Introduction to E-Commerce
Midterm Exam
Course Introduction
Introduction to E-Commerce provides students with a comprehensive overview of the fundamental concepts, models, and technologies that drive electronic commerce in today's digital economy. The course explores the evolution of online business, various e-commerce platforms, and strategies for building and managing web-based businesses. Students will examine important topics such as payment systems, security and privacy, digital marketing, supply chain management, legal issues, and emerging trends in mobile and social commerce. Through case studies and practical applications, learners gain insight into real-world e-commerce operations and develop the skills necessary to participate in and manage online ventures effectively.
Recommended Textbook
E Commerce 2019 Business Technology and Society 15th Edition by Kenneth C. Laudon
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12 Chapters
1020 Verified Questions
1020 Flashcards
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Chapter 1: The Revolution Is Just Beginning
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Sample Questions
Q1) Business-to-consumer (B2C)e-commerce in the United States:
A) grew at double-digit rates between 2010 and 2018.
B) has less revenue than C2C e-commerce.
C) now constitutes over 50% of the overall U.S. retail market.
D) is growing more slowly as it confronts its own fundamental limitations.
Answer: A
Q2) Which of the following features of e-commerce technology is related to the concept of network externalities?
A) richness
B) interactivity
C) universal standards
D) information density
Answer: C
Q3) Which of the following is not a unique feature of e-commerce technology?
A) interactivity
B) social technology
C) information asymmetry
D) richness
Answer: C
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Page 3
Chapter 2: E-Commerce Business Models and Concepts
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Sample Questions
Q1) Interactivity that enables product customization alters industry structure by decreasing the threat of substitutes.
A)True
B)False
Answer: True
Q2) Which of the following is another name for a revenue model?
A) business model
B) business strategy
C) financial model
D) financial statements
Answer: C
Q3) All of the following can be considered examples of the market creator business model except:
A) eBay.
B) Priceline.
C) Uber.
D) Twitter.
Answer: D
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Page 4
Chapter 3: E-Commerce Infrastructure: The
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Sample Questions
Q1) Tier 1 ISPs provide Internet access to consumers and businesses.
A)True
B)False Answer: False
Q2) Which of the following is a programming language introduced by Apple specifically for developing iOS applications?
A) Objective-C
B) C
C) C++
D) Swift
Answer: D
Q3) Which of the following protocols is used to send mail to a server?
A) SMTP
B) FTP
C) HTTP
D) SSL
Answer: A
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Page 5
Chapter 4: Building an E-Commerce Presence: Websites, Mobile Sites,
and Apps
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Sample Questions
Q1) The cost of hardware,software,and telecommunications services needed to build a website have ________ over the last decade.
A) increased dramatically
B) increased moderately C) decreased dramatically
D) decreased slightly
Q2) The process of comparing a website with that of its competitors in terms of response speed,quality of layout,and design is known as:
A) split testing.
B) funnel testing.
C) benchmarking.
D) system testing.
Q3) Using prebuilt templates is typically one of the most inexpensive options when building an e-commerce site.
A)True
B)False
Q4) List and describe the eight most important factors in successful e-commerce site design.
Q5) What are widgets and how are they used? How do they differ from mashups?
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Chapter 5: E-Commerce Security and Payment Systems
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Sample Questions
Q1) A ________ is hardware or software that acts as a filter to prevent unwanted packets from entering a network.
A) firewall
B) virtual private network
C) proxy server
D) PPTP
Q2) To allow lower-level employees access to the corporate network while preventing them from accessing private human resources documents,you would use:
A) a firewall.
B) an authorization management system.
C) security tokens.
D) an authorization policy.
Q3) An intrusion detection system can perform all of the following functions except:
A) examining network traffic.
B) setting off an alarm when suspicious activity is detected.
C) checking network traffic to see if it matches certain patterns or preconfigured rules.
D) blocking suspicious activity.
Q4) Why is it difficult to accurately estimate the actual amount of cybercrime?
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Chapter 6: E-Commerce Marketing and Advertising Concepts
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Sample Questions
Q1) Which of the following is not one of the main stages of the online purchasing process?
A) post-purchase service and loyalty
B) awareness
C) engagement
D) conversation
Q2) Which of the following industries accounts for the highest percentage of spending on online advertising?
A) financial services
B) retail
C) automotive
D) entertainment
Q3) Which of the following is based on the idea of complete price transparency in a perfect information marketplace?
A) the Law of One Price
B) dynamic pricing
C) price discrimination
D) versioning
Q4) What are two methods being developed to track consumers across devices?
Q5) How are blogs being used for marketing?
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Chapter 7: Social, Mobile, and Local Marketing
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Sample Questions
Q1) Promoted Video is the source of over 50% of Twitter's ad revenue.
A)True
B)False
Q2) All of the following marketing tools on Facebook require payment except:
A) Brand Pages.
B) Facebook Watch.
C) News Feed Page Post Ads.
D) Mobile Ads.
Q3) What are the implications for marketers given that users spend over 75% of their total mobile time using apps and that on average,users only use about 20 apps a month?
Q4) Which of the following is the top app in terms of both audience size and share of time spent?
A) YouTube
B) iTunes
C) Twitter
D) Facebook
Q5) SMS text messaging generates most of mobile marketing spending.
A)True
B)False
Page 9
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Chapter 8: Ethical, Social, and Political Issues in E-Commerce
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Sample Questions
Q1) Which ethical principle asks you to consider the impact of your decision if the principles underlying your decision became an organizing principle of the entire society?
A) the Golden Rule
B) Risk Aversion
C) the Slippery Slope
D) the Social Contract Rule
Q2) What is the FTC recommendation regarding choice as it relates to personally identifiable information (PII)?
A) Require firms to have consumers affirmatively opt-in before PII is collected.
B) Require firms to allow consumers to opt-out before PII is collected.
C) Make collection of PII illegal.
D) Require robust notice only before PII is collected.
Q3) The display of a third-party's website or page within your own website is called:
A) cybersquatting.
B) metatagging.
C) framing.
D) deep linking.
Q4) How does Apple's Intelligent Tracking Prevention (ITP)technology work?
Page 10
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Chapter 9: Online Retailing and Services
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Sample Questions
Q1) In 2018,approximately what percentage of Internet users over the age of 14 made a purchase at an online retail store?
A) almost 40%
B) almost 60%
C) almost 70%
D) almost 80%
Q2) The existence of substitute products is a key industry strategic factor.
A)True
B)False
Q3) In 2018,almost 60% of the adult U.S.population was expected to use online banking.
A)True
B)False
Q4) Which of the following categories generates the highest percentage of online retail revenue?
A) computers and electronics
B) apparel and accessories
C) books/music/video
D) automobile and automobile parts and accessories
Q5) Explain why online career services are so well suited to the Web.
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Chapter 10: Online Content and Media
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Sample Questions
Q1) Revenue generated by online TV and movies is expected to grow by nearly 30% between 2018 and 2021.
A)True
B)False
Q2) All of the following are "live"/on-demand OTT services except:
A) Sling TV.
B) DirecTV Now.
C) Netflix
D) YouTube TV
Q3) A business model that uses advertising revenue to provide some content for free,combined with an option to obtain additional content for a price is called a(n)________ model.
A) sales
B) distribution
C) a la carte
D) freemium
Q4) Total music consumption in hours of day listening to music has increased even as sales of CDs have drastically declined.
A)True
B)False
Page 12
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Chapter 11: Social Networks, Auctions, and Portals
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Sample Questions
Q1) ________ occurs when sellers agree informally or formally to set floor prices below which they will not sell on auction items.
A) Discriminatory pricing
B) Price matching
C) Bid rigging
D) Distress pricing
Q2) Which of the following companies purchased Instagram?
A) Google
B) Apple
C) Facebook
D) Microsoft
Q3) Identify and describe the main types of portals.
Q4) What are the costs and risks for buyers at an auction,and how have auction sites sought to reduce these risks?
Q5) ________ of procurement officers use auctions to purchase goods.
A) Approximately 80%
B) Less than a quarter
C) Over one third
D) Approximately 25%
Q6) Describe the evolution of social networks from their earliest appearance.
Page 13
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Chapter 12: B2B E-Commerce: Supply Chain Management and
Collaborative Commerce
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Sample Questions
Q1) Which of the following primarily deal with indirect goods?
A) e-distributors and industry consortia
B) e-distributors and e-procurement Net marketplaces
C) exchanges and industry consortia
D) exchanges and e-procurement Net marketplaces
Q2) An ________ is an independently owned,online marketplace that connects hundreds to potentially thousands of suppliers and buyers in a dynamic,real-time environment.
A) exchange
B) e-distributor
C) e-procurement company
D) industry consortium
Q3) Which of the following primarily deal with direct goods?
A) e-distributors and independent exchanges
B) exchanges and e-procurement Net marketplaces
C) exchanges and industry consortia
D) e-procurement Net marketplaces and industry consortia
Q4) MRO goods are also known as direct goods.
A)True
B)False
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