Introduction to Electronic Commerce, 3e (Turban)Chapter 3 Retailing in Electronic Commerce: Products and Services3.1 True/False1) The top 500 e-tailers accounted for 65 percent of all online sales in 2009.Answer: TRUEDiff: 1 Page Ref: 872) The amount and percentage of goods and services sold on the Internet is increasing rapidly, despite the failure of many dot-com companies.Answer: TRUEDiff: 1 Page Ref: 883) According to Internet Retailer (2009), approximately 75 percent of adult U.S. Internet users shopped online and/or researched offline sales online.Answer: FALSEDiff: 2 Page Ref: 884) As the number of Internet users reaches saturation, the rate of increase of online shoppers will slow, which creates the challenge for e-retailers to increase the amount spent online.Answer: TRUEDiff: 3 Page Ref: 885) A retailer is a sales intermediary, a seller that operates between manufacturers and customers. Answer: TRUEDiff: 1 Page Ref: 886) When comparing retailing to e-tailing, e-tailing has a lower cognitive shopping overhead due to easy-to-establish mutual trust.Answer: FALSEDiff: 3 Page Ref: 927) Commodities with standard specifications (e.g., books, CDs, airline tickets) are expected to facilitate higher sales volumes.Answer: TRUEDiff: 1 Page Ref: 938) A business model is a description of how an organization intends to generate revenue through its business operations.Answer: TRUEDiff: 2 Page Ref: 939) Marketing done online between any seller and buyer is indirect marketing.Answer: FALSEDiff: 1 Page Ref: 9410) Direct marketers are firms that sell directly to consumers over the Internet without maintaininga physical sales channel.Answer: FALSEDiff: 2 Page Ref: 9411) A click-and-mortar retailer is a combination of both the brick-and-mortar retailer and an online transactional Web site.Answer: TRUEDiff: 1 Page Ref: 9612) Competition among online travel e-tailers is fierce, with low margins, little customer loyalty, and increasing commoditization of products and services.Answer: TRUEDiff: 3 Page Ref: 9913) WAYN is a social networking Web site with a goal of uniting college student travelers from North America.Answer: FALSEDiff: 2 Page Ref: 10114) The electronic job market can create high turnover costs for employers by accelerating employees' movement to other jobs.Answer: TRUEDiff: 2 Page Ref: 10515) When compared to the traditional job market, an advantage of the online job market is its long life cycle.Answer: TRUEDiff: 1 Page Ref: 10216) An advantage of the electronic job market for job seekers is that they can assess their market value.Answer: TRUEDiff: 2 Page Ref: 10617) Many insurance companies use a dual strategy, keeping human agents but also selling online. Answer: TRUEDiff: 2 Page Ref: 10818) The major risk of online trading is security.Answer: TRUEDiff: 1 Page Ref: 10819) Customers accessing a bank system from the outside must go through encryption provided by SSL and digital certification verification.Answer: TRUEDiff: 2 Page Ref: 11220) Both online banks and click-and-mortar banks carry some risks and problems, especially in international banking, including hackers and liquidity risk.Answer: TRUEDiff: 2 Page Ref: 11321) The number of checks the U.S. Federal Reserve System processes has remained constant, but commercial automated clearinghouse (ACH) volume has increased significantly.Answer: FALSEDiff: 1 Page Ref: 11322) Direct sales of digital content through digital download allow a producer of digital content to bypass the traditional retail channel, thereby reducing overall costs and capturing greater profits. Answer: TRUEDiff: 1 Page Ref: 11623) A major problem in B2C is the increasing rate of online fraud.Answer: TRUEDiff: 1 Page Ref: 12224) A traditional brick-and-mortar store with a mature Web site that uses a click-and-mortar strategy can leverage multichannels.Answer: TRUEDiff: 1 Page Ref: 12325) Business rating sites can aid consumer purchase decisions.Answer: TRUEDiff: 1 Page Ref: 1253.2 Multiple Choice1) experienced each of the following exceptA) maintaining its position as the number one e-tailer in 2008.B) declaring its first profit in January 2002.C) establishing a grocery delivery service called AmazonConnect.D) attracting at least 615 million visitors in 2009.Answer: CDiff: 3 Page Ref: 86-872) According to Internet Retailer (2009), approximately ________ percent of adult U.S. Internet users shop online and/or research offline sales online.A) 25B) 40C) 60D) 85Answer: CDiff: 2 Page Ref: 883) Each of the following describes retailing except:A) A retailer is a sales intermediary.B) Many manufacturers sell directly to consumers and through wholesalers and retailers.C) E-tailing makes it easier for a manufacturer to sell directly to customers by cutting out the intermediary.D) Companies that produce a larger number of products, such as Proctor & Gamble, do not need retailers for efficient distribution.Answer: DDiff: 3 Page Ref: 884) Retailers who sell over the Internet are calledA) cyber marketers.B) e-tailers.C) B2B commerce marketers.D) brick-and-mortar operations.Answer: BDiff: 1 Page Ref: 885) What is the primary advantage of catalog sales?A) Catalogs eliminate the constraints of space and time.B) Customers prefer catalog shopping to e-tailing.C) Catalogs increase interest in products that are then bought online.D) Products and services can both be sold via catalogs.Answer: ADiff: 2 Page Ref: 886) Conducting e-commerce where the online channel of a business is integrated with the physical retail business as opposed to being a separate channel best definesA) referral economy.B) direct marketing.C) considered commerce.D) click-and-mortar retailers.Answer: CDiff: 2 Page Ref: 917) With all else being equal in the online environment, goods with any of the following product characteristics are expected to facilitate greater online sales except:A) relatively expensive items.B) high brand recognition.C) digitized format.D) frequently purchased items.Answer: ADiff: 2 Page Ref: 92-938) Dell's distribution strategy is best described asA) a brick-and-mortar strategy.B) a shared service mall strategy.C) a click-and-mortar strategy.D) direct marketing from a manufacturer.Answer: DDiff: 3 Page Ref: 949) The Sears marketing strategy is best described asA) a brick-and-mortar strategy.B) a shared service mall strategy.C) a click-and-mortar strategy.D) direct marketing by a manufacturer.Answer: CDiff: 2 Page Ref: 9310) Competitive advantages of a "pull" vehicle distribution process includeA) virtually real-time market feedback.B) large cost savings in finished vehicle inventory carrying costs.C) improved customer satisfaction and pricing.D) all of the above.Answer: DDiff: 2 Page Ref: 9511) A type of online mall that is basically a directory organized by product type best describesA) referring directory.B) mall with shared services.C) brick-and-mortar retailer.D) cyber directory.Answer: ADiff: 2 Page Ref: 9612) An online seller of travel services that generates revenue by charging fees for its services is an example of aA) market maker.B) transaction broker.C) content disseminator.D) viral marketer.Answer: BDiff: 2 Page Ref: 9713) A marketer that uses e-mail to advertise to potential customers is called aA) market maker.B) transaction broker.C) content disseminator.D) viral marketer.Answer: DDiff: 2 Page Ref: 9714) A company that creates and manages many-to-many markets is called aA) market maker.B) transaction broker.C) content disseminator.D) viral marketer.Answer: ADiff: 2 Page Ref: 9715) Each of the following is a revenue model for online independent travel agents exceptA) direct competition revenues.B) direct revenues from commissions.C) subscription or membership fees.D) revenue sharing fees.Answer: ADiff: 3 Page Ref: 9916) Each of the following is a characteristic of WAYN except:A) It is a popular social networking Web site.B) When it introduced fees for its premier travel membership service, it lost most of its new subscriptions.C) It is not aimed at any particular age group.D) It enables its users to create a personal profile and upload and store photos.Answer: BDiff: 3 Page Ref: 10117) Compared to the traditional job market, the online job marketA) has a shorter life cycle.B) is usually specialized and local in scope.C) tends to be less reliable.D) tends to be much less expensive.Answer: DDiff: 2 Page Ref: 10218) Which of the following parties use the Internet job market?A) employers seeking employeesB) classified adsC) job agenciesD) all of the aboveAnswer: DDiff: 1 Page Ref: 10319) Advantages of the electronic job market for employers include each of the following exceptA) charging online processing fees.B) providing greater equal opportunity for job seekers.C) learning how to use their voice effectively in an interview.D) conducting interviews online.Answer: ADiff: 2 Page Ref: 10620) Advantages of the electronic market for job seekers include each of the following exceptA) assessing their market value.B) competing with less qualified applicants.C) marketing themselves directly to potential employers.D) communicating quickly with potential employers.Answer: BDiff: 2 Page Ref: 10621) E-bankingA) saves time and money.B) is more expensive for banks.C) is primarily done using wireless devices.D) is done by less than 40 percent of U.S. adult Internet users.Answer: ADiff: 1 Page Ref: 11022) Which of the following is not an online banking application category?A) informationalB) deliveryC) administrativeD) transactionalAnswer: BDiff: 2 Page Ref: 11023) The portal online banking application providesA) financial education information.B) current bank and local news.C) links to local business.D) bill-pay services.Answer: CDiff: 3 Page Ref: 11124) Implementation issues for online financial transactions includeA) security.B) imaging systems.C) fee issues.D) all of the above.Answer: DDiff: 1 Page Ref: 112-11325) Gateways to storefronts and e-malls areA) shopping portals.B) shopbots.C) shopping browsers.D) intelligent search engines.Answer: ADiff: 1 Page Ref: 11826) Tools that scout the Web on behalf of consumers who specify search criteria areA) shopping portals.B) shopbots.C) shopping browsers.D) intelligent search engines.Answer: BDiff: 1 Page Ref: 11827) The TRUSTe seal is an example ofA) a business rating.B) an intermediary.C) a B2B exchange.D) a trustmark.Answer: DDiff: 1 Page Ref: 11928) The effects upon sales of consumers receiving a referral or recommendation from other consumers best definesA) consumer economy.B) referral economy.C) channel conflict.D) word-of-mouth economy.Answer: BDiff: 2 Page Ref: 11929) The attention-grabbing behavior of agencies that go out to consumer environments and boast about how great a brand or item is in order to spread the word best definesA) referral economy.B) blasting.C) sneezing.D) shouting.Answer: CDiff: 3 Page Ref: 11930) Charles wants to buy a John Lennon lithograph over the Internet, but he is unwilling to pay for it until he inspects it to ascertain authenticity. The auction site thorough which he purchases the painting agrees to hold his money until he tells them to release it to the seller. This is an example ofA) an escrow service.B) a trustmark.C) a warranty.D) a verification.Answer: ADiff: 2 Page Ref: 1203.3 Fill in the Blank1) ________ is retailing conducted online, over the Internet.Answer: Electronic retailingDiff: 1 Page Ref: 882) ________ are retailers who sell over the Internet.Answer: E-tailersDiff: 1 Page Ref: 883) Conducting e-commerce where the online channel of a business is integrated with the physical retail business as opposed to being a separate channel describes ________.Answer: considered commerceDiff: 3 Page Ref: 914) Broadly, marketing that takes place without intermediaries between manufacturers and buyers describes ________.Answer: direct marketingDiff: 2 Page Ref: 945) ________ are firms that sell directly to consumers over the Internet without maintaining a physical sales channel.Answer: Virtual (pure-play) e-tailersDiff: 2 Page Ref: 966) ________ are brick-and-mortar retailers that offer a transactional Web site from which to conduct business.Answer: Click-and-mortar retailersDiff: 2 Page Ref: 967) ________ are retailers who do business in the non-Internet, physical world in traditional brick-and-mortar stores.Answer: Brick-and-mortar retailersDiff: 2 Page Ref: 968) Virtual e-tailers can be categorized as ________ and ________.Answer: general purpose, specializedDiff: 3 Page Ref: 969) A business model where a company sells in multiple marketing channels simultaneously describes ________.Answer: multichannel business modelDiff: 3 Page Ref: 9610) ________ and ________ are two types of online malls.Answer: Referring directories, shared shopping servicesDiff: 3 Page Ref: 9611) A ________ is a type of mall that is basically a directory organized by product type. Answer: referring directoryDiff: 2 Page Ref: 9612) The B2C business model that combines community services with selling or affiliate marketing is ________.Answer: community portal and social networksDiff: 3 Page Ref: 9713) The ________ is the online B2C business model where a manufacturer sells to a business, but delivers to individual customers.Answer: B2B2CDiff: 3 Page Ref: 9714) ________ is the online B2C business model where manufacturers customize their products and services via online orders.Answer: Make (build)-to-orderDiff: 3 Page Ref: 9715) Various banking activities conducted from home or the road using an Internet connection describes ________.Answer: electronic bankingDiff: 1 Page Ref: 10916) ________, ________, ________, ________, and ________ are the five types of online banking applications.Answer: Informational, administrative, transactional, portal, othersDiff: 3 Page Ref: 11117) ________ is the risk of not having sufficient funds to pay obligations as they come due. Answer: Liquidity riskDiff: 3 Page Ref: 11318) A grocer that takes orders online and provides deliveries on a daily or other regular schedule or within a very short period of time defines ________.Answer: e-grocerDiff: 1 Page Ref: 11419) Express delivery made fairly quickly after an online order is received defines ________. Answer: on-demand delivery serviceDiff: 2 Page Ref: 11420) Gateways to e-storefronts and e-malls describes ________.Answer: shopping portalsDiff: 2 Page Ref: 11821) Tools that scout the Web on behalf of consumers who specify search criteria describes________.Answer: shopping robotsDiff: 2 Page Ref: 11822) The effect upon sales of consumers receiving a referral or recommendation from other consumers defines ________.Answer: referral economyDiff: 3 Page Ref: 11923) The removal of organizations or business process layers responsible for certain intermediary steps in a given supply chain defines ________.Answer: disintermediationDiff: 3 Page Ref: 12024) The process whereby intermediaries take on new intermediary roles describes ________. Answer: reintermediationDiff: 3 Page Ref: 12025) ________ is the situation in which an online marketing channel upsets the traditional channels due to real or perceived damage from competition.Answer: Channel conflictDiff: 3 Page Ref: 1213.4 Essay1) List the seven characteristics that enable items to facilitate higher sales volumes in an online environment.Answer: High brand recognition, a guarantee provided by highly reliable or well-known vendors, a digitized format, relatively inexpensive items, frequently purchased items, commodities with standard specifications, and well-known packaged items that cannot be opened even in a traditional store are the seven characteristics identified in the textbook.Diff: 3 Page Ref: 92-932) List five business models by distribution channel.Answer: The five business models are direct marketing by mail-order retailers that go online, direct marketing by manufacturers, pure-play e-tailers, click-and-mortar retailers, and Internet malls.Diff: 1 Page Ref: 93-943) What are virtual (pure-play) e-tailers? Give an example. List one advantage and one disadvantage of this model.Answer: Virtual (pure-play) e-tailers are firms that sell directly to consumers over the Internet without maintaining a physical sales channel. is a prime example of this type ofe-tailer. Virtual e-tailers have the advantage of low overhead costs and streamlined processes. One disadvantage is a lack of established infrastructure or back office to support the online front-office activities.Diff: 2 Page Ref: 964) List five of the online revenue models for online travel services.Answer: The online revenue models include direct revenues, revenue from advertising,lead-generation payments, consultancy fees, subscription or membership fees, andrevenue-sharing fees.Diff: 2 Page Ref: 995) Identify five advantages of the online job market over the traditional job market.Answer: The online job market can be very inexpensive, have a longer life cycle, have a global reach, and provide a fast, simple, and inexpensive context for updating. Additionally, the online job market provides a large space for details and is reliable. The online job market makes it easy to search by applicant, find applicants, match supply and demand, and for employees to compare jobs.Diff: 3 Page Ref: 102。
