The fact that e-commerce is conducted on the basis of universal standards creases market entry costs for merchants. Answer: TRUE Dif:3 page Ref: 17 6) Price transparency refers to the ability of merchants to segment the market Into groups willing to pay different prices. Answer: FALSE Differ page Ref: 18 7) Cost transparency refers to the ability of consumers to discover the actual costs merchants pay for products. Answer: TRUE 8) Customization Involves changing a delivered product or service based upon a consumer's preferences or past purchasing behavior.

Answer: TRUE Dif:z page Ret: 19 on user- and consumer-generated interactivity and content. Answer: TRUE Dif 1 Page Ref: 19 CABS: use of IT 0) Social e-commerce is the largest type of e-commerce. Dif 1 Page Ref: 8 1 1) E-commerce as we know it today would not exist without the Internet. Answer: Dif. 1 page Ref: 27 12) The growth of BBC e-commerce is limited by the fact that consumers need to possess a more sophisticated skill set than consumers who shop offline. Answer: Dif. 2 page Ref: 29 13) In 2011, a new Internet investment bubble focused primarily on social networks emerged. Answer: TRUE Dif. Page Ref: 37 14) As economists had envisioned, prices of products sold on the Web are consistently lower than elsewhere, and the online marketplace is characterized by creasing price dispersion. Answer: FALSE Dif. 3 page Ref: 36-38 15) The future of e-commerce will include an increase in regulatory activity both in the United States and worldwide. Answer: TRUE Dif 1 Page Ref: 43 16) Which of the following statements about Internet use in the United States in 2012 is not true? A) Social e-commerce generated more revenue than local e-commerce. B) Approximately 1 50 million users made at least one purchase online.

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C) Almost 50% of adult Internet users visited an online social network daily. D) Growth rates for BBC e- commerce were higher in the United States than in Europe. Answer: D Dif 3 Page Ref: 8 via mobile devices. A) 30 B) 65 C) 80 D) 120 Answer: D 18) Which of the following is not a major business trend in e-commerce in 2012-2013? A) Retail e-commerce continues double-digit growth. B) Small businesses and entrepreneurs are hampered by the rising cost of market entry caused by increased presence of industry giants. C) Backbone grows to more than 1 billion users.

D) Social and mobile advertising begins to challenge search engine marketing. Answer: B Differ page Ref: 10 19) All of the following are major technology trends in e-commerce in 2012-2013 except: A) Cloud computing enables the creation of "big data. " B) APS create a new platform for online marketing and commerce. C) The mobile computing platform begins to rival the PC platform. D) Real-time advertising becomes a reality with gains in computing power and speeds. Answer: A Differ page Ref: 10-11 20) E-commerce can be defined as: A) the use of the Internet and the Web to transact business.

B) the use of any Internet technologies in a firm's daily activities. C) the digital ennoblement of transactions and processes within an organization. D) any digitally enabled transactions among individuals and organizations. Answer: A Dif 1 Page Ref: 12 21) Which of the following is not a unique feature of e-commerce technology? A) interactivity B) social technology C) global broadcasting D) richness Answer: C Dif. 2 page Ref: 15 marketing message and consuming experience is an example of: A) richness. B) ubiquity. C) information density. D) personalization.

Answer: A Differ page Ref: 15 23) Which of the following qualities is least likely to decrease a consumer's search costs? A) ubiquity B) global reach C) information density Differ page Ref: 14-19 24) Which of the following is the best definition of transaction cost? A) the cost of hanging prices B) the cost of participating in a market C) the cost of finding suitable products D) the cost merchants pay to bring their goods to market 25) In 2012, the world's online population was roughly: A) 230 million. B) 2. 3 billion. C) 23 billion. D) 230 billion.

Dif 2 Page Ref: 8 26) Which of the following is not one of the current major social trends in e- commerce in 2012-2013? A) Spam declines as a significant problem. B) Controversy over content regulation and controls continues. C) E-books gain wide acceptance. D) Internet security continues to decline. Dif 2 Page Ref: 1 1 commerce technology? A) richness B) interactivity C) universal standards D) information density Differ page Ref: 17 28) E-commerce technologies have changed the traditional tradeoff between the richness and reach of a marketing message.

Prior to the development of the Web: A) marketing messages had little richness. B) the smaller the audience reached, the less rich the message. C) the larger the audience reached, the less rich the message. D) richness equaled reach. Differ page Ref: 17 29) Which of the following is not an example of a social network? A) Wisped B) Twitter C) Pinsetters D) Backbone Dif. 1 page Ref: 7, 19-20 0) All of the following are major business trends in e-commerce in 2012-2013 except for: A) the growth of a new app-based online economy. B) the expansion of the localization of e-commerce.

C) the emergence of a new social e-commerce platform. D) the eclipse of search engine marketing by the mobile advertising platform. 31) Which type of e-commerce is distinguished by the type of technology used in the transaction rather than by the nature of the market relationship? A) Consumer-to- consumer (ICC) B) Social e-commerce C) Mobile e-commerce D) Business-to-business (BIB) Differ page Ref: 21,23 find online? A) Wordless B) Stumbled C) Wisped D) Mainstream Dif. 1 page Ref: 20 33) Which of the following describes the basic Web policy of large firms during the period of invention?

A) integrate social networking and mobile platform with Web site marketing B) use Web to connect with suppliers C) include additional channels to market products D) maintain a basic, static Web site Dif. 2 page Ref: 32 34) The size of the global ICC market in 2012 was around: A) $800 million. B) $8 billion. C) $80 billion. D) $800 billion. Dif. 2 page Ref: 22 35) Interactivity in the context of e-commerce can be described as: A) the ability to hectically touch and manipulate a product. B) the complexity and content of a message. C) the ability of consumers to create and distribute content.

D) the enabling of two- way communication between consumer and merchant. Answer: D 36) Which of the following statements about the Web is not true? A) It is the technology upon which the Internet is based. B) It was developed in the early asses. C) It provides access to pages written in HTML. D) It provides access to Web pages that incorporate graphics, sound, and multimedia. Dif. 2 page Ref: 24 B) 88 million C) 888 million D) 8. 88 billion Dif. 2 page Ref: 23 8) All of the following can be considered a precursor to e-commerce except: A) DNS.

B) Baxter Healthcare remote order entry system. C) the French Minute. D) Electronic Data Interchange. Dif. 2 page Ref: 24, 27 39) In the BBC arena, was the first truly large-scale digitally enabled transaction system. A) Telex B) the Baxter Healthcare system C) the French Minute D) EDI Dif. 2 page Ref: 27 40) E-commerce can be said to have begun in: A) 1983. B) 1985. C) 1995. D) 2001. 41) Business-to-consumer (BBC) e-commerce: A) has grown at double-digit rates in 2011 and 2012. B) is growing at a slower rate than the traditional retail market.

C) is a major part (over 30 percent) of the overall retail market. D) growth is slowing as it confronts its own fundamental limitations. Answer: A 42) In the "bow-tie" analogy of the structure of the Web, "tendrils" are: A) pages that link to the center, but which are not linked to from the center. B) pages that neither linked to from the center. D) pages that link to one another without passing through the center. Answer: B Differ page Ref: 25 43) Which of the following is not a limitation on the growth of BBC e-commerce?

A) the sophisticated skill set required to use the Internet and e-commerce systems B) the resisters global inequality limiting access to telephone service, PC's, and cell phones C) saturation and ceiling effects D) the retrenchment and consolidation of e-commerce into the hands of large established firms Answer: D 44) By what year is the United States Internet household penetration rate likely to reach the current level of cable television penetration? A) 201 5 B) 2018 C) 2022 D) It has already reached the level of cable television penetration. Answer: A Dif. Page Ref: 30 45) Around what percentage of Internet users in the United States access the Internet through mobile devices? A) 30 B) 50 C) 70 D) 90 Dif. 3 page Ref: 30 46) Which of the following is not a characteristic of a perfect competitive market? A) Price, cost, and quality information are equally distributed. B) A nearly infinite set of suppliers compete against one another. C) Customers have access to all relevant information worldwide. D) It is highly regulated. Dif. 3 page Ref: 32 47) All of the following were visions of e-commerce expressed during the early years of e-commerce except: A) a nearly perfect competitive market.

B) friction-free commerce. C) disintermediation. D) fast follower advantage. Dif. Page Ref: 32-33 48) Unfair competitive advantages occur when: A) one competitor has an advantage others cannot purchase. B) market middlemen are displaced. C) information is equally distributed and transaction costs are low. D) firms are able to gather monopoly profits. Dif. 2 page Ref: 33 49) The early years of e-commerce were driven by all of the following factors except: A) an emphasis on exploiting traditional distribution channels. B) a huge infusion of venture capital funds. C) an emphasis on quickly achieving a very high market visibility.

D) visions of profiting from new technology. Dif. 3 page Ref: 34 50) The early years of e-commerce are considered: A) the most promising time in history for the successful implementation of first mover advantages. B) an economist's dream come true, where for a brief time consumers had access to all relevant market information and transaction costs plummeted. C) a stunning technological success as the Internet and the Web increased from a few thousand to billions of e-commerce transactions per year. D) a dramatic business success as 85% of dot-comes formed since 1995 became flourishing businesses.

Differ page Ref: 34 1) Which of the following best describes the early years of e-commerce? A) They were a technological success but a mixed business success. B) They were a technological success but a business failure. C) They were a technological failure but a business success. D) They were a mixed technological and business success. 52) Approximately what percentage of dot. Com companies formed since 1995 survived as independent companies in 2012? A) 10 B) 20 C) 30 Answer. Dif. 2 Page Ref: 34 Reflective Thinking CABS. 53) Which of the following is a characteristic of the reinvention phase of e-commerce?

A) massive proliferation of dot. Com start-ups B) widespread adoption of broadband networks C) rapid growth of search engine advertising D) widespread adoption of consumer mobile devices Differ page Ref: 31-35 54) Which of the following is a characteristic of the consolidation phase of e- commerce? A) predominance of pure online strategies B) emphasis on revenue growth versus profits C) first mover advantages D) shift to a business-driven approach Differ page Ref: 35 55) Which of the following is not true regarding e-commerce today? A) Economists' visions of a friction-free market have not been realized.

B) Consumers are less price- sensitive than expected. C) There remains considerable persistent price dispersion. D) The market middlemen disappeared. Dif. 2 page Ref: 36-39 56) Which of the following statements is not true? A) Information asymmetries are continually being introduced by merchants and marketers. B) Intermediaries have not disappeared. C) Overall transaction costs have dropped dramatically. D) Brands remain very important in e-commerce. Dif. 2 page Ref: 36-40 57) Which of the following types of merchants has the highest share of retail online sales? A) virtual (Web only) B) catalog/call center C) retail chain