1) Paws ‘n Tails is an online pet shop that wants to influence what customers buy and build effective customer relationships and loyalty. What is the key to influencing behavior and building these relationships?
a. Understanding consumer online behavior and then influencing it through advertising and promotions
b. Understanding competitors’ pricing strategy and then undercutting it
c. Identifying the wants and needs of major customer segments
d. Suggesting as many products as possible to online shoppers as soon as they visit the EC
2) A(n) _____________ is someone whose advice or view carries some weight in making a final
a. is one of the most controversial issues in EC
b. has not helped Internet marketers target their ads
c. is a widely used method for mass marketing
d. is being replaced by adware and spyware programs
4) Once a company knows a consumer’s preferences, the company can predict, without asking the
consumer directly, what other products or services that consumer might enjoy through
a. active web bugs
c. collaborative filtering
5) Which of the following is not a specific method for collecting online data?
a. Phone surveys to learn if there are too many products for the customer to look through
b. E-mail communication with individual customers
c. Moderated focus groups conducted in chat rooms
d. Tracking customers’ movements on the Web
6) Two key factors limiting the use of personalization to more precisely target marketing efforts to individual customers are _____________.
a. matching profiles with product offerings and delivering those offerings
b. communication costs and filtering costs
c. privacy and trust issues
d. lack of customer loyalty and service customization costs
7) Which of the following statements about Web mining is false?
a. Web mining refers to the use of data mining techniques for discovering and extracting
information from Web documents.
b. Web mining explores both Web content and Web usage.
c. Web mining uses customer data to infer or predict customer interest in other products or
d. Usage analysis is derived from clickstream data.
8) ____________ is an advertising network that a B2B company can use as part of its advertising
strategy to reach new customers.
b. BBB Online
9) The popularity of Apple’s iPhone and Application Store has made _____________ important to advertisers, who see social networking widgets, restaurant locators, mobile games, and other applications as prime targets.
b. direct marketing
c. mobile advertising
d. banner ads
10) Banner advertising on Websites helps trigger a realization that there is a gap between
reality and a desired state, which occurs in the _____________ stage of the EC purchase
a. need identification or recognition
b. information search
d. product or merchant brokering
11) As the volume of customers, products, vendors, and information increases, it becomes
uneconomical or impossible for customers to consider all relevant information and available
products/services. The practical solution to handling such information overload is
a. to use permission marketing
b. to use software or intelligent agents
c. to increase the use of ad agencies
d. to design Websites with minimal content
12) Portsmouth Hospitals NHS Trust, which provided health-care services for almost 1 million
people in the United Kingdom, cut back-office purchasing costs by ______________.
a. using online reverse auctions to purchase from suppliers at the the lowest mutually
acceptable purchase price
b. implementing online catalogs
c. buying via its intranet
d. using collaborative commerce
13) B2B transactions that involve communication, design, planning, information sharing, and
activities beyond financial transactions among business partners is referred to as
b. collaborative commerce
c. trading communities
d. public marketplaces
14) The ________ consists of a number of interrelated subprocesses that extend from the
acquisition of materials from suppliers to packaging it and moving it to distributors and
a. horizontal marketplace
b. vertical market
c. supply chain
d. production chain
15) Which of the following is not one of the major benefits of B2B for both buyers and sellers?
a. Expedites processing and reduces cycle time
b. Reduces procurement costs
c. Enables customized online catalogs with different prices for different customers
d. Increases opportunities for collaboration
16) All are benefits of B2B except:
a. creates new sales or purchase opportunities.
b. eliminates paper and reduces administrative costs.
c. increases channel conflict.
d. lowers search costs and time for buyers to find products and vendors.
17) EC companies will usually separate their B2C orders from their B2B orders because B2C and
B2B orders have different _____________.
a. buying and delivery processes.
b. accounting and financial processes.
c. marketing processes.
d. order-fulfillment processes and pricing.
18) A company’s acquisition Website that uses e-procurement methods such as reverse auctions,
negotiations, or group purchasing to overcome the manual searching of e-stores is referred to
a. desktop procurement method
b. buy-side e-marketplace
c. an intermediary
d. aggregated catalog
19) Denver Boards, a B2B manufacturer of snowboard equipment, can reach and target new retail
customers in order to grow its online business by ______________.
a. hiring an affiliation service to drive traffic to its Website.
b. reviewing POS data.
c. mining data.
d. advertising in traditional media.
20) A company’s internal operations and its relationships with suppliers and other business
partners are frequently _____________.
a. as complex as customer-facing applications such as taking an order online.
b. much more complex than customer-facing applications such as taking an order online.
c. much less complex than customer-facing applications such as taking an order online.
d. replaced by customer-facing applications.
21) The last fifteen orders from a manufacturer to its suppliers range from $100,000 to
$8,750,000. This is an example of _____________.
a. the bullwhip effect
b. demand manipulation
c. supply inadequacy
d. order instability
22) A major block in the widespread implementation of collaborative commerce is ______________.
a. the theory of collaborative commerce hasn’t been proven effective in real-world
b. the technology needed isn’t available.
c. collaborative commerce is extremely expensive.
d. the lack of universally accepted standards.
23) All of the following are true about product life cycle management (PLM) except:
a. PLM can have significant beneficial impacts in cycle time, design reuse, and
b. The demand for PLM is limited because it does not apply to products that have short
life cycles or are complex.
c. PLM is a big step for an organization because it requires integrating different processes
d. PLM tools are offered by major IT companies such as SAP and IBM.
24) The Lotus Notes/Domino suite includes all of the following except:
a. instant video.
b. document management.
d. communication support.
25) Infrastructure needed for groupware include all of the following except:
d. the Internet.