Q1: There are different auction business models and one that can be seen in business-to-business is a reverse auction is. Which of the following is more applicable
Answer: It is intended to reduce the price by increasing competition between suppliersAnswer
Q2: Revenue models describe methods of generating income for an organisation. A revenue model which involves payment for third party promotions on a media site is a
Answer: Advertising modelAnswer
Q3: Different revenue models exist and a revenue model which involves margin on products sold on its own site is known as
Answer: Retail modelAnswer
Q4: An online marketplace map contains main elements such as
Answer: All of the belowAnswer
Q5: Within intermediary and media sites, what are aggregators also known as
Answer: Price comparison sitesAnswer
Q6: A statement of the benefits of e-commerce that, ideally should not be available in competitor or offline offerings, is known as
Answer: Online value propositionAnswer
Q7: There are many constraints such as technological, ethical, legal, and cultural associated with an e-commerce macro-environment. Which of the following is a technology constraint from the e-commerce macro-environment
Answer: Likelihood of fraudulent transactionsAnswer
Q8: Which of the following is an ethical constraint from the e-commerce macro-environment
Answer: Opt-in to e-mail required to avoid SPAMAnswer
Q9: Which of the following is a legal constraint from the e-commerce macro-environment
Answer: Likelihood of fraudulent transactionsAnswer
Q10: Which of the following is a cultural constraint from the e-commerce macro-environment
Answer: Propensity for consumers to purchase onlineAnswer
Q11: An intermediary is commonly used to refer to an organisation or e-commerce site that brings buyers and sellers together, What does disintermediation describe
Answer: The removal of intermediaries from the channel structureAnswer
Q12: What does reintermediation describe
Answer: The creation of new intermediaries between customers and suppliersAnswer
Q13: So what does countermediation describe
Answer: The creation of a new intermediary by an established companyAnswer
Q14: There are various auction business models, eBay being the most successful example of all. However, a B2B reverse auction
Answer: Intends to reduce the price by increasing competition from suppliersAnswer
Q15: A free tool available to determine demand for Internet services in a market is
Answer: All of these—Google Insights for SearchAnswer
Google Trends
Google Traffic Estimator
Google Keyword Tool
Q16: Which is NOT one of the elements of a company’s external micro-environment that needs to be assessed during situation analysis for e-marketing
Answer: Supplier analysisAnswer
Q17: Critical factors to model when considering the future success of a company include the churn rate. What does this refer to
Answer: The proportion of customers usually subscribers that no longer purchase a company’s products in a given time periodAnswer
Q18: Defining an adequate technology infrastructure is vital as the infrastructure directly affects the quality of user experience. Which of the following could be accepted as a component of an e-business infrastructure
Answer: All of these—E-business transport or network layerAnswer
E-business content and data layer
E-business services applications layer
Q19: It is easy to take the Internet for granted as it seamlessly connects millions of computers worldwide but where do local Internet service providers come into the picture
Answer: They provide home and business users with a connection to access the InternetAnswer
Q20: Just how big is the Internet? This could lead to questions such as how many users there are world- wide. At the end of March 2011, Internetworldstats (www.internetworldstats.com/stats.htm) estimated the percentage of the world’s population to be Internet users
Answer: 0.30%Answer
Q21: Among other applications, intranets are used by companies for supporting sell-side e-commerce from within the marketing function. Which one of the following is not an advantage for a marketing intranet
Answer: Lengthened product life cyclesAnswer
Q22: The term extranet may not be as well known though most of us would have experienced a consumer extranet when we have registered online to buy a product and have used a username and password. Which is NOT a business benefit of using an extranet
Answer: Significant cost increasesAnswer
Q23: Management issues associated with managing intranets are similar to those for extranets. Which of the following are key questions to investigate when creating a new extranet
Answer: All of these—Is it effective and efficaciousAnswer
Will the levels of usage be sufficient to justify investment
Is the quality of the information adequate and up to date
Q24: With headlines often commenting on breaches of Internet security, what is the term used for specialised software to prevent unauthorized access to company data from outsiders
Answer: FirewallAnswer
Q25: What are Microsoft Internet Explorer, Mozilla Firefox, Apple Safari, and Google Chrome examples of
Answer: Web browsersAnswer
Q26: Many different Internet tools have been produced to exploit the interactivity and extensibility capabilities of the web. Which Internet tool can be described as having the ability to blend real-world digital data capture to create a browser-based digital representation or experience mimicking that of the real world
Answer: Augmented realityAnswer
Q27: For the Internet to be used successfully, networking standards needed to be set. Related to these are the management of IP addresses and domain name registrations which reserve a unique web address that can be used to refer to a company’s website. The body that regulates domain names is
Answer: ICANNAnswer
Q28: While governments in many countries take certain views on internet access, there is a principle to provide equal access to different Internet services by telecommunications service providers. This is known as
Answer: Net neutrality principleAnswer
Q29: A main issue for businesses is managing their internet service provision and there is a real possibility of e-business failure if an acceptable download speed is not achieved. How quickly did content need to load before there was a detrimental effect on site experience as Akamai’s research suggested
Answer: Two secondsAnswer
Q30: Other problems can cause with poor internet service provision though this can be reduced through various actions such as
Answer: Having a dedicated serverAnswer
Q31: Web services or also known as ‘software as a service’ (SaaS) refers to a highly significant model for managing software and data within an e-business. This involves managing and performing business processes and activities through accessing web-based services. What would be a benefit of using SaaS
Answer: As the service can be acquired on demand, costs can be reducedAnswer
Q32: Many smaller businesses and start-ups do not buy in new networking and data storage hardware or software to manage their data. The facilities are hosted externally but can be accessed from any location. This facility has become known as
Answer: Cloud computingAnswer
Q33: The architecture of hardware, software, content and data is known as
Answer: E-business infrastructureAnswer
Q34: The level of e-business infrastructure which refers to information processed and displayed is
Answer: Application contentAnswer
Q35: The level of e-business infrastructure which refers to computation and logic is
Answer: ProcessingAnswer
Q36: A service provider that manages the server used to host an organisation website and its connections to the Internet backbones is known as
Answer: Hosting providerAnswer
Q37: The website for a company is hosted on a
Answer: Web serverAnswer
Q38: The website content of a company is accessed by an end-user through using
Answer: Web browserAnswer
Q39: A provider enabling home or business users access and web hosting services for the Internet is referred to as
Answer: Internet service providersAnswer
Q40: The likelihood of a poor response from a website can be reduced through
Answer: Both the second and third answer aboveAnswer
Q41: The most common way of publishing information on the Internet accessed through web browsers may surprise some but it is known as
Answer: World Wide WebAnswer
Q42: A private network within a company can be used to provide shared content for staff is known as
Answer: IntranetAnswer
Q43: Which of the following could be seen as business benefits of an extranet
Answer: All of these—Information sharing in secure environmentAnswer
Improved levels of customer service
Cost reduction
Q44: An API, which is a method of integrating different software or programs and used by companies such as Google and Facebook, stands for
Answer: Application Programming InterfaceAnswer
Q45: Skype offers free calls or video-conferencing between internet connected computers and is an example of
Answer: Voice Over IPAnswer
Q46: Which of the following is an example of an embedded application
Answer: Facebook AppsAnswer
Q47: XML, which is used for exchanging data between different systems, stands for
Answer: Extensible markup languageAnswer
Q48: While businesses should micro-manage their online marketplace, macro-environmental factors also exist and impact upon an organisation. These include technological and competitive factors and others mentioned below. However, which one is more suited to a micro-environment
Answer: CustomersAnswer
Q49: Different aspects of the macro-environment can change quite rapidly such as social factors and for example, pop culture. Other factors may take place over longer time-scales such as governmental and legal changes. To maintain competitiveness, monitoring needs to take place and this is normally known as
Answer: Environmental scanningAnswer
Q50: To be effective, environmental scanning needs to be carried out
Answer: On a continuous basisAnswer
Q51: There are significant factors that managers should appreciate in the adoption of any e-commerce service. Which of the following refers to the perception that your personal details may not be secure when connected to the Internet
Answer: SecurityAnswer
Q52: Users’ motivation for using online services has been investigated in different ways including the use of psychometric tests; the Web Motivation Inventory devised by Rodgers and others in 2007 being one. They identified four motives which had cross culture acceptance but which one of the following is FALSE
Answer: Openness to experienceAnswer
Q53: Increasing numbers of consumers are purchasing online (as you may very well have obtained this book) and research in 2008 indicated the sources of consumers’ perception of trust of external sources. Which of the following garnered the greatest amount of trust
Answer: Search enginesAnswer
Q54: There has been much concern regarding privacy and trust in e-commerce and personal data with legislation and practices varying across countries. What has emerged is knowledge that malicious software can unknowingly be downloaded and compromise privacy by logging keystrokes and gaining passwords. What is this software known as
Answer: MalwareAnswer
Q55: There are environmental benefits to Internet usage. Which of the following is not an environmental benefit of e-commerce
Answer: DematerialisationAnswer
Q56: Tailoring e-commerce services for individual countries or regions is known as
Answer: LocalisationAnswer
Q57: Recognising the need for localization, a survey published in 2008 found that 88% of multinational company managers stated localization to be a key issue with 76% also saying that it is important specifically for international customer satisfaction. What did the survey also discover regarding budget allocations towards localization
Answer: Half of the respondents spend a maximum of 5% of their budgets on localizationAnswer
Q58: Larger organisations have the financial resources to compete in the global marketplace but what about the implications of e-commerce for international business-to-business (B2B) for small and medium sized enterprises? Research in 2002 found that
Answer: None of the these applied in 2002—The majority of SMEs have been relatively quick in adopting the InternetAnswer
SMEs are using more Internet tools than larger organisations
High priority was give to technology and e-commerce
Q59: Crucial business decisions can make or break a company but sometimes the situation can be retrieved and decisions reversed. Who was it that said “I think there is a world market for maybe five computers”
Answer: Chairman of IBMAnswer
Q60: It is difficult to assess which new technological innovation can be used to give a competitive advantage to an e-business. Although being an early model, Rogers produced a representation of those trialing new products and referred to those companies that invest in new technologies and techniques as
Answer: Early adoptersAnswer
Q61: An alternative graphical representation of the diffusion of innovation was produced by Gartner in 2010 for assessing the maturity, adoption and business applications of specific technologies. This was termed the ‘hype cycle’ but which is the correct order of stages
Answer: Technology trigger, Peak of inflated expectations, Trough of disillusionment, Slope of enlightenment, Plateau of productivityAnswer
Q62: Contrasting approaches to identifying emerging technology also exist. One in particular involves utilizing a network of customers or other partners to gain insights for new products or process innovations. This approach is known as
Answer: CrowdsourcingAnswer
Q63: The macro-environment has a number of influencing factors that produce the term often abbreviated to SLEPT. Which of the factors below has no place in this acronym
Answer: Tertiary factorsAnswer
Q64: Evaluating developments in hardware and software in the macro-environment is related to this SLEPT factor
Answer: TechnologicalAnswer
Q65: The process of continuously monitoring the environment and events and responding accordingly is known as environmental scanning. When is it typically performed
Answer: ContinuouslyAnswer
Q66: There are important factors governing e-commerce service adoption. One that would be significant in a country and is related to cost would be
Answer: Entry cost and cost of broadbandAnswer
Q67: An important factor influencing the level of adoption to the Internet in a country related to security is
Answer: Perceptions and technologies that govern securityAnswer
Q68: Personal data is a key term related to privacy. Which of the following is the best definition of this term
Answer: Any information about an individual stored by companies concerning their customers or employeesAnswer
Q69: Data subject is a key term related to privacy. Which of the following is the best definition of this term
Answer: The legal term to refer to the individual whose data is heldAnswer
Q70: The main information types used by the Internet marketer which are governed by ethics and legislation include
Answer: All of these—Contact informationAnswer
Platform usage information
Behavioural information (on a single site)
Profile information
Q71: Spam refers to unsolicited e-mail but what is data about individuals that have been sold or rented by a third party commonly known as
Answer: Cold listAnswer
Q72: Online word-of-mouth marketing is referred to as
Answer: Viral marketingAnswer
Q73: A cookie is a data file stored on an end-user’s computer to enable websites to identify them. Which are the most valuable for marketers as they identify repeat visits to sites and stay on a user’s computer
Answer: Persistent cookiesAnswer
Q74: Economic health and competitive environments in different countries will determine their e-commerce potential. Globalisation refers to
Answer: A shift towards international trading in a single marketAnswer
Q75: What is localization
Answer: Tailoring of website information for individual countries or regionsAnswer
Q76: A company that consistently invests in new technology before widespread market adoption is known as
Answer: An early adopterAnswer
Q77: A simple analytical tool for assessing the stage customers have reached in the adoption of a technology, or any product is
Answer: Diffusion-adoption curveAnswer
Q78: An alternative graphic representation of the maturity, adoption, and business application of specific technologies is known as
Answer: Hype cycleAnswer
Q79: A business strategy is taken to define the future direction and actions of an organisation or part of an organisation. What would the definition of the approach by which applications of internal and external electronic communications can support and influence corporate strategy be referred to as
Answer: E-business strategyAnswer
Q80: What could be an implication for an organisation if an e-business strategy is not clearly defined
Answer: None of these are applicable—Effective integration of e-business at a technical levelAnswer
Greater opportunities from evaluation of opportunities
Clear direction of e-business strategy
Q81: Before developing any type of strategy, a management team needs to agree the process they will follow for generating and then implementing the strategy. A framework that gives a logical sequence to follow to ensure inclusion of all key activities of an e-business strategic development is generally known as
Answer: A strategy process modelAnswer
Q82: Regarding resource analysis, this is primarily concerned with examining e-business capability and includes examining the degree to which a company has the appropriate technological and applications infrastructure in place. What more is required so that these resources can work together to provide efficient business processes
Answer: Human and financial resourcesAnswer
Q83: SWOT analysis can be used in many different areas of business and can help organisations analyse their internal resources in terms of strengths and weaknesses then match them against the external environment in terms of opportunities and threats. However, it may be of greatest value when it is used to
Answer: Formulate future strategies in addition to analysing the current situationAnswer
Q84: External factors need to be assessed as an integral part of strategic analysis and this could examine many areas including competitor (as against competitive) threats. A competitor analysis can be conducted which involves a review of e-business services offered by existing and new competitors and the adoption of these by their customers. Resource-advantage mapping is one suggestion but why would this be useful
Answer: Actually, all of these a part to play—To identify where competitors are weak and exploit thisAnswer
To assess customer value provided relative to competitors
So that internal resource strengths can be assessed against external threats
Q85: Defining a specific company vision for e-business helps to contextualise e-business in relation to a company’s strategic initiatives and its marketplace. In 2008, Jelassi and Enders suggested that an e-business mission statement should include three of the following points but which one is FALSE
Answer: CostAnswer
Q86: Much of the organizational value created by e-business is due to more effective use of information. An analytical tool developed by Marchand and others can be used to illustrate different ways in which information can create value for organisations. There are four methods or axes used to analyse information but which does not fit in with Marchand’s model
Answer: Accept costsAnswer
Q87: Effective strategies link objectives and performance together, while prioritising objectives can facilitate and communicate an e-business vision. As such, e-business objectives should be SMART but within this acronym, what does R stand for
Answer: RelevantAnswer
Q88: As the definition of strategy is driven by the objectives and vision or mission, these will need reviewed and significant key e-business decisions taken. One decision will include examining market strategy, specifically a target marketing strategy of customers. Which of the following would represent the evaluation and selection of customer segments
Answer: Customers who are brand loyalAnswer
Q89: Once segments have been identified, organisations need to define how best to position their online services relative to competitors according to four main variables: product quality, service quality, and fulfillment time. Which variable is missing
Answer: PriceAnswer
Q90: Another aspect of Internet strategy formulation closely related to product development is the review of opportunities from new business and revenue models. Constantly reviewing innovation in services to improve the quality of experience offered is also important to e-businesses. So while there is a view that ‘only the paranoid will survive’, which of the following options should managers avoid
Answer: None of these—Wait-and-see optionAnswer
Do-nothing option
Fast-follower option
Q91: Much can be learned from e-business failures as well as successes and Miller’s (2003) analysis of Internet company failures pointed the major overall mistake was to
Answer: Massively overestimate the speed at which the marketplace would adopt dot com innovationsAnswer
Q92: An assessment of MSE success factors was produced by Jeffcoate and others in 2002 and they suggested critical success factors applicable to larger organisations. Which of the following could be usefully applied
Answer: All of these are applicable—Brand, price sensitivity, partnerships, and process improvementAnswer
Interaction and integration
Content, convenience, control, community, and commitment
Q93: When considering the alignment and impact of e-business strategies, an essential element is to consider how the information system strategy supports change. It has been observed in a study of major leading corporations that they distinguished between information and technology and the contributions both made. Essentially, competitive advantage came from how information is
Answer: All of the belowAnswer
Q94: The approach by which applications of internal and external electronic communications can support and influence strategy is a definition of
Answer: E-business strategyAnswer
Q95: When considering strategy, the matching of internal resources against external demands forms part of
Answer: Strategic analysisAnswer
Q96: Which of the following is NOT regarded as an implication of a weak e-business strategy
Answer: Greater opportunitiesAnswer
Q97: Before developing any type of strategy for e-business, a management team needs to agree the process they will follow for generating and implementing the strategy. Which of the following represents a structure that provides a logical framework to follow
Answer: All of the belowAnswer
Q98: Within a strategy process model, strategic option, evaluation, plus selection forms part of
Answer: Strategic definitionAnswer
Q99: Stage models indicate how advanced a company is in its use of ICT. For an existing organization, typical stages of e-commerce development are in which sequence
Answer: Image and product information, information collection, customer support and service, internal support and service, transactionsAnswer
Q100: A SWOT analysis is a simple but effective technique to help organisations analyse their internal resources in terms of strengths and weaknesses to identify opportunities and
Answer: ThreatsAnswer
