grow at astronomical rates.
Answer: B
Diff: Difficult
AACSB: Application of knowledge
LO: 1.2: Define e-commerce, understand how e-commerce differs from e-business, identify the primary technological building blocks underlying e-commerce, and recognize major current themes in e-commerce.
9) Which of the following is not a major technology trend in e-commerce in 2016-2017?
A) Mobile messaging services become popular with smartphone users.
B) Firms are turning to business analytics to make sense out of big data.
C) The mobile computing and communications platform creates an alternative platform for online transactions, marketing, advertising, and media viewing.
D) Computing and networking component prices increase dramatically.
Answer: D
Diff: Moderate
AACSB: Information technology
LO: 1.2: Define e-commerce, understand how e-commerce differs from e-business, identify the primary technological building blocks underlying e-commerce, and recognize major current themes in e-commerce.
10) All of the following are major social trends in e-commerce in 2016-2017 except for:
A) concerns about the flood of temporary, low paying jobs without benefits being generated by on-demand service companies.
B) the continuing conflict over copyright management and control.
C) the refusal of online retailers to accept taxation of Internet sales.
D) the growth of government surveillance of Internet communications.
Answer: C
Diff: Difficult
AACSB: Application of knowledge
LO: 1.2: Define e-commerce, understand how e-commerce differs from e-business, identify the primary technological building blocks underlying e-commerce, and recognize major current themes in e-commerce.
11) Which of the following is not a major business trend in e-commerce in 2016-2017?
A) the growth of a mobile app ecosystem
B) the weakening revenues of B2B e-commerce
C) the emergence of social e-commerce
D) the growth of the on-demand service firms
Answer: B
Diff: Moderate
AACSB: Application of knowledge
LO: 1.2: Define e-commerce, understand how e-commerce differs from e-business, identify the primary technological building blocks underlying e-commerce, and recognize major current themes in e-commerce.
12) Which of the following statements about the Web is not true?
A) The Web is the technology upon which the Internet is based.
B) The Web was the original "killer app."
C) The Web provides access to pages written in HyperText Markup Language.
D) The Web is both a communications infrastructure and an information storage system.
Answer: A
Diff: Difficult
AACSB: Application of knowledge
LO: 1.2: Define e-commerce, understand how e-commerce differs from e-business, identify the primary technological building blocks underlying e-commerce, and recognize major current themes in e-commerce.
13) In 2016, there were more than ________ Internet hosts.
A) 1 million
B) 10 million
C) 100 million
D) 1 billion
Answer: D
Diff: Moderate
AACSB: Application of knowledge
LO: 1.2: Define e-commerce, understand how e-commerce differs from e-business, identify the primary technological building blocks underlying e-commerce, and recognize major current themes in e-commerce.
14) Which of the following was the original "killer app" that made the Internet commercially interesting and extraordinarily popular?
A) e-commerce
B) The Web
C) social networks
D) mobile apps
Answer: B
Diff: Easy
AACSB: Application of knowledge
LO: 1.2: Define e-commerce, understand how e-commerce differs from e-business, identify the primary technological building blocks underlying e-commerce, and recognize major current themes in e-commerce.
15) The term e-commerce refers to the digital enabling of transactions and processes involving an exchange of value across organizational boundaries.
Answer: TRUE
Diff: Moderate
AACSB: Application of knowledge
LO: 1.2: Define e-commerce, understand how e-commerce differs from e-business, identify the primary technological building blocks underlying e-commerce, and recognize major current themes in e-commerce.
16) E-commerce and e-business systems blur together at the business firm boundary, at the point at which internal business systems link up with suppliers or customers.
Answer: TRUE
Diff: Easy
AACSB: Information technology
LO: 1.2: Define e-commerce, understand how e-commerce differs from e-business, identify the primary technological building blocks underlying e-commerce, and recognize major current themes in e-commerce.
17) Retail e-commerce in the United States is not expected to continue growing at double-digit growth rates in 2016-2017.
Answer: FALSE
Diff: Moderate
AACSB: Application of knowledge
LO: 1.2: Define e-commerce, understand how e-commerce differs from e-business, identify the primary technological building blocks underlying e-commerce, and recognize major current themes in e-commerce.
18) The Internet is a worldwide network of computer networks.
Answer: TRUE
Diff: Moderate
AACSB: Application of knowledge
LO: 1.2: Define e-commerce, understand how e-commerce differs from e-business, identify the primary technological building blocks underlying e-commerce, and recognize major current themes in e-commerce.
19) The Internet has shown similar growth patterns as other electronic technologies of the past.
Answer: FALSE
Diff: Easy
AACSB: Application of knowledge
LO: 1.2: Define e-commerce, understand how e-commerce differs from e-business, identify the primary technological building blocks underlying e-commerce, and recognize major current themes in e-commerce.
20) Explain why a firm's online inventory control system is an example of e-business rather than e-commerce. What is the key factor in determining if a transaction is "commerce"?
Answer: E-business refers primarily to digitally enabled transactions within a firm, involving information systems, such as an online inventory control system, under the control of the firm. E-business does not involve commercial transactions in which an exchange of value across organizational boundaries takes place. E-commerce, on the other hand, is a revenue-generating operation. The key factor in determining if a transaction is commerce, therefore, is "exchange of value." In order to be e-commerce, a transaction must include the direct production of revenue.
Diff: Easy
AACSB: Analytical thinking; Written and oral communication
LO: 1.2: Define e-commerce, understand how e-commerce differs from e-business, identify the primary technological building blocks underlying e-commerce, and recognize major current themes in e-commerce.
21) Which of the following is not a unique feature of e-commerce technology?
A) interactivity
B) social technology
C) information asymmetry
D) richness
Answer: C
Diff: Moderate
AACSB: Information technology
LO: 1.3: Identify and describe the unique feature of e-commerce technology and discuss their business significance.
22) Which of the following features of e-commerce technology enables merchants to market and sell "complex" goods and services to consumers via marketing messages that can integrate video, audio, and text?
A) richness
B) ubiquity
C) information density
D) personalization
Answer: A
Diff: Moderate
AACSB: Application of knowledge
LO: 1.3: Identify and describe the unique feature of e-commerce technology and discuss their business significance.
23) Which of the following features of e-commerce technology allows users to participate in the creation of online content?
A) ubiquity
B) global reach
C) information density
D) social technology
Answer: D
Diff: Moderate
AACSB: Analytical thinking
LO: 1.3: Identify and describe the unique feature of e-commerce technology and discuss their business significance.
24) Which of the following is the best definition of transaction cost?
A) the expense of changing national or regional prices
B) the cost of participating in a market
C) the cost of finding suitable products in the market
D) the cost merchants pay to bring their goods to market
Answer: B
Diff: Moderate
AACSB: Application of knowledge
LO: 1.3: Identify and describe the unique feature of e-commerce technology and discuss their business significance.
25) In 2016, the world's online population was estimated to be around:
A) 330 million.
B) 3.3 billion.
C) 33 billion.
D) 330 billion.
Answer: B
Diff: Moderate
AACSB: Application of knowledge
LO: 1.3: Identify and describe the unique feature of e-commerce technology and discuss their business significance.
26) Which of the following features of e-commerce technology is related to the concept of network externalities?
A) richness
B) interactivity
C) universal standards
D) information density
Answer: C
Diff: Difficult
AACSB: Application of knowledge
LO: 1.3: Identify and describe the unique feature of e-commerce technology and discuss their business significance.
27) Which of the following statements is true about the traditional tradeoff between the richness and reach of a marketing message prior to the development of the Web?
A) Marketing messages had little richness.
B) The smaller the audience reached, the less rich the message.
C) The larger the audience reached, the less rich the message.
D) Richness was unrelated to reach.
Answer: C
Diff: Difficult
AACSB: Information technology
LO: 1.3: Identify and describe the unique feature of e-commerce technology and discuss their business significance.
28) Interactivity in the context of e-commerce provides which of the following functionalities?
A) the ability to physically touch and manipulate a product
B) complexity and content of a message
C) the ability of consumers to create and distribute content
D) the enabling of two-way communication between consumer and merchant
Answer: D
Diff: Moderate
AACSB: Application of knowledge
LO: 1.3: Identify and describe the unique feature of e-commerce technology and discuss their business significance.
29) The costs incurred by merchants changing product prices (such as the costs of reentering prices into computer systems) are referred to as:
A) subscription costs.
B) fixed costs.
C) menu costs.
D) variable costs.
Answer: C
Diff: Moderate
AACSB: Application of knowledge
LO: 1.3: Identify and describe the unique feature of e-commerce technology and discuss their business significance.
30) Which of the following refers to any disparity in relevant market information among parties in a transaction?
A) information asymmetry
B) unfair competitive advantage
C) imperfect competition
D) dynamic pricing
Answer: A
Diff: Moderate
AACSB: Applicat
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