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Coffee Class: Information Technology

Topic 1: E-business
Q1. A _______ model can be defined as a free trial, or free sections of the site are made
available but those who enjoy the site or want more from the site then you need to pay for
premium access.
A. E-auction
B. Freemium

Q2. The content is yours for free, but you become the product that is being sold. Your
attention is sold to advertisers. This is a description of which e-business model?
A. Freemium
B. Free

Q3. Acowtancy or Evernote uses _______ model.

A. Freemium
B. Free

Q4. Which of the following is a good example of a free e-business model?

A. Facebook
B. Amazon

Q5. _______ can be defined as an online reverse service that takes place in real time. It
gives suppliers the opportunity to bid against each other to improve their offers.
A. E-auction
B. E-shop

Q6. Amazon is a good example of which e-business model?

A. E-shop
B. E-auction

Q7. eBay is a good example of which e-business model?

A. E-shop
B. E-auction

Q8. What are the main advantages of using e-business model? Select one or more.
A.
B.
C.
D.
E.

Cheaper overheads
Fast, real-time access to customers
Set-up costs
Technophobia
Access to a large number of new market areas

Q9. E-business models are very useful mainly for local businesses. True or false?
A. True
B. False

Q10. E-business models generally make marketing cheaper. True or false?

A. True
B. False

Topic 2: Customer Relationship Management

Q1. Customer Relationship Management (CRM) is an approach to build and sustain
_______ business with customers.
A. Long-term
B. Short-term

Q2. Process of building CRM has five phases. These are:

A. Market identification Market development Acquisition of customers Feedback
from customers New services
B. Selection phase Acquisition of customers Retain customers Extension Aftersale service

Q3. In the _______ phase the market and positioning of the company is identified.
A. Extension
B. Selection

Q4. In the _______ phase e-business helps to minimise start-up costs and advertising
expenses.
A. Selection
B. Acquisition of customers

Q5. E-technologies helping to handle with complaints are useful in which CRM phase?
A. After-sale service
B. Extension
Q6. Retention is the ultimate objective of CRM systems particularly since it costs more to get
a new customer than to retain an existing one. True or false?
A. True
B. False

Q7. _______ will help you position your website properly to be found by the customers.
A. SEO (Search engine optimalisation)
B. Google

Q8. _______ when two companies form an alliance over the internet to work together,
creating marketing synergy.
A. E-cooperation
B. Co-branding

Q9. Which of the following tools are typically used for online public relation? Select one or
more.
A.
B.
C.
D.

Blogs
E-shops
Social media
E-auctions

Q10. When advertisers pay their host only when their ad is clicked, it is called:
A. PPC (pay per click)
B. CMA (click my ad)

Q11. ________ s where a business rewards the affiliate for each visitor or customer brought
about by the their marketing efforts.
A. PPC (pay par click)
B. Affiliate marketing
Q12. The advertisements themselves are selected and served by automated systems based
on the content displayed to the user. This method is called:
A. WUS marketing (what you see)
B. Content marketing

Q13. Past

exam question (Q2b December 2012 - extract)

Moor Farm is a large estate in the rural district of Cornaille. The estate covers a large area of
forest, upland and farmland.
The estate also has a large mansion house set inside a landscape garden designed in the
19th century by James Kent. The garden, although now overgrown and neglected, is the only
surviving example of his work in the district. The estate was left as a gift to a charitable trust
ten years ago. The trust is based at the estate. A condition of the gift to the trust was that the
upland and forest should be freely accessible to visitors.
The estate has a manager, four full-time staff and 45 volunteers. These volunteers undertake
most of the work on the estate, including the continuing excavation of Kents original garden
design.
The estate has appointed a new manager who is due to take over the estate. As a one-off
project, she has commissioned a stakeholder survey which has requested information on the
visitor experience to help with a planned re-design of the estates website.
The website is generally thought to be well structured and presented, but it receives fewer
visitors than might reasonably be expected. It provides mainly static information about the
estate and forthcoming events but currently users cannot interact with the site in anyway.
Here are some extracts from the survey:
I live in one of the villages and I am angry about visitors crowding around the village
attractions the tearooms, the craft shops, the souvenir stalls. We feel that we are prisoners
in our own village and the traffic is terrible. Homeowner, from a village on the estate.
We had a good day, but the weather was awful. If we had known it was going to rain all day,
then we probably would have postponed the visit until a fine day. It spoilt a family day out.
Visitor with small family.
We were very disappointed, on arrival, to find that the family fun day was fully booked.
Visitor who had travelled 100 kms with two small children to visit a special event.
We all love it here, but we didnt know you had a website!! We almost had to type in the
complete website address before we found it! I am sure more people would come if they
could only find the website! Visitor aged mid-20s.
As usual, we had a great time here and took great photos. It would have been nice to be
able to share our pleasure with other people. We would recommend it to anyone who loves
the outdoors. Visitor family with teenage children.
We met the volunteers who were excavating the buildings in the landscape garden. They
were so helpful and knowledgeable. They turned something that looked like a series of small
walls into something so much more tangible. Visitor elderly couple.

I was disappointed that I was not allowed into the farmland with my dog. As a human being, I
have the right to roam. It is a basic human right. Visitor elderly female dog-walker.
We are regular visitors and we really want to know what is going on! There are many of us
who would like to really be involved with the estate and help it thrive. We need more than just
occasional questionnaires. Visitor hiking group.
We came out for a nice walk and ended up dodging cyclists. Next time we will go
somewhere where they are not welcome. Visitor hiking group.
As a farmer, I am appalled with the reckless attitude of some dog walkers. Last week, I lost
two sheep, ravaged by dogs that should not have been off their leads. Farmer estate
tenant.
Im a volunteer and I love it here. We are a happy, social group of people. I hope the new
manager is not going to change things. Volunteer.
Required:
b) Discuss how the website could be further developed to address some of the issues
highlighted in the survey.

Topic 3: E-business Upstream

Q1. E-business upstream deals with:
A. Customers
B. Suppliers
C. Employees

Q2. Which of the following is not an example of e-business upstream?

A.
B.
C.
D.

E-procurement
Data share
Electronic Data Interchanhge (EDi)
E-marketing

Q3. E-procurement can be defined as the _________ of parts of procurement to improve the
performance of the procurement process.
A. The automating
B. The individualisation

Q4. Which of the following items are benefits of e-business upstream? Select one or more.
A.
B.
C.
D.

Cost effective (saving time and money)

Cheap very simple IT systems are needed on both sides of supplier and customer
Delivery accuracy (less human errors)
Better product development due to better information

Q5. Electronic data interchange (EDI) is a system for the electronic translation of data from
one computer system to another. It's very cheap solution very often used. True or false?
A. True
B. False

Q6. When using websites for e-procurement, you can invite suppliers to bid on your website
for business. What is an advantage of that?
A. This places the onus on suppliers to spend time completing details and making
commitments.
B. The suppliers will see your beautiful website

Q7. Using an _______ website to find a supplier provides greater supplier choice with
reduced costs.
A. E-shop
B. Intermediary

Q8. Using an intermediary websites also provides an opportunity for _______ where smaller
organisations can get together with companies that have the same requirement to place
_______ orders.
A. Aggregation, larger
B. Contract, specific

Q9. E-procurement improves product development due to better information. True or false?
A. True
B. False

Q10. Past

exam question (Q4b June 2011 - extract)

Cronin Auto Retail (CAR) is a car dealer that sells used cars bought at auctions by its
experienced team of buyers. Every car for sale is less than two years old and has a full
service history. All vehicles are selected by one of five experienced buyers who attend
auctions throughout the country. Each attendance costs CAR about $500 per day in staff and
travelling costs and usually leads to the purchase of five cars.

On average, each car costs CAR $10,000 and is sold to the customer for $12,000. The
company has a good sales and profitability record, although a recent economic recession
has led the managing director to question whether we are selling the right type of cars.
Recently, I wonder if we have been buying cars that our team of buyers would like to drive,
not what our customers want to buy? However, the personal selection of quality cars has
been an important part of CARs business model and it is stressed in their marketing
literature and website.

CAR is keen to expand the service and mechanical repair side of its business. It would
particularly like customers who have purchased cars from them to bring them back for
servicing or for any mechanical repairs that are subsequently required. However, although
CAR holds basic spare parts in stock, it has to order many parts from specialist parts
companies (called motor factors) or from the manufacturers directly. Mechanics have to raise
paper requisitions which are passed to the procurement manager for reviewing, agreeing and
sourcing. Most parts are ordered from regular suppliers, but there is an increasing backlog
and this can cause a particular problem if the customers car is in the garage waiting for the
part to arrive. Customers are increasingly frustrated and annoyed by repairs taking much
longer than they were led to expect.

Another source of frustration is that the procurement manager only works from 10.00 to
16.00. The mechanics work on shifts and so the garage is staffed from 07.00 to 19.00.
Urgent requisitions cannot be processed when the procurement manager is not at work. The
backlog of requisitions is placing increased strain on the procurement manager who has
recently made a number of clerical mistakes when raising a purchase order.

Requests for stationery and other office supplies also go through the same requisitioning
process, with orders placed with the office supplier who is offering the best current deal.
Finding this deal can be time consuming and so employees are increasingly submitting
requisitions earlier so that they can be sure that new supplies will be received in time.

The managing director is aware of the problems of the requisitioning system but is reluctant
to appoint a second procurement manager because he is trying to keep staff overheads
down during a difficult trading period. He is keen to address more fundamental issues in the
marketing and procurement processes. He is particularly interested in how the interactivity,
intelligence, individualisation and independence of location offered by e-marketing media can
help us at CAR.
Required:
b) Explain the principles of e-procurement and evaluate its potential application at CAR.

Topic 4: E-business Downstream

Q1. E-business downstream deals with:
A. Customers
B. Suppliers
C. Employees

Q2. Which of the following is not an example of e-business downstream?

A. E-procurement
B. E-branding
C. E-marketing

Q3. E-marketing allows to provide customised offerings is further created particularly as a

result of increased knowledge of the specific needs of the customer. True or false?
A. True
B. False

Q4. _______ costs are incurred due to process automation which could in turn result in
______ prices.
A. Lower; higher
B. Lower; lower

Q5. The web also offers the option of ________ - where different prices can be charged in
different parts of the world.
A. Price selection
B. Differential pricing

Q6. Search Engine Optimisation has become a key _______ tool.

A. Pricing
B. Product
C. Promotional

Q7. The key elements of eMarketing comprise 6I. These are:

A. Interactivity Intelligence Individualisation Integration Industry Independence
of location
B. Information Information system Integrity Independence Initialisation
Involvement Increase of sales

Q8. 2-way communication (forums, chat, quizzes etc.) are an example of:
A. Independence of location
B. Interactivity

Q9. Which of the following is an example of integration?

A. Popular pages of customers
B. Invoices sent automatically

Q10. Past

exam question (Q4a June 2011 - extract)

Cronin Auto Retail (CAR) is a car dealer that sells used cars bought at auctions by its
experienced team of buyers. Every car for sale is less than two years old and has a full
service history. The company concentrates on small family cars and, at any one time, there
are about 120 on display at its purpose-built premises.
The premises were acquired five years ago on a 25 year lease and they include a workshop,
a small cafe and a childrens playroom. All vehicles are selected by one of five experienced
buyers who attend auctions throughout the country. Each attendance costs CAR about $500
per day in staff and travelling costs and usually leads to the purchase of five cars.
On average, each car costs CAR $10,000 and is sold to the customer for $12,000. The
company has a good sales and profitability record, although a recent economic recession
has led the managing director to question whether we are selling the right type of cars.
Recently, I wonder if we have been buying cars that our team of buyers would like to drive,
not what our customers want to buy?
However, the personal selection of quality cars has been an important part of CARs
business model and it is stressed in their marketing literature and website.
Sales records show that 90% of all sales are to customers who live within two hours drive of
CARs base. This is to be expected as there are many competitors and most customers want
to buy from a garage that they can easily return the car to if it needs inspection, a service or
repair.
Consequently, CAR concentrates on display advertising in newspapers in this geographical
area. It also has a customer database containing the records of people who have bought
cars in the last three years. All customers receive a regular mail-shot, listing the cars for sale
and highlighting any special offers or promotions.
The company has a website where all the cars are listed with a series of photographs
showing each car from a variety of angles. The website also contains general information
about the company, special offers and promotions, and information about its service,
maintenance and repair service.
CAR is keen to expand the service and mechanical repair side of its business. It would
particularly like customers who have purchased cars from them to bring them back for
servicing or for any mechanical repairs that are subsequently required.
Required:
a) Evaluate how the principles of interactivity, intelligence, individualisation and
independence of location might be applied in the e-marketing of the products and services of
CAR.