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Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

Electronic Commerce 2012, 7e (Turban)
Chapter 4 Retailing in Electronic Commerce: Products and Services

1) Key business drivers for B2B include each of the following except
A) the availability of a secure broadband Internet platform.
B) the ability to reduce delays.
C) the willingness of companies to incur higher costs to improve collaboration.
D) the need for collaborations between suppliers and buyers.

2) E-commerce that focuses on a single companys buying needs or selling needs best
A) computer exchange.
B) business-to-business e-commerce.
C) private marketplace.
D) company-centric EC.

3) Many-to-many e-marketplaces, usually owned and run by a third party or a consortium, in
which many buyers and many sellers meet electronically to trade with each other best
A) exchanges.
B) public market.
C) company-centric EC.
D) spot purchases.

4) B2B transactions that involve communication, design, planning, information sharing, and
activities beyond financial transactions among business partners defines
A) exchanges.
B) collaborative commerce.
C) trading communities.
D) public marketplaces.

5) An online third party that brokers a transaction online between a buyer and a seller best
A) strategic source.
B) horizontal marketplace.
C) vertical marketplace.
D) online intermediary.

6) Types of B2B transactions include
A) strategic sourcing.
B) randomized buying.
C) intermediation.
D) reverse purchasing.

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

7) The purchase of goods and services as they are needed, usually at prevailing market
prices, best defines
A) direct materials.
B) consolidation.
C) spot buying.
D) strategic sourcing.

8) Purchases of goods and services based on long-term contracts best defines
A) direct materials.
B) consolidation.
C) spot buying.
D) strategic sourcing.

9) Which of the following can be supported more effectively and efficiently through direct
buyer-seller negotiations?
A) strategic sourcing
B) spot buying
C) B2C e-commerce

10) Materials used in the production of a product best defines
A) indirect materials.
B) direct materials.
C) MRO materials.
D) production materials.

11) Two types of materials and supplies that are traded in B2B are
A) digital and physical.
B) direct and indirect.
C) horizontal and vertical.
D) commodities and nonproduction.

12) Materials used to support production are called
A) indirect materials.
B) operational materials.
C) direct materials.
D) virtual materials.

13) The major B2B service industries include each of the following except
A) travel and hospitality services.
B) financial services.
C) banking and online financing.
D) retail.

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

14) Which of the following is not one of the major benefits of B2B for both buyers and
A) expedites processing and reduces cycle time
B) reduces procurement costs
C) enables customized online catalogs with different prices for different customers
D) increases opportunities for collaboration

15) A business strategy that focuses on providing comprehensive quality service to business
partners best defines
A) customer relationship management.
B) supplier relationship management.
C) partner relationship management.
D) supply chain management.

16) A comprehensive approach to managing an enterprises interactions with the
organizations that supply the goods and services it uses best defines
A) customer relationship management.
B) supply chain management.
C) partnership relationship management.
D) supplier relationship management.

17) All are benefits of B2B except
A) creates new sales or purchase opportunities.
B) eliminates paper and reduces administrative costs.
C) increases channel conflict.
D) lowers search costs and time for buyers to find products and vendors.

18) A Web-based marketplace in which one company sells to many business buyers from e-
catalogs or auctions, frequently over an extranet, describes
A) sell-side e-commerce.
B) single-side e-commerce.
C) buy-side e-commerce.
D) reflective e-commerce.

20) High-quality bicycle manufacturer Greggs Cycles does not sell its products online, nor
do they allow their bicycles to be sold online by others. By not selling online, Greggs
Cycles avoids ________ with its dealers and the independent bike shops that sell its bikes.
A) pricing conflict
B) channel conflict
C) multichannel distribution
D) disintermediation

21) Benefits of using a third-party hosting company for conducting B2B auctions instead of
developing an auction site in-house include all of the following except
A) no hiring costs.
B) no redeployment of corporate resources.
C) time-to-market of several weeks.
D) no need for additional resources such as hardware, bandwidth, or IT personnel.

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

22) Companies use ________ to sell their unneeded assets for quick disposal or to dispose of
excess, obsolete, and returned products.
A) private auctions
B) liquidation
C) reverse auctions
D) forward auctions

23) A characteristic that describes customer loyalty to a site that eventually results in higher
revenue best defines
A) retention.
B) acquisition.
C) stickiness.
D) attachment.

24) A corporate-based acquisition site that uses reverse auctions, negotiations, group
purchasing, or any other e-procurement method best defines
A) desktop procurement method.
B) buy-side e-marketplace.
C) intermediary.
D) aggregated catalog.

25) The planning, organizing, and coordinating of all the activities relating to purchasing
goods and services needed to accomplish the organizations mission best defines
A) buy-side e-marketplace.
B) supply chain management.
C) procurement management.
D) customer relationship management.

26) Unplanned purchases of items needed quickly, often at non-prenegotiated higher prices,
best defines
A) impulse purchases.
B) free market.
C) MRO purchasing.
D) maverick buying.

27) Major procurement methods include
A) buying at an exchange or industrial mall.
B) buying at private or public auction sites in which the organization participates as one of
the buyers.
C) buying directly from manufacturers, wholesalers, or retailers from their catalogs, and
possibly by negotiation.
D) all of the above.

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

28) The electronic acquisition of goods and services for organizations via the Internet or
private network best defines
A) e-procurement.
B) spot buying.
C) resource acquisition.
D) MRO planning.

29) Using Internet technology to buy goods and services from a number of known or
unknown suppliers best defines
A) e-reverse auctioning.
B) e-tendering.
C) e-sourcing.
D) e-informing.

31) Gathering and distributing purchasing information both from and to internal and external
parties using Internet technology best defines
A) e-tendering.
B) e-informing.
C) e-sourcing.
D) e-MRO.

32) E-procurement benefits include each of the following except
A) reducing the number of suppliers.
B) ensuring delivery on time, every time.
C) ease of internal and external integration.
D) improving information flow and management.

33) Which of the following is the unplanned, emergency-type buying where buyers usually
pay more?
A) maverick buying
B) spot buying
C) impulse purchasing
D) extreme purchasing

34) Advantages of using internal catalogs include
A) decreasing the number of suppliers.
B) easy financial controls.
C) using search engines to look through internal catalogs.
D) all of the above.

35) The aggregated catalogs of all approved suppliers combined into a single internal
electronic catalog defines
A) bartering exchange.
B) buy-side e-marketplace.
C) sell-side e-marketplace.
D) internal procurement marketplace.

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

37) Direct purchasing from internal marketplaces without the approval of supervisors and
without the intervention of a procurement department best defines
A) spot buying.
B) desktop purchasing.
C) maverick buying.
D) renegade purchasing.

38) With a bartering exchange, a company submits its surplus to the exchange and receives
A) points of credit, which the company can then use to buy items that it needs.
B) an equivalent amount of products or services.
C) interest payments until it buys something from the exchange.
D) cash minus a small commission for services.

39) B2B portals that focus on a single industry or industry segment best describes
A) local portals.
B) information portals.
C) vortals.
D) collaborative portals.

40) Portals that store data and enable users to navigate and query these data are
A) collaborative portals.
B) information portals.
C) mobile portals.
D) MRO portals.

41) The main uses of social networks include
A) reducing the number of suppliers.
B) encouraging maverick purchases.
C) learning useful business intelligence.
D) driving traffic to online Web properties.

42) Which of the following companies uses viral videos to promote renewals of Care Pack
Service agreements?
A) Reed Business Information
B) Cisco Systems
C) Arketi Group
D) Hewlett-Packard

43) Marketing by manufacturers and wholesalers along the sell-side of the supply chain best
A) B2C marketing.
B) B2B marketing.
C) M2W marketing.
D) M2B purchasing.