Principles of E-Commerce Study Guide Questions
Course Introduction
Principles of E-Commerce introduces students to the foundational concepts, technologies, and business strategies that drive online commerce in todays digital economy. The course covers the structure and types of e-commerce models, electronic payment systems, security and privacy issues, legal and ethical considerations, digital marketing techniques, and the role of social media in e-business. Students will explore the processes involved in setting up and managing an e-commerce platform, understand supply chain and logistics integration, and analyze real-world case studies to gain practical insights into the successful operation and management of online businesses.
Recommended Textbook
E Commerce Essentials 1st Edition by
Kenneth C. Laudon
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11 Chapters
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Chapter 1: The Revolution Is Just Beginning
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Q1) What is a first mover? Why was being a first mover considered to be important during the early years of e-commerce?
Answer: First movers are firms who are first to market in a particular area who move quickly to gather market share. First movers hoped to establish a large customer base quickly, build brand name recognition early, and inhibit competitors by building in switching costs for their customers through proprietary interface designs and features. The thinking was that once customers became accustomed to using a company's unique Web interface and feature set, they could not easily be switched to competitors. In the best case, the entrepreneurial firm would invent proprietary technologies and techniques that almost everyone adopted, creating a network effect, which occurs where all participants receive value from the fact that everyone else uses the same tool or product.
Q2) An economist is most likely to be interested in a(n)________, rather than technical, approach to studying e-commerce.
Answer: behavioral
Q3) Ubiquity increases cognitive energy outlays.
A)True
B)False
Answer: False
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Page 3
Chapter 2: E-Commerce Business Models and Concepts
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Q1) ________ and ________ are typically the most easily identifiable aspects of a company's business model.
A)Market strategy; market opportunity
B)Value proposition; revenue model
C)Value proposition; competitive environment
D)Revenue model; market strategy
Answer: B
Q2) All firms need an organization to efficiently implement their business plans and strategies.
A)True
B)False
Answer: True
Q3) Which element of the business model examines who else occupies the firm's intended marketspace?
A)value proposition
B)competitive environment
C)competitive advantage
D)market strategy
Answer: B
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Page 4
Chapter 3: E-Commerce Infrastructure: the
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Q1) A(n)________ is a Web application that allows users to easily add and edit content on a Web page.
A)wiki
B)podcast
C)blog
D)RSS feed
Answer: A
Q2) A set of rules for transferring data is called a(n)________.
Answer: protocol
Q3) One of Internet2's projects is a nationwide 100 gigabit-per-second network.
A)True
B)False
Answer: True
Q4) An Internet-enabled media player would run in which layer of Internet architecture?
A)Network Technology Substrate layer
B)Middleware Services layer
C)Transport Services and Representation Standards layer
D)Applications layer
Answer: D
Page 5
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Chapter
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Q1) ________ are the types of information systems capabilities needed to meet business objectives.
A)Information requirements
B)System functionalities
C)System design specifications
D)Physical design specifications
Q2) A system design has two main components:
A)a logical design and a physical design.
B)a behavioral design and a technological design.
C)business objectives and technology requirements.
D)front-end systems and back-end systems.
Q3) All of the following are Web site design features that annoy customers except:
A)slow-loading pages.
B)pop-under ads.
C)splash pages.
D)redundant navigation.
Q4) The development of a(n)________ is the major milestone of the planning phase of developing an e-commerce presence.
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Q5) A SWOT analysis describes strengths, weaknesses, opportunities, and ________.
Chapter 5: E-Commerce Security and Payment Systems
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Q1) Botnets are typically used for all of the following except:
A)DDoS attacks.
B)phishing attacks.
C)storing network traffic for analysis.
D)stealing information from computers.
Q2) The easiest and least expensive way to prevent threats to system integrity is to install anti-virus software.
A)True
B)False
Q3) All of the following are factors in contributing to the increase in cybercrime except:
A)the ability to remotely access the Internet.
B)the Internet's similarity to telephone networks.
C)the ability to anonymously access the Internet.
D)the Internet is an open, vulnerable design.
Q4) To internal computers, a proxy server is known as the ________.
Q5) ________ is a form of online payment system for monthly bills.
Q6) A(n)________ vulnerability involves a vulnerability unknown to security experts that is actively exploited before there is a patch available.
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Chapter 6: E-Commerce Marketing and Advertising Concepts
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Q1) In ________ advertising, companies pay for ads to be placed dynamically on any participating Web site that the search engine determines is appropriate.
A)paid inclusion
B)network keyword
C)keyword
D)social
Q2) Online shoppers tend to browse for available products rather than search for specific products they have determined in advance.
A)True
B)False
Q3) View-through rate measures the ________ response rate to an ad.
A)30-minute
B)24-hour
C)7-day
D)30-day
Q4) ________ is the process of getting customers to pass along a company's marketing message to friends, family, and colleagues.
Q5) What are the issues to be aware of when using social advertising?
Page 8
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Chapter 7: Ethical, Social, and Political Issues in E-Commerce
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Q1) Which ethical principle emphasizes putting oneself into the place of others and thinking of oneself as the object of the decision?
A)the Golden Rule
B)Universalism
C)the Collective Utilitarian principle
D)the Social Contract rule
Q2) Net neutrality refers to Internet backbone owners treating all Internet traffic equally.
A)True
B)False
Q3) "Do Not Track" falls under which of the following principles in the FTC's new privacy framework?
A)Privacy by Design
B)Simplified Choice
C)Greater Transparency
D)Scope
Q4) It is not necessarily illegal to use someone else's trademark in a metatag.
A)True
B)False
Page 9
Q5) The main stakeholders arguing against net neutrality are ________.
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Chapter 8: Online Retail and Services
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Q1) The Internet has been a powerful influence on consumer insurance decisions.
A)True
B)False
Q2) All of the following are challenges for catalog merchants except:
A)high costs of printing and mailing.
B)building a credible Web site.
C)the need to bring staff in or manage new technology.
D)building sophisticated order entry and fulfillment systems.
Q3) Which of the following statements about financial portals is not true?
A)They do not offer financial services.
B)They add to the online price competition in the finance industry.
C)Their strategy is similar to that of large banking institutions.
D)They make their money from advertising, referral fees, and subscription fees.
Q4) Which of the following statements is not true?
A)Compared to general merchandisers, the transition to e-commerce has been easier for MOTO firms.
B)The MOTO sector is also called the general merchandise sector.
C)MOTO was the last technological revolution that preceded e-commerce.
D)Distribution of catalogs is one of MOTO retailers' biggest expenses.
Q5) Identify and discuss the key features of the online insurance industry.
Page 10
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Chapter 9: Online Content and Media
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Q1) Which of the following is the fastest growing segment of media revenues?
A)television
B)home video
C)Internet
D)newspapers
Q2) All of the following are reasons why the movie industry is likely to be less disrupted by the Internet than the music industry except:
A)movies are more difficult to move around the Web without detection.
B)movies typically have far larger file sizes than music tracks.
C)the movie industry is a concentrated oligopoly.
D)there are fewer firms competing for distribution rights.
Q3) As of 2012, around how many Kindles of all types had been sold in the United States?
A)8 million
B)80 million
C)800 million
D)8 billion
Q4) ________ is an app introduced by Apple that helps authors to create interactive books.
Q5) Apple's Newstand is an example of a(n)________.
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Chapter 10: Social Networks, Auctions, and Portals
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Q1) Describe the major types of Internet portals and explain the portal business model.
Q2) Facebook is an example of a(n):
A)interest-based social network.
B)affinity community/social network.
C)general community/social network.
D)practice network.
Q3) All of the following are benefits of auctions except:
A)more efficient price discovery.
B)lower transaction costs.
C)decreased price transparency.
D)increased market efficiency.
Q4) ________ pricing first appeared in the nineteenth century with the development of mass national markets and retail stores that could sell to a national audience.
Q5) Which of the following is a social network that focuses on stock investors?
A)LinkedIn
B)Sermo
C)Social Picks
D)DailyStrength
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Chapter 11: B2b E-Commerce: Supply Chain Management and
Collaborative Commerce
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Q1) Industry consortia are sometimes referred to as:
A)many-to-many markets.
B)many-to-few markets.
C)one-to-one markets.
D)one-to-many markets.
Q2) ________ purchasing involves long-term written agreements to purchase specified products, with agreed-upon terms and quality, for an extended period of time.
Q3) ________ is another name for transorganizational business processes.
A)Supply chain management
B)Collaborative commerce
C)B2B e-commerce
D)Value chain management
Q4) Which of the following statements is not true?
A)The Volkswagen Group manages almost all of its procurement needs via the Internet.
B)VWGroupSupply.com is an industry consortium.
C)VWGroupSupply can be accessed by suppliers via standard Web browser software.
D)The Volkswagen Group developed VWGroupSupply using technology from a number of vendors.
Page 13
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