Module 08: eCommerce

True / False

1. E-commerce is part of e-business.

a. True
b. False
ANSWER: True
RATIONALE: Correct
E-commerce is buying and selling goods and services over the Internet. E-business
encompasses all the activities a company performs in selling and buying products and
services using computers and communication technologies. E-commerce is part of e-
business. However, the two terms are often used interchangeably. See 8-1: Defining E-
Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Define e-commerce and describe its advantages, disadvantages, and business
models.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.1
TOPICS: E-commerce
KEYWORDS: Remember
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

2. E-business excludes transactions that generate demand for goods and services.
a. True
b. False
ANSWER: False
RATIONALE: Correct
E-business includes not only transactions that center on buying and selling goods and
services to generate revenue but also transactions that generate demand for goods and
services, offer sales support and customer service, and facilitate communication between
business partners. See 8-1: Defining E-Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Define e-commerce and describe its advantages, disadvantages, and business
models.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.1
TOPICS: E-commerce
KEYWORDS: Remember
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

3. Outbound logistics, a primary activity in Michael Porter’s value chain, includes tasks associated with receiving, storing,

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Module 08: eCommerce
and converting raw materials to finished goods.
a. True
b. False
ANSWER: False
RATIONALE: Correct
Outbound logistics, a primary activity in Michael Porter’s value chain, includes tasks
associated with moving and storing products, from the end of the production line to end
users or distribution centers. See 8-1: Defining E-Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Define e-commerce and describe its advantages, disadvantages, and business
models.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.1
TOPICS: Value chain and e-commerce
KEYWORDS: Remember
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

4. Click-and-brick e-commerce struggles to incorporate online interaction.

a. True
b. False
ANSWER: False
RATIONALE: Correct
Click-and-brick e-commerce capitalizes on the advantages of online interaction with their
customers yet retains the benefits of having a physical store location. See 8-1: Defining E-
Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Define e-commerce and describe its advantages, disadvantages, and business
models.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.1
TOPICS: Value chain and e-commerce
KEYWORDS: Remember
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

5. E-commerce provides product acknowledgements through phone calls and faxes.

a. True
b. False
ANSWER: False
RATIONALE: Correct
E-commerce is buying and selling goods and services over the Internet. E-commerce
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Module 08: eCommerce

provides product acknowledgements through e-mail, Web sites, and electronic data
interchange. See 8-1: Defining E-Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Define e-commerce and describe its advantages, disadvantages, and business
models.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.1
TOPICS: E-commerce
KEYWORDS: Remember
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

6. Government and nonbusiness organizations are prohibited from using e-commerce applications.
a. True
b. False
ANSWER: False
RATIONALE: Correct
Many government and other nonbusiness organizations use e-commerce applications,
including the Department of Defense, the Internal Revenue Service, and the Department of
the Treasury. See 8-2: Major Categories of E-Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain the major categories of e-commerce.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.2
TOPICS: E-commerce types and models
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

7. Universities are an example of nonbusiness organizations that use e-commerce applications.

a. True
b. False
ANSWER: True
RATIONALE: Correct
Universities are an example of nonbusiness organizations that use e-commerce
applications; for example, many universities use Web technologies for online classes,
registration, and grade reporting. See 8-2: Major Categories of E-Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain the major categories of e-commerce.
QUESTION TYPE: True / False

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Module 08: eCommerce

HAS VARIABLES: False

LEARNING OBJECTIVES: MIS.10e.8.2
TOPICS: E-commerce types and models
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

8. Service and support are more important in e-commerce than in traditional commerce, given that e-commerce companies
do not have a physical location to help maintain current customers.
a. True
b. False
ANSWER: True
RATIONALE: Correct
Service and support are more important in e-commerce than in traditional commerce, given
that e-commerce companies do not have a physical location to help maintain current
customers. See 8-3: B2C E-Commerce Cycle
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Describe the five major activities of the business-to-consumer e-commerce cycle.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.3
TOPICS: Business-to-consumer e-commerce
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

9. The third-party exchange marketplace model is controlled by sellers and buyers.

a. True
b. False
ANSWER: False
RATIONALE: Correct
The third-party exchange marketplace model is not controlled by sellers or buyers. Instead,
it is controlled by a third party, and the marketplace generates revenue from the fees
charged for matching buyers and sellers. See 8-4: B2B E-Commerce: A Second Look
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Summarize the four major models of business-to-business e-commerce.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.4
TOPICS: E-commerce types and models
KEYWORDS: Apply
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM
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Module 08: eCommerce

10. In a buyer-side marketplace, a buyer, or a group of buyers, opens an electronic marketplace and invites sellers to bid
on announced products or make a request for quotation.
a. True
b. False
ANSWER: True
RATIONALE: Correct
In a buyer-side marketplace, a buyer, or a group of buyers, opens an electronic marketplace
and invites sellers to bid on announced products or make a request for quotation. The third-
party exchange marketplace model offers suppliers a direct channel of communication to
buyers through online storefronts. See 8-4: B2B E-Commerce: A Second Look
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Summarize the four major models of business-to-business e-commerce.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.4
TOPICS: E-commerce types and models
KEYWORDS: Apply
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

11. Mobile commerce (m-commerce) predominantly relies on voice recognition and text-to-speech technologies.
a. True
b. False
ANSWER: False
RATIONALE: Correct
Supporting technologies for m-commerce applications include wireless wide area networks
(WWANs) and 3G and 4G networks as well as short-range wireless communication
technologies, such as Wi-Fi, WiMAX, Bluetooth, and RFID. Voice-based e-commerce
relies on voice recognition and text-to-speech technologies. See 8-5: Mobile and Voice-
Based E-Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Describe mobile-based and voice-based e-commerce.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.5
TOPICS: Mobile e-commerce
Voice-based e-commerce
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

12. One method of conducting voice-based e-commerce is using digital wallet.

a. True
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Module 08: eCommerce

b. False
ANSWER: True
RATIONALE: Correct
One method of conducting voice-based e-commerce is using digital wallet. In addition to
storing financial information, digital wallet can store such information as the customer’s
address and driver’s license number. See 8-5: Mobile and Voice-Based E-Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Describe mobile-based and voice-based e-commerce.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.5
TOPICS: Voice-based e-commerce
KEYWORDS: Remember
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 12/6/2019 4:38 PM

13. The use of digital wallet is restricted to nonportable devices.

a. True
b. False
ANSWER: False
RATIONALE: Correct
Digital wallet, which is available for most handheld devices, offers a secure, convenient,
and portable tool for online shopping. They store personal and financial information, such
as credit card numbers, passwords, and PINs. See 8-6: E-Commerce Supporting
Technologies
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain four supporting technologies for e-commerce.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.6
TOPICS: E-commerce implementation
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 12/6/2019 1:11 PM

14. E-commerce is a subset of social commerce.

a. True
b. False
ANSWER: False
RATIONALE: Correct
Social commerce is a subset of e-commerce that is influenced by social networks and other
online media enhanced by the ever increasing power of smartphones. See 8-7: E-
Commerce and Beyond: Social Commerce
POINTS: 1
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DIFFICULTY: Moderate
REFERENCES: Explain social commerce and the reasons for its popularity.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.7
TOPICS: Social commerce
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

15. Group buying platforms constitute one category of mobile marketing.

a. True
b. False
ANSWER: False
RATIONALE: There are several categories of social networks and online media that collectively
constitute social commerce, including group buying platforms: These Web sites offer a
product or service at a huge discount if a certain number of buyers agree to buy the product
or service in a given time period, such as within a 24-hour period. Popular examples
include Groupon and LivingSocial. See 8-7: E-Commerce and Beyond: Social Commerce
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain social commerce and the reasons for its popularity.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.7
TOPICS: social commerce
KEYWORDS: Understand
DATE CREATED: 12/6/2019 3:43 PM
DATE MODIFIED: 12/6/2019 3:47 PM

16. Kickstarter is an example of a participatory e-commerce site.

a. True
b. False
ANSWER: True
RATIONALE: Correct
There are several categories of social networks and online media that effectively constitute
social commerce, including participatory e-commerce: These Web sites allow users to
participate in the production process and bring a product or service to the sites in a
collaborative fashion. Popular examples include CutOnYourBias and Kickstarter. See 8-7:
E-Commerce and Beyond: Social Commerce
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain social commerce and the reasons for its popularity.
QUESTION TYPE: True / False
HAS VARIABLES: False

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Module 08: eCommerce

LEARNING OBJECTIVES: MIS.10e.8.7

TOPICS: Social commerce
KEYWORDS: Understand
DATE CREATED: 12/6/2019 3:49 PM
DATE MODIFIED: 12/6/2019 3:52 PM

17. Recommendation web sites are not allowed to offer incentives to individuals for sharing information about their
purchases.
a. True
b. False
ANSWER: False
RATIONALE: Correct
Recommendation Web sites aggregate customers’ opinions related to products or services
that they have purchased and then rec- ommend them to others with the same interest.
Some also offer incentives to individuals for sharing their purchases with friends through
social media. Popular examples include TripAdvisor and Yelp. See 8-7: E-Commerce and
Beyond: Social Commerce
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain social commerce and the reasons for its popularity.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.7
TOPICS: Social commerce
KEYWORDS: Understand
DATE CREATED: 12/6/2019 3:52 PM
DATE MODIFIED: 12/6/2019 3:55 PM

18. Social Web sites provide shopping advice and opinion through chat and forums.
a. True
b. False
ANSWER: True
RATIONALE: Correct
Social Web sites provide shopping advice and opinion through chat and forums. Popular
examples include GoTryItOn and eBags. See 8-7: E-Commerce and Beyond: Social
Commerce
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain social commerce and the reasons for its popularity.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.7
TOPICS: Social commerce
KEYWORDS: Understand
DATE CREATED: 12/6/2019 3:55 PM

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Module 08: eCommerce

DATE MODIFIED: 12/6/2019 3:58 PM

19. Social commerce is a type of e-commerce that is influenced primarily by radio and television advertising.
a. True
b. False
ANSWER: False
RATIONALE: Correct
Social commerce is a subset of e-commerce that is influenced by social networks and other
online media enhanced by the ever-increasing power of smartphones. See 8-7: E-
Commerce and Beyond: Social Commerce
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain social commerce and the reasons for its popularity.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.7
TOPICS: Social commerce
KEYWORDS: Understand
DATE CREATED: 12/6/2019 3:59 PM
DATE MODIFIED: 12/6/2019 4:02 PM

20. M-commerce is based on the Wi-Fi protocol.

a. True
b. False
ANSWER: False
RATIONALE: Correct
Mobile commerce, based on the Wireless Application Protocol (WAP), has been around
for several years, particularly in European countries.
See 8-5: Mobile and Voice-Based E-Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Describe mobile-based and voice-based e-commerce.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.5
TOPICS: Voice-based e-commerce
KEYWORDS: Remember
DATE CREATED: 12/6/2019 4:38 PM
DATE MODIFIED: 12/6/2019 4:41 PM

21. iPhone apps are a popular type of m-commerce application.

a. True
b. False
ANSWER: True
RATIONALE: Correct
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Module 08: eCommerce

A wide variety of m-commerce applications are available, among the most popular being
iPhone apps, which include games, entertainment, news, and travel information. Some
iPhone apps are free; others must be purchased via iTunes. See 8-5: Mobile and Voice-
Based E-Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Describe mobile-based and voice-based e-commerce.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.5
TOPICS: Voice-based e-commerce
KEYWORDS: Remember
DATE CREATED: 12/6/2019 4:41 PM
DATE MODIFIED: 12/6/2019 4:45 PM

22. Voice-based e-commerce relies on text-to-speech technologies.

a. True
b. False
ANSWER: True
RATIONALE: Correct
Voice-based e-commerce relies on voice recognition and text-to-speech technologies that
have improved dramatically in the past decade. See 8-5: Mobile and Voice-Based E-
Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Describe mobile-based and voice-based e-commerce.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.5
TOPICS: Voice-based e-commerce
KEYWORDS: Remember
DATE CREATED: 12/6/2019 4:46 PM
DATE MODIFIED: 12/6/2019 4:51 PM

23. Social media information systems facilitate sales for the system's sponsors.
a. True
b. False
ANSWER: True
RATIONALE: Correct.
SMISs facilitate business activities such as sales and marketing for the sponsors and help
the sponsors establish bonds and loyalties with their customers. See 8-9: Social Media
Information Systems
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain social media information systems.

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Module 08: eCommerce

QUESTION TYPE: True / False

HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.9
TOPICS: Social media information systems
SMIS
KEYWORDS: Understand
DATE CREATED: 12/6/2019 6:08 PM
DATE MODIFIED: 12/6/2019 6:17 PM

24. A social media information system can generate valuable information about customers, including where they live.
a. True
b. False
ANSWER: True
RATIONALE: Correct.
A SMIS could generate the following key information for a business that is properly designing and
using such a strategic tool: Gaining valuable information and insights about customers—who they
are, where they live, what they like, and how they feel about a brand. See 8-9: Social Media
Information Systems
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain social media information systems.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.9
TOPICS: Social media information systems
SMIS
KEYWORDS: Understand
DATE CREATED: 12/6/2019 6:14 PM
DATE MODIFIED: 12/6/2019 6:16 PM

25. Before defining a social media policy, an organization should design its social media information system.
a. True
b. False
ANSWER: False
RATIONALE: Correct.
Before designing a SMIS, an organization should clearly define its social media policy and the
policy should be clearly explained to all impacted employees. See 8-9: Social Media Information
Systems
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain social media information systems.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.9
TOPICS: Social media information systems
SMIS
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Module 08: eCommerce

KEYWORDS: Understand
DATE CREATED: 12/6/2019 6:18 PM
DATE MODIFIED: 12/6/2019 6:19 PM

26. For a business that is properly using a social media information system, the system can generate information about
what competitors are doing.
a. True
b. False
ANSWER: True
RATIONALE: Correct.
A SMIS could generate the following key information for a business that is properly
designing and using such a strategic tool: Finding out what the competitors are doing and
be able to make strategic decisions in real time to combat them. See 8-9: Social Media
Information Systems
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain social media information systems.
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.9
TOPICS: SMIS
Social media information systems
KEYWORDS: Understand
DATE CREATED: 12/6/2019 6:24 PM
DATE MODIFIED: 12/6/2019 6:28 PM

Multiple Choice

27. Which is a supporting activity in a value chain?

a. Operations
b. Logistics
c. Technological development
d. Marketing and sales
ANSWER: c
RATIONALE: Correct. The supporting activities of a value chain are organizational infrastructure, human
resource management, technological development, and procurement (gathering input). See
8-1: Defining E-Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Define e-commerce and describe its advantages, disadvantages, and business
models.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.1
TOPICS: Value chain and e-commerce
KEYWORDS: Remember
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Module 08: eCommerce

DATE CREATED: 10/22/2019 1:31 PM

DATE MODIFIED: 10/22/2019 1:31 PM

28. _____ is a supporting activity in Michael Porter’s value chain.

a. Service
b. Logistics
c. Marketing and sales
d. Human resource management
ANSWER: d
RATIONALE: Correct. The supporting activities of a value chain are organizational infrastructure, human
resource management, technological development, and procurement (gathering input). See
8-1: Defining E-Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Define e-commerce and describe its advantages, disadvantages, and business
models.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.1
TOPICS: Value chain and e-commerce
KEYWORDS: Remember
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

29. _____ is a primary activity in Michael Porter’s value chain.

a. Service
b. Procurement
c. Technological development
d. Human resource management
ANSWER: a
RATIONALE: Correct. The primary activities in Michael Porter’s value chain are inbound logistics,
outbound logistics, operations, service, and marketing and sales. See 8-1: Defining E-
Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Define e-commerce and describe its advantages, disadvantages, and business
models.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.1
TOPICS: Value chain and e-commerce
KEYWORDS: Remember
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

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Module 08: eCommerce
30. _____ is a primary activity in a value chain that involves moving and storing products, from the end of the production
line to end users or distribution centers.
a. Marketing and
sales
b. Outbound logistics
c. Operations
d. Service
ANSWER: b
RATIONALE: Correct. Outbound logistics involves moving and storing products, from the end of the
production line to end users or distribution centers. Inbound logistics includes tasks
associated with receiving, storing, and disseminating incoming goods or materials. See 8-1:
Defining E-Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Define e-commerce and describe its advantages, disadvantages, and business
models.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.1
TOPICS: Value chain and e-commerce
KEYWORDS: Remember
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

31. In a value chain, service involves _____.

a. processing raw materials into finished goods
b. identifying customer needs and generating sales
c. activities to support customers after the sale of products
d. tasks associated with receiving, storing, and disseminating incoming goods
ANSWER: c
RATIONALE: Correct. Service involves activities to support customers after the sale of products and
services. Apart from service, inbound logistics, outbound logistics, operations, and
marketing and sales are the other primary activities of a value chain. See 8-1: Defining E-
Commerce
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Define e-commerce and describe its advantages, disadvantages, and business
models.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.1
TOPICS: Value chain and e-commerce
KEYWORDS: Remember
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

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Module 08: eCommerce
32. _____ is a primary activity in a value chain that involves processing raw materials into finished goods and services.
a. Operations
b. Service
c. Procurement
d. Logistics
ANSWER: a
RATIONALE: Correct. Operations involves processing raw materials into finished goods and services.
Apart from operations, inbound logistics, outbound logistics, service, and marketing and
sales are the other primary activities of a value chain. See 8-1: Defining E-Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Define e-commerce and describe its advantages, disadvantages, and business
models.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.1
TOPICS: Value chain and e-commerce
KEYWORDS: Remember
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

33. A similarity between e-commerce and traditional commerce is that both:

a. use the same mode of service to cater to consumers.
b. require a physical store to sell consumer goods.
c. use magazines to provide product information.
d. concentrate on selling products to generate profit.
ANSWER: d
RATIONALE: Correct. Although the goal of e-commerce and traditional commerce is the same-selling
products and services to generate profit-they do it quite differently. In e-commerce, the
Web and telecommunication technologies play a major role. See 8-1: Defining E-
Commerce
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Define e-commerce and describe its advantages, disadvantages, and business
models.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.1
TOPICS: E-commerce
KEYWORDS: Remember
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

34. In the context of e-commerce, which of the following is used to provide product information?
a. Web sites

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Module 08: eCommerce

b. Phone calls
c. Flyers
d. Faxes
ANSWER: a
RATIONALE: Correct. In e-commerce, product information is provided using Web sites and online
catalogs. Other activities, such as checking product availability and generating orders, are
also performed using Web sites. See 8-1: Defining E-Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Define e-commerce and describe its advantages, disadvantages, and business
models.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.1
TOPICS: E-commerce
KEYWORDS: Remember
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

35. One of the advantages of e-commerce is that it:

a. improves customer service.
b. is a universally accepted system.
c. guarantees privacy and security of buyers.
d. is highly accessible throughout the world.
ANSWER: a
RATIONALE: Correct. E-commerce improves customer service. It also offers personalized services and
product customization. See 8-1: Defining E-Commerce
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Define e-commerce and describe its advantages, disadvantages, and business
models.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.1
TOPICS: E-commerce
KEYWORDS: Remember
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

36. Price _____, in e-commerce, means all market participants can trade at the same price.
a. discrimination
b. transparency
c. bundling
d. skimming
ANSWER: b
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RATIONALE: Correct. One of the advantages of e-commerce is that it creates “price transparency,”
meaning all market participants can trade at the same price. E-commerce also offers
personalized services and product customization. See 8-1: Defining E-Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Define e-commerce and describe its advantages, disadvantages, and business
models.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.1
TOPICS: E-commerce
KEYWORDS: Remember
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

37. Which model transfers the old retail model to the e-commerce world by using the medium of the Internet?
a. merchant
b. brokerage
c. advertising
d. infomediary
ANSWER: a
RATIONALE: Correct. The merchant model of e-commerce transfers the old retail model to the e-
commerce world by using the medium of the Internet. In the most common type of
merchant model, an e-commerce company uses Internet technologies and Web services to
sell goods and services over the Web. See 8-1: Defining E-Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Define e-commerce and describe its advantages, disadvantages, and business
models.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.1
TOPICS: E-commerce
KEYWORDS: Remember
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

38. Using the _____ model, e-commerce sites sell digital products and services.
a. brokerage
b. infomediary
c. mixed
d. subscription
ANSWER: d
RATIONALE: Correct. Using the subscription model, e-commerce sites sell digital products or services to
customers. For example, the Wall Street Journal and Consumer Reports offer online

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subscriptions, and antivirus vendors use this model to distribute their software and updates.
See 8-1: Defining E-Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Define e-commerce and describe its advantages, disadvantages, and business
models.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.1
TOPICS: Value chain and e-commerce
KEYWORDS: Remember
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

39. Identify the e-commerce business model that brings sellers and buyers together on the Web and collects commissions
on transactions between these parties.
a. The merchant model
b. The brokerage model
c. The advertising model
d. The infomediary model
ANSWER: b
RATIONALE: Correct. Using the brokerage model brings sellers and buyers together on the Web and
collects commissions on transactions between these parties. The best example of this
model is an online auction site, such as eBay (www.ebay.com), DealDash
(www.dealdash.com), or QuiBids (www.quibids.com). See 8-1: Defining E-Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Define e-commerce and describe its advantages, disadvantages, and business
models.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.1
TOPICS: Value chain and e-commerce
KEYWORDS: Remember
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

40. E-commerce sites that use the _____ model collect data on consumers and businesses and then sell this data to other
companies for marketing purposes.
a. brokerage
b. merchant
c. infomediary
d. subscription
ANSWER: c
RATIONALE: Correct. E-commerce sites that use the infomediary model collect information on

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consumers and businesses and then sell this information to other companies for marketing
purposes. For example, Bizrate (bizrate.com) collects information about the performance
of other sites and sells this information to advertisers. See 8-1: Defining E-Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Define e-commerce and describe its advantages, disadvantages, and business
models.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.1
TOPICS: Value chain and e-commerce
KEYWORDS: Remember
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

41. Companies exclusively using business-to-consumer (B2C) applications:

a. sell directly to consumers.
b. rely on physical storefronts for customer interactions.
c. approach customers through third-party agents.
d. focus on using personalized physical stores to serve consumers.
ANSWER: a
RATIONALE: Correct. B2C companies-such as Amazon, Barnesandnoble.com, and Overstock.com-sell
directly to consumers. Amazon and its business partners sell a wide array of products and
services, including books, DVDs, prescription drugs, clothing, and household products.
See 8-2: Major Categories of E-Commerce
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain the major categories of e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.2
TOPICS: E-commerce types and models
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

42. BuyStore Inc., an online retail store, sells all of its products through its Web site, buystore.com, and through an
application on cell phones. BuyStore Inc. is an example of a _____.
a. brick-and-mortar
firm
b. pure-play company
c. third-party broker
d. physical storefront
ANSWER: b
RATIONALE: Correct. BuyStore Inc. is an example of a pure-play company. Companies that rely

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exclusively on the Web to distribute their products are referred to as pure-play companies.
See 8-2: Major Categories of E-Commerce
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: Explain the major categories of e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.2
TOPICS: E-commerce types and models
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

43. Online auction sites that involve business transactions between users of products and services are categorized as
_____ e-commerce.
a. consumer-to-consumer
b. consumer-to-business
c. business-to-business
d. business-to-consumer
ANSWER: a
RATIONALE: Correct. Consumer-to-consumer (C2C) e-commerce involves business transactions
between users, such as when consumers sell to other consumers via the Internet. When
people use online classified ads (e.g., Craigslist) or online auction sites (e.g., eBay), that is
C2C e-commerce. See 8-2: Major Categories of E-Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain the major categories of e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.2
TOPICS: E-commerce types and models
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

44. Ryan, an employee of Widget Corp., makes and sells customized paper notebooks. He uses the company’s intranet to
advertise the notebooks and sell them to the employees of the company. This is an example of _____ e-commerce.
a. consumer-to-consumer
b. consumer-to-business
c. business-to-business
d. business-to-consumer
ANSWER: a
RATIONALE: Correct. This is an example of consumer-to-consumer (C2C) e-commerce. C2C e-
commerce involves business transactions between users, such as when consumers sell to
other consumers via the Internet. See 8-2: Major Categories of E-Commerce

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POINTS: 1
DIFFICULTY: Challenging
REFERENCES: Explain the major categories of e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.2
TOPICS: E-commerce types and models
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

45. In the context of e-government applications, crisis response is categorized as a _____ application.
a. government-to-citizen
b. government-to-business
c. government-to-government
d. government-to-employee
ANSWER: c
RATIONALE: Correct. Crisis response is categorized as a government-to-government (G2G) application.
Disaster assistance is also a G2G application. See 8-2: Major Categories of E-Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain the major categories of e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.2
TOPICS: E-commerce types and models
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

46. In the context of e-government applications, e-training for government officials is categorized as a _____ application.
a. government-to-citizen
b. government-to-business
c. government-to-government
d. government-to-employee
ANSWER: d
RATIONALE: Correct. E-training for government officials is categorized as a government-to-employee
application. See 8-2: Major Categories of E-Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain the major categories of e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.2
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TOPICS: E-commerce types and models

KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

47. E-commerce activities that take place within an organization’s data communication network are part of _____ e-
commerce.
a. interbusiness
b. agribusiness
c. nonbusiness
d. intrabusiness
ANSWER: d
RATIONALE: Correct. Organizational (intrabusiness) e-commerce involves e-commerce activities that
take place inside an organization, typically via the organization’s intranet. Intrabusiness e-
commerce supports overall e-business activities. See 8-2: Major Categories of E-
Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain the major categories of e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.2
TOPICS: E-commerce types and models
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

48. _____ is the first activity involved in a typical business-to-consumer (B2C) cycle.
a. Fulfillment
b. Information sharing
c. Ordering
d. Payment
ANSWER: b
RATIONALE: Correct. The activities of a B2C company are most likely to begin with the company
sharing information with consumers. A B2C e-commerce company can use a variety of
methods to share information with its customers, such as company Web sites, online
catalogs, e-mail, online advertisements, video conferencing, message boards, and
newsgroups. See 8-3: B2C E-Commerce Cycle
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Describe the five major activities of the business-to-consumer e-commerce cycle.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.3
TOPICS: Business-to-consumer e-commerce

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KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

49. Service and support are more important in e-commerce than in traditional commerce because e-commerce companies
_____.
a. do not have a physical location to help maintain current customers
b. focus only on attracting new customers
c. do not continue business with unsatisfied customers
d. rarely cut out the middleman in the link between suppliers and consumers
ANSWER: a
RATIONALE: Correct. Service and support are more important in e-commerce than in traditional
commerce, given that e-commerce companies do not have a physical location to help
maintain current customers. Because maintaining current customers is less expensive than
attracting new customers, e-commerce companies should make an effort to improve
customer service and support. See 8-3: B2C E-Commerce Cycle
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Describe the five major activities of the business-to-consumer e-commerce cycle.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.3
TOPICS: Business-to-consumer e-commerce
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

50. In the context of the seller-side marketplace model, _____ prevents purchases from suppliers that are not on the
approved list of sellers.
a. e-ticketing
b. e-procurement
c. the third-party exchange
d. the trading partner
agreement
ANSWER: b
RATIONALE: Correct. The main objectives of e-procurement are to prevent purchases from suppliers that
are not on the approved list of sellers and eliminate the processing costs of purchases. E-
procurement enables employees in an organization to order and receive supplies and
services directly from suppliers. See 8-4: B2B E-Commerce: A Second Look
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Summarize the four major models of business-to-business e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.4
TOPICS: Business-to-business e-commerce
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E-commerce types and models

KEYWORDS: Apply
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

51. Large corporations (such as General Electric or Boeing) as well as consortiums of large companies use the _____
model.
a. e-procurement
b. buyer-side marketplace
c. third-party exchange
d. infomediary
ANSWER: b
RATIONALE: Correct. Large corporations (such as General Electric or Boeing) as well as consortiums of
large companies use the buyer-side marketplace model. In a buyer-side marketplace, a
buyer, or a group of buyers, opens an electronic marketplace and invites sellers to bid on
announced products or make a request for quotation. See 8-4: B2B E-Commerce: A
Second Look
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Summarize the four major models of business-to-business e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.4
TOPICS: E-commerce types and models
KEYWORDS: Apply
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

52. The _____ model generates revenue from the fees charged for matching buyers and sellers.
a. seller-side marketplace
b. buyer-side marketplace
c. third-party exchange marketplace
d. trader-side marketplace
ANSWER: c
RATIONALE: Correct. The third-party exchange marketplace model is not controlled by sellers or buyers.
Instead, it is controlled by a third party, and the marketplace generates revenue from the
fees charged for matching buyers and sellers. See 8-4: B2B E-Commerce: A Second Look
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Summarize the four major models of business-to-business e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.4
TOPICS: Business-to-business e-commerce
E-commerce types and models

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Module 08: eCommerce

KEYWORDS: Apply
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

53. In the third-party exchange marketplace model, the sale of medical products is an example of a _____.
a. horizontal
market
b. vertical market
c. baseline market
d. sideline market
ANSWER: b
RATIONALE: Correct. The utilities industry, the beef and dairy industries, and the sale of medical
products are examples of vertical markets. The third-party exchange marketplace model is
not controlled by sellers or buyers. Instead, it is controlled by a third party, and the
marketplace generates revenue from the fees charged for matching buyers and sellers. See
8-4: B2B E-Commerce: A Second Look
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Summarize the four major models of business-to-business e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.4
TOPICS: E-commerce types and models
KEYWORDS: Apply
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

54. Which market concentrates on a specific function or business process and automates this function or process for
different industries?
a. vertical
b. horizontal
c. baseline
d. sideline
ANSWER: b
RATIONALE: Correct. A horizontal market concentrates on a specific function or business process and
automates this function or process for different industries. Employee-benefits
administration and media buying are examples of horizontal markets. See 8-4: B2B E-
Commerce: A Second Look
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Summarize the four major models of business-to-business e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.4
TOPICS: Business-to-business e-commerce
E-commerce types and models
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Module 08: eCommerce

KEYWORDS: Apply
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

55. In the third-party exchange marketplace model, media buying is an example of a _____.
a. vertical market
b. horizontal
market
c. baseline market
d. sideline market
ANSWER: b
RATIONALE: Correct. Employee-benefits administration and media buying are examples of horizontal
markets. The third-party exchange marketplace model is not controlled by sellers or
buyers. Instead, it is controlled by a third party, and the marketplace generates revenue
from the fees charged for matching buyers and sellers. See 8-4: B2B E-Commerce: A
Second Look
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Summarize the four major models of business-to-business e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.4
TOPICS: E-commerce types and models
KEYWORDS: Apply
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

56. In the context of trading partner agreements, which of the following is true of electronic business Extensible Markup
Language (ebXML)?
a. ebXML does not support the transfer of inventory charts.
b. ebXML enables customers to submit hard copies of agreements.
c. ebXML allows Web browsers to select only the data requested in a search.
d. ebXML does not support communication of purchase orders.
ANSWER: c
RATIONALE: Correct. The main advantage of ebXML or XML over HTML is that a user can assign
data-type definitions to information on a page, so Web browsers select only the data
requested in a search. It is particularly useful in m-commerce (mobile commerce), because
loading only the necessary data in a browser makes searches more efficient. See 8-4: B2B
E-Commerce: A Second Look
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Summarize the four major models of business-to-business e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.4
TOPICS: Business-to-business e-commerce
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E-commerce types and models

KEYWORDS: Apply
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

57. In the context of trading partner agreements, identify a true statement about electronic business Extensible Markup
Language (ebXML).
a. It makes searches more efficient.
b. It increases traffic on the Internet.
c. It increases delays during peak usage hours.
d. It enables customers to submit hard copies of
documents.
ANSWER: a
RATIONALE: Correct. ebXML is particularly useful in m-commerce (mobile commerce), because
loading only the necessary data in a browser makes searches more efficient. This process
reduces traffic on the Internet and helps prevent delays during peak usage hours. See 8-4:
B2B E-Commerce: A Second Look
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Summarize the four major models of business-to-business e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.4
TOPICS: Business-to-business e-commerce
E-commerce types and models
KEYWORDS: Apply
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

58. Mobile commerce (m-commerce) is based on the _____.

a. Token Ring Protocol
b. Ethernet Protocol
c. Wireless Application
Protocol
d. Wi-Fi Protected Protocol
ANSWER: c
RATIONALE: Correct. M-commerce, based on the Wireless Application Protocol, has been around for
several years, particularly in European countries. Supporting technologies for m-commerce
applications include wireless wide area networks (WWANs) and 3G and 4G networks as
well as short-range wireless communication technologies, such as Wi-Fi, WiMAX,
Bluetooth, and RFID. See 8-5: Mobile and Voice-Based E-Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Describe mobile-based and voice-based e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
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LEARNING OBJECTIVES: MIS.10e.8.5

TOPICS: Mobile e-commerce
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

59. _____ is a short-range wireless communication technology that acts as a supporting technology for mobile commerce
(m-commerce) applications.
a. A 3G network
b. E-procurement
c. Bluetooth
d. A 4G network
ANSWER: c
RATIONALE: Correct. Supporting technologies for m-commerce applications include wireless wide area
networks (WWANs) and 3G and 4G networks as well as short-range wireless
communication technologies, such as Wi-Fi, WiMAX, Bluetooth, and RFID. See 8-5:
Mobile and Voice-Based E-Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Describe mobile-based and voice-based e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.5
TOPICS: Mobile e-commerce
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

60. Which of the following is true of mobile commerce (m-commerce) applications?

a. They are supported by short-range wireless communication technologies.
b. They predominantly rely on voice recognition and text-to-speech technologies.
c. They are incompatible with 3G and 4G networks.
d. They are based on wired protocols.
ANSWER: a
RATIONALE: Correct. Supporting technologies for m-commerce applications include wireless wide area
networks (WWANs) and 3G and 4G networks as well as short-range wireless
communication technologies, such as Wi-Fi, WiMAX, Bluetooth, and RFID. See 8-5:
Mobile and Voice-Based E-Commerce
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Describe mobile-based and voice-based e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.5
TOPICS: Mobile e-commerce
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Module 08: eCommerce

KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

61. A(n) electronic _____ is the electronic exchange of money or scrip.

a. array
b. exchange
c. cash
transfer
d. payment
ANSWER: d
RATIONALE: Correct. An electronic payment is the electronic exchange of money or scrip. It usually
involves the use of the Internet, other computer networks, and digitally stored value
systems. See 8-6: E-Commerce Supporting Technologies
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain four supporting technologies for e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.6
TOPICS: E-commerce implementation
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

62. A _____ is about the size of a credit card and contains an embedded microprocessor chip for storing important
financial and personal information.
a. nano card
b. memory card
c. smart card
d. pay card
ANSWER: c
RATIONALE: Correct. A smart card is about the size of a credit card and contains an embedded
microprocessor chip for storing important financial and personal information. Smart cards
have been used in Europe, Asia, and Australia for many years and are slowly gaining
acceptance in the United States because of their multiple functions. See 8-6: E-Commerce
Supporting Technologies
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain four supporting technologies for e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.6
TOPICS: E-commerce implementation
KEYWORDS: Understand

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DATE CREATED: 10/22/2019 1:31 PM

DATE MODIFIED: 10/22/2019 1:31 PM

63. Jack is a gamer, and every time he plays at a gaming center, he pays five dollars using a card that he recharges
electronically every week. It is evident that Jack uses _____ as the mode of payment.
a. e-cash
b. a nanopayment card
c. e-pay
d. a micropayment card
ANSWER: a
RATIONALE: Correct. Jack uses e-cash as the mode of payment. E-cash usually works with a smart card,
and the amount of cash stored on the chip can be “recharged” electronically. See 8-6: E-
Commerce Supporting Technologies
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: Explain four supporting technologies for e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.6
TOPICS: E-commerce implementation
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

64. _____ offers a secure, convenient, and portable tool for online shopping and stores personal and financial information,
such as credit card numbers, passwords, and PINs.
a. E-cash
b. Digital wallet
c. An e-check
d. E-pay
ANSWER: b
RATIONALE: Correct. Digital wallet, which is available for most handheld devices, offers a secure,
convenient, and portable tool for online shopping. They store personal and financial
information, such as credit card numbers, passwords, and PINs. See 8-6: E-Commerce
Supporting Technologies
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain four supporting technologies for e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.6
TOPICS: E-commerce implementation
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 12/6/2019 2:06 PM
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65. _____ is a popular online payment system used on many online auction sites.
a. Bitcoin
b. Google Pay
c. PayPal
d. Apple Wallet
ANSWER: c
RATIONALE: Correct. PayPal is a popular online payment system used for many online transactions.
Users with valid e-mail addresses can set up PayPal accounts and make secure payments
for online transactions using their credit cards or bank accounts. See 8-6: E-Commerce
Supporting Technologies
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain four supporting technologies for e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.6
TOPICS: E-commerce implementation
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

66. _____ is a method for advertisers to pay for cost per view or cost per click, which is typically one-tenth of a cent.
a. Smart payment
b. Micropayment
c. E-cash
d. E-check
ANSWER: b
RATIONALE: Correct. Micropayments are transactions on the Web involving very small amounts of
money. They began as a method for advertisers to pay for cost per view or cost per click,
which is typically one-tenth of a cent. See 8-6: E-Commerce Supporting Technologies
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain four supporting technologies for e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.6
TOPICS: E-commerce implementation
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 12/6/2019 2:09 PM

67. In the context of Web marketing, the term ad _____ refers to one user viewing one ad.
a. blocker
b. exchange
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c. impression
d. connect
ANSWER: c
RATIONALE: Correct. The term ad impression refers to one user viewing one ad. Most Web and e-mail
advertising is priced based on the cost per thousand ad impressions. See 8-6: E-Commerce
Supporting Technologies
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain four supporting technologies for e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.6
TOPICS: E-commerce implementation
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

68. In the context of Web marketing, the _____ is computed by dividing the number of clicks an ad gets by the total
impressions bought.
a. cost per click
b. cost per thousand
c. click-through rate
d. click-through
impression
ANSWER: c
RATIONALE: Correct. The click-through rate (CTR) is computed by dividing the number of clicks an ad
gets by the total impressions bought. For example, if an advertiser buys 100,000
impressions and gets 20,000 clicks, the CTR is 20 percent (20,000/100,000). See 8-6: E-
Commerce Supporting Technologies
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain four supporting technologies for e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.6
TOPICS: E-commerce implementation
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

69. In the context of Web marketing, a cookie is:

a. the information that users save on the hard drive for later
use.
b. the information a Web site stores on a user’s hard drive.
c. a list of sites visited by a user in a day or the last few days.

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d. a list of sites that users bookmark on a browser for reference.

ANSWER: b
RATIONALE: Correct. Cookies are information a Web site stores on a user’s hard drive so that it can be
used for a later visit, such as for greeting a visitor by name. This information is also used to
record user preferences and browsing habits. See 8-6: E-Commerce Supporting
Technologies
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain four supporting technologies for e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.6
TOPICS: E-commerce implementation
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

70. In the context of Web marketing, any element of a Web page that is clicked counts as a _____ to a server.
a. pop
b. byte
c. hit
d. loop
ANSWER: c
RATIONALE: Correct. Any element of a Web page (including text, graphics, and interactive items) that is
clicked counts as a hit to a server. Hits are not the preferred unit of measurement for site
traffic because the number of hits per page can vary widely, depending on the number of
graphics, type of browser used, and page size. See 8-6: E-Commerce Supporting
Technologies
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain four supporting technologies for e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.6
TOPICS: E-commerce implementation
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

71. In the context of Web marketing, _____ are display ads that appear on top of a browser window, blocking the user’s
view.
a. pop-under ads
b. pop-up ads
c. dialog box ads
d. banner box ads

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ANSWER: b
RATIONALE: Correct. Pop-up ads are display ads that appear on top of a browser window, blocking the
user’s view. Pop-up ads are more intrusive than pop-under ads. See 8-6: E-Commerce
Supporting Technologies
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain four supporting technologies for e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.6
TOPICS: E-commerce implementation
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

72. The Web page displayed when a user first visits a site is called a(n) _____.
a. ad impression
b. cookie
c. splash screen
d. hit
ANSWER: c
RATIONALE: Correct. The Web page displayed when a user first visits a site is called a splash screen. It
is designed to capture the user’s attention and motivate the user to browse the site. See 8-6:
E-Commerce Supporting Technologies
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain four supporting technologies for e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.6
TOPICS: E-commerce implementation
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

73. Which is an artificial intelligence application that can be used for Web marketing?
a. intelligent agent
b. intelligent updater
c. intelligent link
d. intelligent queue
ANSWER: a
RATIONALE: Correct. An intelligent agent is an artificial intelligence application that can be used for
Web marketing. For example, product-brokering agents can alert customers about a new
product. See 8-6: E-Commerce Supporting Technologies
POINTS: 1
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DIFFICULTY: Easy
REFERENCES: Explain four supporting technologies for e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.6
TOPICS: E-commerce implementation
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

74. In the context of mobile marketing strategies, in-game mobile marketing:

a. requires a user to share his/her location and display business ads relative to the location.
b. requires a gamer to click on search engine ads in order to go to the next level of the
game.
c. uses mobile games where the characters in the game promote products for companies.
d. uses mobile ads that appear between loading screens within popular games.
ANSWER: d
RATIONALE: Correct. In-game mobile marketing uses mobile ads that appear within popular mobile
games and can take several forms, such as banner popups, full-page image ads, or video
ads, that appear between loading screens. See 8-6: E-Commerce Supporting Technologies
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain four supporting technologies for e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.6
TOPICS: E-commerce implementation
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

75. Buyline is an e-commerce Web site. It has come up with a promotional offer where buyers get a 60 percent discount
on refrigerators if a minimum of 100 buyers agree to buy the product within 24 hours of the offer being announced. In this
case, it is evident that BuyLine is a _____.
a. social networking site
b. group buying platform
c. peer-to-peer e-commerce
platform
d. participatory e-commerce site
ANSWER: b
RATIONALE: Correct. It is evident that BuyLine is a group buying platform. Group buying platforms are
Web sites that offer a product or service at a huge discount if certain number of buyers
agree to buy the product or service in a given time period, such as within a 24-hour period.
See 8-7: E-Commerce and Beyond: Social Commerce
POINTS: 1

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DIFFICULTY: Challenging
REFERENCES: Explain social commerce and the reasons for its popularity.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.7
TOPICS: Social commerce
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

76. _____ are community-based marketplaces that enable individuals to communicate directly with each other and
conduct e-commerce operations.
a. Social networking sites
b. Group buying platforms
c. Peer-to-peer e-commerce
platforms
d. Participatory e-commerce sites
ANSWER: c
RATIONALE: Correct. Peer-to-peer e-commerce platforms are community-based marketplaces that
enable individuals to communicate directly with each other and conduct e-commerce
operations. Amazon Marketplace is a popular example of such marketplaces. See 8-7: E-
Commerce and Beyond: Social Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain social commerce and the reasons for its popularity.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.7
TOPICS: Social commerce
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

77. For a business that is properly designing and using a social media information system (SMIS), the SMIS would most
likely:
a. decrease Web site traffic.
b. curb hypersocialization in the organization.
c. enable it to develop local area networks within the organization.
d. enable it to share new and dynamic contents with customers in real
time.
ANSWER: d
RATIONALE: Correct. For a business that is properly designing and using a SMIS, the SMIS would most
likely enable it to share new and dynamic contents with customers in real time. See 8-9:
Social Media Information Systems
POINTS: 1

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DIFFICULTY: Moderate
REFERENCES: Explain social media information systems.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.9
TOPICS: Social commerce
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

78. _____ encompasses all the activities a company performs in selling and buying products and services using computers
and communication technologies.
a. E-procurement
b. Marketing and
sales
c. E-business
d. Web marketing
ANSWER: c
RATIONALE: E-business encompasses all the activities a company performs in selling and buying
products and services using computers and communication technologies. In broad terms, e-
business includes several related activities, such as online shopping, sales force
automation, supply chain management, electronic procurement (e-procurement), electronic
payment systems, Web advertising, and order management. See 8-1: Defining E-
Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Define e-commerce and describe its advantages, disadvantages, and business
models.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.1
TOPICS: E-commerce
KEYWORDS: Remember
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

79. Which concept, introduced by Michael Porter, consists of a series of activities designed to meet business needs by
adding cost in each phase of the e-commerce process?
a. social engineering
b. search engine optimization
c. packet switching
d. value chain
ANSWER: d
RATIONALE: Michael Porter introduced the value chain concept in 1985. It consists of a series of
activities designed to meet business needs by adding value (or cost) in each phase of the e-
commerce process. See 8-1: Defining E-Commerce
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POINTS: 1
DIFFICULTY: Easy
REFERENCES: Define e-commerce and describe its advantages, disadvantages, and business
models.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.1
TOPICS: E-commerce
KEYWORDS: Remember
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

80. _____ is a mix of traditional commerce and e-commerce.

a. Brick-and-mortar e-commerce
b. Click-and-brick e-commerce
c. Business-to-business e-commerce
d. Customer-to-customer e-commerce
ANSWER: b
RATIONALE: Many companies now operate as a mix of traditional commerce and e-commerce and have
some kind of e-commerce presence. These companies, referred to as click-and-brick e-
commerce, capitalize on the advantages of online interaction with their customers yet
retain the benefits of having a physical store location. See 8-1: Defining E-Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Define e-commerce and describe its advantages, disadvantages, and business
models.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.1
TOPICS: E-commerce
KEYWORDS: Remember
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

81. Which model of e-commerce is an extension of traditional marketing media, such as radio and television?
a. merchant model
b. brokerage model
c. advertising model
d. infomediary model
ANSWER: c
RATIONALE: The advertising model of e-commerce is an extension of traditional advertising media, such
as radio and television. Directories such as Yahoo! provide content (similar to radio and
TV) to users for free. See 8-1: Defining E-Commerce
POINTS: 1
DIFFICULTY: Easy
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Module 08: eCommerce

REFERENCES: Define e-commerce and describe its advantages, disadvantages, and business
models.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.1
TOPICS: Value chain and e-commerce
KEYWORDS: Remember
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

82. Electronic data interchange (EDI) and electronic funds transfer (EFT) are forms of _____ e-commerce.
a. consumer-to-consumer
b. consumer-to-business
c. business-to-business
d. business-to-consumer
ANSWER: c
RATIONALE: Business-to-business (B2B) e-commerce involves electronic transactions between
businesses. These transactions have been around for many years in the form of EDI and
EFT. See 8-2: Major Categories of E-Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain the major categories of e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.2
TOPICS: E-commerce types and models
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

83. A popular application of the _____ model, which is a major business-to-business (B2B) e-commerce model, is e-
procurement.
a. third-party exchange market-
place
b. buyer-side marketplace
c. seller-side marketplace
d. trader-side marketplace
ANSWER: c
RATIONALE: A popular application of the seller-side marketplace model is e-procurement, which
enables employees in an organization to order and receive supplies and services directly
from suppliers. E-procurement streamlines the traditional procurement process, which
reduces costs, saves time, and improves relationships between suppliers and participating
organizations. See 8-4: B2B E-Commerce: A Second Look
POINTS: 1
DIFFICULTY: Easy

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Module 08: eCommerce

REFERENCES: Summarize the four major models of business-to-business e-commerce.

QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.4
TOPICS: E-commerce types and models
KEYWORDS: Apply
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

84. In the third-party exchange marketplace model, a _____ market concentrates on a specific industry or market.
a. vertical
b. horizontal
c. baseline
d. sideline
ANSWER: a
RATIONALE: A vertical market concentrates on a specific industry or market, such as the utilities
industry, the beef and dairy industries, and the sale of medical products. See 8-4: B2B E-
Commerce: A Second Look
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Summarize the four major models of business-to-business e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.4
TOPICS: E-commerce types and models
KEYWORDS: Apply
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

85. _____ support m-commerce applications.

a. Personal area networks
b. Wireless wide area networks
c. Local area networks
d. Virtual private networks
ANSWER: b
RATIONALE: Supporting technologies for m-commerce applications include wireless wide area networks
(WWANs) and 3G and 4G networks as well as short-range wireless communication
technologies, such as Wi-Fi, WiMAX, Bluetooth, and RFID. See 8-5: Mobile and Voice-
Based E-Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Describe mobile-based and voice-based e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.5
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TOPICS: Mobile e-commerce

KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

86. _____ relies on text-to-speech technologies.

a. Seller-side e-commerce
b. Voice-based e-commerce
c. Traditional commerce
d. Mobile commerce
ANSWER: b
RATIONALE: Voice-based e-commerce relies on voice recognition and text-to-speech technologies that
have improved dramatically in the past decade. One method of conducting voice-based e-
commerce is using e-wallets, or virtual wallets. See 8-5: Mobile and Voice-Based E-
Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Describe mobile-based and voice-based e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.5
TOPICS: Mobile e-commerce
Voice-based e-commerce
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

87. A(n) _____ is the electronic version of a paper check and offers security, speed, and convenience for online
transactions.
a. paper wallet
b. digital wallet
c. e-check
d. online-check
ANSWER: c
RATIONALE: An e-check is the electronic version of a paper check and offers security, speed, and
convenience for online transactions. Many utility companies offer customers the
opportunity to use e-checks to make their payments, and most banks accept e-checks for
online bill payments. See 8-6: E-Commerce Supporting Technologies
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain four supporting technologies for e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.6
TOPICS: E-commerce implementation

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KEYWORDS: Remember
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 12/6/2019 3:08 PM

88. Which tag is an HTML tag that provides information on the keywords that represent the contents of a Web page?
a. head
b. body
c. meta
d. object
ANSWER: c
RATIONALE: The meta tag provides information about a Web page, such as keywords that represent the
page content, the Web designer, and frequency of page updates. Search engines use this
information (particularly the keywords) to create indexes. See 8-6: E-Commerce
Supporting Technologies
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain four supporting technologies for e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.6
TOPICS: E-commerce implementation
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

89. Search engines and directories offer space that companies can purchase for advertising purposes. This process is called
_____.
a. ad impression
b. cookie spacing
c. spot leasing
d. search optimization
ANSWER: c
RATIONALE: Search engines and directories offer space that companies can purchase for advertising
purposes. This process is called spot leasing. Spots have an advantage over banner ads
because their placement is permanent; banner ad placement can change from visit to visit.
See 8-6: E-Commerce Supporting Technologies
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain four supporting technologies for e-commerce.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.6
TOPICS: E-commerce implementation
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
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DATE MODIFIED: 10/22/2019 1:31 PM

90. _____ aggregate customers’ opinions related to products or services that they have purchased and then suggest them to
others with the same interest.
a. Recommendation Web sites
b. Group buying platforms
c. Peer-to-peer e-commerce platforms
d. Participatory e-commerce Web
sites
ANSWER: a
RATIONALE: Recommendation Web sites aggregate customers’ opinions related to products or services
that they have purchased and then recommend them to others with the same interest. Some
also offer incentives to individuals for sharing their purchases with friends through social
media. See 8-7: E-Commerce and Beyond: Social Commerce
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain social commerce and the reasons for its popularity.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.7
TOPICS: Social commerce
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

91. In the _____ sales channel, a customer uses only one channel of a given business to purchase an item, including in-
store, on a cell phone, or on the company’s Web site.
a. omnichannel
b. multichannel
c. cross-channel
d. mobile channel
ANSWER: b
RATIONALE: Correct. A customer uses one channel of a given business to purchase an item, including
in-store, on a cell phone, on the company’s Web site, social media channels, comparison
shopping engines, third-party marketplaces, other companies’ Web sites, and so forth.
These various channels are not connected to one another and different departments and
channels do not share any data with each other.
See 8-3: B2C E-Commerce Cycle
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Describe the five major activities of the business-to-consumer e-commerce cycle.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.3
TOPICS: Business-to-consumer e-commerce
KEYWORDS: Understand
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DATE CREATED: 12/6/2019 4:05 PM

DATE MODIFIED: 12/6/2019 4:11 PM

92. Identify one advantage of multichannel retailing.

a. It leverages the power of marketplaces and search
engines.
b. It leverages the power of telecommunications.
c. It targets only consumers who are ready to buy.
d. It targets the most affluent consumers.
ANSWER: b
RATIONALE: Correct. Multichannel retailing leverages the power of marketplaces and search engines.
Multichannel sellers have more freedom and flexibility and are able to take advantage of
different features that each channel offers. See 8-3: B2C E-Commerce Cycle
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Describe the five major activities of the business-to-consumer e-commerce cycle.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.3
TOPICS: Business-to-consumer e-commerce
KEYWORDS: Understand
DATE CREATED: 12/6/2019 4:12 PM
DATE MODIFIED: 12/6/2019 4:19 PM

93. In the _____ sales channel, a customer uses several channels in order to buy an item.
a. cross-channel
b. multichannel
c. auction-style
d. hypersocial
ANSWER: b
RATIONALE: Correct. In the cross-channel sales channel, a customer uses several channels in order to
buy an item. This strategy offers freedom and convenience to the customer. See 8-3: B2C
E-Commerce Cycle
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Describe the five major activities of the business-to-consumer e-commerce cycle.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.3
TOPICS: Business-to-consumer e-commerce
KEYWORDS: Understand
DATE CREATED: 12/6/2019 4:20 PM
DATE MODIFIED: 12/6/2019 4:22 PM

94. Identify an advantage of omnichannel.

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a. It does not require extensive

integration.
b. It improves the quality of products.
c. It requires a strong infrastructure.
d. It improves brand recognition.
ANSWER: d
RATIONALE: Correct.
Some of the advantages of omnichannel include: It improves customer satisfaction and
retention; It allows a company to meet customers where they are; It retains more
customers; It increases revenue; It improves brand recognition. See 8-3: B2C E-Commerce
Cycle
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Describe the five major activities of the business-to-consumer e-commerce cycle.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.3
TOPICS: Business-to-consumer e-commerce
KEYWORDS: Understand
DATE CREATED: 12/6/2019 4:23 PM
DATE MODIFIED: 12/6/2019 4:28 PM

95. Identify an advantage of a cross-channel sales strategy.

a. It increases sales opportunities.
b. It allows companies to meet customers where they are.
c. It leverages the power of marketplaces and search
engines.
d. It simplifies payment options.
ANSWER: a
RATIONALE: Correct.
There are several advantages of the cross-channel strategy: It makes customer service more
personal. It attracts new customers faster; It improves the company's brand image; It gets a
unique view of its customers; It increases sales opportunities; It allows the business to
know its customers better. See 8-3: B2C E-Commerce Cycle
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Describe the five major activities of the business-to-consumer e-commerce cycle.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.3
TOPICS: Business-to-consumer e-commerce
KEYWORDS: Understand
DATE CREATED: 12/6/2019 4:28 PM
DATE MODIFIED: 12/6/2019 4:33 PM

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Module 08: eCommerce
96. Identify the main disadvantage of omnichannel.
a. Its simplicity.
b. Its complexity.
c. It is too time-consuming for
customers.
d. It does not increase revenue.
ANSWER: b
RATIONALE: Correct.
The main disadvantage of this strategy is its complexity. It requires that a large number of
people in a lot of different places all be on the same page. Also, it requires seamless
integration between people, software, and processes in order to be successful. See 8-3:
B2C E-Commerce Cycle
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Describe the five major activities of the business-to-consumer e-commerce cycle.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.3
TOPICS: Business-to-consumer e-commerce
KEYWORDS: Understand
DATE CREATED: 12/6/2019 4:34 PM
DATE MODIFIED: 12/6/2019 4:36 PM

97. Hypersocial organizations should forget information channels and concentrate on:
a. e-commerce.
b. social media.
c. knowledge networks.
d. reviews.
ANSWER: c
RATIONALE: Correct.
Hypersocial organizations should forget information channels and concentrate on
knowledge networks. As noted, the majority of the customers follow peers on social
media. Customers already have some basic knowledge about a company and its products
and services and have heard comments from the peers in their tribes. Companies should
share knowledge and work to gain trust using social media.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain hyper-social organizations and their growing popularity.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.8
TOPICS: hyper-social organizations
KEYWORDS: Understand
DATE CREATED: 12/6/2019 4:58 PM
DATE MODIFIED: 12/6/2019 5:01 PM
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98. One pillar of hypersociality involves focusing on _____, which are based on group behavioral characteristics.
a. tribes
b. theories
c. product reviews
d. market segments
ANSWER: a
RATIONALE: Correct.
Tribes have their own language and protocols, and they identify with each other in some way, such
as people from different economic and social classes that share the same interest. Companies should
forget market segments and focus on tribes, which are based on group behavioral characteristics
(market segments are based on individual consumer traits). Companies need to reach tribes with
members who influence each other.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain hyper-social organizations and their growing popularity.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
TOPICS: hyper-social organizations
KEYWORDS: Understand
DATE CREATED: 12/6/2019 5:02 PM
DATE MODIFIED: 12/6/2019 5:06 PM

99. Hypersocial organizations leverage the power of _____.

a. online advertising
b. bricks-and-mortar retailing
c. online communities
d. search engines
ANSWER: c
RATIONALE: Correct.
Hypersocial organizations leverage the power of online communities. There are four key
elements for a successful community: members, content, member profiles, and
transactions. See 8-8: Hypersocial Organizations.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain hyper-social organizations and their growing popularity.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.8
TOPICS: hyper-social organizations
KEYWORDS: Understand
DATE CREATED: 12/6/2019 5:06 PM
DATE MODIFIED: 12/6/2019 5:09 PM

100. Personalization technologies used on Amazon demonstrate the use of _____ centricity.
a. human
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b. online
c. group
d. technological
ANSWER: a
RATIONALE: Correct.
Human centricity directs all company activities and decisions toward providing value to
the humans who are a company’s customers, employees, or business partners. A
hypersocial organization should engage with customers and satisfy their needs directly
using social media. Personalization technologies used on Web sites such as Amazon
demonstrate this. See 8-8: Hypersocial Organizations.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain hyper-social organizations and their growing popularity.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.8
TOPICS: hyper-social organizations
KEYWORDS: Understand
DATE CREATED: 12/6/2019 5:16 PM
DATE MODIFIED: 12/6/2019 5:20 PM

101. The four pillars of hypersociality describe a return to a _____ for businesses.
a. more formal interaction
b. mechanized strategy
c. Web-based framework
d. natural human interaction
ANSWER: d
RATIONALE: Correct.
The four pillars of hypersociality describe a return to a natural human interaction for both
businesses and consumers. See 8-8: Hypersocial Organizations.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain hyper-social organizations and their growing popularity.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.8
TOPICS: hyper-social organizations
KEYWORDS: Understand
DATE CREATED: 12/6/2019 5:20 PM
DATE MODIFIED: 12/6/2019 5:23 PM

102. For a hypersocial organization, which is considered the most vital element of an online community?
a. content
b. members
c. member profiles
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d. transactions
ANSWER: b
RATIONALE: Correct.
Hypersocial organizations leverage the power of online communities. There are four key
elements for a successful community: members, content, member profiles, and
transactions. The importance of members is probably the most vital element. The more
members in a community the better it is. See 8-8: Hypersocial Organizations.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain hyper-social organizations and their growing popularity.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.8
TOPICS: hyper-social organizations
KEYWORDS: Understand
DATE CREATED: 12/6/2019 5:24 PM
DATE MODIFIED: 12/6/2019 5:29 PM

103. Hypersocial organizations are companies that leverage _____ in order to turn the business into a social process.
a. e-commerce
b. automation
c. e-mail
d. social media
ANSWER: d
RATIONALE: Correct.
Hypersocial organizations are companies that leverage social media in order to turn the
business into a social process and, as a result, be able to better connect with their customers
and sell more products and services. See 8-8: Hypersocial Organizations.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain hyper-social organizations and their growing popularity.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.8
TOPICS: hyper-social organizations
KEYWORDS: Understand
DATE CREATED: 12/6/2019 5:29 PM
DATE MODIFIED: 12/6/2019 5:32 PM

104. The _____ pillar of hypersociality realizes that the benefits of leveraging social media are much greater than its
negatives.
a. tribe vs. market segment
b. social messiness vs. process hierarchy
c. information channels cs. network channels
d. human-centric vs. company-centric

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ANSWER: b
RATIONALE: Correct. Social messiness versus process hierarchy: Hypersocial organizations should
forget process and hierarchies and embrace social messiness. This new paradigm will be
less rigid and less predefined but will allow people in an organization to interact as
humans. People can make mistakes, but over time, they will correct themselves. This pillar
realizes that the benefits of leveraging social media are much greater than its negatives. See
8-8: Hypersocial Organizations.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Explain hyper-social organizations and their growing popularity.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.8
TOPICS: hyper-social organizations
KEYWORDS: Understand
DATE CREATED: 12/6/2019 5:33 PM
DATE MODIFIED: 12/6/2019 5:40 PM

105. Identify one component of a social media information system (SMIS) that is not included in other information
systems.
a. Hardware.
b. Procedures.
c. User
communities.
d. Software.
ANSWER: c
RATIONALE: Correct. A social media information system (SMIS) is an information system that includes
all the components like other information systems (discussed in Module 1) such as
hardware, software, people, and procedures that sup- port content sharing among its
members or users. Three additional components of a SMIS include: application providers,
user communities, and sponsors. See 8-9: Social Media Information Systems
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain social media information systems.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.9
TOPICS: Social commerce
KEYWORDS: Understand
DATE CREATED: 12/6/2019 5:56 PM
DATE MODIFIED: 12/6/2019 6:00 PM

106. Social media information systems play a major role in fostering _____.
a. hypersocial organizations
b. click-and-brick retailers
c. new sales channels
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d. voice-based e-commerce
ANSWER: a
RATIONALE: Correct. SMISs play a major role in fostering hypersocial organizations by creating
communities to transform interactions with users, customers, employees, and business
partners into a mutually productive relationship. See 8-9: Social Media Information
Systems
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain social media information systems.
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: MIS.10e.8.9
TOPICS: Social commerce
KEYWORDS: Understand
DATE CREATED: 12/6/2019 6:01 PM
DATE MODIFIED: 12/6/2019 6:04 PM

Essay

107. How does e-commerce relate to the value chain concept?

ANSWER: Answers will vary. The Internet can increase the speed and accuracy of communication
between suppliers, distributors, and customers. Moreover, the Internet’s low cost means
companies of any size can take advantage of value chain integration, which is the process
of multiple companies in a shared market working together to plan and manage the flow of
goods, services, and information from manufacturers to consumers. This process optimizes
the value chain’s efficiency, thus creating a competitive advantage for all companies
involved.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Define e-commerce and describe its advantages, disadvantages, and business
models.
QUESTION TYPE: Essay
HAS VARIABLES: False
STUDENT ENTRY MODE: Basic
LEARNING OBJECTIVES: MIS.10e.8.1
TOPICS: Value chain and e-commerce
KEYWORDS: Remember
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

108. Provide examples of how e-commerce can enhance a value chain.

ANSWER: Answers will vary. E-commerce can enhance a value chain by offering new ways to reduce
costs or improve operations, including the following:
a. Using e-mail rather than regular mail to notify customers of upcoming sales can reduce
costs.
b. Selling to customers via the company Web site can generate new sources of revenue,
particularly from customers who live far away from the company’s headquarters or
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physical store.
c. Offering online customer service can make products or services more appealing to
customers.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Define e-commerce and describe its advantages, disadvantages, and business
models.
QUESTION TYPE: Essay
HAS VARIABLES: False
STUDENT ENTRY MODE: Basic
LEARNING OBJECTIVES: MIS.10e.8.1
TOPICS: Value chain and e-commerce
KEYWORDS: Remember
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

109. Explain the concept of click-and-brick e-commerce.

ANSWER: Answers will vary. Many companies now operate as a mix of traditional commerce and e-
commerce and have some kind of e-commerce presence. These companies, referred to as
click-and-brick e-commerce, capitalize on the advantages of online interaction with their
customers yet retain the benefits of having a physical store location. For example,
customers can buy items from the company’s Web site but take them to the physical store
if they need to return items.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Define e-commerce and describe its advantages, disadvantages, and business
models.
QUESTION TYPE: Essay
HAS VARIABLES: False
STUDENT ENTRY MODE: Basic
LEARNING OBJECTIVES: MIS.10e.8.1
TOPICS: Value chain and e-commerce
KEYWORDS: Remember
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 12/6/2019 3:13 PM

110. List four disadvantages of e-commerce.

ANSWER: Answers will vary. E-commerce has the following disadvantages, although many of these
should be eliminated or reduced in the near future:
a. Bandwidth capacity problems (in certain parts of the world)
b. Security and privacy issues
c. Accessibility (not everybody is connected to the Web yet)
d. Acceptance (not everybody accepts this technology)
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Define e-commerce and describe its advantages, disadvantages, and business
models.
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Module 08: eCommerce

QUESTION TYPE: Essay

HAS VARIABLES: False
STUDENT ENTRY MODE: Basic
LEARNING OBJECTIVES: MIS.10e.8.1
TOPICS: E-commerce
KEYWORDS: Remember
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

111. Describe the merchant model of e-commerce.

ANSWER: Answers will vary. The merchant model transfers the old retail model to the e-commerce
world by using the medium of the Internet. In the most common type of merchant model,
an e-commerce company uses Internet technologies and Web services to sell goods and
services over the Web. Companies following this model offer good customer service and
lower prices to establish a presence on the Web. Amazon uses this model, but traditional
businesses, such as Dell, Cisco, and Hewlett-Packard, have adopted this model to eliminate
the middleman and reach new customers.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Define e-commerce and describe its advantages, disadvantages, and business
models.
QUESTION TYPE: Essay
HAS VARIABLES: False
STUDENT ENTRY MODE: Basic
LEARNING OBJECTIVES: MIS.10e.8.1
TOPICS: E-commerce
KEYWORDS: Remember
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

112. How do companies use business-to-business (B2B) applications?

ANSWER: Answers will vary. Companies use B2B applications for purchase orders, invoices,
inventory status, shipping logistics, business contracts, and other operations. These
companies report millions of dollars in savings by increasing transaction speed, reducing
errors, and eliminating manual tasks.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain the major categories of e-commerce.
QUESTION TYPE: Essay
HAS VARIABLES: False
STUDENT ENTRY MODE: Basic
LEARNING OBJECTIVES: MIS.10e.8.2
TOPICS: E-commerce types and models
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM
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Module 08: eCommerce

113. Provide examples of organizational e-commerce activities that take place inside an organization.
ANSWER: Answers will vary. Organizational e-commerce activities can include exchange of goods,
services, or information among employees. Other examples include conducting training
programs and offering human resource services. Some of these activities, although not
specifically selling and buying, are considered supporting activities in Porter’s value chain.
For example, a human resources department supports the personnel involved in producing
and distributing a company’s products.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain the major categories of e-commerce.
QUESTION TYPE: Essay
HAS VARIABLES: False
STUDENT ENTRY MODE: Basic
LEARNING OBJECTIVES: MIS.10e.8.2
TOPICS: E-commerce types and models
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

114. Describe the information sharing and ordering activities involved in conducting business-to-consumer (B2C) e-
commerce.
ANSWER: Answers will vary. A B2C e-commerce company can use a variety of methods to share
information with its customers. Web sites, online catalogs, e-mail, online advertisements,
video conferencing, message boards, and newsgroups are some of the methods that can be
used. Customers can use electronic forms or e-mail to order products from a B2C site.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Describe the five major activities of the business-to-consumer e-commerce cycle.
QUESTION TYPE: Essay
HAS VARIABLES: False
STUDENT ENTRY MODE: Basic
LEARNING OBJECTIVES: MIS.10e.8.3
TOPICS: Business-to-consumer e-commerce
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

115. What are the advantages of business-to-business (B2B) e-commerce?

ANSWER: Answers will vary. B2B e-commerce lowers production costs and improves accuracy by
eliminating many labor-intensive tasks, such as creating invoices and tracking payments
manually. In addition, the information flow among business partners is improved by
creating a direct online connection in the supply chain network, which reduces delivery
time. In other words, raw materials are received faster, and information related to
customers’ demands is transferred faster. Improved electronic communication between
business partners improves overall communication, which results in better inventory
management and control.
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Module 08: eCommerce

POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Summarize the four major models of business-to-business e-commerce.
QUESTION TYPE: Essay
HAS VARIABLES: False
STUDENT ENTRY MODE: Basic
LEARNING OBJECTIVES: MIS.10e.8.4
TOPICS: Business-to-business e-commerce
KEYWORDS: Apply
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

116. What are the main objectives of trading partner agreements?

ANSWER: Answers will vary. The main objectives of trading partner agreements are to automate
negotiating processes and enforce contracts between participating businesses. Using this
model, business partners can send and receive bids, contracts, and other information
needed when offering and purchasing products and services.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Summarize the four major models of business-to-business e-commerce.
QUESTION TYPE: Essay
HAS VARIABLES: False
STUDENT ENTRY MODE: Basic
LEARNING OBJECTIVES: MIS.10e.8.4
TOPICS: E-commerce types and models
KEYWORDS: Apply
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

117. What can sellers do by participating in buyer-side marketplaces?

ANSWER: Answers will vary. By participating in buyer-side marketplaces, sellers can do the
following:
a. Conduct sales transactions.
b. Automate the order management process.
c. Conduct post-sales analysis.
d. Automate the fulfillment function.
e. Improve understanding of buying behaviors.
f. Provide an alternative sales channel.
g. Reduce order placement and delivery time.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Summarize the four major models of business-to-business e-commerce.
QUESTION TYPE: Essay
HAS VARIABLES: False
STUDENT ENTRY MODE: Basic
LEARNING OBJECTIVES: MIS.10e.8.4
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Module 08: eCommerce

TOPICS: Business-to-business e-commerce

KEYWORDS: Apply
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

118. Describe voice-based e-commerce.

ANSWER: Answers will vary. Voice-based e-commerce relies on voice recognition and text-to-speech
technologies that have improved dramatically in the past decade. One method of
conducting voice-based e-commerce is using a digital wallet. In addition to storing
financial information, digital wallet can store such information as the customer’s address
and driver’s license number. Several voice portals are already available, including Nuance
(nuance.com), Internet Speech (internetspeech.com), and Google Voice
(www.google.com/googlevoice/about.html). See 8-5: Mobile and Voice-Based E-
Commerce
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Describe mobile-based and voice-based e-commerce.
QUESTION TYPE: Essay
HAS VARIABLES: False
STUDENT ENTRY MODE: Basic
LEARNING OBJECTIVES: MIS.10e.8.5
TOPICS: Voice-based e-commerce
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 12/6/2019 3:23 PM

119. Describe micropayments.

ANSWER: Answers will vary. Micropayments are transactions on the Web involving very small
amounts of money. They began as a method for advertisers to pay for cost per view or cost
per click, which is typically one-tenth of a cent. Such fractional amounts are difficult to
handle with traditional currency methods, and electronic micropayments reduce the cost of
handling them for financial institutions. Payment amounts are accumulated for customers
until they are large enough to offset the transaction fee, and then the account deduction or
charge is submitted to the bank.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain four supporting technologies for e-commerce.
QUESTION TYPE: Essay
HAS VARIABLES: False
STUDENT ENTRY MODE: Basic
LEARNING OBJECTIVES: MIS.10e.8.6
TOPICS: E-commerce implementation
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

120. In the context of Web marketing, describe spot leasing.

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Module 08: eCommerce

ANSWER: Answers will vary. Search engines and directories offer space that companies can purchase
for advertising purposes. Spots have an advantage over banner ads because their placement
is permanent; banner ad placement can change from visit to visit. However, spots can be
more expensive than banner ads, especially on high-traffic sites, such as Yahoo!.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain four supporting technologies for e-commerce.
QUESTION TYPE: Essay
HAS VARIABLES: False
STUDENT ENTRY MODE: Basic
LEARNING OBJECTIVES: MIS.10e.8.6
TOPICS: E-commerce implementation
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

121. Describe the term hit in the context of Web marketing.

ANSWER: Answers will vary. Any element of a Web page (including text, graphics, and interactive
items) that is clicked counts as a hit to a server. Hits are not the preferred unit of
measurement for site traffic because the number of hits per page can vary widely,
depending on the number of graphics, type of browser used, and page size.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain four supporting technologies for e-commerce.
QUESTION TYPE: Essay
HAS VARIABLES: False
STUDENT ENTRY MODE: Basic
LEARNING OBJECTIVES: MIS.10e.8.6
TOPICS: E-commerce implementation
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 10/22/2019 1:31 PM

122. Describe at least two categories of social networks and online media that collectively constitute social commerce.
ANSWER: Answers will vary. There are several categories of social networks and online media that
collectively constitute social commerce:
a. Social networking sites: Users of these sites recommend a product or service to a friend,
or the site offers a direct link for shopping, such as the Shop tab in Facebook or the Buy
button in Twitter.
b. Group buying platforms: These Web sites offer a product or service at a huge discount if
certain number of buyers agree to buy the product or service in a given time period, such
as within a 24-hour period. Popular examples include Groupon and LivingSocial.
c. Peer-to-peer e-commerce platforms: These Web sites are community-based
marketplaces that enable individuals to communicate directly with each other and conduct
e-commerce operations. Popular examples include Amazon Marketplace and Etsy.
d. Recommendation Web sites: These Web sites aggregate customers’ opinions related to
products or services that they have purchased and then recommend them to others with the
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Module 08: eCommerce

same interest. Popular examples include TripAdvisor and Yelp.

e. Participatory e-commerce: These Web sites allow users to participate in the production
process and bring a product or service to the sites in a collaborative fashion. Popular
examples include CutOnYour-Bias and Kickstarter.
f. Social advice: These Web sites provide shopping advice and opinion through chat and
forums. Popular examples include GoTryItOn and eBags.
g. User-curated shopping: These Web sites provide a platform for users to create actual
products and/or generate listings of products that others can choose from. Popular
examples include Lyst and Polyvore.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain social commerce and the reasons for its popularity.
QUESTION TYPE: Essay
HAS VARIABLES: False
STUDENT ENTRY MODE: Basic
LEARNING OBJECTIVES: MIS.10e.8.7
TOPICS: Social commerce
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 12/6/2019 3:32 PM

123. Describe hypersocial organizations.

ANSWER: Answers will vary. Hypersocial organizations are companies that leverage social media in
order to turn the business into a social process, and as a result, be able to better connect
with their customers and sell more products and services. Hypersocial organizations share
information through many different avenues. The most popular is direct social media
interaction, such as Facebook posts, Twitter pages, and Instagram. These organizations
may also use blogs, videos on YouTube, and their own company Web sites.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain hyper-social organizations and their growing popularity.
QUESTION TYPE: Essay
HAS VARIABLES: False
STUDENT ENTRY MODE: Basic
LEARNING OBJECTIVES: MIS.10e.8.8
TOPICS: Social commerce
KEYWORDS: Understand
DATE CREATED: 10/22/2019 1:31 PM
DATE MODIFIED: 12/6/2019 3:34 PM

124. List the four pillars of hypersociality.

ANSWER: Answers will vary. The four pillars of hypersociality describe a return to a natural human
interaction for both businesses and consumers. They include (1) tribe versus market
segment, (2) human-centric versus company-centric, (3) information channels versus
network channels, and (4) social messiness versus process hierarchy.
POINTS: 1
DIFFICULTY: Moderate
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Module 08: eCommerce

REFERENCES: Explain hyper-social organizations and their growing popularity.

QUESTION TYPE: Essay
HAS VARIABLES: False
STUDENT ENTRY MODE: Basic
LEARNING OBJECTIVES: MIS.10e.8.8
TOPICS: Social commerce
KEYWORDS: Understand
DATE CREATED: 12/6/2019 4:55 PM
DATE MODIFIED: 12/6/2019 4:56 PM

125. Briefly explain why hypersocial organizations should embrace social messiness.
ANSWER: Answers will vary. Hypersocial organizations should forget process and hierarchies and
embrace social messiness. This new paradigm will be less rigid and less predefined but
will allow people in an organization to interact as humans. People can make mistakes, but
over time, they will correct themselves. This pillar realizes that the benefits of leveraging
social media are much greater than its negatives.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain hyper-social organizations and their growing popularity.
QUESTION TYPE: Essay
HAS VARIABLES: False
STUDENT ENTRY MODE: Basic
LEARNING OBJECTIVES: MIS.10e.8.8
TOPICS: Social commerce
KEYWORDS: Understand
DATE CREATED: 12/6/2019 4:57 PM
DATE MODIFIED: 12/6/2019 4:58 PM

126. Explain how sponsors function within a social media information system.
ANSWER: Answers will vary. Additional components of a SMIS include: Sponsors: Organizations
and businesses that pay money to social media sites to advertise their products and services
such as Walmart, Macy’s, and Intel. Organizations and businesses could also use social
media sites free of charge to promote their products and services and connect with their
customers by creating fan pages, publishing FAQs, blogs, podcasts, and so forth.
Businesses also publish how-to videos and enable certain customers to help each other
solve problems. Sponsors usually generate revenue through advertising.
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: Explain social media information systems.
QUESTION TYPE: Essay
HAS VARIABLES: False
STUDENT ENTRY MODE: Basic
LEARNING OBJECTIVES: MIS.10e.8.9
TOPICS: social media information systems
SMIS
KEYWORDS: Understand
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Module 08: eCommerce

DATE CREATED: 12/6/2019 5:47 PM

DATE MODIFIED: 12/6/2019 5:51 PM

127. Briefly describe the application component of a social media information system.
ANSWER: Answers will vary. Additional components of a SMIS include: Application (app)
providers, which are social media sites such as Facebook, Twitter, LinkedIn, and Snapchat
that create features and functions for the app and make them available for free to their
users.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Explain social media information systems.
QUESTION TYPE: Essay
HAS VARIABLES: False
STUDENT ENTRY MODE: Basic
LEARNING OBJECTIVES: MIS.10e.8.9
TOPICS: SMIS
social media information systems
KEYWORDS: Understand
DATE CREATED: 12/6/2019 5:52 PM
DATE MODIFIED: 12/6/2019 5:54 PM

128. Outline four things that an organization's social media policy should include and do.
ANSWER: Answers will vary.
Before designing a SMIS, an organization should clearly define its social media policy and
the policy should be clearly explained to all impacted employees. Many companies’ social
media policies are available online and they should be consulted before designing one in
order to implement best practices. In its basic form an organization’s social media policy
should include and do the following: Protect the company’s reputation; eliminate legal
issues; protect the privacy of all impacted individuals; and raise brand awareness.
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: Explain social media information systems.
QUESTION TYPE: Essay
HAS VARIABLES: False
STUDENT ENTRY MODE: Basic
LEARNING OBJECTIVES: MIS.10e.8.9
TOPICS: SMIS
social media information systems
KEYWORDS: Understand
DATE CREATED: 12/6/2019 6:20 PM
DATE MODIFIED: 12/6/2019 6:23 PM

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