Chapter 1:

Introduction to e-business and e-commerce

Multiple choice questions: set A

Try the following questions to test your understanding of this chapter. Once you have finished,
click on the 'Submit Answers for Grading' button to get your results.

This activity contains 15 questions.

E-commerce is often seen as simply buying and selling using the

internet but do the following perspectives also apply to e-
commerce?
An online perspective

A service perspective

A business process perspective

A communications perspective

All of the above

E-commerce should be considered as all financially mediated transactions which includes the
delivery of information, products, services, or payment.

E-business is a term used to describe:

An organization using electronic media to sell direct to its customers

An organization using electronic media to purchase from to its suppliers

The use of electronic communications for all business processes

Any electronically mediated communication between an organization and its

stakeholders
None of the above

E-business can be seen to be all electronically mediated information exchanges, both within an
organisation and with external stakeholders supporting the range of business processes.

When you look at e-commerce and e-business, which is the most

realistic relationship between these two concepts?
E-commerce has some overlap with e-business

E-commerce is broadly equivalent to e-business

 E-business is a subset of e-commerce

E-commerce is a subset of e-business

None of the above

The extent of the overlap depends on the viewpoint taken as they are both significant but it can be
argued that e-commerce does not apply to many transactions within a business.

Buy-side e-commerce is different from sell-side e-commerce in that

it involves:
The use of electronic communications for all business processes

An organization using electronic media to sell direct to its customers

An organization using electronic media to purchase from to its suppliers

Any electronically mediated communication between an organization and its

stakeholders
None of the above

Sell-side e-commerce refers to transactions involved with selling products to an organisation's

customers

Different types of sell-side e-commerce exist and there are main

types of online presence. Which of the following would be suited to
sell-side e-commerce?
All of the below

Brand-building sites

Services-orientated relationship building websites

Portal, publisher or media sites

Transactional e-commerce sites

Not every product is suitable for sale online so the way in which a website is used to market
products will vary. Not all of the websites will be clear-cut categories and companies can combine
these depending on which market they serve.

Social network sites such as Facebook and Twitter have become

increasingly popular for sell-side e-commerce and would normally
be considered to be in which category?
Transactional e-commerce sites

Services-orientated relationship-building websites

Brand-building sites
 Portal, publisher or media sites

Because social networks are so often advertising supported, they could be considered to be under
portal, publisher or media sites categorization. The influence of social networks on customer
communications suggest that they should form a distinct category of:

Digital marketing (also known as e-marketing or Internet

marketing) is closely related to e-commerce. It is a term
increasingly used by specialist e-marketing agencies to:
Recruit specialist staff

Promote their websites

Measure website hits

None of the above

Apart from attracting new staff, digital marketing is used to refer to sell-side e-commerce.

Various digital media channels can be used to reach audiences when

planning, for example, online marketing campaigns. Search engine
marketing places messages on a search engine to encourage
clickthrough to a website when the user types a specific keyword
phrase. A key marketing technique involves paid placements or
sponsored links using PPC. What does PPC stand for?
Pay per consumer

Public promotion click

Personal protocol choice

Pay per click

Pay per click refers to when a marketer pays for each time a hypertext link in the ad is
clicked.

Social media marketing has emerged as an important category of

digital marketing. Which of the following best describes this?
Creating and managing long-term arrangements to promote online services
on third party websites
Using online ads such as banners to achieve brand awareness and encourage
clickthrough
Monitoring and facilitating customer-customer interaction and participation
throughout the web to encourage engagement with a company and its brands
 None of the above

It involves encouraging customer communication on a customer's own site or a social presence on

social media or specialist publisher sites, blogs, forums and so on.

Which term is taken to explain a collection of web services that

facilitate interaction of web users with sites to create user-
generated content and encourage behaviours such as community or
social network participation?
Multi-channel marketing strategy

Multi-channel marketing

Web 2.0 concept

Customer-centric marketing

Web 2.0 concept is a label for a range of interactive tools and social communication
techniques such as blogs, podcasts, mashups, and social networks.

Supply chain management refers to the coordination of all supply

activities of an organisation from its suppliers and delivery of
products to its customers. E-commerce transactions between a
company and its stakeholders, be their consumers or businesses are
often referred to as:
B2B, C2B

C2C, C2B

B2C, B2B

B2C, C2C

B2C - business-to-consumer B2B - business-to-business

E-government is becoming more accepted as an important feature

within government in many countries. What does it provide?
All of the below

The ability to gather taxes more efficiently

The facility to securely communicate between governments and government

departments
Facilities for dissemination of information and online services at local and
national levels
It refers to the application of e-commerce technologies to government and public services for
citizens and businesses.

Evans and Wurster produced an influential paper in 1997 and

argued that there are characteristics of information which can
contribute to a major impact on a marketplace. One of these is
Reach and is a key characteristic achieved by e-business which
refers to:
The potential effectiveness of links with partners

How different numbers of customers can interact with categories of

information or products
The depth of information about content or products available

None of the above

Reach conventionally refers to the potential number of customers a business can interact with
although it can also refer to the different categories and products a consumer interface can cover.

Another of Evans and Wurster's suggestions included what they

referred to as Richness and is another key characteristic achieved
by e-business which refers to:
The depth of information about content or products available

The economic benefits from shifting from traditional marketing tools such as
brochures, catalogues, advertising boards
The different number of customers can interact with: categories of
information or products
None of the above

The internet allows more detailed information about products, prices, and availability to be readily
accessible.

While there are obvious e-business advantages and opportunities,

there are also risks and barriers. These include:
Internet hackers penetrating company security

Spikes causing websites to fail at peak times

Contravention of customer privacy

All of the above

And many other risks and barriers exist than those noted here to preclude the planned
hoped for returns.
Multiple choice questions: set B
Try the following questions to test your understanding of this chapter. Once you have finished,
click on the 'Submit Answers for Grading' button to get your results.

This activity contains 16 questions.

Which is the most realistic relationship between e-commerce and e-

business?
E-commerce has no overlap with e-business

E-business is a subset of e-commerce

E-commerce is a different name for e-business

E-commerce is a subset of e-business

None of the above

Which is the best description of sell-side e-commerce?

E-commerce transactions between a supplier organisation and its customers

The use of electronic communications for all business processes

Any electronically mediated communication between an organisation and

customers
An organisation using electronic media to purchase from to its suppliers

All of the above

E-business actually stands for:

Electronic business

An organisation using electronic media to purchase from to its suppliers

Any electronically mediated communication between an organisation and its

stakeholders
An organisation using electronic media to sell direct to its customers

None of the above

Which would be the best description of e-commerce?

 An organisation using electronic media to purchase from to its suppliers

An organisation using electronic media to sell direct to its customers

The use of electronic communications for all business processes

Any electronically mediated information exchanges between an organisation

and its external stakeholders
All of the above are fair descriptions

Buy-side e-commerce refers to:

E-commerce transactions between a purchasing organisation, its suppliers
and also partners
An organisation using electronic media to sell direct to its customers

The use of electronic communications for all business processes

Any electronically mediated communication between an organisation and its

stakeholders
None of the above

Which of the following is a cost efficiency driver for e-business?

Increasing speed with which goods can be despatched

Reduced operating costs

Reduced sales and marketing costs

Increasing speed with which supplies can be obtained

All of the above are correct

Which of the following is a competitiveness driver for e-business?

Obtain supplies more rapidly

Reduced sales costs

Reduced service costs

Avoiding losing market share to businesses already using e-commerce

Customer demand
Improve range and quality of services offered
An example of a communications benefit from creating an e-
commerce website is:
Tracking of number of customers using different parts of site

Lower paper costs needed for marketing and fewer staff needed in contact
centre
Slower response to customer enquiries

The ability to reach overseas markets without a sales presence

None of the above is correct

An example of a capability benefit from creating an e-commerce

website is:
More rapid response to customer enquiries

Tracking of number of customers using different parts of site

Lower paper costs needed for marketing and fewer staff needed in contact
centre
The ability to reach overseas markets without a sales presence

None of the above

An example of a cost-savings benefit from creating an e-commerce

website is:
More rapid response to customer enquiries

Tracking of number of customers using different parts of site

The ability to reach overseas markets without a sales presence

Lower paper costs needed for marketing and fewer staff needed in contact
centre
All of the above

To determine demand for Internet services in a market, companies

should survey:
Percentage use the Internet to inform their buying decision
 Percentage who have access to the Internet

Number in market

Percentage purchase online

All of the above

A collection of web services which facilitate certain behaviours

online such as community participation and user generated content,
rating and tagging is commonly known as:
World wide web

Customer journey

Web 2.0 concept

Facebook

Reach is a key characteristic achieved by e-business which refers to:

The depth of information about content or products available

The potential number of customers a business can interact with

The effectiveness of links with partners

None of the above

Richness is a key characteristic achieved by e-business which refers

to:
The depth of information about content, products, prices and availability

Different number of customers can interact with categories of information or

products
The effectiveness of links with partners

None of the above

Facebook belongs in which category of website?
Media or publisher site

Social network

Transactional website

Brand-building website

The Amazon site belongs in which category of website?

Brand-building website

Transactional website

Media or publisher site

Relationship-building website

All of the above