Part I: Multiple Choice questions

1. One of the following is not correct related to E-commerce and E-business.

A. E-commerce is more specific than e-business
B. E-business involves the use of electronic platforms to conduct a company’s business.
C. E-commerce includes all electronic based information exchanges within or between companies
D. E-commerce involves buying and selling processes supported by electronic means
2. All of the following are correct related to trends in the new economy (digital era) except,
A. Most appliances and systems operated with analog information
B. Connectivity is further enhanced by wireless communication
C. Individual customer based operation and marketing
D. The creation of World Wide Web and Web browsers
3. An internal corporate or government network that uses Internet tools, such as Web browsers, and Internet
protocols best defines
A. Social network
B. Extranet
C. Intranet
D. E-market
4. One of the following is the benefit of EC because of its ubiquitous nature
A. lowers the cognitive energy required to transact in a market space
B. lower market entry costs
C. Changed the traditional tradeoff between richness and reach.
D. allows two-way communication between marketers and consumers
5. Which one of the following is correct about brick-and-click companies
A. Their entire business operations are not supported by online technologies.
B. Those that launched a Web site without any previous existence as a firm
C. Existing companies that added an online site for information and/ or e-commerce.
D. Their entire business operations are performed by online technologies.
6. Organizations that conduct their business activities solely online are
A. Click-and-mortar organizations.
B. Pure-click organizations.
C. Brick-and-mortar organizations.
7. Types of e-commerce in which businesses focus on selling to other businesses, the largest form of e-
commerce with about hundreds of billions in transactions is ________________.
A. B2C
B. B2B
C. C2C
D. P2P
E. All of the above

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8. Which one of the following is B2C e-commerce Company?
A. [Link]
B. [Link]
C. [Link]
D. [Link]
9. _______________ refers to the complexity and content of a message.
A. Ubiqity
B. Global Reach
C. Richness
D. Information Density

10. One of the following is features of e-commerce which greatly lowers market entry costs.
A. Ubiqity
B. Universal Standard
C. Richness
D. Information Density
11. A method of doing business by which a company can generate revenue to sustain itself best defines
A) marketing strategy.
B) business model.
C) value chain.
D) business plan.
12. According to the ________ revenue model, customers pay a fixed amount, usually monthly, to
receive some type of service.
A) subscription fees
B) transaction fees
C) advertising fees
D) affiliate fees
13. According to the ________ revenue model, companies receive commissions for referring customers
to others' EC websites.
A) advertising fees
B) subscription fees
C) affiliate fees
D) transaction fees
14. All of the following is/are correct related to paradigm shifts from the old economy to the new
economy
A. from focusing on customer lifetime value to focusing on profitable transactions
B. from focusing on stakeholders to focusing on shareholders
C. from marketing does the marketing to everyone does the marketing
D. from focusing on customer retention to focusing on customer acquisition
15. Key Elements of a Business Model which answers the question “why should customer buy products
and services from a given firm?”

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 A Market Opportunity
B Competitive Environment
C Competitive Advantage
D Value proposition
16. The elimination of various types of agents that mediate between buyers and sellers, such as travel
and insurance agents, is referred to as
A) Automation.
B) disintermediation.
C) reintermediation.
D) e-distribution.
17. Competitive advantage that occurs when one firm develops an advantage based on a factor that other
firms cannot purchase.
A. First mover advantage
B. Unfair competitive advantage
C. channel differentiation
D. image differentiation
E. People differentiation
18. Information and entertainment providers like newspapers, sports sites and other on line sources that
offer customer up-to-date news are __________________
A. Portals
B. E-tailers
C. Content Provider
D. Transaction Brokers
19. Which one is not correct about B2B business model of E-procurement?
A. Create and sell access to digital electronic markets
B. Offer purchasing firms sophisticated set of sourcing and supply chain management tools.
C. Single firms creating digital markets where thousands of sellers and buyers transact
D. Single –firm online versions of retail and wholesale stores
20. _________________ is industry-owned vertical digital markets open to selected suppliers.
A. Single-firm networks
B. Industry-wide networks
C. Peer-to Peer(P2P)
D. Industry consortia
21. One of the Components of and the Participants in E-Marketplace which includes electronic
networks, databases, hardware, software, and more is ____________.
A. Infrastructure
B. Front end
C. Back end
D. Intermediaries

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22. Which one of the following refers to portals are intended for communities with specific interests and
involve relatively little customization of content; however, they provide extensive online search
features and some interactive capabilities.
A. Commercial (public) portals
B. Corporate (private) portals
C. Publishing portals
D. Mobile portals
23. Component of Ebusiness model which describes which customers are to be targeted by the
company’s marketing.
A. Marketing strategy.
B. Value proposition.
C. value chain
D. Competitive advantage
24. According to the ________ revenue model, the ecommerce company collects payment from
its clients for facilitating buying and selling on its own web platform
A. subscription fees
B. transaction fees
C. advertising fees
D. affiliate fees
25. According to the ________ revenue model, companies receive payment from its clients for
promoting the clients’ product on its web page.
A. advertising fees
B. subscription fees
C. affiliate fees
D. transaction fees
26. Which one of the following isn’t correct related to the impact of the emergence of electronic
marketplaces on the processes used in trading and supply chains?
A) lowering information search time and cost for buyers.
B) the ability of buyers, sellers, and the virtual market to each be in a different location.
C) the ability for EC to leverage capabilities with increased effectiveness
D) increased transaction and distribution costs, leading to inefficient markets.
27. Each of the following is a non-technological limitation of EC except
A) Software development tools are still evolving
B) Lack of trust in EC and in unknown sellers hinders buying.
C) People do not yet sufficiently trust paperless, faceless transactions.
D) Online fraud is increasing.
28. Key Elements of a Business Model which answers the question “what are our competencies
that we can leverage to win own rivals?”
E Market Opportunity
F Competitive Environment

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 G Competitive Advantage
H Value proposition
29. The introduction of new types of agents that mediate between buyers and sellers, such as
online travel and insurance agents, is referred to as
A. Automation.
B. disintermediation
C. reintermediation
D. e-procurement.
30. Competitive advantage when a firm tries to win the competition by being pioneer in
innovation, designing and introducing new product.
A. Unfair competitive advantage
B. Channel differentiation
C. First mover advantage
D. Image differentiation
31. On-line version of retail stores, where customers can shop at any hour of the day or night
without leaving their home or office
A. E-tailers
B. Content Provider
C. Transaction Brokers
D. Service Providers
32. Which one of the following is not B2C business model of Ecommerce?
A. Create and sell access to digital electronic markets
B. Offer purchasing firms sophisticated set of sourcing and supply chain management tools.
C. Single firm creating digital markets where thousands of sellers and buyers transact
D. Single –firm online versions of retail stores
33. ______________ Industry –owned networks to set standards, coordinate supply and logistics for the
industry.
E. Single-firm networks
F. Industry-wide networks
G. Peer-to Peer(P2P)
H. Industry consortia
I. All of the above
34. Which of the following is not one of the major functions of markets?
A. Enabling transactions to occur by providing a meeting place for buyers and sellers
B. Enabling the flow of materials and business operations
C. Providing services associated with market transactions, such as payments
D. Providing auxiliary services such as legal, auditing, and security
35. ___________ is the portion of an e-seller’s business processes through which customers
interact, including the seller’s portal, electronic catalogs, a shopping cart, a search engine,
and a payment gateway

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 A. Back end
B. Infrastructure
C. Front end
D. Products and services
36. A private e-marketplace in which one company makes purchases from invited suppliers
A. buy-side e-marketplace
B. sell-side e-marketplace
C. Public E-Marketplaces
D. All of the above
37. Which one of the following is not among common tools of web stores that are necessary for
conducting online sales?
A. electronic catalog;
B. an electronic shopping cart
C. e-auction facilities
D. customers encounter stations
38. A __________________ is a single point of access, through a Web browser, to critical
business information located inside and outside of organizations.
A. Information Portals
B. Electronic Malls
C. Microsites
D. Webstores
39. Which one of the following refers to portals that offer relatively narrow content and are
typically very personalized, effectively having an audience of one.
A. Corporate (private) portals
B. Personal portals
C. Commercial (public) portals
D. Mobile portals
40. Referencing the EC Consumer Behavior Model, which of the following factor is mostly
controlled by the sellers?
A) Product/service factors. C) Personal characteristics.
B) Merchant and intermediary factors. D) Environmental characteristics
41. One of the general purchasing-decision model phases where online product searches and
comparison engines can be very helpful.
A) Information search. C) Evaluation of alternatives.
B) Post purchase behavior. D) Purchase decision
42. A deep commitment to repurchase or patronize a preferred product/service continually in the
future refers to _____________________.
A) Customers’ trust C) Customer loyalty.
B) Brand position D) Behavioral targeting.
43. E-loyalty can result in all of the following except

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 A) Higher revenue
B) Higher marketing and advertising costs
C) Lower transaction costs
D) Lower customer turnover expenses
44. Which one of the following doesn’t have the potential to reduce customer loyalty?
A. the lower switching costs
B. special online offers and promotions by emarketers
C. ease to compare the price of products and evaluate the quality of vendors
D. implementing successful customers loyalty programs
45. The belief that an online website or other digital entities can deliver what they promise so
that the recipient depend on them best defines
A) Online trust C) e-loyalty
B) Reputation-based system D) e-satisfaction
46. Which of the following is a market research and personalization method that uses customer
data to predict, based on formulas derived from behavioral sciences, what other products or
services a customer may enjoy, extending predictions to other customers with similar
profiles?
A) Search advertising C) Market segmentation
B) Behavioral targeting D) Viral marketing
47. A data file that is placed on a user's hard drive by a remote Web server, frequently without
disclosure or the user's consent, which collects information about the user's activities at a site
best describes
A) Cookie C) Trace record
B) Spyware D) Popup
48. The requirements, preferences, behaviors, and demographic traits of a particular customer
best describes
A) Cookie C) User profile
B) Customer view D) Customer behavior
49. The matching of services, products, and advertising content with individual consumers and
their preferences best describes
A) Smart marketing C) Personalization
B) mass marketing D) Decentralized marketing
50. All are the market researcher’s goal in conducting marketing research except
A. to identify marketing opportunities and problems
B. to provide input for marketing planning
C. to evaluate the efficiency of business operation
D. to find out how to influence the purchasing process,
51. Which one of the following is not among questions that online market research attempts to
answer?
A) What are the purchase patterns for typical individuals
B) What are the purchase patterns for specific groups?
C) How do customer handle their private issues?
D) What is the optimal Web page design?
52. A record of user activities on a company’s website from the computer log best defines
A) User profile C) Transaction log
B) Click stream D) Web bugs

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53. Software that enters in to user’s computer like a virus does and gathers user information over
an Internet connection without the user's knowledge is ___________.
A) Cookie C) Spyware.
B) Ad-aware. D) Web mining
54. Data mining techniques for discovering and extracting information from Web documents,
exploring both Web content and Web usage, best defines
A) Web brokering. C) Web mining.
B) Collaborative filtering. D) Web analytics
55. A marketing arrangement by which an organization refers consumers to the selling
company's website best defines
A) Subscription fee marketing C) Advertizing fee brokering.
B) Affiliate marketing. D) Click stream marketing.
56. A popular Internet advertising payment model where advertisers pay their host only when the
ad is clicked on best defines
A. click stream marketing C. Page pricing.
B. Banner pricing. D. Pay per click
Use the below given choices to answer question number 18-21
A) Conversion rate D) Landing page
B) Click through rate/ratio (CTR) E) Ad views
C) Hit F) Click (ad click)
57. A count made each time a visitor clicks on an advertising banner to access the advertiser’s
website.
A. Hit
B. Landing page
C. Ad views
D. Click (ad click)
58. The number of times users call up a page that has a banner on it during a specific period;
known as impressions or page views.
A. Click through rate
B. Landing page
C. Ad views
D. Click (ad click)
59. The percentage of visitors who are exposed to a banner ad and click on it.
A. Conversion rate
B. Click through rate/ratio (CTR)
C. Hit
D. Landing page
60. The percentage of clickers who actually make a purchase.

A. Conversion rate
B. Click through rate/ratio (CTR)
C. Hit
D. Landing page

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61. Which one of the following is correct statement?
A. A retailer is a sales intermediary between manufacturers and whole sellers
B. sellers who conduct retail business online are called e-retailers
C. Retailing conducted over the Internet is called e-tailers
D. Retailers are more used by companies that produce small quantity than companies that
produce a large number of products for millions of customers.
62. Which one of the following is/are characteristics of goods that are expected to sell the most
through e-tailing?
A) Digitized format
B) Relatively expensive items
C) Commodities for which physical inspection is necessary
D) Packaged items that you normally have to open and test in a physical store
63. Which one of the following is advantages of E-tailing to the sellers?
A) Pay less than in traditional or even discount stores.
B) Change prices and catalogs quickly
C) Find products/services not available in local stores.
D) Shop globally: compare prices and services.
64. Which one of e-tailing model is considered as multichannel business model?
A) Direct marketing by manufacturers
B) Pure-play e-tailers
C) Click-and-mortar (“brick-and-click”) retailers
D) Internet (online) malls
65. Referring directories online mall is best defined by
A. virtual mall contains a directory organized by product type
B. a consumer can find a product, order and pay for it, and arrange for shipment.
C. The hosting mall provides the services
D. the customer may go to different stores in the same mall, use one shopping cart, and
pay only once
66. Which of the following is a characteristic of e-tailing?
A. Competition is local
B. Customer relations are less stable due to anonymous contacts
C. Price changes are expensive, but can be done at anytime
D. Fewer resources are needed to increase customer loyalty
67. A business model where a company sells in multiple marketing channels simultaneously best
defines
A. Multichannel business model C. Personalized marketing
B. Direct marketing business D. Revenue enhancement
channel
68. Compared to the traditional job market, the online job market
A. has a shorter life cycle.
B. is usually specialized and local in scope.

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 C. tends to be less reliable.
D. tends to be much less expensive.
69. Advantages of the electronic job market for job seekers include
A. Easly accessing newsgroups that are dedicated to finding jobs.
B. reducing application-processing costs by using electronic application forms.
C. conducting candidates interviews online.
D. viewing salary surveys for recruiting strategies.
70. Which of the following payment card that enables its holder to charge items (and pay later),
or obtain cash up to the cardholder’s authorized limit?
A. charge card
B. credit card
C. debit card
D. stored value card
71. The type of payment card where the money for a purchased item comes directly out of the
holder's checking account is a
A. credit card
B. charge card
C. debit card
D. stored value card
72. The process of determining whether a card is active and whether the customer has sufficient
funds for the purchase is called
A. settlement
B. approval
C. authorization
D. procurement
73. Each of the following is a basic configuration for processing online payments except
A. own the payment software
B. require the issuing bank to provide the software and the point of sale system
C. use a point of sale system operated by an acquirer.
D. use a point of sale system operated by a payment provider.
74. ________ offer Internet Merchant Accounts, which are special accounts for credit card
authorization and payment processing.
A. Acquiring banks
B. Issuing banks
C. Credit card associations
D. Payment processing services
75. Stored-value cards that are issued by a specific merchant or merchant group and that can only
be used to make purchases from that merchant or merchant group are called
A. open-loop cards
B. closed-loop cards
C. merchant-specific cards
D. designated cards
76. The micropayment model where payments from a single consumer are batched together
and processed only after a certain time period has expired or a certain monetary threshold is
reached describes
A. aggregation

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 B. stored value
C. subscriptions
D. direct payment
77. A smart card containing a small gold plate on the face that when inserted in a smart card
reader makes contact and passes data to and from the embedded microchip is a
A) golden card
B) contact card
C) proximity card
D) dedicated card

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