1.

The systems development life cycle methodology is useful when

creating an e-commerce Web site.
2. Using prebuilt templates is typically one of the most cost-effective
choices when building a Web site.
3. The annual maintenance cost for a Web site is likely to be as high as
its development cost.
4. In a two-tier architecture, a Web server is linked to one middle-tier
layer that typically includes a series of application servers, as well as
to another back-end layer. F
5. Benchmarking is the process of comparing a Web site with that of its
competitors in terms of response speed, quality of layout, and design.
6. A SWOT analysis describes only strengths, weaknesses,
opportunities. F
7. Hosting: Firm purchases or leases Web server (with control over its
operation), but server is located at vendor’s facility. F
8. Privacy policy is Set of design objectives that ensure disabled users
can affectively access site. F
9. Customization is Ability to treat people based on personal qualities
and prior history with site. F
10. Cookies is Primary method to achieve personalization.
11. Outsourcing is Hiring vendors to provide services involved in
building site.
12.Hosting: Hosting company responsible for ensuring site is accessible
24 hours a day, for monthly fee.
13.An e-commerce Web site that processes orders requires, at minimum,
a single-tier system architecture. F
14.static file sizes is the main factor in determining overall demand for
an e-commerce site. F
15.The information elements that the system must produce to achieve its
business objectives are called : information requirements.
16.System architecture refers to the arrangement of software, machinery,
and tasks in an information system needed to achieve a specific
functionality .
17.A SWOT analysis describes strengths, weaknesses, opportunities, and
threats.
18.An online shopping cart allows shoppers to set aside desired purchases
in preparation for checkout, review what they have selected, and edit
their selections as necessary.
19.System testing involves testing the site as a whole, in the same way a
typical user would when using the site.
20.Using prebuilt templates is typically one of the most cost-effective
choices when building a Web site.
21.Systems Design Is the first step in The Systems Development Life
Cycle. F
22.Systems Design Is the Second step in The Systems Development Life
Cycle. F
23.Typically, the more security measures added to a Web site, the slower
and more difficult it becomes to use.
24.The use of a digital signature helps to ensure integrity, authenticity,
and nonrepudiation.
25.The easiest and least expensive way to prevent threats to system
integrity is to install anti-virus software.
26.Credit cards are the dominant form of online payment throughout the
world.F
27.In order to accept payments by credit card, online merchants typically
must have a merchant account established with a bank or financial
institution.
28.Price is the top factor in online purchase decisions.
29.Online shoppers tend to browse for available products rather than
search for specific products they have determined in advance.F
30.Research shows that the two most important factors shaping the
decision to purchase online are utility and trust.
31.In 2012, mobile marketing grew at nearly the same rate as traditional
online marketing.F
32.Psychographic research combines both demographic and
psychological data and divides a market into different groups based on
social class, lifestyle, and/or personality characteristics.
33.Clickstream behavior refers to the transaction log that consumers
establish as they move about the Web from site to site.
34.Price dispersion refers to the difference between the highest and
lowest prices in a market.
35.customer engagement is the process of getting customers to pass along
a company's marketing message to friends, family, and colleagues.F
36.Conversations between a firm and the consumers of its products in
various forums such as blogs, Facebook, and Twitter feeds are
referred to collectively as customer engagement .
37.Viral marketing is the process of getting customers to pass along a
company's marketing message to friends, family, and colleagues.
38.Channel conflict occurs when a new venue for selling products or
services threatens to destroy existing venues.
39.Liability is a feature of political systems in which a body of law is in
place that permits individuals to recover damages done to them by
other actors, systems, or organizations.
40. The four major dimensions of e-commerce ethical, social, and
political issues are public safety and welfare; property rights;
information rights; and governance .
41.The ethical principle of Universalism states that if an action is not
right for all situations, then it is not right for any situation.
42.Anonymous information is demographic and behavioral information
that does not include any personal identifiers.
43.Most adult social network participants do not have any expectation of
personal privacy when using a social network.F
44.Profiling involves the creation of digital images that characterize
online individual and group behavior.
45.Single words, pictures, shapes, packaging, and colors used to identify
and distinguish goods are protected under patent law.F
46.Copyright protection protects against others copying the underlying
ideas in a work.F
47.The average of users still spends more time watching television than
using the Internet.
48. The impact of the Internet on media appears to be decreasing the total
demand for media.F
49. Internet users consume more media of all types than non-Internet
users.
50. Cannibalization is a major challenge facing book publishers.
51. The situation in which sales of new digital products enhances sales of
traditional products is called complementarity.
52. Multimedia increases cannibalization impact for some visual, and
aural media.F
53.With advent of high-quality content, fee models become more
successful.
54. Each segment of media industry structure dominated by many key
players with large crossover. F
55.Industry convergence describes convergence in the design,
production, and distribution of content.F
56. Net Value refers to that portion of perceived customer value that can
be attributed to the fact that content is available on the Internet.
57. As result for growth of online newspapers , Aggregators are
recognizing need for high-quality content to distribute and use for
advertisements.
58. Readership is the only significant asset of newspapers.F
59. In the agency model for e-books, prices are set by the
publisher/manufacture.
60. User-generated content substitutes for and complements traditional
commercial entertainment .
61. Wholesale business model defines Distributor as agent must charge
publisher’s retail price. F
62. In cannibalization, sales of new digital products replace sales of
traditional products.
63.The cost of participating in B2B e-commerce systems has fallen
significantly.
64.Answer: TRUE
65.Spot purchasing involves the purchase of goods based on immediate
needs in larger marketplaces that involve many suppliers.
66.Answer: TRUE
67. Contract purchasing involves long-term written agreements to
purchase specified products, with agreed-upon terms and quality, for
an extended period of time.
68.Answer: TRUE
69.management systems are corporate-wide systems that relate to all
aspects of production.
70.Answer: False Enterprise
71. Spot production is a set of production methods that focuses on the
elimination of waste throughout the customer value chain.
72.Answer: False Lean production
73.ENTERPRISE SYSTEM systems are generally older computer
systems used to manage key business processes in a firm. Answer:
FALSE Legacy
74.Collaborative commerce is defined as the use of digital technologies
to permit organizations to work together to design, develop, build, and
manage products through their life cycles.
75.Answer: TRUE
76.8) Value chain management services include automation of a firm's
entire procurement process on the buyer side and automation of the
selling business processes on the seller side.
77.Answer: TRUE
78.A(n) multi-tier supply chain includes a company's secondary and
tertiary suppliers

Essay questions
Please mention the B2C business model components.
E-tailer ( online retail store) Online version of traditional retailer
Community provider (social network) Provide online environment (social
network) where people with similar interests can transact, share
content, and communicate
Content provider: Digital content on the Web
Portal: Offer users powerful web search tools as well as integrated
package of content and services all in one place ( Yahoo).
Transaction broker: Process online transactions for consumers
Market creator: Create digital environment where buyers and sellers can
meet and transact ( Display product, search for products and establish a
price for products)
Service provider: Online services, Value proposition, Revenue models.
Please mention the B2C business model components.
E-tailer ( online retail store) Online version of traditional retailer
Community provider (social network) Provide online environment (social
network) where people with similar interests can transact, share
content, and communicate
Content provider: Digital content on the Web
Portal: Offer users powerful web search tools as well as integrated
package of content and services all in one place ( Yahoo).
Transaction broker: Process online transactions for consumers
Market creator: Create digital environment where buyers and sellers can
meet and transact ( Display product, search for products and establish a
price for products)
Service provider: Online services, Value proposition, Revenue models.
What is the difference between Industry Value Chains and firm Value
Chains?
Industry Value Chains
Set of activities performed by suppliers, manufacturers, transporters,
distributors, and retailers that transform raw inputs into final products
and services.
Firm Value Chains
Activities that a firm engages in to create final products from raw inputs.

What are the different types of strategies?

• Differentiation : refers to all the ways producers can make their
Products unique and different to distinguish them from those of
competitors.
• Cost: a business has discovered some unique business process or
resources that other firms can not obtain in the marketplace( cost
advantage
– over competitors).
– Scope: a strategy to compete in all markets around the globe rather
than in local regionals and national markets.
• Focus: a strategy to compete within a narrow market segment
• or a product segment( specialization strategy)
.Differentiate between business model and revenue model •

Business model: Set of planned activities designed to result in a profit in

a marketplace

Revenue model: How will the firm earn revenue, generate profits, and
.produce a superior return on invested capital

Q1: Mention the three key points of vulnerability in e-commerce

environment.
1. Client.
2. Server.
3. Communications pipeline (Internet communications channels).

Q2: Explain the six key dimensions of e-commerce security?

1. Integrity: The ability to ensure that information being displayed on a web site or
transmitted or received over the internet has not been altered in any way by an
unauthorized party.
2. Nonrepudiation: The ability to ensure that e-commerce participants do not deny
(I.E, repudiate) their online actions.
3. Authenticity: the ability to identify the identity of a person or entity with whom
you are dealing on the internet.
4. Confidentiality: The ability to ensure that messages and data are available only to
those who are authorized to view them.
5. Privacy: The ability to control the user of information about oneself.
6. Availability: The ability to ensure that an e-commerce site continues to functions
as intended.
Q3: What are the types of Payment Systems?
1. Cash : Most common form of payment
2. Checking transfer: Second most common payment form in United
States
3. Credit card: Credit card associations
4. Stored value: Funds deposited into account, from which funds are
paid out or withdrawn as needed
5. Accumulating balance : Accounts that accumulate expenditures and
to which consumers make period payments
Q1:what are the factors of clickstream behavior?
– Number of days since last visit
– Speed of clickstream behavior
– Number of products viewed during last visit
– Number of pages viewed
– Supplying personal information
– Number of days since last purchase
– Number of past purchases
• Q2:what are the most important factors of shaping decision to
purchase online ?
- Utility:
• Better prices, convenience, speed
- Trust:
• Asymmetry of information can lead to opportunistic behavior
by sellers
• Sellers can develop trust by building strong reputations for
honesty, fairness, delivery

• Q3:what are the difference between Data Warehouses and Data

Mining?
Data warehouse:
– Collects firm’s transactional and customer data in single
location for offline analysis by marketers and site managers
Data mining:
– Analytical techniques to find patterns in data, model
behavior of customers, develop customer profiles