E-commerce test

bank

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 Answer the following questions:
1. How has globalization impacted the way businesses
operate?
A) It has made businesses more isolated.
B) It has enabled businesses to operate in global markets
and access international customers.
C) It has decreased competition among businesses.
D) It has limited technological advancements.
Answer: B) It has enabled businesses to operate in global
markets and access international customers.
2. What is one of the main reasons organizations invest
in IT infrastructure?
A) To decrease productivity
B) To isolate their data from the global market
C) To support growth, improve efficiency, and remain
competitive
D) To reduce global outreach
Answer: C) To support growth, improve efficiency, and
remain competitive
3. How does IT integration benefit businesses?
A) By limiting the use of digital tools
B) By improving data management and decision-making
C) By increasing operational costs
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 D) By reducing global connectivity
Answer: B) By improving data management and decision-
making
4. What role does IT play in helping businesses respond
to market changes?
A) It slows down communication between departments.
B) It allows businesses to automate processes and make
quicker decisions.
C) It limits businesses' ability to adapt.
D) It decreases customer interaction.
Answer: B) It allows businesses to automate processes and
make quicker decisions.
5. What is a key benefit of globalization for businesses
that invest in IT systems?
A) Decreased need for collaboration
B) Access to global supply chains and markets
C) Increased operational complexity
D) Limited use of data analytics
Answer: B) Access to global supply chains and markets

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 6. Which of the following best describes the term "e-
commerce"?
A) Using postal mail for product delivery
B) Conducting business transactions through electronic
means and the internet
C) Buying products through TV advertisements
D) Trading goods only in physical stores
Answer: B) Conducting business transactions through
electronic means and the internet
7. What does EDI stand for in the context of e-
commerce?
A) Electronic Data Interface
B) Electronic Data Interchange
C) Electronic Delivery Information
D) Enterprise Data Interaction
Answer: B) Electronic Data Interchange
8. Which of the following is NOT a common payment
method in e-commerce transactions?
A) Cash on delivery
B) Credit card
C) Debit card
D) Electronic Fund Transfer (EFT)

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 Answer: A) Cash on delivery
9. What is one of the key components of an e-commerce
platform?
A) Wireless purchase carts or purchase baskets for
transactions
B) Physical stores located globally
C) Paper-based transaction systems
D) Manual data entry for inventory
Answer: A) Wireless purchase carts or purchase baskets for
transactions
10. Which statement best explains the role of digital
information processes in e-commerce?
A) To delay communication between organizations
B) To create, modify, and redefine business relationships
and value generation
C) To remove all human involvement from the transaction
process
D) To handle only personal emails between buyers and
sellers
Answer: B) To create, modify, and redefine business
relationships and value generation

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 11. What does it mean when e-commerce is described as
"ubiquitous"?
A) It is available only in specific locations.
B) It is accessible only during business hours.
C) It is available almost everywhere and at all times.
D) It requires physical visits to a store.
Answer: C) It is available almost everywhere and at all
times.
12. Which of the following is an example of a place
where e-commerce can be accessed through Wi-Fi?
A) Deserted areas with no internet connectivity
B) Coffee shops, airports, and hill stations
C) Only in retail stores
D) Places without any network infrastructure
Answer: B) Coffee shops, airports, and hill stations
13. How can consumers access e-commerce platforms
outside of their homes or offices?
A) Only through desktop computers
B) Using mobile devices with Wi-Fi or data connections
C) By using postal services
D) Only through video game systems

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 Answer: B) Using mobile devices with Wi-Fi or data
connections
14. What is the benefit of having a cell phone with data
capabilities in terms of e-commerce?
A) It limits internet usage to home Wi-Fi.
B) It allows access to the internet and e-commerce
platforms without needing a Wi-Fi connection.
C) It requires being connected to a desktop.
D) It restricts access to certain websites.
Answer: B) It allows access to the internet and e-commerce
platforms without needing a Wi-Fi connection.
15. In which of the following ways does the ubiquity of
e-commerce benefit consumers?
A) They can only access e-commerce at specific times.
B) It limits e-commerce to office computers.
C) It allows consumers to shop from anywhere at any time.
D) It forces consumers to rely on physical stores.
Answer: C) It allows consumers to shop from anywhere at
any time

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 16. How do social networks use e-commerce
technologies?
A) By limiting content sharing to private groups
B) By allowing members to share content with a global
audience
C) By restricting commercial information sharing
D) By prohibiting personal information sharing
Answer: B) By allowing members to share content with a
global audience
17. What can consumers with accounts on social
networks do using e-commerce technologies?
A) Share only personal information
B) Share both personal and commercial information to
promote products or services
C) Only view commercial information
D) Restrict information sharing to small groups
Answer: B) Share both personal and commercial
information to promote products or services
18. What is one key benefit for businesses using social
networks for e-commerce?
A) They can limit their reach to local audiences.
B) They can promote products or services to a worldwide
community.

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 C) They can avoid sharing commercial information.
D) They must rely on traditional advertising.
Answer: B) They can promote products or services to a
worldwide community.
19. In e-commerce, what role do social networks play
for the general public?
A) They prevent users from sharing personal content.
B) They provide a platform for members to share content
and promote products or services.
C) They restrict account holders from accessing
commercial information.
D) They focus exclusively on personal interactions.
Answer: B) They provide a platform for members to share
content and promote products or services.
20. How do social networks help businesses through e-
commerce technologies?
A) By offering an exclusive space for non-commercial
interactions
B) By enabling businesses to reach a global audience and
promote products/services
C) By limiting business interactions to specific regions
D) By focusing only on physical store promotions
Answer: B) By enabling businesses to reach a global
audience and promote products/services
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 21. How has the rise of e-commerce affected traditional
brick-and-mortar businesses?
A) It has eliminated the need for online shopping.
B) It has led to increased competition and declining foot
traffic for some physical retailers.
C) It has helped brick-and-mortar businesses increase in-
person sales.
D) It has not affected traditional businesses at all.
Answer: B) It has led to increased competition and
declining foot traffic for some physical retailers.
22. Why do many consumers prefer e-commerce over
traditional shopping?
A) It offers a limited selection of products.
B) It is less convenient than shopping in physical stores.
C) It provides the convenience of shopping from anywhere
at any time.
D) It requires them to visit physical stores for pickups.
Answer: C) It provides the convenience of shopping from
anywhere at any time.

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 23. How have some traditional businesses adapted to the
rise of e-commerce?
A) By closing their physical stores entirely
B) By refusing to engage in online sales
C) By integrating e-commerce into their operations and
offering online ordering and delivery services
D) By reducing their inventory and focusing on in-person
sales only
Answer: C) By integrating e-commerce into their
operations and offering online ordering and delivery services
24. What is one challenge that traditional brick-and-
mortar stores face due to e-commerce?
A) Increased online customer traffic
B) Declining foot traffic and reduced in-store sales
C) Higher costs of maintaining an online presence
D) The inability to compete with other physical stores
Answer: B) Declining foot traffic and reduced in-store sales
25. Which of the following strategies can help
traditional businesses compete with e-commerce?
A) Ignoring online sales
B) Only focusing on local customers
C) Offering online shopping options and delivery services
D) Reducing their product offerings
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 Answer: C) Offering online shopping options and delivery
services
26. How are electronic technologies expected to impact
industries over the next decade?
A) They will be limited to specific sectors.
B) They will progressively be deployed throughout the
entire supply chain of all industries.
C) They will become obsolete and replaced by traditional
methods.
D) They will only affect small businesses.
Answer: B) They will progressively be deployed
throughout the entire supply chain of all industries.
27. What is expected to happen to the term "e-
Business" in the future?
A) The "e" will become redundant, and it will simply be
called "business."
B) The term will be used more frequently than ever.
C) The term will be replaced by "traditional business."
D) It will become irrelevant as businesses return to offline
methods.
Answer: A) The "e" will become redundant, and it will
simply be called "business."

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 28. Why is the "e" in e-Business expected to become
redundant?
A) Because traditional business methods will no longer
exist.
B) Because conducting business electronically will become
so commonplace that it will be the new standard.
C) Because electronic technologies will be phased out.
D) Because all industries will abandon the use of
technology.
Answer: B) Because conducting business electronically
will become so commonplace that it will be the new standard.
29. What does the future of business operations look
like according to the text?
A) Businesses will revert to paper-based systems.
B) All business will be conducted through a new electronic
medium.
C) E-business will be limited to certain industries.
D) Businesses will operate only in physical locations.
Answer: B) All business will be conducted through a new
electronic medium.

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 30. Which of the following is a likely outcome of the
continuous deployment of electronic technologies in
business?
A) Business processes will remain unchanged.
B) Supply chains will become more digital and integrated
with technology.
C) The use of the internet will decline in business
operations.
D) Businesses will resist adopting new technologies.
Answer: B) Supply chains will become more digital and
integrated with technology
31. How can electronic commerce impact a firm's sales
and costs?
A) It can increase sales and decrease costs.
B) It only increases costs without affecting sales.
C) It decreases sales and increases costs.
D) It has no effect on sales or costs.
Answer: A) It can increase sales and decrease costs.
32. What is one benefit of web-based advertising for
small firms?
A) It limits their reach to local markets.
B) It allows them to spread their promotional message
globally, reaching consumers in every country.

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 C) It increases their reliance on physical stores.
D) It restricts them to advertising within their geographic
location.
Answer: B) It allows them to spread their promotional
message globally, reaching consumers in every country.
33. How can firms use electronic commerce to target
specific markets?
A) By reaching narrow market segments that are
geographically scattered.
B) By focusing only on large, generalized markets.
C) By avoiding online advertising altogether.
D) By using physical advertising methods.
Answer: A) By reaching narrow market segments that are
geographically scattered.
34. What is a virtual community in the context of
electronic commerce?
A) A gathering of people who share a common interest in
the physical world.
B) A group of people who share a common interest,
gathering on the internet.
C) A physical group meeting to discuss products.
D) A company’s internal team for marketing.
Answer: B) A group of people who share a common
interest, gathering on the internet.
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 35. Why is the web useful for businesses in terms of
marketing?
A) It restricts companies to local advertising.
B) It helps create virtual communities that can become
target markets for specific products or services.
C) It limits companies to traditional marketing methods.
D) It only works for large corporations.
Answer: B) It helps create virtual communities that can
become target markets for specific products or services.
36. What is one key advantage of e-commerce for
consumers?
A) Higher trade rates for stock exchange members
B) Lower trade rates for stock exchange members
C) Increased fees for online transactions
D) Limited access to online markets
Answer: B) Lower trade rates for stock exchange members
37. How does e-commerce provide enhanced flexibility
for consumers?
A) Purchases can only be made during business hours.
B) Purchases can be carried out 24 hours a day without
physical contact with the firm.
C) Purchases require in-person meetings with sellers.
D) Purchases are restricted to physical store visits.
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 Answer: B) Purchases can be carried out 24 hours a day
without physical contact with the firm.
38. How does e-commerce help consumers save time?
A) By requiring physical store visits for each transaction.
B) Consumers can purchase or sell any product online at
any time.
C) By limiting purchase options to local markets.
D) By increasing the amount of time needed for purchases.
Answer: B) Consumers can purchase or sell any product
online at any time.
39. What benefit does e-commerce provide in terms of
information access for consumers?
A) Consumers have limited access to product details.
B) Consumers can easily and continuously access
information by clicking on multiple pages.
C) Consumers can only view product information in
physical stores.
D) Access to product details is only available during
business hours.
Answer: B) Consumers can easily and continuously access
information by clicking on multiple pages.

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 40. What is an example of how e-commerce improves
customer convenience?
A) It requires direct interaction with sellers.
B) It allows consumers to gather product information with
the click of a button.
C) It limits product availability to local regions.
D) It requires long processing times for orders.
Answer: B) It allows consumers to gather product
information with the click of a button.
41. How does e-commerce contribute to revenue
generation for sellers?
A) By limiting product offerings
B) By reaching a broader audience and increasing sales
opportunities
C) By increasing costs associated with sales
D) By focusing only on local markets
Answer: B) By reaching a broader audience and increasing
sales opportunities

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 42. What is one of the significant cost advantages of e-
commerce for sellers?
A) Increased maintenance costs
B) Significant reductions in operational and maintenance
costs
C) Higher costs associated with physical stores
D) Increased advertising expenses
Answer: B) Significant reductions in operational and
maintenance costs
43. How does e-commerce affect purchasing and
procurement costs for sellers?
A) It increases the costs associated with procurement.
B) It reduces the costs spent on purchasing and
procurement.
C) It has no impact on purchasing costs.
D) It requires sellers to purchase more inventory.
Answer: B) It reduces the costs spent on purchasing and
procurement.
44. In what way can e-commerce help sellers with
customer loyalty and retention?
A) By decreasing customer service options
B) By raising customer loyalty and retention through
personalized experiences

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 C) By limiting communication with customers
D) By reducing product variety
Answer: B) By raising customer loyalty and retention
through personalized experiences
45. How does e-commerce affect transportation costs for
sellers?
A) It increases transportation costs significantly.
B) It has no effect on transportation costs.
C) It significantly reduces budget spending on
transportation of products.
D) It requires sellers to use multiple transportation
methods.
Answer: C) It significantly reduces budget spending on
transportation of products.
46. What impact does e-commerce have on the
relationship between customers and suppliers?
A) It complicates relationships.
B) It improves and develops the relationship between
customers and suppliers.
C) It eliminates the need for communication.
D) It reduces customer engagement.
Answer: B) It improves and develops the relationship
between customers and suppliers.

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 47. How does e-commerce speed up the selling process
for sellers?
A) By requiring longer transaction times
B) By automating sales processes and facilitating quicker
transactions
C) By limiting product availability
D) By increasing the complexity of the sales process
Answer: B) By automating sales processes and facilitating
quicker transactions
48. In what way does e-commerce enhance
communication for sellers?
A) By making internal and external communication more
challenging
B) By improving internal and external communication
C) By reducing the need for communication altogether
D) By only facilitating communication with physical store
staff
Answer: B) By improving internal and external
communication
49. Google prefers unique and relevant content for
better search rankings.
Answer: True

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 50. Enhancing domain registrations is a reason that
guarantees the future prospect of e-commerce in India.
Answer: True
51. The number of internet users in India is decreasing,
which negatively impacts e-commerce prospects.
Answer: False
53. E-commerce should prioritize customer experience
to build trust and confidence.
Answer: True
54. Customer experience only involves the interaction
during the order placement.
Answer: False
55. What does customer experience encompass in the
context of e-commerce?
A) Only the product quality
B) Every interaction from placing an order to delivery
C) Pricing strategies
D) Advertising methods
Answer: B) Every interaction from placing an order to
delivery
56. What is a core aspect of providing a great delivery
experience?
A) Faster deliveries only

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 B) Consistency and reliability
C) Higher shipping costs
D) Limited delivery options
Answer: B) Consistency and reliability
57. How does customer trust in delivery services affect
their purchasing behavior?
A) The more trust a customer has, the less likely they are to
buy again.
B) The more faith the customer has in the delivery service,
the more likely they are to buy again.
C) Trust in delivery services has no impact on purchasing
behavior.
D) Customers prefer to buy only from local stores
regardless of delivery trust.
Answer: B) The more faith the customer has in the delivery
service, the more likely they are to buy again.
58. Which of the following is NOT a component of
customer experience in e-commerce?
A) Placing an order
B) Interacting with customer service
C) The delivery experience
D) The advertising campaign
Answer: D) The advertising campaign

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 59. What aspect of customer service is essential for
enhancing customer experience?
A) Limited interaction with customers
B) Focus solely on product features
C) Responsive and helpful interactions
D) Avoiding customer feedback
Answer: C) Responsive and helpful interactions
60. What does a positive delivery experience NOT
include?
A) Fast delivery
B) Consistent delivery
C) Frequent delays
D) Reliable service
Answer: C) Frequent delays
61. Which factor significantly contributes to customer
delight in e-commerce?
A) High product prices
B) A poor return policy
C) A great delivery experience
D) Lack of product variety
Answer: C) A great delivery experience

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 62. A great delivery experience is considered a core
aspect of customer satisfaction in e-commerce.
Answer: True
63. What does e-tailing encompass?
A) Selling services exclusively
B) Buying consumer items online
C) Renting products
D) Offline retailing
Answer: B) Buying consumer items online
64. Which of the following is NOT an example of a
consumer item typically bought through e-tailing?
A) Apparel
B) Electronics
C) Personal training sessions
D) Home appliances
Answer: C) Personal training sessions
65. What is a characteristic of the e-tailing segment?
A) High entry barriers
B) Intense competition
C) Limited product variety
D) Exclusively luxury items
Answer: B) Intense competition
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 66. Which of the following companies is NOT mentioned
as a major player in the e-tailing market?
A) Amazon.com
B) Flipkart
C) eBay
D) Myntra.com
Answer: C) eBay
67. Why is competition intense in the e-tailing segment?
A) Due to high costs of operation
B) Because of the low entry barrier
C) Due to limited internet access
D) Because of a small customer base
Answer: B) Because of the low entry barrier
68. Which of the following is a significant player in the
Indian e-tailing market?
A) Walmart
B) Snapdeal.com
C) Alibaba
D) Best Buy
Answer: B) Snapdeal.com

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 69. What types of products can be purchased through e-
tailing?
A) Only electronic devices
B) Only clothing items
C) A wide range of consumer goods
D) Only luxury items
Answer: C) A wide range of consumer goods
70. E-tailing primarily focuses on which of the following
channels?
A) Brick-and-mortar stores
B) Online sales platforms
C) Direct selling through representatives
D) Wholesale markets
Answer: B) Online sales platforms
71. 1. Economists classify transactions into two
categories: market transactions and which other type?
A) Private transactions
B) Government transactions
C) Internal transactions
D) International transactions
Answer: C) Internal transactions

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 72. What is the typical market hierarchy order
mentioned in the text?
A) Retailer, consumer, wholesaler, manufacturer
B) Manufacturer, retailer, wholesaler, consumer
C) Manufacturer, wholesaler, retailer, consumer
D) Consumer, retailer, manufacturer, wholesaler
Answer: C) Manufacturer, wholesaler, retailer, consumer
73. Which of the following factors does NOT influence
the choice of transaction?
A) Asset specificity
B) Parties' interests
C) Market size
D) Ambiguity and uncertainty
Answer: C) Market size
74. What do production and coordination costs refer to
in the context of transactions?
A) Only costs related to raw materials
B) Costs associated with information processing and
coordination
C) Only costs of machinery
D) Costs unrelated to the primary processes

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 Answer: B) Costs associated with information processing
and coordination.
75. What type of costs include the transaction
(governance) costs necessary to coordinate work?
A) Production costs
B) Coordination costs
C) Fixed costs
D) Variable costs
Answer: B) Coordination costs
76. According to the text, what role does asset specificity
play in transactions?
A) It has no impact on the transaction choice.
B) It affects the level of uncertainty in the market.
C) It influences the choice of transaction type.
D) It only affects production costs.
Answer: C) It influences the choice of transaction type.
77. Which of the following best describes market
transactions?
A) Transactions supporting internal firm coordination
B) Transactions involving coordination between buyers and
sellers
C) Transactions that involve only consumers

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 D) Transactions that eliminate costs
Answer: B) Transactions involving coordination between
buyers and sellers
78. The governance costs of information processing are
part of which broader cost category?
A) Production costs
B) Coordination costs
C) Fixed costs
D) Marketing costs
Answer: B) Coordination costs
79. How can transaction cost savings be achieved
according to the text?
A) Through increased manual processes
B) By eliminating all transactions
C) Through the use of information technology
D) By reducing product quality
Answer: C) Through the use of information technology
80. In what context are transaction cost savings
discussed?
A) Only within individual companies
B) Throughout the entire market hierarchy and value chain
C) In only online transactions

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 D) In physical retail transactions only
Answer: B) Throughout the entire market hierarchy and
value chain
81. What is provided as an example to illustrate
transaction cost savings?
A) Purchase of a low-quality shirt
B) Purchase of a high-quality shirt
C) Online subscription services
D) Purchasing electronics
Answer: B) Purchase of a high-quality shirt
82. What do researchers demonstrate through empirical
cost figures in the example mentioned?
A) Increased transaction costs for consumers
B) Actual savings in transaction costs
C) Higher production costs for manufacturers
D) The necessity of physical retailing
Answer: B) Actual savings in transaction costs

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 83. The lower purchase costs for the consumer are a
result of:
A) Increased marketing expenses
B) High-quality production
C) Savings in transaction costs
D) Reduced shipping options
Answer: C) Savings in transaction costs
84. What is the basic premise of all marketing efforts?
A) That there are no specific consumer audiences
B) That there is a specific consumer audience
C) That marketing is only for large firms
D) That marketing is unnecessary in a digital age
Answer: B) That there is a specific consumer audience
85. Who are consumers in the context of marketing?
A) Only individuals
B) Specific firms or individuals within an industry
C) Retailers and distributors only
D) Competitors within the same market
Answer: B) Specific firms or individuals within an industry

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 86. What are the three main foci of orientation within
marketing efforts?
A) Market orientation, technology orientation, and
customer orientation
B) Customer orientation, product orientation, and profit
orientation
C) Advertising orientation, distribution orientation, and
pricing orientation
D) Sales orientation, market segmentation, and consumer
behavior
Answer: B) Customer orientation, product orientation, and
profit orientation
87. What does customer orientation primarily focus on?
A) Increasing production efficiency
B) Understanding and fulfilling customer needs
C) Reducing marketing costs
D) Expanding product lines
Answer: B) Understanding and fulfilling customer needs
88. According to the text, customer orientation includes:
A) Only attitudes towards marketing
B) Only conducting market research
C) An attitude and a pattern of conduct
D) Focusing solely on profit margins
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 Answer: C) An attitude and a pattern of conduct
89. The extent to which a firm tries to determine what
its customers want is known as:
A) Product orientation
B) Customer orientation
C) Profit orientation
D) Market segmentation
Answer: B) Customer orientation
90. Which of the following is NOT one of the main foci
of orientation in marketing?
A) Customer orientation
B) Competition orientation
C) Product orientation
D) Profit orientation
Answer: B) Competition orientation
91. The goal of customer orientation is to:
A) Increase the firm's production capacity
B) Focus on competitor strategies
C) Determine what customers want and deliver it
D) Maximize short-term profits
Answer: C) Determine what customers want and deliver it

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 92.Which of the following best describes the impact of
information technology on transaction costs?
A) It increases transaction costs across all markets.
B) It has no effect on transaction costs.
C) It helps to lower transaction costs.
D) It only affects production costs.
Answer: C) It helps to lower transaction costs.
93. Transaction cost savings benefit which group the
most?
A) Only manufacturers
B) Only retailers
C) Consumers
D) Market regulators
Answer: C) Consumers
94. The concept of transaction cost savings emphasizes
the importance of:
A) Increasing physical store presence
B) Efficient communication and processing
C) Reducing product variety
D) Minimizing online presence
Answer: B) Efficient communication and processing

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 95.What does the term "liquid marketing" describe?
A) A rigid and structured approach to marketing
B) An evolving setting with various characteristics
C) Traditional methods of offline marketing
D) A focus solely on mass marketing strategies
Answer: B) An evolving setting with various characteristics
96. Which of the following is NOT a characteristic of
liquid marketing?
A) Frictionless interactions
B) Customer-centric approach
C) Rigid communication
D) Immediate accessibility
Answer: C) Rigid communication
97. Liquid marketing emphasizes which type of
relationships?
A) Short-term and transactional
B) Cooperative and dynamic
C) Isolated and independent
D) Non-interactive and static
Answer: B) Cooperative and dynamic

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 98. What aspect of liquid marketing focuses on
individual accessibility?
A) Mass marketing
B) Disintermediation
C) Personalized marketing
D) Cooperative marketing
Answer: C) Personalized marketing
99. The term "frictionless" in the context of liquid
marketing refers to:
A) Complicated and lengthy processes
B) Smooth and seamless interactions
C) Difficulties in communication
D) High transaction costs
Answer: B) Smooth and seamless interactions
100. Which of the following best describes the nature of
communication in liquid marketing?
A) One-way communication
B) Interactive and dynamic
C) Non-participatory
D) Isolated
Answer: B) Interactive and dynamic

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 101. In liquid marketing, the use of technology
primarily aims to:
A) Increase the number of intermediaries
B) Enhance the fluidity and immediacy of interactions
C) Make marketing less accessible
D) Reduce customer involvement
Answer: B) Enhance the fluidity and immediacy of
interactions
102. Which phrase best encapsulates the relationship
focus of liquid marketing?
A) Individualistic and transactional
B) Customer-centric and interactive
C) Business-to-business only
D) Product-centric and traditional
Answer: B) Customer-centric and interactive
103. What do the key drivers of e-commerce highlight?
A) The economic stability of a country
B) The stages of advancement of e-commerce in different
countries
C) The historical data of internet usage
D) The marketing strategies of firms

38
 Answer: B) The stages of advancement of e-commerce in
different countries
104. Which of the following is a criterion for
determining the level of advancement of e-commerce?
A) Political factors
B) Technological factors
C) Cultural factors
D) Environmental factors
Answer: B) Technological factors
105. What is the primary focus of technological factors
in relation to e-commerce?
A) The number of online businesses
B) The advancement of telecommunications infrastructure
C) The financial investment in marketing
D) The variety of products available
Answer: B) The advancement of telecommunications
infrastructure
106. How has the development of ICT impacted e-
commerce?
A) It has reduced the need for online shopping.
B) It has hindered the growth of e-commerce.
C) It has facilitated the growth of e-commerce.

39
 D) It has only benefited large corporations.
Answer: C) It has facilitated the growth of e-commerce.
107.How is economic integration categorized?
A) Only external
B) Only internal
C) Both external and internal
D) Neither external nor internal
Answer: C) Both external and internal
108. What does external integration involve?
A) Networking of internal departments only
B) Electronic networking of various stakeholders into a
virtual community
C) Restricting communication to physical interactions
D) Focusing solely on customer relationships
Answer: B) Electronic networking of various stakeholders
into a virtual community
109. In the context of economic integration, which of the
following is included in external integration?
A) Only customers
B) Only suppliers
C) Corporations, suppliers, customers, and independent
contractors

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 D) Only independent contractors
Answer: C) Corporations, suppliers, customers, and
independent contractors
110. What is the primary medium used for external
integration?
A) Traditional media
B) Television
C) The Internet
D) Telephone communication
Answer: C) The Internet
111. Internal integration refers to:
A) Networking between external partners only
B) Networking of various departments within a corporation
C) Limiting communication to management only
D) Reducing interdepartmental communication
Answer: B) Networking of various departments within a
corporation

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 112. What is the main goal of both external and internal
integration?
A) To increase operational costs
B) To enhance communication and efficiency
C) To reduce the number of stakeholders
D) To limit the use of technology
Answer: B) To enhance communication and efficiency
113. Which of the following is NOT a component of
external integration?
A) Suppliers
B) Departments within a corporation
C) Independent contractors
D) Customers
Answer: B) Departments within a corporation
114. What technological advances have contributed to
the convergence of communication services?
A) Increased use of paper
B) Digitizing content and compression
C) Elimination of online platforms
D) Increased internet fees
Answer: B) Digitizing content and compression

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 115. What is one benefit of having a single platform for
communication services?
A) Higher communication costs
B) Complicated network setups
C) More efficient and economical communication
D) Increased number of service providers
Answer: C) More efficient and economical communication
116. From the perspective of businesses and consumers,
having one information provider means:
A) Higher costs for services
B) More choices in communication
C) Lower communication costs
D) Reduced efficiency in communication
Answer: C) Lower communication costs
117. What has been eliminated due to the convergence
of communication services?
A) The need for online marketing
B) The requirement for separate networks for various
services
C) The need for customer service
D) The existence of traditional retail

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 Answer: B) The requirement for separate networks for
various services
118. What does B2B stand for in the context of e-
commerce?
A) Business-to-Consumer
B) Business-to-Business
C) Business-to-Broker
D) Business-to-Bank
Answer: B) Business-to-Business
119. Which of the following best describes B2B e-
commerce?
A) E-commerce between businesses and consumers
B) E-commerce that includes all electronic products or
services transfers between firms
C) E-commerce focused solely on retail sales
D) E-commerce that only involves service providers
Answer: B) E-commerce that includes all electronic
products or services transfers between firms
120. Which type of companies primarily use B2B e-
commerce for electronic trading?
A) Retail companies only
B) Producers and traditional industrial wholesale
companies

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 C) Service-oriented businesses only
D) Small local businesses
Answer: B) Producers and traditional industrial wholesale
companies
121. What percentage of e-commerce is estimated to be
B2B?
A) About 50%
B) About 65%
C) About 80%
D) About 90%
Answer: C) About 80%
122. According to experts, which segment of e-
commerce is expected to grow faster?
A) B2C segment
B) C2B segment
C) B2B segment
D) B2G segment
Answer: C) B2B segment
123. B2B e-commerce primarily deals with relationships
between:
A) Businesses and consumers
B) Government and businesses

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 C) Businesses and other businesses
D) Non-profits and businesses
Answer: C) Businesses and other businesses
124. What is the main characteristic of B2B e-
commerce?
A) It focuses on individual consumer purchases.
B) It involves transactions between two or more businesses.
C) It is limited to the sale of physical goods.
D) It is only applicable to online marketplaces.
Answer: B) It involves transactions between two or more
businesses.
125. Why do experts predict that B2B e-commerce will
continue to grow?
A) Because it is more profitable than B2C
B) Due to the increasing complexity of consumer needs
C) Because it has a larger market share and increased
efficiency
D) Due to the decline of traditional businesses
Answer: C) Because it has a larger market share and
increased efficiency

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