E-Commerce University

Exam 1: Introduction to E-Commerce and Business Models

20 questions

35 min

Answer key

Exam info

Subject: E-Commerce
Exam type: University
Questions: 20
Duration: 35 min
Answers: ✓ With explanations

Questions (20)

Q 1.
Which statement best distinguishes e-commerce from e-business?
- A.
  E-commerce focuses on digitally enabled commercial transactions, while e-business primarily includes digital processes within a firm.
- B.
  E-commerce includes every digitally supported activity performed by a firm, even when no value is exchanged with outsiders.
- C.
  E-business and e-commerce are completely unrelated concepts despite sharing some infrastructure.
- D.
  E-commerce is limited to transactions conducted through desktop websites.
Q 2.
Which of the following is the most accurate formal definition of e-commerce?
- A.
  Any activity involving a computer or digital device
- B.
  Digitally enabled commercial transactions between and among organizations and individuals
- C.
  The sale of physical products through websites
- D.
  The use of the Internet for internal organizational communication
Q 3.
How does the World Wide Web differ from the Internet?
- A.
  The Internet is one service that runs on the Web.
- B.
  The Web is a mobile operating system, while the Internet is its browser.
- C.
  The Internet is a worldwide network of networks, while the Web is one of its services and provides access to web pages.
- D.
  The Internet and the Web are technically identical terms for the same system.
Q 4.
What is the deep Web?
- A.
  The part of the Web consisting of illegal websites
- B.
  Web content that is not routinely indexed or identified by search engines
- C.
  The collection of all pages that appear in a Google search
- D.
  A mobile version of websites that adapts to smaller screens
Q 5.
A retailer allows customers to purchase products through a smartphone application. Which feature of e-commerce is primarily being used?
- A.
  Ubiquity
- B.
  Interactivity
- C.
  Personalization
- D.
  Universal standards
Q 6.
An online travel site helps a customer select flights, enter passenger details, and complete payment. Which unique feature most directly supports this exchange?
- A.
  Global reach
- B.
  Information density
- C.
  Interactivity
- D.
  Customization
Q 7.
Which situation best illustrates information density as a feature of e-commerce?
- A.
  A store removes an online display that could not be viewed from the customer's location
- B.
  Consumers can easily compare detailed prices, seller information, and product descriptions from many suppliers
- C.
  A merchant asks customers to complete an order form online
- D.
  Two companies use the same technical protocols for exchanging transaction data
Q 8.
What is the difference between personalization and customization in e-commerce?
- A.
  Personalization changes the product, while customization changes the message.
- B.
  Personalization targets messages to individuals, while customization changes offerings according to user preferences or behavior.
- C.
  Both terms refer only to changing prices according to a customer's location.
- D.
  Personalization requires face-to-face service, while customization operates only online.
Q 9.
Which scenario best demonstrates price discrimination enabled by e-commerce?
- A.
  A store offers the same branded watch at one national price to every customer
- B.
  A merchant identifies different consumer segments and offers the same or similar vacation at different prices according to willingness to pay
- C.
  All customers receive identical advertisements because the firm follows one global marketing campaign
- D.
  A retailer offers more products online than in its physical stores
Q 10.
Which statement best describes social e-commerce?
- A.
  E-commerce enabled by social networks and online social relationships
- B.
  E-commerce conducted exclusively through mobile cellular networks
- C.
  E-commerce based on a consumer's current geographic location
- D.
  Transactions in which businesses exchange value with other businesses
Q 11.
Which activity is the clearest example of consumer-to-consumer e-commerce?
- A.
  A retailer sells shoes directly to a consumer
- B.
  A manufacturer supplies components to another manufacturer
- C.
  A person uses an online marketplace to list a used bicycle and another person purchases it
- D.
  A software company sells subscriptions to individual professionals
Q 12.
Which factor was presented as a major driver of the rapid growth of mobile commerce?
- A.
  Decline in the use of mobile search
- B.
  Larger smartphone screens, more time spent on mobile devices, and improved mobile checkout and payment
- C.
  Replacement of the Internet by cellular networks
- D.
  Elimination of the need for mobile applications
Q 13.
Which period of e-commerce history is associated with business-driven adoption, broader use of broadband, and increased reliance on search-engine advertising?
- A.
  1995–2000: invention
- B.
  2001–2006: consolidation
- C.
  2007–present: reinvention
- D.
  The pre-Internet era of EDI
Q 14.
What characterized e-commerce during the 1995–2000 invention period?
- A.
  A shift from technology-driven experimentation to business-driven consolidation
- B.
  Mature mobile-social-local commerce supported by millions of apps
- C.
  Explosive growth, experimentation, heavy venture-capital funding, and emphasis on rapid market share
- D.
  Mature profitability based on diversified online subscriptions
Q 15.
Which term describes the displacement of traditional market middlemen by a direct producer-to-consumer relationship?
- A.
  Disintermediation
- B.
  Personalization
- C.
  Leverage
- D.
  Richness
Q 16.
Which business model element explains how a company’s product or service fulfills customer needs?
- A.
  Value proposition
- B.
  Revenue model
- C.
  Organizational development
- D.
  Management team
Q 17.
An online auction platform charges sellers a fee whenever it successfully facilitates a sale. Which revenue model is being used?
- A.
  Advertising revenue model
- B.
  Transaction fee revenue model
- C.
  Subscription revenue model
- D.
  Affiliate revenue model
Q 18.
A company provides basic video-streaming access for free but charges monthly for additional premium content. Which strategy is it using?
- A.
  Freemium
- B.
  Seed capital
- C.
  Leverage
- D.
  Crowdfunding
Q 19.
Which example best illustrates an unfair competitive advantage?
- A.
  A firm offers the same product at a slightly lower price than every competitor
- B.
  A company hires more experienced employees than its rivals
- C.
  A retailer builds a trusted brand and customer loyalty that competitors cannot easily reproduce
- D.
  A startup enters a market before its competitors
Q 20.
A startup with little revenue cannot obtain a conventional bank loan and does not want to surrender ownership. Which funding option most directly fits these conditions?
- A.
  Venture capital financing
- B.
  A commercial bank loan
- C.
  Angel investment for an equity share
- D.
  Government-sponsored business loan support

Answers and explanations are in mode.