E-Business Ch 06

File: ch06, Chapter 6: E-Business and E-Commerce
True/False
1. Electronic commerce is changing only the production and operations management functional area.
Ans: False
Response: See page 176
2. Electronic commerce is the buying and selling of products, services, and information via computer
networks, primarily the Internet.
Ans: True
3. Electronic business is a broader term than electronic commerce.

Ans: True
4. Electronic commerce can take several forms depending on the degree of digitization.
Ans: True
5. Electronic commerce can take only one form; i.e., digital.

Ans: False
6. In traditional commerce, the product or service, the process, and the delivery agent are physical.
Ans: True
7. In traditional commerce, one or more of the product or service, the process, and the delivery agent can be
digital.
Ans: False
8. In pure electronic commerce, the product or service, the process, and the delivery agent can be digital or
physical.
Ans: False
9. In partial electronic commerce, at least one of the product or service, the process, or the delivery agent is
digital.
Ans: True
10. Companies that are engaged only in electronic commerce are considered virtual (or pure-play)
organizations.
Ans: True
11. Companies that conduct some e-commerce activities, yet their primary business is done in the physical
world, are considered click-and-mortar organizations.
Ans: True
12. Buying a car at your local dealership is an example of pure electronic commerce.
Ans: False
13. Going to the Web site of a car manufacturer (e.g., www.gm.com), entering the specifications for the car
you want, and then picking up your car at your local dealership is an example of partial electronic
commerce.
Ans: True
14. Going to the Web site of a car manufacturer (e.g., www.gm.com), entering the specifications for the car
you want, and then picking up your car at your local dealership is an example of pure electronic commerce.
Ans: False
15. With business-to-consumer EC, the sellers are organizations and the buyers are individuals.
Ans: True
16. With business-to-business EC, the sellers and buyers are organizations.
Ans: True
17. With business-to-business EC, the sellers are organizations and the buyers are individuals.
Ans: False
18. With consumer-to-consumer EC, individuals sell products or services to other individuals.
Ans: True
19. eBay is a good example of consumer-to-consumer electronic commerce.

Ans: True
20. eBay is a good example of business-to-consumer electronic commerce.

Ans: False
21. Internet-based classified ads offer an international audience, which is an advantage over traditional
classified ads.
Ans: True
22. Internet-based classified ads increase the listings of goods and services.
Ans: True
23. Internet-based classified ads decrease the listings of goods and services.
Ans: False
24. Internet-based classified ads increase the number of potential buyers.

Ans: True
25. Internet-based classified ads decrease the number of potential buyers.

Ans: False
26. In business-to-employee electronic commerce, an organization uses EC internally to provide

information and services to its employees.
Ans: True
27. In business-to-consumer electronic commerce, an organization uses EC internally to provide

information and services to its employees.
Ans: False
28. An example of government-to-citizen electronic commerce is the direct deposit of Social Security and
pension payments.
Ans: True
29. Electronic benefits transfer is a type of B2B electronic commerce.

Ans: False
30. When electronic commerce is done in a wireless environment, it is called mobile commerce.
Ans: True
31. The primary characteristic of auctions is that prices are determined dynamically by competitive bidding.
Ans: True
32. The primary characteristic of auctions is that prices are static during the bidding process.
Ans: False
33. Forward auctions are used mainly as a selling channel.

Ans: True
34. In reverse auctions, there is one buyer who wants to buy a product or a service. Suppliers are invited to
submit bids and the supplier with the lowest bid wins.
Ans: True
35. The reverse auction is the most common auction model for large purchases.
Ans: True
36. The forward auction is the most common auction model for large purchases.
Ans: False
37. eBay uses a forward auction process.

Ans: True
38. eBay uses a reverse auction process.

Ans: False
39. An electronic marketplace is a central, virtual market space on the Web where many buyers and many
sellers can conduct electronic business activities.
Ans: True
40. An electronic marketplace is a central, physical marketplace where many buyers and many sellers can
conduct electronic business activities.
Ans: False
41. Electronic commerce makes national and international markets more accessible.
Ans: True
42. Electronic commerce makes national and international markets less accessible.
Ans: False
43. Electronic commerce increases the costs of processing, distributing, and retrieving information.
Ans: True
44. Electronic commerce decreases the costs of processing, distributing, and retrieving information.
Ans: False
45. Electronic commerce provides the ability to easily and conveniently deliver information, services, and
products to people in cities, rural areas, and developing countries.
Ans: True
46. Electronic commerce provides the ability to easily and conveniently deliver information, services, and
products to people in cities, but unfortunately not rural areas or developing countries.
Ans: False
47. There are universally accepted standards for quality, security, and reliability of electronic commerce
transactions.
Ans: False
48. There is a lack of universally accepted standards for quality, security, and reliability of electronic
commerce transactions.
Ans: True
49. Even though B2B EC is much larger by volume, B2C EC is more complex.
Ans: True
50. Even though B2C EC is much larger by volume, B2B is more complex.
Ans: False
51. B2C involves a large number of buyers making millions of diverse transactions per day with a relatively
small number of sellers.
Ans: True
52. B2B involves a large number of buyers making millions of diverse transactions per day with a relatively
small number of sellers.
Ans: False
53. The vast majority of electronic commerce volume is business-to-consumer.

Ans: False
54. Electronic retailing (e-tailing) is the direct sale of products and services through electronic storefronts
or electronic malls, usually designed around an electronic catalog and/or auctions.
Ans: True
Response: See pages 184-185
55. An electronic storefront is a Web site on the Internet representing a single store.
Ans: True
56. An electronic mall is a Web site on the Internet representing a single store.
Ans: False
Response: See page185
57. An electronic storefront is a collection of individual shops under a single Internet address.
Ans: False
58. All electronic storefronts are extensions of physical stores.

Ans: False
59. An electronic mall is a collection of individual shops under a single Internet address.
Ans: True
Response: See page185
60. Electronic wholesaling is the direct sale, businesses to consumers, through electronic storefronts or
malls, usually designed around an electronic catalog.
Ans: False
Response: See page 184-185
61. Solo storefronts maintain their own Internet names and Web sites and may be extensions of physical
stores.
Ans: True
62. Solo storefronts are always affiliated with electronic malls.

Ans: False
63. You can make a purchase in a referral mall.

Ans: False
64. Selling products on the Internet may reduce vendors selling costs by 20 to 40 percent, and further
reductions are easily possible.
Ans: False
65. Selling products such as books and computers on the Internet may reduce vendors selling costs by 20
to 40 percent, with further reductions being difficult because the products must be delivered physically.
Ans: True
66. Selling products on the Internet may reduce vendors selling costs by 20 to 40 percent, with further
reductions being difficult due to the high cost of hardware and software necessary to run the Web site.
Ans: False
67. The cost per transaction of cyberbanking is far less than the cost per transaction at a physical bank
branch.
Ans: True
68. Virtual banks are those banks dedicated only to Internet transactions.
Ans: True
69. The Internet is ineffective for job seekers and for companies searching for employees.
Ans: False
70. The Internet is effective for job seekers and for companies searching for employees.
Ans: True
71. Electronic commerce is not well-suited for the real estate industry.
Ans: False
72. Really simple syndication allows you to put together a list of Web sites that you want to follow.
Ans: True
73. Multichanneling allows you to put together a list of Web sites that you want to follow.
Ans: False
74. Channel conflict occurs when click-and-mortar companies have problems with their regular distributors
when they sell directly to customers online.
Ans: True
75. Multichanneling occurs when companies integrate their online and offline channels.
Ans: True
76. Multichanneling occurs when companies use only their online channels.
Ans: False
77. When an established company decides to sell direct online, it may create a conflict within its existing
operation.
Ans: True
78. E-tailers have few conflicts with order fulfillment, because they are shipping large quantities of
products to few buyers.
Ans: False
79. Order fulfillment includes only providing customers with what they ordered in a timely fashion.
Ans: False
80. Order fulfillment includes providing customers with what they ordered in a timely manner, as well as
all aspects of customer service.
Ans: True
81. Traditional advertisement on TV or newspaper is impersonal, one-way mass communication.

Ans: True
82. Traditional advertisement on TV or newspaper is personalized, one-to-one communication.

Ans: False
83. Internet advertising is media-rich, dynamic, and interactive.
Ans: True
84. Internet advertising is impersonal, one-way mass communication.

Ans: False
85. Internet ads can be updated any time at minimal cost.

Ans: True
86. Print ads can be updated at any time at minimal cost.

Ans: False
87. Internet ads can be interactive and targeted to specific groups and/or individuals.
Ans: True
88. Print ads are interactive and targeted to specific groups and/or individuals.
Ans: False
89. Banners are the most common form of advertisement on the Internet.
Ans: True
90. Electronic mail is the most common form of advertisement on the Internet.
Ans: False
91. Banners can be customized to a target audience.
Ans: True
92. Banners cannot be customized to a target audience.

Ans: False
93. Many people ignore banner advertising today.

Ans: True
94. A pop-up ad is automatically launched by some trigger and appears in front of the active window.
Ans: True
95. A pop-under ad is automatically launched by some trigger and appears behind the active window.
Ans: True
96. A pop-under ad is automatically launched by some trigger and appears in front of the active window.
Ans: False
97. A pop-up ad is automatically launched by some trigger and appears behind the active window.
Ans: False
98. E-mail provides a better and quicker response rate than print ads.
Ans: True
99. Print ads provide a better and quicker response rate than e-mail.
Ans: False
100. Spamming is the indiscriminate distribution of electronic ads without permission of the receiver.
Ans: True
101. Hacking is the indiscriminate distribution of electronic ads without permission of the receiver.
Ans: False
102. Permission marketing asks consumers to give their permission to voluntarily accept online advertising
and e-mail.
Ans: True
103. Permission marketing refers to online word-of-mouth marketing.

Ans: False
104. Viral marketing asks consumers to give their permission to voluntarily accept online advertising and email.
Ans: False
105. Business-to-consumer applications comprise the majority of electronic commerce volume.

Ans: False
106. Business-to-business applications comprise the majority of electronic commerce volume.

Ans: True
107. In the sell-side marketplace, organizations attempt to sell their products and services to other
organizations electronically.
Ans: True
108. In the buy-side marketplace, organizations attempt to sell their products and services to other
Ans: False
109. The key mechanisms in the sell-side marketplace are customized electronic catalogs and forward
auctions.
Ans: True
110. The key mechanisms in the sell-side marketplace are customized electronic catalogs and reverse
auctions.
Ans: False
111. The sell-side marketplace is similar to the business-to-consumer model.

Ans: True
112. In the sell-side marketplace, electronic commerce technology is used to reduce both the cost of items
purchased and the administrative cost of procurement.
Ans: False
113. The buy-side marketplace is similar to the business-to-consumer model.

Ans: False
114. The buy-side marketplace reduces the purchasing cycle time.
Ans: True
115. The sell-side marketplace reduces the purchasing cycle time.

Ans: False
116. The key mechanism of the buy-side marketplace is the electronic catalog.
Ans: False
117. Electronic exchanges refer to e-marketplaces where there are many sellers and few buyers.
Ans: False
118. Vertical exchanges connect buyers and sellers in a given industry.

Ans: True
119. Horizontal exchanges connect buyers and sellers in a given industry.

Ans: False
120. Horizontal exchanges connect buyers and sellers across many industries.
Ans: True
121. Vertical exchanges connect buyers and sellers across many industries.
Ans: False
122. Vertical exchanges are used mainly for maintenance, operations, and repair (MRO) materials.
Ans: False
123. Horizontal exchanges are used mainly for maintenance, operations, and repair (MRO) materials.
Ans: True
124. In functional exchanges, needed services such as temporary help are traded on an as-needed basis.
Ans: True
125. With horizontal distributors, needed services such as temporary help are traded on an as-needed basis.
Ans: False
126. Where B2B exchanges are used mainly to facilitate trading among companies, electronic hubs are
used to facilitate communications and coordination among business partners in a supply chain.
Ans: True
127. Where electronic hubs are used mainly to facilitate trading among companies, B2B exchanges are
used to facilitate communications and coordination among business partners in a supply chain.
Ans: False
128. In most cases, traditional payment systems are effective for electronic commerce.
Ans: False
129. In most cases, traditional payment systems are not effective for electronic commerce.
Ans: True
130. Cash cannot be used in electronic commerce because there is no face-to-face contact.
Ans: True
131. Cash can be used in electronic commerce even though there is no face-to-face contact.
Ans: False
132. It is more secure for a buyer to use the telephone or mail to arrange or send payment, than to finish the
transaction on a computer.
Ans: False
133. Electronic checks are used mostly in B2B electronic commerce.

Ans: True
134. Electronic checks are used mostly in C2C electronic commerce.

Ans: False
135. Purchasing cards are the B2B equivalent of electronic credit cards.
Ans: True
136. Stored-value money cards are a form of e-cash.

Ans: True
137. Stored-value money cards and smart cards are the same thing.
Ans: False
138. Smart cards are frequently multipurpose.

Ans: True
139. Smart cards can be used as credit cards, debit cards, and/or loyalty cards.
Ans: True
140. Stored-value money cards can be used as credit cards, debit cards, and/or loyalty cards.
Ans: False
141. Person-to-person payments allow two individuals to transfer funds with a credit card.
Ans: False
142. Digital wallets are software mechanisms that provide security measures, combined with convenience,
to electronic commerce purchasing.
Ans: True
143. You need an e-wallet with each merchant.

Ans: True
144. Each buyer needs only one e-wallet for all merchants.
Ans: False
145. Internet fraud is increasing rapidly.

Ans: True
146. Cybersquatting refers to the practice of registering domain names in order to sell them later at a higher
price.
Ans: True
Multiple Choice
1. The nature of business competition is changing drastically as a result of which of the following?
a) new online companies
b) new business models
c) the diversity of EC-related products and services
d) all of the above
Ans: d
2. Electronic business includes which of the following?

a) buying and selling
b) servicing customers
c) collaborating with business partners
d) conducting electronic transactions within an organization
e) all of the above
Ans: e
3. The degree of digitization does not relate to which of the following?

a) the product or service sold
b) the process
c) the intermediary
d) the number of e-commerce transactions
e) none of the above
Ans: d
4. In this type of e-commerce, the sellers and buyers are organizations.

a) government-to-citizen
b) consumer-to-consumer
c) business-to-business
d) business-to-consumer
Ans: c
5. In this type of e-commerce, buyers and sellers are individuals.

c) consumer-to-business
Ans: b
6. eBay is an example of which type of e-commerce?

Ans: b
7. In this type of e-commerce, an organization provides information and services to its workers.
a) business-to-employee
Ans: a
8. Direct payment of Social Security benefits is an example of which type of e-commerce?

Ans: a
9. If you are an employee managing your fringe benefits over your companys intranet, you are engaging in
which of the following?
a) business-to-business
b) business-to-consumer
c) consumer-to-consumer
d) business-to-employee
e) government-to-citizen
Ans: d
10. When e-commerce is done in a wireless environment, this is called:

a) pervasive computing
b) wireless commerce
c) location commerce
d) consumer commerce
e) mobile commerce
Ans: e
11. In _____ auctions, a single seller auctions item(s) to many potential buyers.
a) forward
b) reverse
c) static
d) physical
Ans: a
12. In _____ auctions, there is one buyer who wants to buy a product. Suppliers submit bids and the lowest
bid wins.
a) forward
b) static
c) reverse
d) physical
Ans: b
13. eBay uses a _____ auction.

a) forward
b) static
c) reverse
d) physical
Ans: a
14. _____ auctions employ a request for quotation.

a) forward
b) static
c) reverse
d) physical
Ans: c
15. _____ auctions are the most common auction model for large purchases.
a) forward
b) static
c) reverse
d) physical
Ans: c
16. Manufacturers or retailers sell directly to customers in which of the following business models?
a) find-the-best-price
b) electronic tendering system
c) name-your-own-price
d) online direct marketing
e) affiliate marketing
Ans: d
17. In which of the following business models do businesses request quotes from suppliers and use B2B
with a reverse auction mechanism?
Ans: b
18. Vendors ask partners to place logos or banners on partners site. If customers click on logo, go to
vendors site and buy, then vendor pays commissions to partners. This is which business model?

Ans: e
19. In which business model do receivers send information about your product to their friends?
d) viral marketing
Ans: d
20. Which type of electronic commerce is the largest by volume?

c) business-to-business
Ans: c
21. Which type of electronic commerce does Amazon practice?

c) consumer- to-business
Ans: d
22. This type of e-commerce is known as e-tailing.

a) business-to-business
b) collaborative commerce
c) intrabusiness
e) consumer-to-business
Ans: d
23. _____ is not an electronic commerce application?

a) home banking
b) buying stocks
c) evaluating an employee
d) conducting an auction
e) buying real estate
Ans: c
24. Which of the following are advantages of e-tailing?

a) you can buy from home, 24 hours per day
b) you have a wide variety of products and services
c) you can obtain detailed information on products
d) you can compare competitors products and prices
e) all of the above
Ans: e
25. Which of the following is not an advantage of e-tailing?

b) you have just a few products to choose from
c) you can obtain detailed information on products
e) all of the above
Ans: b
26. Which of the following is not an advantage of e-tailing?

b) you have a wide variety of products and services
c) you can obtain limited information on products
e) all of the above
Ans: c
27. Cyberbanking offers which of the following advantages?

a) convenient for customers
b) saves time for customers
c) inexpensive transactions for the bank
d) chance of recruiting remote customers
e) all of the above
Ans: e
28. Cyberbanking offers all of the following advantages except:

a) convenient for customers
b) saves time for customers
c) inexpensive transactions for the bank
d) chance of recruiting remote customers
e) more expensive for the customer
Ans: e
29. Online securities trading offers which of the following advantages?

a) transactions are cheaper
b) saves time
c) minimizes mistakes
d) increases available information
e) all of the above
Ans: e
30. Which of the following is not an advantage of online securities trading?

a) transactions are cheaper
b) saves time
c) minimizes mistakes
d) decreases available information
Ans: d
31. When Ford Motor Company decided to avoid direct online sales, the company was trying to eliminate
which of the following?
a) federal sales taxes
b) customer irritation
c) channel conflict
d) channel integration
e) state sales taxes
Ans: c
32. Difficulties in order fulfillment are most closely associated with which of the following?
a) business-to-business EC
b) business-to-consumer EC
c) government-to-citizen EC
d) business-to-employee EC
e) mobile commerce
Ans: b
33. Internet advertising improves on traditional advertising in all of the following ways except:
a) Internet ads can be updated at any time at minimal cost
b) Internet ads can reach large numbers of potential buyers all over the world
c) Internet ads are always more effective
d) Internet ads can make effective use of multimedia
e) Internet ads are current
Ans: c
34. A _____ is automatically launched by some trigger and appears in front of the active window.
a) keyword banner
b) random banner
c) pop-up ad
d) pop-under ad
e) text box
Ans: c
35. A_____ is automatically launched by some trigger and appears behind the active window.
a) keyword banner
b) random banner
c) pop-up ad
d) pop-under ad
e) text box
Ans: d
36. _____ offers consumers incentives to accept advertising and e-mail voluntarily.
a) viral marketing
b) personalized marketing
c) permission marketing
d) paper catalogs
e) direct mail
Ans: c
37. _____ refers to online word-of-mouth marketing.

a) permission marketing
b) one-to-one marketing
c) personalized marketing
d) viral marketing
e) direct mail
Ans: d
38. In the _____ marketplace model, organizations attempt to sell their products or services to other
a) buy-side
b) sell-side
c) group purchasing
d) desktop purchasing
e) electronic exchange
Ans: b
39. The key mechanisms of the _____ marketplace model are electronic catalogs that can be customized for
each large buyer and forward auctions.
a) buy-side
b) sell-side
c) group purchasing
Ans: b
40. In the _____ marketplace model, EC technology is used to streamline the purchasing process in order to
reduce the cost of items purchased, the administrative cost of procurement, and purchasing cycle time.
a) buy-side
b) sell-side
c) auctions
d) group purchasing
Ans: a
41. In the _____ marketplace model, the reverse auction is typically used.
a) buy-side
b) sell-side
c) group purchasing
Ans: a
42. In the _____ B2B application, the orders of many buyers are aggregated so that they total to a large
volume, in order to merit more seller attention.
a) buy-side
b) sell-side
c) auctions
d) group purchasing
Ans: d
43. In _____, direct and indirect materials in one industry are purchased on an as-needed basis.
a) horizontal exchanges
b) vertical exchanges
c) buy-side marketplaces
d) functional exchanges
Ans: b
44. _____ connect buyers and sellers across many industries and are used mainly for indirect materials.
Ans: a
45. In _____, needed services such as temporary help or extra space are traded on an as-needed basis.
Ans: d
46. _____ are used to facilitate trading among companies in a supply chain.
e) electronic hubs
Ans: e
47. Nonelectronic payment methods have which of the following limitations in electronic commerce?
a) cash cannot be used because there is no face-to-face contact
b) takes time for payment in the mail
c) not all organizations accept credit cards
d) it is less secure for the buyer to use the telephone than to complete a secure transaction on a computer
e) all of the above
Ans: e
48. Which of the following is not a limitation of nonelectronic payment methods in electronic commerce?
a) cash cannot be used because there is no face-to-face contact
b) takes time for payment in the mail
c) not all organizations accept credit cards
d) it is more secure for the buyer to use the telephone than to complete a secure transaction on a computer
e) all of the above
Ans: d
49. _____ are a payment mechanism similar to regular bank checks but transmitted electronically, with a
signature in digital form.
a) electronic checks
b) electronic credit cards
c) electronic cash
d) electronic wallet
e) electronic debit cards
Ans: a
50. _____ use credit card numbers, transmitted electronically over the Internet, to pay for goods and
services and are unencrypted or encrypted, with coded data readable by an intermediary between the
buyers and sellers banks.
b) electronic credit cards

c) electronic cash
d) electronic wallet
e) electronic debit cards
Ans: b
51. _____ are typically used for unplanned B2B purchases for amounts under $2000.
b) stored-value money cards
c) purchasing cards
d) smart cards
e) person-to-person payments
Ans: c
52. A form of e-cash, _____ allow you to store a fixed amount of prepaid money and then spend it as
necessary.
c) purchasing cards
d) smart cards
Ans: b
53. _____ contain a chip that can store information and can be used for several purposes.
c) purchasing cards
d) smart cards
Ans: d
54. _____ enable two individuals to transfer funds without using a credit card.
c) purchasing cards
d) smart cards
Ans: e
55. _____ are software mechanisms that provide security measures and convenience for electronic
commerce purchasing.
b) digital wallets
c) purchasing cards
d) smart cards
Ans: b
Short Answer
1. Differentiate between pure and partial electronic commerce. Give examples of companies in each
category.
2. Discuss the various types of electronic commerce.

3. Differentiate between forward and reverse auctions.

4. Discuss the following electronic commerce business models and give examples of each type: online
direct marketing, electronic tendering system, name-your-own-price, find-the-best-price, affiliate
marketing, and viral marketing.
5. Differentiate between electronic storefronts and electronic malls and give examples of each.
6. Discuss the benefits and limitations of electronic commerce.

7. Discuss the various business-to-consumer applications (e.g., e-tailing, electronic storefronts, electronic
malls).
8. Discuss the various methods of online advertising.

9. Differentiate between sell-side marketplaces, buy-side marketplaces, and electronic exchanges.

10. Describe the various types of electronic payments.


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File: ch06, Chapter 6: E-Business and E-Commerce

3. Electronic business is a broader term than electronic commerce.

5. Electronic commerce can take only one form; i.e., digital.

19. eBay is a good example of consumer-to-consumer electronic commerce.

20. eBay is a good example of business-to-consumer electronic commerce.

Response: See page 181

24. Internet-based classified ads increase the number of potential buyers.

25. Internet-based classified ads decrease the number of potential buyers.

26. In business-to-employee electronic commerce, an organization uses EC internally to provide

27. In business-to-consumer electronic commerce, an organization uses EC internally to provide

29. Electronic benefits transfer is a type of B2B electronic commerce.

33. Forward auctions are used mainly as a selling channel.

37. eBay uses a forward auction process.

38. eBay uses a reverse auction process.

Response: See page 184

53. The vast majority of electronic commerce volume is business-to-consumer.

58. All electronic storefronts are extensions of physical stores.

Response: See page 184-185

62. Solo storefronts are always affiliated with electronic malls.

63. You can make a purchase in a referral mall.

81. Traditional advertisement on TV or newspaper is impersonal, one-way mass communication.

82. Traditional advertisement on TV or newspaper is personalized, one-to-one communication.

83. Internet advertising is media-rich, dynamic, and interactive.

84. Internet advertising is impersonal, one-way mass communication.

85. Internet ads can be updated any time at minimal cost.

86. Print ads can be updated at any time at minimal cost.

91. Banners can be customized to a target audience.

92. Banners cannot be customized to a target audience.

93. Many people ignore banner advertising today.

103. Permission marketing refers to online word-of-mouth marketing.

105. Business-to-consumer applications comprise the majority of electronic commerce volume.

106. Business-to-business applications comprise the majority of electronic commerce volume.

111. The sell-side marketplace is similar to the business-to-consumer model.

113. The buy-side marketplace is similar to the business-to-consumer model.

114. The buy-side marketplace reduces the purchasing cycle time.

115. The sell-side marketplace reduces the purchasing cycle time.

118. Vertical exchanges connect buyers and sellers in a given industry.

119. Horizontal exchanges connect buyers and sellers in a given industry.

133. Electronic checks are used mostly in B2B electronic commerce.

134. Electronic checks are used mostly in C2C electronic commerce.

136. Stored-value money cards are a form of e-cash.

138. Smart cards are frequently multipurpose.

143. You need an e-wallet with each merchant.

145. Internet fraud is increasing rapidly.

2. Electronic business includes which of the following?

3. The degree of digitization does not relate to which of the following?

4. In this type of e-commerce, the sellers and buyers are organizations.

5. In this type of e-commerce, buyers and sellers are individuals.

6. eBay is an example of which type of e-commerce?

8. Direct payment of Social Security benefits is an example of which type of e-commerce?

10. When e-commerce is done in a wireless environment, this is called:

13. eBay uses a _____ auction.

Response: See page 182

14. _____ auctions employ a request for quotation.

b) electronic tendering system

20. Which type of electronic commerce is the largest by volume?

21. Which type of electronic commerce does Amazon practice?

22. This type of e-commerce is known as e-tailing.

23. _____ is not an electronic commerce application?

24. Which of the following are advantages of e-tailing?

25. Which of the following is not an advantage of e-tailing?

26. Which of the following is not an advantage of e-tailing?

27. Cyberbanking offers which of the following advantages?