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Chapter 1

Quick Quiz 1

1.A(n) _transaction___ is an exchange of value, such as a purchase, a sale, or

the conversion of raw materials into a finished product.

2.The group of logical, related, and sequential activities and transactions in

which businesses engage are often collectively referred to as _business


3._Electronic data interchange(EDI)___ occurs when one business transmits

computer-readable data in a standard format to another business.

4.Businesses that engage in EDI with each other are called _trading


Quick Quiz 2

1.A(n) _commodity item___ is a product or service that is hard to distinguish

from the same products or services provided by other sellers; its features have

become standardized and well known.

2.A(n) _revenue model___ is a specific collection of business processes used to

identify customers, market to those customers, and generate sales to those


3.A(n) _business model___ is a set of processes that combine to achieve a

company’s goal, whic h is to yield a profit.

4. A product’s _shipping profile___ is the collection of attributes that affect how

easily that product can be packaged and delivered.

Quick Quiz 3

1.__Transaction costs__ are the total of all costs that a buyer and seller incur as

they gather information and negotiate a purchase-and-sale transaction.

2.The practice of an existing firm replacing one or more of its supplier markets

with its own hierarchical structure for creating the supplied product is called


3.A(n) _strategic business unit ___ is one particular combination of product,

distribution channel, and customer type.

4.As more people or organizations participate in a network, the value of the

network to each participant increases. This increase in value is called a(n)

network effect____.

Quick Quiz 4

1.A(n) _value chain___ is a way of organizing the activities that each strategic

business unit undertakes to design, produce, promote, market, deliver, and

support the products or services it sells.

2.In the United States, telecommunications companies have long sold local

telephone service as a(n) _flat-rate___ access system, in which the consumer

or business pays one monthly fee for unlimited telephone line usage.

3.A(n) _freight forwarder___ is a company that arranges shipping and

insurance for international transactions.

4.A(n) _bonded warehouse___ is a secure location where incoming

international shipments can be held until customs requirements are satisfied

or until payment arrangements are completed.

Chapter 3

Quick Quiz 1

1.The __virtual model__ is a graphic image built from customer measurements

on which customers can try clothes.

2.The _personal shopper___ is an intelligent agent program that learns the

customer’s preferences and makes suggestions.

3.(True or False) Many companies sell goods and services on the Web using an

adaptation of a mail order catalog revenue model.

4.(True or False) People are reluctant to buy high-fashion clothing items

through a Web site.

Quick Quiz 2

1.The _advertising-supported___ revenue model is the one used by network

television in the United States.

2.The _stickiness___ of a Web site is its ability to keep visitors at the site and

attract repeat visitors.

3.The set of characteristics that marketers use to group visitors is called

_demographic information___, which includes things such as address, age,

gender, income level, type of job held, hobbies, and religion.

4.A(n) _Web directory___ is a listing of hyperlinks to Web pages.

Quick Quiz 3

1.The removal of an intermediary, such as a human agent, from a value chain is

called _reinter mediation___.

2.(True or False) The Digital Rights Management (DRM) software prevents the

illegal copying of audio files.

3.(True or False) DRM software does not always work across platforms.

4.___account aggregation_ is the ability to obtain bank, investment, loan, and

other financial account information from multiple Web sites and display it all

in one location at the bank’s Web site.

5.A(n) _bill presentment___ service provides an electronic version of an

invoice or billing statement (such as a credit card bill or a mobile phone

services statement) with all of the details that would appear in the printed


Quick Quiz 4

1._channel conflict___ can occur whenever sales activities on a company’s

Web site interfere with its existing sales outlets.

2.When two or more companies join forces to undertake an activity over a long

period of time, they are said to create a(n) _strategic alliance___.

3._channel distribution managers___ are companies that take over

responsibility for a particular product line within a retail store.

4.Online magazines are also called _E-zine___.

Quick Quiz 5

1.An organization’s __presence__ is the public image it conveys to its


2.The _stakeholders___ of a firm include its customers, suppliers, employees,

stockholders, neighbors, and the general public.

3.(True or False) A key goal for the Web sites of many not-for-profit

organizations is information dissemination.

4.(True or False) This combination of information dissemination and a two-way

contact channel is a key element on any successful electronic commerce.

Quick Quiz 6

1.Experts estimate that average electronic commerce Web sites frustrate up to

__70__ percent of their customers to the point that they leave without buying


2.Putting the customer at the center of all site designs is called a(n)

_customer-centric___ approach to Web site design.

3.In the _personal contac t__ model, the firm’s employees individually search

for, qualify, and contact potential customers.

4._addressable media___ are advertising efforts directed to a known addressee

and include direct mail, telephone calls, and e-mail.

Chapter 4

Quick Quiz 1

1.The _price___ element of the marketing mix is the amount the customer pays

for the product.

2.__promotion__ includes any means of spreading the word about the product.

3.In _psychographic segmentation___, marketers try to group customers by

variables such as social class, personality, or their approach to life.

4.The practice of targeting very small market segments is called


Quick Quiz 2

1.In general, the creation of separate experiences for customers based on their

behavior is called __behavioral segmentation__.

2.A(n) _shopping cart___ is the part of a Web site that keeps track of selected

items for purchase and automates the purchasing process.

3.The total amount of money that a site spends, on average, to draw one visitor

to the site is called the __acquisition cost__.

4.Customers who return to the site one or more times after making their first

purchases are called _retained customers__.

Quick Quiz 3

1.A(n) __banner ad__ is a small rectangular object on a Web page that displays

a stationary or moving graphic and includes a hyperlink to the advertiser’s

Web site.

2.A(n) _skyscraper ad___ is a banner ad that is designed to be placed on the

side of a Web page and remain visible as the user scrolls down through the


3.A(n) _ext ad___ is a short promotional message that does not use any graphic

elements and is usually placed along the top or right side of a Web page.

4.A(n) _pop-up ad___ is an ad that appears in its own window when the user

opens or closes a Web page.

Quick Quiz 4

1.The _conversion rate___ of an advertising method is the percentage of

recipients who respond to an ad or promotion.

2.The information that a Web site can gather about its visitors is called a(n)


3.In a CRM system, the multiple sources of information about customers, their

preferences, and their behavior is entered into a large database called a(n)

__data warehouse__.

4._statistical modeling___ is a technique that tests theories that CRM analysts

have about relationships among elements of customer and sales data.

Quick Quiz 5

1.A(n) _affiliate program broker___ is a company that serves as a

clearinghouse or marketplace for sites that run affiliate programs and sites

that want to become affiliates.

2.__viral marketing__ relies on existing customers to tell other people—the

company’s prospective customers—about the products or services they have

enjoyed using.

3.A(n) _search engine___ is a Web site that helps people find things on the


4._domain name___ is a service that permits the purchaser of a domain name to

maintain a simple Web site (usually one page) so that the domain name

remains in use.

Chapter 5

Quick Quiz 1

1.The part of an industry value chain that precedes a particular strategic

business unit is often called a(n) _supply chain___.

2.The total dollar amount of the goods and services that a company buys during

a year is called its _spend___.

3._direct materials___ are those materials that become part of the finished

product in a manufacturing process.

4._knowledge management ___ is the intentional collection, classification, and

dissemination of information about a company, its products, and its processes. Quick Quiz 2

1.(True or False) ANSI does not set standards itself, but it has created a set of

procedures for the development of national standards and it accredits

committees that follow those procedures.

2.When EFTs involve two banks, they are executed using a(n) __automated

clearing house(ACH)__ system, which is a service that banks use to manage

their accounts with each other.

3.__nonrepudiation__ is the ability to establish that a particular transaction

actually occurred.

4.The _american national standards (ANSI)___ has been the coordinating body

for standards in the United States since 1918.

Quick Quiz 3

1.(True or False) A passive RFID tag needs a power source.

2.A(n) __sourcing__ occurs when a retailer loses sales because it does not have

specific goods on its shelves that customers want to buy.

3.(True or False) RFIDs can be read much more quickly and with a higher

degree of accuracy than bar codes.

4.(True or False) The major issue that most companies must deal with in

forming supply chain alliances is developing trust.

5.A(n) __private store__ has a password-protected entrance and offers

negotiated price reductions on a limited selection of products—usually those

that the customer has agreed to purchase in certain minimum quantities.

6.A(n) __industry consortia-sponsored__ marketplace is a marketplace formed

by several large buyers in a particular industry.

Chapter 6

Quick Quiz 1

1._double auction___ can artificially inflate the price of an item and may be

prohibited from bidding by the rules of a particular auction.

2.A(n) _minimum bid___ is the price at which an auction begins.

3.In _sealed-price___ auctions, bidders submit their bids independently and are

usually prohibited from sharing information with each other.

4.Second-price sealed-bid auctions are commonly called __Vickrey


Quick Quiz 2

1.In a(n) __proxy bid__, the bidder specifies a maximum bid.

2.Smaller businesses often sell their unusable and excess inventory to

_liquidaton brokers___, which are firms that find buyers for these items.

3.The act of placing a winning bid at the last second is called a(n) __snipe__.

4._sniping software___ observes auction progress until the last second or two

of the auction clock.

Quick Quiz 3

1.A(n) _virtual community gathering place for people and businesses that does

not have a physical existence.

2.The trend toward having readers help write the online newspaper is called

_participatory journalism___.

3.The practice of bringing buyers and sellers together in a social network to

facilitate retail sales is called __social shopping

4.The term _monetizing___ refers to the conversion of existing regular site

visitors seeking free information or services into fee-paying subscribers or

purchasers of services.

Chapter 8

Quick Quiz 1

1.__computer security__ is the protection of assets from unauthorized access,

use, alteration, or destruction.

2.__countermeasure__ is the general name for a procedure, either physical or

logical, that recognizes, reduces, or eliminates a threat.

3.A(n) _web bug___ is a tiny graphic that a third-party Web site places on

another site’s Web page.

4.__active content__ refers to programs that are embedded transparently in

Web pages and that cause action to occur.

5.A(n) __trojan horse__ is a program hidden inside another program or Web

page that masks its true purpose.

Quick Quiz 2

1._privacy___ is the protection of individual rights to nondisclosure.

2.__ domain name servers(DNSs)__ are the computers on the Internet that

maintain directories that link domain names to IP addresses.

3._encryption___ is the coding of information by using a mathematically based

program and a secret key to produce a string of characters that is


4.A(n) _session key___ is a key used by an encryption algorithm to create

cipher text from plain text during a single secure session.

5.A(n) _secure envelope___ encapsulates a message and provides secrecy,

integrity, and client/server authentication.

Quick Quiz 3

1.__dictionary attack programs__ cycle through an electronic dictionary, trying

every word in the book as a password.

2.A(n) _buffer___ is an area of memory set aside to hold data read from a file

or database.

3.A(n) _access control list(ACL)___ is a list or database of files and other

resources and the usernames of people who can access the files and other


4.A(n) _firewall___ is software or a hardware-software combination that is

installed in a network to control the packet traffic moving through it.

Chapter 9

Quick Quiz 1

1.A(n) _charge card___, offered by companies such as American Express,

carries no spending limit, and the entire amount charged to the card is due at

the end of the billing period.

2.A(n) _merchant bank or acquiring bank___ is a bank that does business with

sellers (both Internet and non-Internet) that want to accept payment cards.

3._electronic cash___ is a general term that describes any value storage and

exchange system created by a private (nongovernmental) entity that does not

use paper documents or coins and that can serve as a substitute for

government-issued physical currency.

4.The term __chargeback__ refers to the spending of a particular piece of

electronic cash twice by submitting the same electronic currency to two

different vendors.

5.__interoperable software__ runs transparently on a variety of hardware

configurations and on different software systems.

Quick Quiz 2

1.A(n) _server-side electronic wallet___ stores a customer’s information on a

remote server belonging to a particular merchant or wallet publisher.

2.A(n) _stored-value card___ is an elaborate smart card with a microchip or a

plastic card with a magnetic strip that records the currency balance.

3.A(n) _smart card___ is a stored-value plastic card with an embedded

microchip that can store information.

4.When the e-mails used in a phishing expedition are carefully designed to

target a particular person or organization, the exploit is called _spear