Section A: Multiple choice questions – 1 mark for each question. (20 marks)

1. _____________ refers to the buying and selling of goods and services; servicing of customers; collaborating with business partners; and conducting electronic transactions within an organization.

a. E-commerceb. E-businessc. Pure ECd. Partial EC

2. EC can take several forms depending on the degree of digitization of the following three dimensions:

a. the product or service sold, the process, and the delivery method.b. the business process, the collaboration, and the transaction.c. the payment method, the delivery method, and the production method.d. the marketing channel, the agent, and the collaboration method.

3. Purely physical companies are referred to as ____________ companies, whereas companies that are engaged only in EC are considered ________________ companies.

a. pure play; virtualb. brick-and-mortar; virtualc. click-and-mortar; click-and-brickd. virtual; pure play

4. _______________ 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).

a. E-CRMb. Interorganizational information systemsc. Intrabusiness ECd. B2B

5. A business such as Apple Computers making online transactions with its trading partners is an example of:

a. B2Bb. B2Cc. e-CRMd. EDI

6. A ____________ is a company’s method of doing business to generate revenue to sustain itself.

a. marketing strategyb. business model

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c. value chaind. business plan7. Traditional and electronic markets have three main functions, which include each of the following EXCEPT:

a. transforming raw materials into finished products.b. matching buyers and sellers.c. facilitating the exchange of information, goods, services, and payments associated with market

transactions.d. providing an institutional infrastructure, such as a legal and regulatory framework that enables the

efficient functioning of the market.

8. An electronic storefront includes several mechanisms that are necessary for conducting the sale. The most common mechanisms include each of the following EXCEPT:

a. an electronic catalog;b. a search enginec. a supply chaind. a payment gateway

9. 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.

a. intermediaryb. search enginec. information portald. browser

10. To be successful and useful, large e-catalogs need a(n) __________________.

a. search engineb. directoryc. data mining technologyd. enhanced viewing capability

11. 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.

a. search engineb. intelligent enginec. software agentd. software engine

12. The elimination of various types of agents that mediate between buyers and sellers, such as travel and insurance agents, is referred to as:

a. remediationb. disintermediationc. e-distributiond. automation

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13. With all else being equal in the online environment, goods with any of the following product characteristics are expected to facilitate greater online sales EXCEPT:

a. high brand recognition.b. digitized format.c. relatively expensive items.d. frequently purchased items.

14. Marketing that takes place without the help of intermediaries is called:

a. direct marketing.b. disintermediationc. pure-play e-tailingd. e-malls.

15. Dell's strategy is best described as:

a. a brick-and-mortar strategy.b. a shared service mall strategy.c. a click-and-mortar strategy.d. direct marketing from a manufacturer.

16. In direct marketing:

a. shipments are made directly from the seller to the customer.b. electronic distributors must be used.c. customers are contacted directly without the help of intermediaries.d. sales are made in malls only.

17. All of the following are potential sources of revenue for online independent travel agents EXCEPT:

a. direct marketing revenues.b. transaction fees.c. subscription fees.d. advertising fees.

18. ________________ are gateways to storefronts and e-malls.

a. Shopping portalsb. Shopbotsc. Shopping browsersd. Intelligent search engines

19. A traditional brick-and-mortar store with a mature Web site uses a click-and-mortar strategy to do all of the following EXCEPT:

a. reduce refunds and exchanges.b. empower customers.c. leverage each channel’s advantages for all customers.

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d. speak with one voice.

20. 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.

a. front endb. back endc. infrastructured. intermediary

Section B: True/False questions – 1 mark for each question. (10 marks)

1. An example of business-to-consumer (B2C) is when Dell provides customer service online by collaborating electronically with its partners.

2. Purchasing a Dell computer online for use at home is an example of e-tailing.

3. When Dell purchases Godiva chocolates as gifts for its employees and has Godiva mail them directly to the recipient Dell is engaged in B2B2C.

4. Doing your banking on an Internet-enabled cell phone is an example of m-commerce.

5. 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.

6. A retailer is a sales intermediary, a seller that operates between manufacturers and customers.

7. Virtual or pure-play e-tailers are firms that sell directly to consumers over the Internet without maintaining a physical sales channel.

8. All click-and-mortar retailers started life as a traditional storefront with a physical retail presence only and over time adopted an online transactional capability as well (brick only to brick-and-click).

9. In general, online real estate is replacing existing real estate agents in most markets.

10. From a bank's perspective, online banking offers a cheap alternative to branch banking as well as a chance to enlist customers in remote areas.

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