62.

An extranet that links a large firm to its suppliers and other key
business partners is called
a(n):
a. private industrial network.
b. e-hub.
c. marketspace.
d. exchange.
Answer: a Difficulty: Easy Reference: p. 411

26. Which new development is helping expand B2B e-commerce

opportunities?
a. Podcasting
b. Blogs
c. .NET and Web services
d. Dropping of computing and networking component prices
Answer: c Difficulty: Hard Reference: p. 393
27. Based on your reading of the chapters, e-commerce is:
a. still in its beginning phases.
b. widely accepted by consumers, although technology is still quickly
changing.
c. not yet fully accepted by consumers, although much of its driving
technology is firmly in
place.
d. well entrenched as a form of modern commerce.
Answer: a Difficulty: Medium Reference: p. 393
28. Which of the following is not one of the unique features of e-
commerce technology?
a. Information density
b. Information asymmetry
c. Richness
d. Interactivity
Answer: b Difficulty: Medium Reference: p. 394
29. The quality of ubiquity, as it relates to e-commerce, is illustrated by:
a. the same set of standards being used across the globe.
b. plentiful, cheap information.
c. the enabling of commerce worldwide.
d. the availability of Internet technology everywhere and anytime.
Answer: d Difficulty: Medium Reference: p. 394
30. The lowered costs of information storage, processing, and
communication, along with the
improvement of data quality has resulted in which unique quality of e-
commerce?
a. Information density
b. Richness
c. Customization
d. Interactivity
Answer: a Difficulty: Medium Reference: p. 394
26. Which new development is helping expand B2B e-commerce
opportunities?
a. Podcasting
b. Blogs
c. .NET and Web services
d. Dropping of computing and networking component prices
Answer: c Difficulty: Hard Reference: p. 393
27. Based on your reading of the chapters, e-commerce is:
a. still in its beginning phases.
b. widely accepted by consumers, although technology is still quickly
changing.
c. not yet fully accepted by consumers, although much of its driving
technology is firmly in
place.
d. well entrenched as a form of modern commerce.
Answer: a Difficulty: Medium Reference: p. 393
28. Which of the following is not one of the unique features of e-
commerce technology?
a. Information density
b. Information asymmetry
c. Richness
d. Interactivity
Answer: b Difficulty: Medium Reference: p. 394
29. The quality of ubiquity, as it relates to e-commerce, is illustrated by:
a. the same set of standards being used across the globe.
b. plentiful, cheap information.
c. the enabling of commerce worldwide.
d. the availability of Internet technology everywhere and anytime.
Answer: d Difficulty: Medium Reference: p. 394
30. The lowered costs of information storage, processing, and
communication, along with the
improvement of data quality has resulted in which unique quality of e-
commerce?
a. Information density
b. Richness
c. Customization
d. Interactivity
Answer: a Difficulty: Medium Reference: p. 394
1. E-Commerce stands for _______.
a. Electrical Commerce
b. Electronic Commerce
c. Entertainment Commerce
d. ElectroChemical Commerce
Answer (b)
2. The World Wide Web (WWW) was introduced in the year
……………………
a. 1994
b. 1996
 c. 1992
d. 1990
Answer (a)
3. __________ is an early form of E-commerce
a. SCM
b. EDI
c. Both of these
d. Neither of these
Answer (b)
4. ____________ is concerned with the buying and selling
information, products and services over computer communication
networks
a. Commerce
b. E-Commerce
c. E-Business
d. None of these
Answer (b)
5. Which among the following products is suitable for E-Commerce?
a. Books
b. Vegetables
c. All of these
d. None of these
Answer (a)
6. Which of the following is not a party of SCM?
 a. Suppliers
b. Manufacturers
c. Distributors
d. Customers
Answer (c)
7. _______ is a function of E commerce.
a. Marketing
b. Supply Chain
c. Finance
d. All of the above
Answer (d)
8. ________mainly deals with buying and selling, especially on a
large scale.
a. Shopping
b. Commerce
c. Retailing
d. Distribution
Answer (b)
9. E-commerce has _____ scope than E-Business or Digital Business.
a. Higher
b. Narrower
c. Wider
d. More
Answer (b)
 10. _______is a system of interconnected electronic
components or circuits.
a. Electronic Network
b. Marketplaces
c. Electronic Markets
d. Metamarkets
Answer (a)
11. All electronically mediated information exchanges are
referred to as _____
a. E-Business
b. Digital Business
c. E-Commerce
d. None of the above
Answer (c)
12. _________are markets linked via modern communications
networks and powered through high-speed computers.
a. Marketplaces
b. Metamarkets
c. Electronic Network
d. Electronic Markets
Answer (d)
13. ___________ is a part of the 4 important types of E-
commerce.
a. All of the above
 b. B2B
c. P2P
d. C2A
Answer (a)
14. Companies like Flipkart, Amazon and Myntra belong to
which type of Ecommerce (EC) segment.
a. B2B
b. B2C
c. P2P
d. C2B
Answer (b)
15. Customers pay a fixed amount, commonly month-to-month
or quarterly or annually, to get a few types of service referred to
as ________E-Commerce Business Model.
a. Licensing
b. Subscription
c. Transaction
d. Affiliate
Answer (b)
16. This E-Commerce commercial enterprise model specifically
specialises in selling services or products online.
a. Indirect Marketing
b. Online Direct Marketing
c. Brick & Mortar
 d. Marketplace
Answer (b)
17. _________is a retail fulfillment approach in which a shop
doesn’t hold the goods it sells in stock.
a. Aggregator Model
b. Affiliate
c. Dropshipping
d. Advertising Model
Answer (c)
18. Some marketers or companies charge other companies for
letting them place a banner on their websites, blogs or platforms
known as the ___________E-Commerce Model.
a. Affiliate
b. Transaction
c. Aggregator
d. Advertising
Answer (d)
19. Among the alternative models of B2B E-commerce, which is
the best means to acquire a competitive advantage in the market?
a. Strategic relationship
b. Process
c. Transaction
d. All of the above
Answer (a)
 20. The concept of online marketing and selling of products and
services through the internet is _________
a. B2G
b. B2C
c. B2B
d. B2E
Answer (b)
21. Which of the following is not a user of B2C E-commerce?
a. Distributors
b. Manufacturers
c. Publishers
d. None of the above
Answer (d)
22. ___________ allows transactions among customers and
dealers through supplying complete information and ancillary
services, without being concerned about the actual exchange of
products and offerings among the parties.
a. Middlemen
b. Metamediary
c. Intermediary
d. All of the following
Answer (b)
23. Which of the following is NOT a B2B E-commerce?
a. Sending and receiving orders
 b. Invoice and shopping
c. All of the above
d. None of the above
Answer (d)
24. ……………lets in a commercial enterprise utility at the
computer of one organization to speak immediately with the
commercial enterprise utility at the computer of any other
company
a. EDI
b. Business applications
c. Standards
d. Protocols
Answer (a)
25. What is ‘EOQ’ in Inventory control?
a. Economic Occuring Quantity
b. Economic Order Quantity
c. Economic Over Quantity
d. Economic of Quantity
Answer (b)

31. A marketplace extended beyond traditional boundaries and

removed from a temporal and
geographic location is called a(n):
a. virtual community.
b. marketspace.
c. online marketplace.
d. e-hub.
Answer: b Difficulty: Medium Reference: p. 394
32. The effort required to locate a suitable product is called:
a. price discrimination.
b. search costs.
c. menu costs.
d. transparency costs.
Answer: b Difficulty: Medium Reference: p. 395
33. Information density refers to:
a. the complexity and content of a message.
b. the total amount and quantity of information delivered to consumers
by merchants.
c. the total amount and quantity of information available to all market
participants.
d. t he amount of information available to reduce price transparency.
Answer: c Difficulty: Easy Reference: p. 395
34. Selling the same goods to different targeted groups at different
prices is called:
a. price customization.
b. price opacity.
c. price gouging.
d. price discrimination.
Answer: d Difficulty: Easy Reference: p. 396
35. Information __________________ exists when one party in a
transaction has more
information that is important for the transaction than the other party.
a. transparency
b. asymmetry
c. symmetry
d. imbalance
Answer: b Difficulty: Easy Reference: p. 396

36. The cost to a merchant of changing the price of a product is called

a:
a. pricing cost.
b. dynamic pricing cost.
c. menu cost.
d. switching cost.
Answer: c Difficulty: Easy Reference: p. 397
37. Varying a product’s price according to the supply situation of the
seller is called:
a. menu pricing.
b. supply pricing.
c. dynamic pricing.
d. asymmetrical pricing.
Answer: c Difficulty: Easy Reference: p. 397
38. Reducing the business process layers in a distribution channel is
called:
a. disintermediation.
b. BPR.
c. market segmentation.
d. network effects.
Answer: a Difficulty: Easy Reference: p. 397
39. Compared to digital markets, traditional markets:
a. have lower search costs.
b. have higher marketing costs.
c. have higher delayed gratification effects.
d. have higher transaction costs.
Answer: d Difficulty: Hard Reference: p. 398
41. Compared to traditional goods, digital goods:
a. have higher marketing costs.
b. have lower production costs.
c. have greater pricing flexibility.
d. have higher inventory costs.
Answer: c Difficulty: Medium Reference: p. 399
42. Which of the following Internet business models does Amazon.com
use?
a. Information broker
b. Transaction broker
c. Online service provider
d. Virtual storefront
Answer: d Difficulty: Medium Reference: p. 399
43. Which of the following businesses utilizes the content provider
Internet business model?
a. Amazon.com
b. eBay.com
c. CNN.com
d. Motocross.com
Answer: c Difficulty: Medium Reference: p. 399
44. Which of the following is an ad that opens automatically and does
not disappear until the
user clicks on it?
a. Banner ad
b. Controlled ad
c. Portal ad
d. Pop-up ad
Answer: d Difficulty: Medium Reference: p. 400
45. Internet content providers:
a. generate from directing buyers to sellers.
b. save users money and time by processing online sales dealings.
c. provide a digital environment where buyers and sellers can establish
prices for products.
d. create revenue by providing digital content over the Web.
Answer: d Difficulty: Easy Reference: p. 399

66. Which type of application takes special advantage of the unique

capabilities of mobile
technology?
a. Text-based messaging
b. Personalized services
c. Location-based applications
d. Interactive, video-rich applications
Answer: c Difficulty: Medium Reference: p. 413
67. The electronic payment system in which users make micropayments
and purchases on the
Web, accumulating a debit balance on their credit card or telephone bill
is called a(n)
_______ payment system.
a. smart card
b. accumulated balance digital
c. stored value
d. digital cash
Answer: b Difficulty: Medium Reference: p. 416
68. The electronic payment system that uses a credit card-size plastic
card that stores digital
information and that can be used for electronic payments in place of
cash is called:
a. digital cash.
b. e-cash.
c. digital wallet.
d. smart card.
Answer: d Difficulty: Easy Reference: p. 416
69. Based on your reading of the case study text, which of the four
generic strategies to deal with
competitive forces was the motivating factor behind eBay’s acquisition
of JotSpot and
Kaboodle?
a. Low-cost leadership
b. Product differentiation
c. Focus on market niche
d. Strengthen customer and supplier intimacy
Answer: b Difficulty: Hard Reference: p. 426
70. Based on your reading of the text, how do wireless marketing
strategies differ from
“traditional” Internet marketing strategies?
a. Focus is on bringing message related to the customer’s point of need
or locale.
b. Content-rich messaging
c. Greater personalization
d. Pushing Web sites to customers
Answer: a Difficulty: Medium Reference: p. 413–4