Exam (elaborations) TEST BANK Principles of Information Systems, 13th Edition Ralph M. Stair and George Reynolds

1-According to Peter Drucker, e-commerce is profoundly changing markets, industry structures, products and services, consumer segmentation, consumer values and consumer behavior; jobs, and labor markets. True False 2-By purchasing a textbook from A and having the merchandise physically delivered, A would be considered a click-and-mortar organization because pure EC did not occur. True False 3-In the field, a sales representative writes notes with a mobile handwriting-recognition computer immediately after a sales call. This can be viewed as an EC activity. True False 4-In addition to EC being conducted via the Internet, EC can be conducted over local area networks (LANs). True False 5-An example of business-to-consumer (B2C) is when Dell provides customer service online by collaborating electronically with its partners. True False 6-An internal corporate network that uses Internet tools, such as Web browsers, is known as an intranet. True False 7-An extranet is a network that uses the Internet to link together multiple intranets. True False 8-Purchasing a Dell computer online for use at home is an example of e-tailing. True False 9-Networked computing connects multiple computers and other electronic devices that are located in various locations by telecommunications networks, including wireless ones. True False 10-When Dell purchases Godiva chocolates as gifts for its employees and has Godiva mail them directly to the recipient Dell is engaged in B2B2C. True False 11-Peer-to-peer (P2P) technology can be used in C2C, B2B, and B2C. True False 12-The final participants in B2B transactions are consumers. True False 13-Doing your banking on an Internet-enabled cell phone is an example of m-commerce. True False 14-Despite the many e-tailing EC companies that have failed in the past, the dot-com failure rate has recently declined sharply. True False 15-Since 2001, no other company has had more of an impact on EC than MySpace. True False 16-W, a Web site that allows people to work together online and share information, is an example of Web 2.0. True False 17-The digital economy refers to an economy based on digital communication networks, computers, software, and other related information technologies that provide a global platform over which people and organizations interact, communicate, collaborate, and search for information. True False 18-Economic, legal, societal, and technological factors have created a highly competitive business environment in which customers are becoming less powerful. True False 19-Strong competition and increased power of consumers are two of the major market pressures in today's business environment. True False 20-Business models are a subset of a business plan or business case and refer to methods of doing business by which a company can generate revenue. True False 21-A business model outlines how the organization or the EC project will generate revenue through sales, transaction fees, advertising fees, affiliate fees, or other revenue sources. True False 22-A value proposition refers to the tangible and intangible benefits that a company can derive from using EC making it an important part of the marketing plan. True False 23-Affiliate marketing is an EC business model of word-of-mouth marketing in which customers promote a product or service to friends or other people. True False 24-Social networks, such as Facebook, YouTube, and MySpace, are Web sites that connect people with specific interests by providing free services such as photo sharing, e-mail, and blogging. True False 25-Many companies used a corporate portal, which is a gateway for customers, employees, and partners to reach corporate information and communicate with the company. True False 26-Dell's cornerstone business model is based on the concept of: selling directly to small and medium sized businesses. build-to-order which allows customers to configure their own customized systems. rapid business growth and threatening competitors. e-collaboration with a few select business partners. 27-________ refers to the buying and selling of goods and services; servicing of customers; collaborating with business partners; and conducting electronic transactions within an organization. Partial EC E-business Pure EC E-commerce 28-EC can take several forms depending on the degree of digitization of the following three dimensions: the product or service sold, the process, and the delivery method. the marketing channel, the agent, and the collaboration method. the payment method, the delivery method, and the production method. the business process, the collaboration, and the transaction. 29-Purely physical companies are referred to as ________ companies, whereas companies that are engaged only in EC are considered ________ companies. virtual; pure play click-and-mortar; click-and-brick brick-and-mortar; virtual pure play; virtual 30-The ways in which EC is done include: the Internet, value-added networks, on local area networks using intranets, or on a single computerized machine. the Internet and extranets. the Internet, extranets, and private networks. the Internet and private networks. 31-________ are systems where only routine transaction processing and information flow take place between two or more organizations using a standard protocol, such as electronic data interchange (EDI). Intrabusiness EC E-CRM Interorganizational information systems B2B 32-A business such as Apple Computers making online transactions with its trading partners is an example of: e-CRM EDI B2B B2C 33-EC applications are supported by infrastructure and by each of the following support areas EXCEPT: People Marketing and advertisement Mobile devices Public policy 34-Intrabusiness EC is usually performed over intranets and/or ________. P2P networks exchanges mobile networks corporate portals 35-A technology that is used to electronically transfer routine documents, such as invoices and purchase orders, and for financial transactions is ________. Exchange-to-exchange Electronic data interchange Electronic funds transfer Peer-to-peer 36-Challenges that Boeing faced with its global collaboration for the design and assembly process of its new Dreamliner passenger plane included each of the following EXCEPT: Information security Lag time Teams working across various time zones Data management 37-A large number of EC companies, especially e-tailing and B2B ones, failed from 1999 to 2005 for each of the following reasons EXCEPT: The companies failed to ensure they had sufficient inventory and a distribution setup to meet initial demand. The companies lacked financial skills. The companies had little marketing experience. The companies failed to register with search engines, such as Google. 38-________ refers to the second-generation of Internet-based services that let people collaborate and share information online in new ways, such as social networks and wikis. Virtual Web Social Web Web 2.0 Media Web 39-Which of the following is not a characteristic of the Digital Revolution? A high rate of obsolescence. Intelligent search agents to help manage information overload. Fraud and other cybercons carried out via the Internet. Many business processes are expedited by up to 50 percent. 40-Because the rate of change and the level of uncertainty are expected to accelerate, organizations are considering less information when making decisions. operating under increasing pressures to produce more products, faster, and with fewer resources. unable to react quickly enough to threats and opportunities. making fewer decisions and/or decisions less frequently. 41-According to the Business Environment Impact Model, ________ provide support to organizations' activities and to actual performance, countering business pressures. core competencies and critical response activities missions and strategies EC and IT markets and government 42-A ________ is a company's method of doing business to generate revenue to sustain itself. marketing strategy business model business plan value chain 43-According to the ________ revenue model, companies receive commissions for referring customers to others' EC Web sites. affiliate fees advertising fees subscription fees transaction fees 44-According to the ________ revenue model, customers page a fixed amount, usually monthly, to receive some type of service. transaction fees affiliate fees subscription fees advertising fees 45-Large private organizational buyers and government agencies make large-volume or large-value purchases through ________, also known as reverse auctions. name-your-own-price models viral marketing online direct marketing electronic tendering systems 46-According to the ________ model, an organization can increase brand awareness or even generate sales by Web-based word-of-mouth marketing or promoting a product or service to other people. electronic tendering systems viral marketing name-your-own-price models online direct marketing 47-Online group purchasing organizations are known as: e-co-ops SMEs exchanges barters 48-Major barriers to EC include all of the following EXCEPT: implementation difficulties lack of technology lack of potential customers cost 49-Which of the following is a technological limitation of EC? Difficulty obtaining venture capital. Security and privacy concerns that deter customers from buying. Unresolved taxation, public policy, and legal issues. Order fulfillment requirements of largescale B2C. 50-A job opening in the Sales Department posted on the company's Intranet by the Human Resources Department is an example of: B2E B2S E2C B2B 51-Boeing designing a product together with a business partner is this type of interaction: B2B2C Nonbusiness EC B2B. Collaborative Commerce 52-A corporation uses the Internal Revenue Service's Web site to learn how to pay its estimated quarterly income taxes. This is an example of: G2G E2E. G2C G2B 53-The second-generation of Internet-based services that lets people collaborate and share information online is known as Web 2.0. An example of this is: DoubleClick Evite blogging 54-The digital enterprise shifts the focus from managing individual information resources such as devices, applications, and data to ________ that define the business and ultimately deliver value to customers and end users. transforming revenue models developing models organizing supply chains orchestrating the services and workflows 55-Many companies employ a(n) ________, which is a gateway for customers, employees, and partners to reach corporate information and to communicate with the company. corporate portal intranet social network extranet Chapter 2 E-Marketplaces 1-The functions and efficiency of an e-market are the same as that of a physical marketplace. True False 2-The emergence of electronic marketplaces has resulted in lower information search costs for buyers and lower transaction and distribution costs for sellers. True False 3-Although both marketplaces and marketspaces can sell physical products, the marketspace also can sell digital products, which are goods that can be transformed to digital format and delivered instantly over the Internet. True False 4-Front end refers to the activities that support online order fulfillment, inventory management, purchasing from suppliers, payment processing, packaging, and delivery. True False 5-In marketing, an intermediary is a third party that operates between sellers and buyers. Intermediaries of all kinds offer their services on the Web. True False 6-WebMD, which is the largest U.S. medical services company, is known mainly for its consumer portal, but its core business is being an e-intermediary. True False 7-The major B2B e-marketplaces are electronic storefronts, Internet malls, and exchanges. True False 8-A portal is an information gateway that attempts to address information overload by enabling people to search and access relevant information from disparate IT systems and the Internet, using advanced search and indexing techniques, such as Google's desktop. True False 9-Intermediaries are human or electronic agents that play an important role in EC by providing value-added services such as making payment arrangements to buyers and sellers. True False 10-Travelers using airline Web sites to book their flights directly without the use of travel agents is resulting in the reintermediation of travel agents. True False 11-Search engines not only "search and match," but also have capabilities that can be used to perform routine tasks that require intelligence. True False 12-An electronic shopping cart is an order-processing technology that allows customers to accumulate items they wish to buy while they continue to shop. True False 13-Shopping carts for B2B are fairly simple, but a shopping cart for B2C may be more complex. True False 14-An auction is a competitive process and market mechanism that uses a competitive process by which a seller solicits consecutive bids from buyers or a buyer solicits bids from sellers. True False