E-Commerce Spring 05, 100 questions 100 points

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E-Commerce Spring 05, 100 questions – 100 points

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) All of the following are reasons for the growth of Web advertising EXCEPT: 1) _______

A) ads can be updated at any time at a minimal cost. B) Web ads are typically cheaper than newspaper ads.

C) Web ads can be interactive and targeted to specific interest groups and individuals.

D) Web ads can effectively use the convergence of text, audio, graphics, and animation in communicating a message.

2) A company charges advertisers based on the number of customers that not only view a banner, but also visit the Web site advertised by the banner. This

pricing technique is based on: 2) _______ A) CPM. B) interactivity.

C) click through. D) actual purchases.

3) Third-party vendors are often needed in the design and implementation of major online promotions. The function of these third parties is called: 3) _______

A) admediation. B) intermediation.

C) personalization. D) disintermediation.

4) A request for data from a Web page is called: 4) _______ A) an impression. B) a cookie.

C) a hit. D) a banner.

5) The click-through model of ad pricing is based upon: 5) _______

A) the amount of time customers spend viewing Web pages reached through links from the banner ad.

B) the number of orders completed when customers follow links to the advertiser's Web pages

C) the number of times customers click their mouse on the banner ad. D) the number of times customers view a given banner ad.

6) A series of requests during one navigation to a Web site is called: 6) _______

A) a click. B) an impression. C) a visit. D) a hit.

7) When "used books" is entered in a search engine, a banner ad for Joe's Used Books is displayed. This is an example of: 7) _______

A) viral marketing. B) an associated ad display. C) personalized banner ads. D) affiliate marketing.


8) All of the following are benefits of banner ads EXCEPT: 8) _______ A) forced advertising assures that customers will see the banner ad.

B) the price of producing and implementing banner ads is much lower than any other form of advertising.

C) successful banner ads increase the number of visits to a company's site. D) banner ads can be targeted to a narrow audience.

9) Sending e-mail ads without the receivers permission is called: 9) _______ A) framing. B) mis-linking.

C) spoofing. D) spamming.

10) The use of e-mail to send advertising material to a targeted group of potential customers has all of the following strengths EXCEPT: 10) ______ A) this method is relatively cheap.

B) most companies already keep a list of customers that can be used as a basis for an e-mail list.

C) research has shown that customers react favorably to such ads, even when the number received is very high.

D) companies can use an e-mail list to target only customers most likely to purchase.

11) Free advertisement using URLs is done by: 11) ______ A) combining your URL with banners.

B) submitting your URL to a spot leasing agency. C) creating mailing lists.

D) submitting your URL to search engines.

12) A company uses cookies to track the pages of its Web site a visitor visits. The next time this visitor returns, the company uses this information to

determine which banner ad he/she sees. This is an example of: 12) ______ A) a personalized banner. B) a keyword banner.

C) a random banner. D) a classified banner.

13) The number of times users call up a page containing a given ad is called: 13) ______

A) the pull. B) the ad's reach. C) the click ratio. D) ad views.

14) Which of the following is not done in a banner exchange? 14) ______ A) Selling space for banners.

B) Finding one or more partners for banner displays. C) Arranging a one-to-one banner swapping.

D) Providing help in banner design.

15) Internet surfers are a desired target for advertisers for all of the following reasons EXCEPT: 15) ______

A) women dominate the ranks of Web surfers.

B) studies have found that most Web surfers are foregoing TV time to surf the Net.


C) Internet surfers are, on average, better educated than the general population.

D) Internet surfers, on average, have higher incomes than the general population.

16) An HTML document that may contain text, images, and other online elements is called: 16) ______

A) an impression. B) a page. C) a button. D) a banner.

17) Based on his product needs, Jose has decided he wants to buy a Saturn VUE. An online agent helps him identify the particular dealer that has the car he wants at a price he is willing to pay. This is an example of an agent

supporting: 17) ______

A) merchant brokering. B) service and evaluation. C) product brokering. D) need identification.

18) Wanda knows she needs a new computer, but she isn't sure of the exact specifications. An online agent assists her in translating her computing needs to specific configurations that will meet her needs. This is an example of an agent supporting: 18) ______

A) service and evaluation. B) product brokering. C) need identification. D) merchant brokering.

19) A banner that appears only when one of a predetermined set of words is entered in a search engine is called: 19) ______

A) a keyword banner. B) a classified banner. C) a personalized banner. D) a random banner.

20) A Web site helps customers select gifts based on responses to a set of standardized questions. This is an example of an agent supporting: 20) ______ A) merchant brokering. B) service and evaluation.

C) product brokering. D) need identification.

21) Random banners are most appropriate when: 21) ______

A) Dell wants to announce an upgrade offer available only to those who have recently purchased Dell computers.

B) a studio is introducing a new movie.

C) Jeep wants off-road enthusiasts to see an ad targeted to this group. D) a company is trying to reach a narrow target market.

22) The characteristic that influences the average length of times a visitor stays at a Web site is called: 22) ______

A) a unique visit. B) stickiness. C) an ad view. D) a visit.


23) An attempt to disseminate information in order to affect buyer-seller transactions is called: 23) ______

A) push technology. B) personalization. C) advertising. D) segmentation.

24) The practice of visibly placing popular brands, slogans, and proprietary content into a site to optimize search-engine rankings is called: 24) ______ A) visible seeding. B) mouse-trapping.

C) cyber-squatting. D) invisible seeding.

25) The practice of keeping customers on the original site while the customer views content from another site through the original window is called: 25) ______

A) cyber-squatting. B) mouse-trapping. C) visible seeding. D) framing.

26) The exchange model in which RFQs are aggregated then linked to a pool of suppliers who are automatically notified of the RFQ is the: 26) ______ A) reverse auction model. B) buyer aggregation model.

C) supplier aggregation model. D) seller aggregation model.

27) A rapid movement of prices over time is called: 27) ______ A) dynamic pricing. B) market making.

C) static pricing. D) demand pricing.

28) Brand building is important in B2B exchanges because: 28) ______ A) it is easy for exchange members to change to another exchange.

B) information flow is poor in most exchanges, making trust of suppliers very important.

C) brand loyalty toward a given product is usually more important than cost. D) exchange members typically buy only the best brands of product.

29) All of the following are potential risks for sellers in an exchange EXCEPT: 29) ______

A) potential for price wars.

B) possible loss of customer service quality. C) possible loss of customers to competitors. D) potential for loss of direct CRM and PRM.

30) When systematic sourcing is used in a B2B e-marketplace,: 30) ______ A) the market maker aggregates buyers and/or sellers and provides a framework for negotiations.

B) prices are determined by the market.

C) the market maker matches supply with demand. D) there is never a market maker.


31) Tunneling technology makes an extranet more secure than the Internet by: 31) ______

A) burying the cables connecting member intranets far underground.

B) using low frequency transmissions to transfer data between intranets. C) connecting the firewalls of the various intranets.

D) using cryptography and authorization algorithms.

32) Exchange members who can make offers, pay, and arrange deliveries through the exchange are known as: 32) ______

A) trading members. B) full members. C) market makers. D) observing members.

33) A market maker evaluates an exchange between a buyer in the United States and a seller in Spain to assure that import laws for the U.S. are followed. This is an example of the market maker: 33) ______

A) maintaining exchange policies and infrastructure. B) interfering in an exchange.

C) facilitating an exchange. D) matching a buyer and seller.

34) Attracting large business sellers to public exchanges is often difficult for all of the following reasons EXCEPT: 34) ______

A) competitors who are also exchange member may gain access to confidential information.

B) advertising costs in public exchanges are exorbitant.

C) they are required to pay transaction fees even when they engage in transactions with existing customers.

D) it is sometimes difficult to recruit large suppliers.

35) E-marketplaces are usually built by: 35) ______ A) major B2B software companies.

B) a joint effort of the various IT departments in all the marketplace member companies.

C) the IT department of the largest company in a consortium. D) independent entrepreneurs working alone.

36) In spot-sourcing, prices are: 36) ______ A) set by long-term contract.

B) based on supply and demand. C) set by the market maker.

D) based solely on the cost structure of the seller.

37) The concept of liquidity for a B2B exchange is: 37) ______ A) the amount of available cash on hand at any given time.

B) the ease with which orders can be placed, processed, and shipped using the exchange.

C) the ease with which information flows between exchange members. D) the volume of business conducted on the exchange.


38) The exchange model in which a third party sets up the exchange and promises to run it efficiently and without bias is called: 38) ______

A) the industry giant model.

B) the neutral entrepreneur model. C) the co-op model.

D) the consortia model.

39) A market maker bills a buyer for reviewing several seller contracts and making a recommendation on what to buy and from whom. The revenue model being used in this example is the: 39) ______

A) transaction fee model. B) advertising fee model. C) membership fee model. D) fee for service model.

40) The consortium model in which a group of buying companies in the same

industry join together to streamline the purchasing process is called the: 40) ______

A) horizontal selling-oriented consortium. B) horizontal purchasing-oriented consortium. C) vertical selling-oriented consortium. D) vertical purchasing-oriented consortium.

41) The most attractive industries for a vertical exchange are characterized by: 41) ______

A) stagnant technology.

B) many fragmented buyers and sellers.

C) a few very large players that totally dominate the industry.

D) a market in which a small number of very large orders account for more than half the total market volume per year.

42) All of the following are dimensions of usability EXCEPT: 42) ______ A) price. B) efficiency.

C) effectiveness. D) satisfaction.

43) The future technology that will notify the police automatically if an enabled car has an accident is called: 43) ______

A) a collision avoidance system (CAV). B) automatic crash notification (ACN). C) a wreck positioning system (WPS). D) wreck locator technology (WLT).

44) A doctor keeps her cell phone on twenty-four hours a day when she is on call. This is an example of the m-commerce characteristic called: 44) ______ A) convenience. B) mobility.

C) broad reachability. D) ubiquity.

45) A chip technology that enables voice and data communication through low-power, short-range, digital two-way radio frequency is called: 45) ______ A) Bluetooth. B) cellular radio technology.


46) A teenager carries his cell phone to school and work. He talks to friends from the school bus and even carries it with him when he goes hiking on the weekend. This is an example of the m-commerce characteristic called: 46) ______

A) mobility. B) agility. C) convenience. D) ubiquity.

47) Current health studies of long-term use of mobile technologies indicate: 47) ______

A) there is a risk to unborn children when pregnant women use cell phones. B) there has been no conclusive evidence that cell phone use causes cancer. C) the risk of cancer increases with increased usage of cell phones.

D) cell phone use has been proven not to cause cancer.

48) A protocol used in 3G systems which separates different users by assigning different codes to the segments of each user's communications is called: 48) ______

A) Code Division Multiple Access. B) Wireless Multiple Access. C) Time Division Multiple Access. D) Frequency Division Multiple Access.

49) Streets, road maps, addresses, routes, landmarks, land usage, and Zip codes are all considered: 49) ______

A) position content. B) mobility content. C) geographic content. D) location content.

50) The analog-based wireless technology in existence between 1979 horizontal 1992 was called: 50) ______

A) 2.5G. B) 1G.

C) Web phone. D) 2G.

51) The protocols which enable different kinds of wireless devices to communicate with a server on a mobile network is called: 51) ______ A) a mobile-client operating system.

B) application middleware.

C) a mobile application user interface. D) WAP.

52) __________ enables the determination of the location of an enabled device. 52) ______


53) Because customers are expensive to acquire online, site content is important in improving: 53) ______

A) rotation. B) impression spacing. C) localization. D) stickiness.


54) An ad that appears underneath the current browser window so when the user closes the active window they see the ad is called a(n): 54) ______

A) invisible seeding. B) changing homepage. C) pop-under ad. D) pop-up ad.

55) To maximize the click ratio, research has shown that banner ads should appear: 55) ______

A) at the top of the Web page.

B) in the lower right-hand corner of the screen near the scroll bar. C) one-third of the way down the Web page.

D) anywhere on the Web page. The position on the page has no impact on click ration.

56) A small banner linked to a Web is called: 56) ______ A) a button. B) a click. C) a banner. D) a hit.

57) The online ad pricing technique based on the traditional pricing method of charging based on exposure bases charges for advertising on: 57) ______ A) actual purchases. B) click through.

C) interactivity. D) CPM.

58) In the ads as a commodity approach,: 58) ______

A) advertisers depend on word of mouth to spread the word about a new product. B) all ads are assumed to be equally effective, so little is spent on ad design. C) customers are paid for the time spent viewing ads.

D) a unique series of ads appears based on the surfing behavior of each potential customer.

59) The advertising practice in which ad viewers register and agree to view ads is called: 59) ______

A) bannering. B) flaming.

C) permission advertising. D) spamming.

60) The consortium model in which a group of buyers from various industries unite to improve the supply chain is called the: 60) ______

A) horizontal selling-oriented consortium. B) horizontal purchasing-oriented consortium. C) vertical purchasing-oriented consortium. D) vertical selling-oriented consortium.

61) Aggregation models work best in all of the following situations EXCEPT when: 61) ______

A) the buyer or supplier base is fragmented. B) dynamic pricing is widely used.

C) products and/or services are well defined. D) prices are stable.


62) In dealing with exchange members, the management of the exchange should: 62) ______

A) take special care of the companies that share ownership in the exchange. B) strive to maximize exchange revenues through charging the highest possible fees.

C) make certain that the exchange in neutral in its dealings with all members. D) leave the management of day-to-day operations of the exchange to the members.

63) The party that operates and often owns an exchange is called the: 63) ______

A) marketer. B) auctioneer.

C) market maker. D) channel controller.

64) Markets in which several large sellers sell to a large number of buyers are called: 64) ______

A) fragmented markets. B) differentiated markets.

C) seller-concentrated markets. D) buyer-concentrated markets.

65) In a geographical information system,: 65) ______

A) 3D maps are used to spatially describe the location of the user. B) latitude and longitude are inserted onto electronic maps.

C) key businesses are listed by Zip code and cross referenced with users based on location.

D) lists of addresses are cross referenced by the current location of the user.

66) A protocol used in 1G systems which gives each user a different frequency for communications is called: 66) ______

A) Code Division Multiple Access. B) Time Division Multiple Access. C) Frequency Division Multiple Access. D) Wireless Multiple Access.

67) Mobile visitors to a Web site are typically paying premium rates for connections and are focused on a specific goal. The small screens of current wireless devices make this difficult. This is known as: 67) ______

A) the disappointed user problem. B) the usability problem.

C) a transmission limitation. D) insufficient bandwidth.

68) The idea that almost any device can be imbedded with computer chips and connected to a network of other devices is called: 68) ______

A) permission internet. B) localization. C) Web translation. D) pervasive computing.


69) Rather than investing in expensive advertising, a publisher relies on

positive comments about a new book to build sales. This is an example of: 69) ______

A) viral marketing.

B) personalized advertising. C) marketing through affiliates. D) the ads as a commodity approach.

70) In dynamic pricing,: 70) ______

A) different prices are charged to different customers for different products. B) different prices are charged to different customers for exactly the same product.

C) the same price is charged to different customers for the same product. D) the same price is charged to different customers for different products.

71) A market maker charges a percentage on every buy and sell made in the exchange. The revenue model in place in this exchange is the: 71) ______ A) fee for service model. B) transaction fee model.

C) advertising fee model. D) membership fee model.

72) In the near future, a customer could call a pizza delivery service and have pizza delivered without ever giving a street address. This is an example of the m-commerce characteristic called: 72) ______

A) convenience. B) mobility.

C) localization of products and services. D) ubiquity.

73) In an attempt to translate traditional advertising models to the Internet, many Web sites charge advertisers a fixed amount per guaranteed ad view. This pricing method is called the: 73) ______

A) click-through model B) purchase model. C) exposure model. D) interactivity model.

74) All of the following are potential sources of revenue for an exchange EXCEPT: 74) ______

A) fees for services rendered. B) advertisement fees. C) annual membership fees. D) shipping fees.

75) A lawyer keeps contact information for all his clients in his PDA. He can also use his PDA to access the phone books of any major U.S. city when trying to contact other lawyers in other locations. This is an example of the m-commerce characteristic called: 75) ______

A) convenience. B) ubiquity.

C) localization of products and services. D) mobility.


TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

76) Research has shown that banner ads appearing at the top of the page produce much higher click ratios than banners placed elsewhere on a Web page. 76) ______

77) Banner exchanges involve three or more companies in an often complex agreement which rewards exchange members with the display of banner ads on selected sites after a set number of banner ads from other exchange members appear on its own site. 77) ______

78) Although DoubleClick cannot usually attach a name to its visitors, it can build a dossier of information about users by using a cookie to track which sites users visit. 78) ______

79) An online advertiser is responsible for paying the CPM after 1,000 people click on the banner ad. 79) ______

80) Traditionally, ad pricing is based on the number of people exposed to an ad. 80) ______

81) Television watchers, on average, show higher education and income levels than Internet users. 81) ______

82) The primary advantage of Internet advertising is that it provides an opportunity for a high level of interaction with customers. 82) ______

83) Under the interactivity pricing model, the cost of advertising is

calculated by multiplying the ad volume times a pre-negotiated dollar amount. 83) ______

84) Spot sourcing occurs on an as-needed basis. 84) ______

85) IBM placed a large number of its own patents for sale on a Web site and invited its competitors to join the exchange. This is an example of the sell-side model. 85) ______

86) The membership fee model for an exchange can fail either as a result of charging too high a fee and so discouraging membership, or charging too low a fee and so producing insufficient fees for operations. 86) ______

87) In classifying exchanges, indirect materials are purchased in vertical exchanges. 87) ______


88) High switching costs for exchange members in most exchanges result in high brand loyalty and make the switching of members to other exchanges rare. 88) ______

89) OnStar is an example of a telemetry application. 89) ______

90) Ubiquity refers to the attribute of being available everywhere at any given time. 90) ______

91) A Subscriber Identification Module is a smart card with an embedded antenna which allows the card to communicate with other devices over a WAN. 91)


92) Proximity cards are used to transmit location-sensitive information to cell phone users. 92) ______

93) By the end of 2006, advertising on the Internet is expected to grow to more than $100 billion. 93) ______

94) The major disadvantage of banner ads is their cost. 94) ______

95) In a buyer-concentrated market, a consortium is the most appropriate approach. 95) ______

96) Systematic sourcing deals with long-term supplier-buyer relationships. 96) ______

97) GPS locations are stated in terms of longitude and latitude. 97) ______

98) Chat rooms can be an effective way to advertise a product if a company uses employees to post queries that encourage other chatters to talk about their product. 98) ______

99) The major challenges faced in the supplier aggregation model are recruiting suppliers and pushing the system to buyers. 99) ______

100) The advantage of Bluetooth in m-commerce is that devices connected according to this standard can communicate over distances in excess of 500 meters. 100) ______




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