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SOF640 E-Commerce Final Exam

Indicate whether the statement is true or false.

____1.Transferring funds, placing orders, sending invoices, and shipping goods to customers are all types of activities or transactions.

____2.Business-to-consumer electronic commerce occurs when a person sells an item through a Web auction site to another person.

____3.An airline ticket is an excellent example of an item with a high value-to-weight ratio.

____4.Electronic commerce reduces the speed and accuracy with which businesses can exchange information.

____5.Electronic payment can be easier to audit and monitor than payment made by check.

____6.Using the value chain reinforces the idea that electronic commerce should be a business solution, not technology implemented for its own sake.

____7.E-mail was born in 1972 when a researcher wrote a program that could send and receive messages over the network.

____8.An HTML document is similar to a word-processing document in that it specifies how a particular text element will appear.

____9.IP addresses appear as five numbers separated by periods.

____10.A domain name is a set of words assigned to specific IP addresses.

____11.The POP protocol provides support for MIME.

____12.Although fax, e-mail, and overnight carriers have been the main communications tools for business for many years, extranets can replace many of them at a lower cost.

____13.Although an extranet is a VPN, not every VPN is an extranet.

____14.Academic publishing has always been a relatively easy business in which to make a profit.

____15.Most successful advertising on the Web is targeted to very specific groups.

____16.Most newspaper publishers have found that the cost of operating their Web sites cannot be covered by the revenue they generate from selling advertising on the sites.

____17.On Web sites that use the advertising-subscription revenue model, subscribers are typically subjected to much more advertising than they are on advertising-supported sites.

____18.In the fee-for-service model, the fee is based on the value of the service provided.

____19.A good Web site design can provide many image-creation and image-enhancing features very effectively—it can serve as a sales brochure, a product showroom, a financial report, an employment ad, and a customer contact point.

____20.Most companies tend not to worry much about the image they project until they grow to a significant size.

____21.When creating a marketing strategy, managers must consider both the nature of their products and the nature of their potential customers.

____22.In a virtual world, companies can convey a large part of their message by the way they construct buildings and design their floor space.

____23.On the Web, retailers can provide separate virtual spaces for different market segments.

____24.“Clickwords” is a term for words used to prompt a visitor to stay and investigate the products or services offered on a site.

____25.The reason that one-to-one marketing and usage-based segmentation are so valuable is that they help to strengthen companies’ relationships with its customers.

____26.The cost of acquiring a new customer is less than the cost of retaining one.

____27.Rational branding relies on a broad emotional appeal.

____28.An emerging characteristic of purchasing, logistics, and support activities is that they need to be flexible.

____29.Businesses make a distinction between direct and indirect materials.

____30.Using VANs can become cumbersome and expensive for companies that want to do business with a number of trading partners, each using different VANs.

____31.The Dutch auction is also called an ascending-price auction.

____32.Online auctions are one of the fastest growing segments of online business today.

____33.The most successful consumer auction Web site today...
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