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Econ 139 First Midterm

16) Which of the following statements about ecommerce in the United States in 2014 is not
true?
A) Mobile ecommerce generates more revenue than social ecommerce.
B) Over 160 million Americans are expected to make at least one purchase online.
C) B2B ecommerce is about 10 times the size of B2C ecommerce.
D) Growth rates for retail ecommerce are higher in the United States than in China.
D
17) In 2014, roughly ________ million people in the United States accessed the Internet via
tablets.
A) 47
B) 67
C) 147
D) 167
C
18) Which of the following is not a major business trend in ecommerce in 20142015?
A) Social ecommerce continues to grow.
B) Small businesses and entrepreneurs are hampered by the rising cost of market entry
caused by increased presence of industry giants.
C) Sharing economy companies garner multibillion dollar valuations.
D) Mobile and social advertising platforms begin to challenge search engine marketing.
B
19) All of the following are major technology trends in ecommerce in 20142015 except:
A) cloud computing enables the creation of Big Data.
B) firms are turning to Web analytics to make sense out of Big Data.
C) the mobile computing and communications platform creates a new platform for online
transactions, marketing, advertising, and media viewing.
) computing and networking component prices continue to fall dramatically.
A
20) Ecommerce can be defined as:
A) the use of the Internet, the Web, and mobile apps to transact business.
B) the use of any Internet technologies in a firm’s daily activities.
C) the digital enablement of transactions and processes within an organization.
D) any digitally enabled transactions among individuals and organizations.
A
21) Which of the following is not a unique feature of ecommerce technology?
A) interactivity
B) social technology
C) information asymmetry
D) richness
C
22) Which of the following features of ecommerce technology enables merchants to market
and sell “complex” goods and services to consumers via marketing messages that can
integrate video, audio, and text?
A) richness
B) ubiquity
C) information density
D) personalization
A
23) Which of the following features of ecommerce technology allows users to participate in
the creation of online content?
A) ubiquity
B) global reach
C) information density
D) social technology
D
24) Which of the following is the best definition of transaction cost?
A) the expense of changing national or regional prices
B) the cost of participating in a market
C) the cost of finding suitable products in the market
D) the cost merchants pay to bring their goods to market
B
25) In 2014, the world’s online population was estimated to be around:
A) 280 million.
B) 2.8 billion.
C) 28 billion.
D) 280 billion.
B
26) All of the following are major social trends in ecommerce in 20142015 except for:
A) the impact of social networks on privacy.
B) the continuing conflict over copyright management and control.
C) the refusal of online retailers to accept taxation of Internet sales.
D) the growth of government surveillance of Internet communications.
C
27) Which of the following features of ecommerce technology is related to the concept of
network externalities?
A) richness
B) interactivity
C) universal standards
D) information density
C
28) Which of the following statements is true about the traditional tradeoff between the
richness and reach of a marketing message prior to the development of the Web?
A) Marketing messages had little richness.
B) The smaller the audience reached, the less rich the message.
C) The larger the audience reached, the less rich the message.
D) Richness was unrelated to reach.
C
29) Which of the following is not an example of a social network?
A) Uber
B) Twitter
C) Pinterest
D) Tumblr
A
30) Which of the following is not a major business trend in ecommerce in 20142015?
A) the growth of a mobile appbased online economy.
B) the weakening revenues of B2B ecommerce.
C) the emergence of social ecommerce.
D) the growth of the mobile advertising platform.
B
31) Which type of ecommerce is distinguished by the type of technology used in the
transaction rather than by the nature of the market relationship?
A) consumertoconsumer (C2C)
B) social ecommerce
C) mobile ecommerce
D) businesstobusiness (B2B)
C
32) Which of the following is a mobile photosharing application?
A) YouTube
B) Tumblr
C) Wikipedia
D) Instagram
D
33) Which of the following describes the basic Web policy of large firms during the Invention
period?
A) Integrate social networks and the mobile platform with Web site marketing.
B) Emphasize the necessity for the Web to generate profits.
C) Use the Web to sell complex goods and services online.
D) Maintain a basic, static Web site depicting the firm’s brand
D
34) The size of the B2B market in 2014 was estimated to be around:
A) $570 million.
B) $5.7 billion.
C) $570 billion.
D) $5.7 trillion.
D
35) Interactivity in the context of ecommerce provides which of the following functionalities?
A) the ability to physically touch and manipulate a product
B) complexity and content of a message
C) the ability of consumers to create and distribute content
D) the enabling of twoway communication between consumer and merchant
D
36) Which of the following statements about the Web is not true?
A) The Web is the technology upon which the Internet is based.
B) The Web was the original “killer app.”
) The Web provides access to pages written in HyperText Markup Language.
D) The Web is both a communications infrastructure and an information storage system.
A
37) In 2014, there were an estimated ________ Internet hosts.
A) 1 million
B) 10 million
C) 100 million
D) 1 billion
D
38) All of the following can be considered a precursor to ecommerce except:
A) the development of the smartphone.
B) Baxter Healthcare’s PCbased remote order entry system.
C) the French Minitel.
D) the development of Electronic Data Interchange standards.
A
39) Which of the following was the first truly largescale digitally enabled transaction system in
the B2C arena?
A) Telex
B) the Baxter Healthcare system
C) the French Minitel
D) EDI
C
40) In which year can ecommerce be said to have begun?
A) 1983
B) 1985
C) 1995
D) 2001
C
41) Businesstoconsumer (B2C) ecommerce in the United States:
A) has grown at doubledigit rates between 2010 and 2014.
B) has less revenue than C2C ecommerce.
C) now constitutes over 40% of the overall U.S. retail market.
D) is growing more slowly as it confronts its own fundamental limitations
A
42) Which of the following is not true about the use of apps?
A) The average U.S. consumer spends over 2 hours and 45 minutes a day using apps.
B) Users still spend less time using apps than they do using desktops or mobile Web sites.
C) Apps are easier to control and monetize than Web sites.
D) Over 175 million people in the United States launch a smartphone app more than 60 times
a day.
B
43) All of the following are issues facing Pinterest except:
A) copyright infringement.
B) inability to retain users.
C) spam.
D) scams.
B
44) Which of the following is a characteristic of ecommerce during the Invention period?
A) mobile technology
B) earnings and profit emphasis
C) disintermediation
D) extensive government surveillance
C
45) All of the following are characteristics of Web 2.0 sites and applications except:
A) they support interactions among users.
B) they rely solely on mobile access to the Web.
C) they tend to rely on usergenerated content.
D) they tend to attract large audiences that provide marketers with extraordinary opportunities
for targeted marketing and advertising.
B
46) Which of the following is not a characteristic of a perfect competitive market?
A) Price, cost, and quality information are equally distributed.
B) A nearly infinite set of suppliers compete against one another.
C) Customers have access to all relevant information worldwide.
D) It is highly regulated.
D
47) All of the following were visions of ecommerce expressed during the early years of
ecommerce except:
A) a nearly perfect information marketspace.
B) frictionfree commerce.
C) disintermediation.
D) fast follower advantage.
D
48) Unfair competitive advantages occur when:
A) one competitor has an advantage others cannot purchase.
B) market middlemen are displaced.
C) information is equally distributed and transaction costs are low.
D) firms are able to gather monopoly profits.
A
49) The early years of ecommerce were driven by all of the following factors except:
A) an emphasis on exploiting traditional distribution channels.
B) a huge infusion of venture capital funds.
C) an emphasis on quickly achieving very high market visibility.
D) visions of profiting from new technology.
A
50) The early years of ecommerce are considered:
A) the most promising time in history for the successful implementation of first mover
advantages.
B) an economist’s dream come true, where for a brief time consumers had access to all
relevant market information and transaction costs plummeted.
C) a stunning technological success as the Internet and the Web increased from a few
thousand to billions of ecommerce transactions per year.
D) a dramatic business success as 85% of dotcoms formed since 1995 became flourishing
businesses.
C
51) Which of the following best describes the early years of ecommerce?
A) They were a technological success but a mixed business success.
B) They were a technological success but a business failure.
C) They were a technological failure but a business success.
D) They were a mixed technological and business success.
A
52) Which of the following is an example of a sharing economy company?
A) YouTube
B) Airbnb
C) Tumblr
D) Facebook
B
53) Which of the following is a characteristic of the Reinvention phase of ecommerce?
A) massive proliferation of dotcom startups
B) widespread adoption of broadband networks
C) rapid growth of search engine advertising
D) expansion of ecommerce to include services as well as goods
D
54) Which of the following is a characteristic of the Consolidation phase of ecommerce?
A) predominance of pure online strategies
B) emphasis on revenue growth versus profits
C) brand extension and strengthening becomes more important that creating new brands
D) shift to a technologydriven approach
C
55) Which of the following is not true regarding ecommerce today?
A) Economists’ visions of a frictionfree market have not been realized.
B) Consumers are less pricesensitive than expected.
C) There remains considerable persistent price dispersion.
D) The market middlemen disappeared.
D
56) Which of the following statements is not true?
A) Information asymmetries are continually being introduced by merchants and marketers.
B) Intermediaries have not disappeared.
C) Overall transaction costs have dropped dramatically.
D) Brands remain very important in ecommerce.
C
57) Which of the following types of merchants has the highest share of retail online sales?
A) virtual (Web only)
B) catalog/call center
C) retail chain
) consumer brand manufacturer
A
58) Retail chains account for around ________ % of online retail firm revenues.
A) 15
B) 35
C) 75
D) 95
B
59) One of the predictions for the future of ecommerce is that:
A) overall revenues from ecommerce will grow at an annualized rate of about 13% a year
through 2018.
B) the first movers from the early years of ecommerce will retain or increase their market
share as they continue to exploit economies of scale and switching costs.
C) prices will lower enough to encourage more consumers to engage in online shopping.
D) the number of online shoppers will continue to grow at doubledigit rates.
A
60) Which of the following is the topselling online retail category?
A) apparel/accessories
B) computers/electronics
C) mass merchant/department stores
D) office supplies
B
61) Which of the following is the top online retailer ranked by online sales?
A) Apple
B) Amazon
C) Staples
D) Walmart
B
62) Above all, ecommerce is a ________ phenomenon.
A) technologydriven
B) financedriven
C) sociological
D) governmentdriven
A
63) Which business application is associated with the technological development of local area
networks and client/server computing?
A) transaction automation (e.g., payroll)
B) desktop automation (e.g., word processing)
C) industrial system automation (e.g., supply chain management)
D) workgroup automation (e.g., document sharing)
D
64) Which of the following is one of the three primary societal issues related to ecommerce?
A) liability
B) anonymity
C) equity
D) intellectual property
D
65) Which of the following statements is not true?
A) No one academic perspective dominates research about ecommerce.
B) Economists take a purely technical approach to ecommerce.
C) There are two primary approaches to ecommerce: behavioral and technical.
D) Management scientists are interested in ecommerce as an opportunity to study how
business firms can exploit the Internet to achieve more efficient business operations.
B
16) ________ and ________ are typically the most easily identifiable aspects of a company’s
business model.
A) Market strategy? market opportunity
B) Value proposition? revenue model
C) Value proposition? competitive environment
D) Revenue model? market strategy
B
17) All of the following are using a subscription revenue model for ebooks except:
A) Amazon.
B) Scribd.
C) Barnes and Noble.
D) Oyster.
C
18) Which element of the business model addresses the question of why a customer should
buy from the firm?
A) revenue model
B) competitive advantage
C) market strategy
D) value proposition
D
19) Which element of the business model relates to the power of customers and suppliers
with respect to a business?
A) value proposition
B) competitive environment
C) competitive advantage
D) market strategy
B
20) Which of the following are Amazon’s primary value propositions?
A) personalization and customization
B) selection and convenience
C) reduction of price discovery cost
D) management of product delivery
B
21) Your company has just implemented a new, more efficient set of business processes that
other firms cannot yet obtain. This will enable your firm to adopt a strategy of:
A) cost competition.
B) scope.
C) scale.
D) focus.
A
22) A firm’s ________ describes how a firm will produce a superior return on invested capital.
A) value proposition
B) revenue model
C) market strategy
D) competitive advantage
B
23) Which of the following is an example of the subscription revenue model?
A) eHarmony
B) eBay
C) E*Trade
D) Twitter
A
24) The ability to retain user attention and engagement is an important attribute for which
revenue model?
A) advertising revenue model
B) subscription revenue model
C) transaction fee revenue model
D) sales revenue model
A
25) Which of the following companies utilizes a transaction fee revenue model?
A) Yahoo
B) E*Trade
C) Twitter
D) Sears
B
26) Which of the following is an example of the affiliate revenue model?
A) Oyster
B) eBay
C) L.L. Bean
D) MyPoints
D
27) Which of the following involves a company giving away a certain level of product or
services without charge, but then charging a fee for premium levels of the product or service?
A) advertising revenue model
B) subscription revenue model
C) freemium strategy
D) transaction fee revenue model
C
28) Which of the following factors is not a significant influence on a company’s competitive
environment?
) how many competitors are active
B) what the market share of each competitor is
C) the availability of supportive organizational structures
D) how competitors price their products
C
29) Which of the following would be considered an indirect competitor of Travelocity?
A) Priceline
B) Expedia
C) Orbitz
D) TripAdvisor
B
30) The existence of a large number of competitors in any one market segment may indicate:
A) an untapped market niche.
B) the market is saturated.
C) no one firm has differentiated itself within that market.
D) a market that has already been tried without success.
B
31) All of the following can be considered a direct or indirect competitor of Amazon except:
A) eBay.
B) Apple’s iTunes Store.
C) Walmart.
D) Starbucks.
D
32) A perfect market is one in which:
A) there are no competitive advantages or asymmetries because all firms have equal access
to all the factors to production.
B) one firm develops an advantage based on a factor of production that other firms cannot
purchase.
) one participant in the market has more resources than the others.
D) competition is at a minimum, as each niche market within an industry is served by the
company with the greatest competitive advantage.
A
33) The business model of etailers is quite similar to that of:
A) edistributors.
B) transaction brokers.
C) exchanges.
D) service providers.
A
34) All of the following use an advertising revenue model except:
A) Twitter.
B) Yahoo.
C) Google.
D) Amazon.
D
35) Organizations that typically provide an array of services to startup companies along with
a small amount of funding are referred to as:
A) angel investors.
B) crowdfunders.
C) incubators.
D) venture capital investors.
C
36) Which of the following is not considered a portal?
A) Yahoo
B) MSN
C) Amazon
D) AOL
C
37) Portals primarily generate revenue in all of the following ways except:
A) charging advertisers for ad placement.
B) collecting transaction fees.
C) sales of goods.
D) charging subscription fees.
C
38) A ________ specifically details how you plan to find customers and to sell your product.
A) sales analysis
B) business plan
C) competitive strategy
D) market strategy
D
39) Which of the following is not a community provider?
A) LinkedIn
B) Facebook
C) Priceline
D) Pinterest
C
40) Which of the following is not a variation of the etailer business model?
A) bricksandclicks
B) virtual merchant
C) market creator
D) manufacturerdirect
C
41) An example of a company using the content provider model is:
A) Priceline.
B) Rhapsody.
C) Dell.
D) eBay.
B
42) Which of the following is not an example of the bricksandclicks etailing business model?
A) Walmart
B) Sears
C) Bluefly
D) Staples
C
43) The overall retail market in the United States in 2017 was estimated at about:
A) $47 trillion.
B) $4.7 trillion.
C) $490 billion.
D) $47 billion.
B
44) In general, the key to becoming a successful content provider is to:
A) own the content being provided.
B) own the technology by which content is created, presented, and distributed.
C) provide online content for free.
D) provide other services as well as online content.
A
45) Which of the following was not able to successfully implement a freemium business
model?
) Pandora
B) Dropbox
C) LinkedIn
D) Ning
D
46) All of the following may lead to a competitive advantage except:
A) less expensive suppliers.
B) better employees.
C) fewer products.
D) superior products.
C
47) The basic value proposition of community providers is:
A) they offer a fast, convenient onestop site where users can focus on their most important
concerns and interests.
B) they offer consumers valuable, convenient, timesaving, and low cost alternatives to
traditional service providers.
C) they create a digital electronic environment for buyers and sellers to meet, agree on a
price, and transact.
D) they increase customers’ productivity by helping them get things done faster and more
cheaply.
A
48) All of the following are examples of businesstobusiness (B2B) business models except:
A) edistributors.
B) eprocurement.
C) exchanges.
D) etailers.
D
49) What is the primary revenue model for an edistributor?
) sales
B) transaction fee
C) advertising
D) subscription
A
50) W.W. Grainger is an example of which of the following business models?
A) B2B service provider
B) exchange
C) edistributor
D) industry consortia
C
51) ________ create and sell access to digital markets.
A) Edistributors
B) Portals
C) Eprocurement firms
D) Market creators
C
52) Which of the following may offer its customers value chain management software?
A) edistributors
B) eprocurement companies
C) exchanges
D) community providers
B
53) Over the past decade, the number of exchanges has:
A) greatly increased.
B) diminished sharply.
C) stayed about the same.
D) increased slowly but steadily.
B
54) SupplyOn is an example of a(n):
A) private industrial network.
B) exchange.
C) industry consortium.
D) edistributor.
C
55) Which of the following is an unfair competitive advantage?
A) brand name
B) access to global markets
C) lower product prices
D) superior technology
A
56) Which of the following gives a business model the most credibility with outside investors?
A) the firm’s management team
B) the firm’s value proposition
C) the firm’s market opportunity
D) the firm’s market strategy
A
57) eBay uses all of the following business models except:
A) B2C market creator.
B) C2C market creator.
C) content provider.
D) ecommerce infrastructure provider.
C
58) Which of the following statements about Foursquare is not true?
A) Foursquare combines a social network business model with locationbased technology.
B) Foursquare began operating without a revenue model.
C) Foursquare’s business model faces significant intellectual property concerns.
D) Foursquare has been able to command a high valuation from venture capital investors
despite unimpressive revenue and profits.
C
59) Which type of investor typically becomes interested in a startup company after it has
begun generating revenue?
A) incubators
B) angel investors
C) crowdfunders
D) venture capital investors
D
60) Which of the following features of ecommerce technology changes industry structure by
lowering barriers to entry but greatly expands the market at the same time?
A) global reach
B) richness
C) interactivity
D) personalization
A
61) All of the following are business models employed by the music industry except:
A) subscription.
B) peertopeer streaming.
C) downloadandown.
D) cloud streaming.
B
62) Which of the following is not a primary activity in a firm value chain?
A) outbound logistics
B) finance/accounting
C) operations
D) aftersales service
B
63) A ________ is a networked business ecosystem that coordinates a firm’s suppliers,
distributors, and delivery firms with its own production needs using an Internetbased supply
chain management system.
A) value chain
B) value system
C) value web
D) business strategy
C
64) If you wished to leverage the ubiquitous nature of the Web to differentiate your product,
you would:
A) enable individual customization of the product by consumers.
B) implement a strategy of commoditization.
C) adopt a strategy of cost competition.
D) develop a scope strategy to compete within a narrower market segment.
A
65) A strategy designed to compete within a narrow market or product segment is called a
________ strategy.
A) scope
B) differentiation
C) cost
D) focus
D
16) During which period of time did the Institutionalization phase of Internet development take
place?
A) 19501960
B) 19611974
C) 19751995
D) 1995through the present
C
17) Which of the following occurred during the Commercialization phase of Internet
development?
A) The fundamental building blocks of the Internet were realized in actual hardware and
software.
B) Mosaic was invented.
C) The Domain Name System was introduced.
D) NSF privatized the operation of the Internet’s backbone.
D
18) During which phase of the development of the Internet was the personal computer
invented?
A) Commercialization phase
B) Institutional phase
C) Innovation phase
D) Consolidation phase
B
19) Which of the following is not one of the basic technological foundations of the Internet?
A) client/server computing
B) FTP
C) TCP/IP
D) packet switching
B
20) The process of slicing digital messages into parcels, sending them along different
communication paths as they become available, and reassembling them at the destination
point is called:
A) routing.
B) the Transmission Control Protocol.
C) packet switching.
D) the File Transfer Protocol.
C
21) Which of the following is the core communications protocol for the Internet?
A) Telnet
B) FTP
C) TCP/IP
D) TLS
C
22) The Transport Layer of TCP/IP is responsible for which of the following?
A) placing packets on and receiving them from the network medium
B) addressing, packaging, and routing messages
C) providing communication with the application by acknowledging and sequencing the
packets to and from the application
D) providing a variety of applications with the ability to access the services of the lower layers
C
23) The Internet Layer of TCP/IP is responsible for which of the following?
A) placing packets on and receiving them from the network medium
B) addressing, packaging, and routing messages
C) providing communication with the application by acknowledging and sequencing the
packets to and from the application
D) providing a variety of applications with the ability to access the services of the lower layers
B
24) Which of the following is not a concern about IoT?
A) the high cost of sensors
B) interoperability
C) security
D) privacy
A
25) An IPv4 address is expressed as a:
A) 32bit number that appears as a series of four separate numbers separated by semicolons.
B) 64bit number that appears as a series of four separate numbers separated by semicolons.
C) 64bit number that appears as a series of four separate numbers separated by periods.
D) 32bit number that appears as a series of four separate numbers separated by periods.
D
26) The ________ allows a natural language expression, such as Google.com to represent a
numeric IP address.
A) uniform resource locator system
B) Internet protocol addressing schema
C) domain name system
D) assigned numbers and names (ANN) system
C
27) The address used by a browser to identify the location of content on the Web is called:
A) a domain name.
B) a uniform resource locator.
C) an IP address.
D) a file path.
B
28) Which of the following organizations coordinates the Internet’s systems of unique
identifiers, such as IP addresses and toplevel domain systems?
A) IETF
B) IAB
C) W3C
D) ICANN
D
29) Which of the following is not an advantage of client/server computing over centralized
mainframe computing?
A) It is easy to expand capacity by adding servers and clients.
B) Each client added to the network increases the network’s overall capacity and transmission
speeds.
C) Client/server networks are less vulnerable, in part because the processing load is balanced
over many powerful smaller computers rather than concentrated in a single huge computer.
D) There is less risk that a system will completely malfunction because backup or mirror
servers can pick up the slack if one server goes down.
B
30) ________ is a model of computing in which firms and individuals obtain computing power
and software applications over the Internet, rather than purchasing and installing it on their
own computers.
A) Client/server computing
B) P2P computing
C) Mobile computing
D) Cloud computing
D
31) Which of the following protocols is used to send mail to a server?
A) IMAP
B) FTP
C) HTTP
D) SSL
A
32) Where does TLS operate within TCP/IP?
A) between the Internet Layer and the Transport Layer
B) between the Transport Layer and the Application Layer
C) between the Network Interface Layer and the Transport Layer
D) between the Internet Layer and the Application Layer
B
33) Which of the following statements about cloud computing is not true?
A) A private cloud typically has multiple tenants.
B) Public clouds are the most wellknown type of cloud computing model.
C) Hybrid clouds offer both public and private cloud options.
D) A private cloud may be located either on a customer’s premises or off the premises.
A
34) ________ is one of the original Internet services and is used to transfer files from a server
computer to a client computer and vice versa.
A) SMTP
B) FTP
C) HTTP
D) SSL
B
35) ________ is a utility program that allows you to check the connection between your client
and a TCP/IP network.
A) Ping
B) Telnet
C) Tracert
D) Finger
A
36) How long does it take for 300,000 Xrays to be transmitted on a 100gbps network?
A) 10 seconds
B) 1 minute
C) 10 minutes
D) 1 hour
B
37) TCP/IP operates in which layer of Internet architecture?
A) Network Technology Substrate layer
B) Middleware Services layer
C) Transport Services and Representation Standards layer
D) Applications layer
C
38) The Web runs in which layer of Internet architecture?
A) Network Technology Substrate layer
B) Middleware Services layer
C) Transport Services and Representation Standards layer
D) Applications layer
D
39) The layer of Internet architecture that ties the applications to the communications network
and includes such services as security and authentication is called the:
A) Network Technology Substrate layer.
B) Middleware Services layer.
C) Transport Services and Representation Standards layer.
D) Applications layer.
B
40) The backbone of the Internet is formed by:
A) Internet Exchange Points (IXPs).
B) Network Service Providers (NSPs).
C) Internet Service Providers (ISPs).
D) Metropolitan Area Exchanges (MAEs).
B
41) When talking about the physical elements of the Internet, the term redundancy refers to:
A) transmitting multiple copies of a single packet to safeguard against data loss.
B) the use of tiered highspeed switching computers to connect the backbone to regional and
local networks.
C) delays in messages caused by the uneven flow of information through the network.
D) multiple duplicate devices and paths in a network built so that data can be rerouted if a
breakdown occurs.
D
42) Which source of ecommerce revenues has grown from nearly zero prior to 2007 to an
estimated $84 billion in 2014?
A) B2G ecommerce
B) mobile B2C ecommerce
C) B2B ecommerce
D) social ecommerce
B
43) What type of Internet access technology are Google and Facebook hoping to use to
provide Internet access to remote parts of the world?
A) Bluetooth
B) drones
C) WLANs
D) DSL
B
44) The ________ is a consortium of corporations, government agencies, and nonprofit
organizations that monitors Internet policies and practices.
) Internet Engineering Steering Group (IESG)
B) World Wide Web Consortium (W3C)
C) Internet Engineering Task Force (IETF)
D) Internet Society (ISOC)
D
45) The ________ helps define the overall structure of the Internet.
A) IAB
B) IESG
C) W3C
D) ITU
A
46) Which of the following is not a limitation of the current Internet?
A) the continued reliance on cables and wires for connectivity
B) limited bandwidth, which causes congestion and cannot adequately handle video and voice
traffic
C) architectural restrictions, which stipulate that numerous requests for the same file must
each be answered individually, slowing network performance
D) the difficulty in expanding capacity by adding servers and clients
D
47) Which of the following is not true about the mobile platform?
A) Most smartphones use Intel chips.
B) The number of cell phones worldwide exceeds the number of PCs.
C) Over a third of the world’s cell phones are smartphones.
D) Unlike PCs, smartphones do not need fans.
A
48) Which of the following statements about fiberoptic cable is not true?
A) It transmit more data at faster speeds than coaxial or twisted pair cable.
B) It is thinner and lighter than coaxial or twisted pair cable.
C) It enables better data security than coaxial cable.
D) Telecommunications firms have made substantial investments in crosscountry fiber optic
systems in the last decade.
C
49) Which of the following organizations involved with Internet governance has the United
States recently announced it would transition control of?
A) ICANN
B) IGF
C) NTIA
D) IANA
D
50) Which of the following technologies has enabled the Internet to grow exponentially to
support millions of users, without overloading the network architecture?
A) fiber optics
B) WiFi
C) IPv6
D) client/server networking
D
51) The major technologies used with wireless local area networks are:
A) WiFi and Bluetooth.
B) WiFi and WiMax.
C) Bluetooth and 3G.
D) WiMax and 3G.
A
52) Internet traffic is predicted to do which of the following over the next 5 years?
A) decrease
B) double
C) triple
D) quadruple
C
53) Which of the following is a highspeed, mediumrange, broadband wireless metropolitan
area network?
A) WiFi
B) WiMAX
C) Bluetooth
D) ZigBee
B
54) Siri is a type of:
A) intelligent personal assistant.
B) widget.
C) gadget.
D) social network.
A
55) The first Web browser to make it possible to view documents on the Web with colored
background, images, and animations was:
A) Netscape Navigator.
B) Mosaic.
C) Mozilla.
D) Internet Explorer.
B
56) In the address http://www.company.com/clients.html, which of the following is the toplevel
domain?
A) .com
B) company.com
C) www
D) http
A
57) You could expect to find all of the following services in a Web server software package
except:
A) security services.
B) FTP.
C) search engine.
D) an RSS aggregator.
D
58) Which of the following is currently the most popular Web browser?
A) Internet Explorer
B) Safari
C) Chrome
D) Firefox
A
59) The concept behind document formatting had its roots in which of the following?
A) XML
B) SGML
C) HTML
D) GML
D
60) Which of the following is a Web application that enables Internet users to communicate
with each other, although not in real time?
A) mobile messaging
B) online forum
C) SMS messaging
D) VoIP
B
61) Which of the following is not a mobile messaging application?
A) Facebook Messenger
B) WhatsApp
C) Viber
D) Cortana
D
62) A(n) ________ is a Web application that allows users to easily add and edit content on a
Web page.
A) wiki
B) podcast
C) blog
D) RSS feed
A
63) The protocol that enables the transmission of voice and other forms of audio
communication over the Internet is called:
A) VoIP.
B) IPTP.
C) VTP.
D) IP.
A
64) All of the following are characteristics of HTML5 except:
A) a video element that replaces plugins such as Flash, QuickTime, and RealPlayer.
B) use of CSS3.
C) ability to access builtin functionality of mobile devices, such as GPS and swiping.
D) support for digital rights management.
D
65) All of the following are true about iPhone apps except:
A) They are distributed through Apple’s App Store.
B) They are crossplatform, opensource applications.
C) Over 75 billion have been downloaded.
D) Apple’s goal of offering apps is to increase sales of iPhones, iPads, and iPods.
B
16) All of the following experienced highprofile data breaches in 2013 except:
A) Evernote.
B) Home Depot.
C) Sony.
D) Adobe.
C
17) Bitcoins are an example of:
A) digital cash.
B) virtual currency.
C) a stored value payment system.
D) an EBPP system.
A
18) The overall rate of online credit card fraud is ________ % of all online card transactions.
A) less than 1
B) around 5
C) around 10
D) around 15
A
19) In the United States, the primary form of online payment is:
A) PayPal.
B) Bill Me Later.
C) Amazon Payment.
D) Google Wallet.
A
20) Privacy is sometimes confused with:
A) confidentiality.
B) authenticity.
C) integrity.
D) nonrepudiation.
A
21) ________ refers to the ability to ensure that ecommerce participants do not deny their
online actions.
A) Nonrepudiation
B) Authenticity
C) Availability
D) Integrity
A
22) ________ refers to the ability to identify the person or entity with whom you are dealing on
the Internet.
A) Nonrepudiation
B) Authenticity
C) Availability
D) Integrity
B
23) Which of the following is an example of an integrity violation of ecommerce security?
A) A Web site is not actually operated by the entity the customer believes it to be.
B) A merchant uses customer information in a manner not intended by the customer.
C) A customer denies that he or she is the person who placed the order.
D) An unauthorized person intercepts an online communication and changes its contents.
D
24) ________ refers to the ability to ensure that an ecommerce site continues to function as
intended.
A) Nonrepudiation
B) Authenticity
C) Availability
D) Integrity
C
25) An example of an online privacy violation is:
A) your email being read by a hacker.
B) your online purchasing history being sold to other merchants without your consent.
C) your computer being used as part of a botnet.
D) your email being altered by a hacker.
B
26) ________ refers to the ability to ensure that messages and data are only available to
those authorized to view them.
A) Confidentiality
B) Integrity
C) Privacy
D) Availability
A
27) Which of the following is not a key point of vulnerability when dealing with ecommerce?
A) the client computer
B) the server
C) the communications pipeline
D) the credit card companies
D
28) Accessing data without authorization on Dropbox is an example of which of the following?
A) social network security issue
B) cloud security issue
C) mobile platform security issue
D) sniffing
B
29) Which of the following is a prominent hacktivist group?
A) Anonymous
B) AntiPhishing Working Group
C) IC3
D) Symantec
A
30) Most of the world’s malware is delivered via which of the following?
A) viruses
B) worms
C) Trojan horses
D) botnets
C
31) Which of the following is the leading cause of data breaches?
A) theft of a computer
B) accidental disclosures
C) hackers
D) DDoS attacks
C
32) Software that is used to obtain private user information such as a user’s keystrokes or
copies of email is referred to as:
A) spyware.
B) a backdoor.
C) pupware.
D) adware.
A
33) Next generation firewalls provide all of the following except:
A) an applicationcentric approach to firewall control
B) the ability to identify applications regardless of the port, protocol, or security evasion tools
used
C) the ability to automatically update applications with security patches
D) the ability to identify users regardless of the device or IP address
C
34) In 2013, the Target retail chain experienced which of the following?
A) a largescale data breach
B) a DDoS attack that shut down its Web site
C) a hacktivist attack to protest its wage policies
D) a browser parasite
A
35) What is the most frequent cause of stolen credit cards and card information today?
A) lost cards
B) the hacking and looting of corporate servers storing credit card information
C) sniffing programs
D) phishing attacks
B
36) Which dimension(s) of security is spoofing a threat to?
A) integrity
B) availability
C) integrity and authenticity
D) availability and integrity
C
37) All of the following are examples of malicious code except:
A) viruses.
B) bots.
C) worms.
D) sniffers.
D
38) Symmetric key cryptography is also known as:
A) public key cryptography.
B) secret key cryptography.
C) PGP.
D) PKI.
B
39) All the following statements about symmetric key cryptography are true except:
A) in symmetric key cryptography, both the sender and the receiver use the same key to
encrypt and decrypt a message.
B) the Data Encryption Standard is a symmetric key encryption system.
C) symmetric key cryptography is computationally slower.
D) symmetric key cryptography is a key element in digital envelopes.
C
40) The Data Encryption Standard uses a(n) ________bit key.
A) 8
B) 56
C) 256
D) 512
B
41) All of the following statements about public key cryptography are true except:
A) public key cryptography uses two mathematically related digital keys.
B) public key cryptography ensures authentication of the sender.
C) public key cryptography does not ensure message integrity.
D) public key cryptography is based on the idea of irreversible mathematical functions.
B
42) Which of the following is the current standard used to protect WiFi networks?
A) WEP
B) TLS
C) WPA2
D) WPA3
C
43) All of the following statements about PKI are true except:
A) The term PKI refers to the certification authorities and digital certificate procedures that are
accepted by all parties.
B) PKI is not effective against insiders who have a legitimate access to corporate systems
including customer information.
C) PKI guarantees that the verifying computer of the merchant is secure.
D) The acronym PKI stands for public key infrastructure.
C
44) A digital certificate contains all of the following except the:
A) subject’s private key.
B) subject’s public key.
C) digital signature of the certification authority.
D) digital certificate serial number.
A
45) Which of the following dimensions of ecommerce security is not provided for by
encryption?
A) confidentiality
B) availability
C) message integrity
D) nonrepudiation
B
46) All of the following are methods of securing channels of communication except:
A) SSL/TLS.
B) certificates.
C) VPN.
D) FTP.
D
47) A ________ is hardware or software that acts as a filter to prevent unwanted packets from
entering a network.
A) firewall
B) virtual private network
C) proxy server
D) PPTP
A
48) Proxy servers are also known as:
A) firewalls.
B) application gateways.
C) dual home systems.
D) packet filters.
C
49) All of the following are used for authentication except:
A) digital signatures.
B) certificates of authority.
C) biometric devices.
D) packet filters.
D
50) What is the first step in developing an ecommerce security plan?
A) Create a security organization.
B) Develop a security policy.
C) Perform a risk assessment.
D) Perform a security audit.
C
51) An intrusion detection system can perform all of the following functions except:
A) examining network traffic.
B) setting off an alarm when suspicious activity is detected.
C) checking network traffic to see if it matches certain patterns or preconfigured rules.
D) blocking suspicious activity.
D
52) Which of the following is not an example of an access control?
A) firewalls
B) proxy servers
C) digital signatures
D) login passwords
C
53) Online bill payment now accounts for ________ of all bill payments, while paper checks
account for ________.
A) less than 10%, less than 25%
B) about 25%, about 10%
C) more than 50%, less than 25%
D) 100%, 0%
C
54) To allow lowerlevel employees access to the corporate network while preventing them
from accessing private human resources documents, you would use:
A) access controls.
B) an authorization management system.
C) security tokens.
D) an authorization policy.
B
55) Zeus is an example of which of the following?
A) SQL injection attack
B) browser parasite
C) DDoS attack
D) Trojan horse
D
56) All of the following statements about Apple Pay are true except which of the following?
A) Apple Pay is available for both iPhone 5s and iPhone 6s.
B) Apple Pay is based on Touch ID biometric fingerprint scanning.
C) Apple Pay can be used for mobile payments at the point of sale at a physical store.
D) Apple Pay relies on the consumer having a credit card on file with Apple’s iTunes.
A
57) PayPal is an example of what type of payment system?
A) online stored value payment system
) digital checking system
C) accumulating balance system
D) digital credit card system
A
58) In May 2014, the U.S. Department of Justice indicted five army members from which of
the following countries for conducting industrial espionage against U.S. Steel and
Westinghouse?
A) Russia
B) China
C) Iran
D) Iraq
B
59) Rustock is an example of which of the following?
A) worm
B) botnet
C) phishing
D) hacktivism
B
60) Which of the following is not a major trend in ecommerce payments in 20142015?
A) Mobile retail payment volume decreases.
B) PayPal remains the most popular alternative payment method.
C) Apple introduces Apple Pay.
D) Payment by credit and/or debit card remains the dominant form of online payment.
A
61) Malware that comes with a downloaded file that a user requests is called a:
A) Trojan horse.
B) backdoor.
C) driveby download.
D) PUP.
C
62) Which of the following is not an example of a PUP?
A) adware
B) browser parasite
C) driveby download
D) spyware
C
63) All of the following are limitations of the existing online credit card payment system
except:
A) poor security.
B) cost to consumers.
C) cost to merchant.
D) social equity.
B
64) Linden Dollars, created for use in Second Life, are an example of:
A) digital cash.
B) virtual currency.
C) EBPP.
D) peertopeer payment systems.
B
65) Which of the following is a set of shortrange wireless technologies used to share
information among devices within about 2 inches of each other?
A) DES
B) NFC
C) IM
D) text messaging
B
16) Around ________ % of households in the United States have broadband access to the
Internet.
A) 45
B) 55
C) 75
D) 85
C
17) Google introduced which of the following changes to its search algorithm in 2011 to weed
out low quality sites from search results?
A) Penguin
B) Hummingbird
C) Panda
D) Knowledge Graph
C
18) Which of the following online advertising formats attracted the least amount of spending in
2014?
A) search
B) classifieds
C) rich media
D) email
D
19) Which of the following would you implement to collect and analyze your company’s Big
Data?
A) data warehouse
B) Hadoop
C) SQL
D) profiling
B
20) Which of the following is not one of the main stages of the online purchasing process?
A) postpurchase service and loyalty
B) awareness
C) evaluation
D) conversation
D
21) Which of the following forms of online advertising is expected to grow the fastest between
2014 and 2018?
A) paid search
B) sponsorships
C) search engines
D) rich media
D
22) If you want to determine the size of your Web site’s audience, the metric you will use for
the most accurate measurement will be:
A) page views.
B) unique visitors.
C) hits.
D) reach.
B
23) In 2014, what was the approximate Internet penetration rate for individuals that have
attained less than a highschool education?
A) 45%
B) 60%
C) 75%
D) 90%
C
24) Which of the following is not one of the four main methods advertisers use to behaviorally
target ads?
A) Nielsen ratings
B) data collected from social networks
C) integration of offline data
D) clickstream data
A
25) Which of the following search engine algorithm updates enables Google’s search engine
to evaluate an entire sentence rather than just a key word?
A) Panda
B) Penguin
C) Hummingbird
D) Graph Search
C
26) Which of the following is not true about search engine advertising?
A) Spending on search engine advertising constitutes over 40% of all online advertising
spending.
B) The top three search engine providers supply over 95% of all online searches.
C) The clickthrough rate for search engine marketing has been fairly steady over the years.
D) Search engine advertising is the fastest growing type of online advertising.
D
27) Which of the following is not a practice that degrades the results and usefulness of search
engines?
A) social search
B) link farms
C) content farms
D) click fraud
A
28) All of the following are online communications that are used to support the evaluation of
alternatives stage of the consumer decision process except:
A) search engines.
B) online catalogs.
C) social networks.
D) targeted banner ads.
D
29) “Shoppers” constitute approximately ________ % of the online Internet audience.
A) 60
B) 70
C) 80
D) 90
D
30) Dove’s Real Beauty Sketches video ad is an example of which of the following?
A) viral marketing
B) local marketing
C) affiliate marketing
D) lead generation marketing
A
31) Which of the following is the top reason why consumers choose the online channel?
A) availability of a wider variety of products
B) social media influence
C) lower prices
D) the ability to shop 24/7
C
32) Which of the following is not a primary source of ad fraud?
A) browser extensions that insert ads into a premium publisher’s Web site and then list the
ads as available on a programmatic ad exchange
B) ad targeting firms that create bots that imitate the behavior of real shoppers and then
charge advertisers
C) botnets hired by publishers to click on Web pages to create phony traffic
D) native advertising that is displayed on a social media site
D
33) In the first 8 months of 2014, the percentage of all email that is spam averaged around
________ %.
A) 50
B) 60
C) 70
D) 80
B
34) In modeling online consumer behavior, the concept of “consumer skills” refers to the:
A) education level of the consumer.
B) communication skills of the consumer.
C) knowledge consumers have about how to conduct online transactions.
D) product evaluation skills of the consumer.
C
35) Which of the following statements about CANSPAM is not true?
A) CANSPAM went into effect in January 2004.
B) CANSPAM prohibits unsolicited email (spam).
C) CANSPAM prohibits the use of deceptive subject lines and false headers.
D) Large spammers are among CANSPAM’s biggest supporters.
B
36) Which of the following statements about Canada’s antispam law is not true?
A) Canada’s law is based on an optin model.
B) The law has no impact on companies located within the United States.
C) The first phase of the law went into effect in 2014.
D) The law applies to email, texts, and social media messaging.
B
37) Which of the following is the most important tool in establishing a relationship with the
customer?
A) company Web site
B) company CRM system
C) Facebook
D) search engine display ads
A
38) Impressions are a measure of the:
A) number of times an ad is clicked.
B) number of times an ad is served.
C) number of http requests.
D) number of pages viewed.
B
39) Viewthrough rate measures the ________ response rate to an ad.
A) 30minute
B) 24hour
C) 7day
D) 30day
D
40) Uber has been criticized for using which of the following?
A) flash marketing
B) bundling
C) surge pricing
D) freemium
C
41) Hits are a measure of the:
A) number of times an ad is clicked.
B) number of times an ad is served.
C) number of http requests.
D) number of pages viewed.
C
42) Which of the following statements about the Internet’s impact on marketing is not true?
A) The Internet has broadened the scope of marketing communications.
B) The Internet has decreased the impact of brands.
C) The Internet has increased the richness of marketing communications.
D) The Internet has expanded the information intensity of the marketplace.
B
43) Which of the following features of ecommerce technology has reduced the cost of
delivering marketing messages and receiving feedback from users?
A) ubiquity
B) richness
C) interactivity
D) universal standards
D
44) Which of the following features of ecommerce technology allows finegrained, highly
detailed information on consumers’ realtime behavior to be gathered and analyzed?
A) personalization/customization
B) information density
C) social technology
D) interactivity
B
45) The richness made possible by ecommerce technologies does which of the following?
A) It reduces the cost of delivering marketing messages and receiving feedback from users.
B) It allows consumers to become coproducers of the goods and services being sold.
C) It allows video, audio, and text to be integrated into a single marketing message and
consuming experience.
D) It enables worldwide customer service and marketing communications.
C
46) For a Web site that has 10 million visitors a month, and where on average, a visitor makes
10 page requests per visit, there will be ________ entries in the transaction log each month.
A) 100,000
B) 1 million
C) 10 million
D) 100 million
D
47) Purchasing an online ad on a CPA basis means that the advertiser:
A) pays for impressions in 1,000 unit lots.
B) pays a prenegotiated fee for each click an ad receives.
C) pays only for those users who perform a specific action, such as registering, purchasing,
etc.
D) exchanges something of equal value for the ad space.
C
48) All of the following statements about cookies are true except:
A) cookies can be used with Web bugs to create crosssite profiles of users.
B) the data typically stored in cookies includes a unique ID and email address.
C) cookies make shopping carts possible by allowing a site to keep track of a user’s actions.
D) the more cookies are deleted, the less accurate ad server metrics become.
B
49) A Web beacon is:
A) a cookie that carries a virus.
B) an executable cookie.
C) an automated applet for performing Web searches.
D) a tiny graphics file embedded in an email or Web page.
D
50) ________ is an industrystandard database query and manipulation language.
A) SQL
B) PHP
C) DBMS
D) JSP
A
51) All of the following are traditional online marketing tools except:
A) affiliate marketing.
B) email and permission marketing.
C) social marketing.
D) sponsorship marketing.
C
52) Which of the following examples illustrates the “Long Tail” phenomenon?
A) Rhapsody music streaming service reported that its no play rate had increased to over
20%.
B) The number of blockbuster “winner take all” video titles is declining.
C) Over 50% of Netflix’s 100,000 titles are rented at least once a day by someone.
D) The average blog has a readership of slightly more than 1.
C
53) A ________ is a repository of customer information that records all of the contacts that a
customer has with a firm and generates a customer profile available to everyone in the firm
with a need to know the customer.
A) customer service chat system
B) CRM system
C) data warehouse
D) transactive content system
B
54) Which of the following measures the average length of stay at a Web site?
A) loyalty
B) stickiness
C) recency
D) retention rate
B
55) Acquisition rate is a measure of the:
A) percentage of visitors who indicate an interest in a site’s products by registering or visiting
a product’s pages.
B) percentage of visitors who become customers.
C) percentage of existing customers who continue to buy on a regular basis.
D) percentage of shoppers who do not return within a year after their initial purchase.
A
56) The marketing technique known as ________ involves merchants offering products or
services for a very low price for a short period of time.
A) search engine marketing
B) flash marketing
C) yield management
D) baitandswitch
B
57) Recency refers to the:
A) percentage of customers who do not return during the next year after an initial purchase.
B) time elapsed since the last action taken by a customer.
C) percentage of existing customers who continue to buy on a regular basis.
D) percentage of customers who return to the site within a year to make additional purchases.
B
58) Which of the following is not a feature that is driving the growth of social marketing and
advertising?
A) social signon
B) network notification
C) collaborative shopping
D) affiliate programs
D
59) Conversion rate is a measure of the:
A) percentage of visitors who indicate an interest in a site’s products by registering or visiting
a product’s pages.
B) percentage of visitors who become customers.
C) percentage of existing customers who continue to buy on a regular basis.
D) percentage of shoppers who do not return within a year after their initial purchase.
B
60) Which of the following measures the ratio of items purchased to product views?
A) conversion rate
B) cart conversion rate
C) browsetobuy ratio
D) viewtocart ratio
C
61) The Nike iD program is an example of which of the following marketing techniques?
A) customer coproduction
B) transactive content
C) price discrimination
D) permission marketing
A
62) The incremental cost of building the next unit of a good is called the:
A) Law of One Price.
B) variable cost.
C) marginal cost.
D) fixed cost.
C
63) Which of the following statements about a free pricing strategy is false?
A) Free products and services can knock out potential and actual competitors.
B) The free pricing strategy was born in the early days of the Web.
C) It is difficult to convert free customers into paying customers.
D) Free products and services can help build market awareness.
B
64) Creating multiple variations of information goods and selling these to different market
segments at different prices is called:
A) bundling.
B) customization.
C) dynamic pricing.
D) versioning.
D
65) All of the following are fixed price strategies except:
A) bundling.
B) versioning.
C) free pricing.
D) yield management.
D
16) All of the following were popular types of online marketing before 2007 except:
A) email.
B) corporate Web sites.
C) mobile marketing.
D) display ads.
C
17) Which of the following is not true about social marketing?
A) More than 50% of Twitter’s ad revenues are generated by desktop users.
B) Social marketing is growing at around 30% a year.
C) Social marketing differs markedly from traditional online marketing.
D) In social marketing, business cannot tightly control their brand messaging.
A
18) Which of the following is not true about mobile marketing?
A) Mobile marketing is the fastest growing form of online marketing.
B) Mobile marketing is growing at around 60% a year.
C) A substantial part of mobile marketing should be counted as social marketing.
D) People use most of their mobile minutes while they are on the go.
D
19) The second most popular social network in terms of average minutes per visitor is:
A) Google+.
B) Pinterest.
C) LinkedIn.
D) Tumblr
D
20) Which of the following purchased Tumblr in May 2013?
A) Facebook
B) Yahoo
C) Google
D) Twitter
B
21) Which of the following is the first step in the social marketing process?
A) community
B) amplification
C) fan acquisition
D) engagement
C
22) Encouraging users to click a Like button is an example of which step in the social
marketing process?
A) fan acquisition
B) brand strength
C) community
D) amplification
D
23) Your Facebook News Feed includes all of the following except:
A) status updates.
B) app activity.
C) Likes.
D) tweets.
D
24) Which of the following statements about Graph Search is not true?
A) It relies on Google to supplement its search results.
B) It is a semantic search engine.
C) It is a social search engine.
D) It includes photos.
A
25) Ads that appear in a Facebook user’s News Feed are called:
A) Marketplace Ads.
B) Promoted Ads.
C) Page Post Ads.
D) Brand Ads.
C
26) Which of the following do Facebook users spend the most time on?
A) News Feed
B) Photos
C) Profiles
D) Graph Search
A
27) Which of the following is a history of your actions on Facebook?
A) News Feed
B) Timeline
C) Ticker
D) Social Graph
B
28) Which of the following statements is not true?
A) About 50% of Facebook’s ad revenue in 2014 is expected to come from its mobile ad
platform.
B) The only way to access Facebook from a mobile device is to use a mobile app.
C) Mobile ads are displayed in users’ News Feeds.
D) Facebook’s mobile ad revenues are its fastest growing revenue stream.
B
29) All of the following marketing tools on Facebook require payment except:
A) Brand Pages.
B) RightHand Sidebar Ads.
C) News Feed Page Post Ads.
D) Mobile Ads.
A
30) The ratio of impressions to fans is a measure of:
A) engagement.
B) amplification.
C) community.
D) fan acquisition.
D
31) Which of the following provides marketers with a realtime digital dashboard so they can
see tweet activity about a TV show, commercial, or brand?
A) Enhanced Profile Pages
B) Amplify
C) Lead Generation Cards
D) Promoted Accounts
B
32) Which of the following involves a coupon or other promotional offer that appears in users’
Twitter timeline?
A) Promoted Tweet
B) Promoted Trend
C) Promoted Account
D) Lead Generation Card
D
33) Which of the following statements about Pinterest is not true?
A) Pinned photos and photo boards are available to all Pinterest users.
B) Pinterest users are overwhelmingly female.
C) Pinterest enables users to integrate their pins into their Facebook News Feeds and Twitter
streams.
D) Pinterest is the only one of the major social networks that does not accept paid advertising.
D
34) Which of the following are features of both Pinterest and Twitter?
A) tweets
B) hashtags
C) pins
D) Image Hover widget
B
35) All of the following are Pinterest marketing tools except:
A) Brand pages.
B) Product Pins.
C) Promoted Pins.
D) Promoted Accounts.
D
36) The number of people exposed to pins is a measure of which of the following?
A) engagement
B) community
C) brand strength
D) fan acquisition
D
37) Which of the following is an online service specifically aimed at measuring the impact of
Pinterest and other visual social media?
A) TweetDeck
B) Curalate
C) Amplify
D) Webtrends
B
38) Which of the following is the top app in terms of both audience size and share of time
spent?
A) YouTube
B) iTunes
C) Twitter
D) Facebook
D
39) How many retailoriented apps are there in the top 25 apps?
A) 0
B) 1
C) 2
D) 5
C
40) Which of the following statements is not true?
A) Google is the leading display ad site on mobile devices.
B) Google is the largest distributor of video ads on the mobile platform.
C) Mobile advertising is dominated by Google.
D) Google charges more for desktop ads than it charges for mobile ads.
A
41) Which of the following is the most popular use for mobile devices?
A) shopping
B) socializing
C) entertainment
D) performing tasks, such as finances
C
42) Physical retail goods accounted for around what percentage of mcommerce sales in
2014?
A) 55%
B) 65%
C) 75%
D) 85%
D
43) Which of the following categories do people most use their mobile devices for?
A) entertainment
B) socializing
C) shopping
D) reading news and magazines
A
44) How many apps do users regularly use a month?
A) 10
B) 25
C) 30
D) 50
B
45) In 2014, mobile marketing was about ________% of all online marketing.
A) 15%
B) 25%
C) 35%
D) 50%
C
46) Which of the following accounts for the most mobile ad spending?
A) display ads
B) search engine advertising
C) video ads
D) SMS text messages
B
47) Which of the following is not a major provider of mobile display advertising?
A) MoPub
B) iAd
C) AdMob
D) Webtrends
D
48) Which of the following is another term for amplification?
A) impressions
B) reach
C) conversation rate
D) conversion ratio
B
49) Which of the following is currently a small part of the online marketing universe, but is
expected to triple over the next 5 years?
A) local marketing
B) locationbased mobile marketing
C) mobile marketing
D) social marketing on Facebook
B
50) Macy’s deployed which of the following technologies in all its retail stores in 2014?
A) QR codes
B) iBeacon
C) E911
D) Geosearch
B
51) Which of the following earns the most locationbased marketing revenue?
A) Twitter
B) Apple
C) Facebook
D) Google
D
52) Apple’s iBeacon uses which of the following technologies?
A) BLE
B) NFC
C) E911
D) QR codes
A
53) A recent Google survey found that ________ % of smartphone users visit a store within a
day of conducting a local search.
A) 15
B) 25
C) 50
D) 75
C
54) All of the following are examples of dark social except:
A) email
B) tweets
C) SMS texts
D) Snapchat
B
55) Google uses which of the following to build a global database of wireless access points
and their geographic locations?
A) E911
B) Street View cars
C) iBeacons
D) BLE
B
56) Facebook’s share price fell dramatically after its IPO because investors feared that:
A) Facebook’s new marketing solutions would be difficult to monetize.
B) new social networks such as Instagram were cannibalizing Facebook’s audience.
C) privacy concerns were driving users away.
D) Facebook would be unable to increase advertising revenues fast enough to justify its price.
D
57) Which of the following allows Facebook to track user behavior on other sites and then sell
the information to marketers?
A) Open Graph
B) Like button
C) hashtags
D) Whatsapp
B
58) Which of the following is not true about Facebook News Feed Page Post Ads?
A) They have a tiny tag indicating that they are sponsored.
B) They can be liked, shared, and commented on, just like any News Feed post.
C) They cannot contain links.
D) They have social context
C
59) How does Google Analytics track user behavior at a participating Web site?
A) cookies
B) beacons
C) server logs
D) super cookies
B
60) Which analytics tool did Fairmont Hotel use to measure the effectiveness of its online
marketing and advertising?
A) Webtrends
B) IBM Digital Analytics
C) Google Analytics
D) A custom Hadoop solution
C
61) Companies are not permitted to collect personal information from children under the age
of ________ without parental consent.
A) 8
B) 10
C) 13
D) 16
C
62) Which of the following was the object of the FTC’s firstever COPPA enforcement action
involving mobile apps?
A) Disney’s Playdom
B) W3 Innovation
C) Snapchat
D) Yelp
B
63) How can a smartphone’s gyroscope and accelerometer be used in product marketing?
A) to speed up delivery of large multimedia files
B) to locate the user’s geographical position
C) to enhance user interaction with mobile multimedia
D) to provide accurate data on the user’s destination and speed
C
64) Which social marketing proved the most effective for ExchangeHunterJumper.com?
A) Facebook
B) YouTube
C) Pinterest
D) Instagram
A
65) Which of the following most helped Dagny Aslin of ExchangeHunterJumper.com in
establishing her brand in the niche area of selling highend competition horses?
A) integrating online and offline marketing techniques to establish a consistent brand
B) adapting marketing techniques to keep up with new Internet technologies
C) valuing quality over quantity at each stage in the Web site development process
D) establishing customer needs and habits as the top priority in all marketing decisions
D
16) Which of the following ecommerce technology dimensions creates greater opportunities
for cyberbullying?
A) richness
B) interactivity
C) social technology
D) ubiquity
C
17) Which of the following ecommerce technology dimensions has the potential to reduce
cultural diversity in products?
A) richness
B) interactivity
C) information density
D) global reach
D
18) Which of the following is not one of the four basic principles shared by ethical schools of
thought in western culture?
A) accountability
B) privacy
C) due process
D) liability
B
19) What is the first step in analyzing an ethical dilemma?
A) Define the conflict or dilemma and identify the higherorder values involved.
B) Identify the potential consequences of your opinions.
C) Identify the options you can reasonably take.
D) Identify and describe the facts.
D
20) Which ethical principle states that, when confronted with an ethical dilemma, individuals
should take the action that achieves the greater value for all of society?
A) the Golden Rule
B) Universalism
C) the Collective Utilitarian principle
D) the Social Contract rule
C
21) Which ethical principle emphasizes putting oneself into the place of others and thinking of
oneself as the object of the decision?
A) the Golden Rule
B) Universalism
C) the Collective Utilitarian principle
D) the Social Contract rule
A
22) Which ethical principle asks you to assume that virtually all tangible and intangible objects
are owned by someone else unless there is a specific declaration otherwise?
A) the Golden Rule
B) the Slippery Slope
C) the Social Contract rule
D) No Free Lunch
D
23) Which ethical principle states that if an action cannot be taken repeatedly, then it is not
right to take at all?
A) Universalism
B) the Slippery Slope
C) the Social Contract rule
D) the Golden Rule
B
24) Which ethical principle asks you to consider the impact of your decision if the principles
underlying your decision became an organizing principle of the entire society?
A) the Golden Rule
B) Risk Aversion
C) the Slippery Slope
D) the Social Contract rule
D
25) Which ethical principle tells you that it is wise to assume perfect information markets?
A) the Golden Rule
B) the New York Times test
C) the Social Contract rule
D) the Collective Utilitarian principle
B
26) Which ethical principle states that when confronted with an ethical dilemma, an individual
should take the action that produces the least harm, or the least potential cost?
A) the Slippery Slope
B) Risk Aversion
C) No Free Lunch
D) the Collective Utilitarian principle
B
27) Which of the following basic ethical concepts plays an important role in defining privacy?
A) responsibility
B) accountability
C) liability
D) due process
D
28) Which of the following is not aimed at strengthening the ability of law enforcement
agencies to monitor Internet users without their knowledge?
A) the USA PATRIOT Act
B) the Homeland Security Act
C) the Communications Assistance for Law Enforcement Act
D) the EGovernment Act
D
29) Which of the following tools can companies use to track user statements and views on
newsgroups, chat groups, and other public forums?
A) cookies
B) digital wallets
C) search engines
D) shopping carts
C
30) Which of the following can be used to record all keyboard activity of a user?
A) shopping carts
B) trusted computing environments
C) spyware
D) DRM
C
31) Which of the following is not one of the issues complicating the taxation of ecommerce
sales?
A) Taxes raised are used for different government purposes.
B) Sales taxes and policies vary by state and country.
C) Retailers legally only have to charge sales tax if they have operations located in the same
state as a consumer.
D) Small online businesses are unable to manage sales taxes to thousands of different
jurisdictions.
A
32) Which of the following is a tiered notice and response system aimed at reducing copyright
infringement over P2P networks?
A) the CAS
B) FIP
C) Surfright
D) the Open Internet Order
A
33) Which of the following statements about industry selfregulation regarding privacy is not
true?
A) OPA members are required to implement the OPA’s privacy guidelines.
B) The primary focus of industry efforts has been the use of online “seals” that attest to the
site’s policies.
C) Industry efforts have not so far succeeded in reducing American fears of privacy invasion.
D) The NAI’s privacy policies have established the TRUSTe seal.
D
34) The sharing of a user’s stored cookie information between Web sites and without the
user’s knowledge is:
A) legal in the United States but illegal in Europe.
B) illegal in the United States but legal in Europe.
C) legal in both the United States and Europe.
D) illegal in both the United States and Europe.
A
35) Which of the following requires financial institutions to inform consumers of their privacy
policies and permits consumers some control over their records?
A) Freedom of Information Act
B) GrammLeachBliley Act
C) COPPA
D) HIPAA
B
36) A social consequence of the richness of Internet information is:
A) an increase in shallowness.
B) an increase in the ease of creating misleading information.
C) very persuasive messages might reduce the need for multiple independent sources of
information.
D) an increase in vulnerability to hacking attacks.
C
37) Which of the following is a core Fair Information Practices (FIP) principle?
A) Choice/Consent
B) Access/Participation
C) Security
D) Enforcement
A
38) Which of the FTC’s Fair Information Practices (FIP) principles requires identification of the
collector of data?
A) Notice/Awareness
B) Choice/Consent
C) Access/Participation
D) Security
A
39) Which of the FTC’s Fair Information Practices (FIP) principles requires optin or optout
policies to be in place?
A) Notice/Awareness
B) Choice/Consent
C) Access/Participation
D) Security
B
40) What is the FTC recommendation regarding choice as it relates to personally identifiable
information (PII)?
A) Require firms to have consumers affirmatively optin before PII is collected.
B) Require firms to allow consumers to optout before PII is collected.
C) Make collection of PII illegal.
D) Require robust notice only before PII is collected.
A
41) “Do Not Track” falls under which of the following principles in the FTC’s new privacy
framework?
A) Privacy by Design
B) Simplified Choice
C) Greater Transparency
D) Scope
B
42) Which of the following technologies allows you to send email without a trace?
A) anonymous surfing
B) P3P
C) anonymous remailers
D) public key encryption
C
43) Which pricing plan charges fees to ecommerce firms based on the amount of traffic they
generate?
A) highway pricing
B) cap pricing
C) usagebased billing
D) congestion pricing
A
44) What is the major reason that the Internet has such potential for destroying traditional
conceptions and implementations of intellectual property law?
A) the ability to make perfect copies of digital works at little cost
B) the anonymous nature of the Internet
C) the support for instant peertopeer communication
D) the use of standards for file formats
A
45) Which of the following protects original forms of expression in a tangible medium?
A) trade secret law
B) copyright law
C) patent law
D) trademark law
B
46) How long does copyright protection extend for corporateowned works?
A) 25 years
B) 50 years
C) 75 years
D) 95 years
D
47) Which of the following situations would not qualify for the fair use exception to U.S.
copyright law?
A) A professor clips a newspaper article just before class and distributes copies of it to his
class.
B) A journalist quotes a paragraph from a book in a review of the book.
C) A student copies a photograph of his favorite band from a Web site created by the band’s
record label and places it on the student’s personal Web site.
D) Google posts thumbnail images of books in the Google Book Search Project.
C
48) All of the following are factors that will be considered in determining whether use of
copyrighted material is “fair use” except the:
A) nature of the work used.
B) amount of the work used.
C) market effect of the use.
D) free availability of the work on the Web.
D
49) Downloading music tracks owned by record companies without paying for them is an
example of a violation of:
A) patent law.
B) copyright law.
C) trademark law.
D) privacy law.
B
50) All of the following are possible penalties for violating the Digital Millennium Copyright Act
(DMCA) except:
A) up to ten years imprisonment for a first offense.
B) fines up to $500,000 for a first offense.
C) fines up to $1 million for a repeat offense.
D) restitution to the injured parties for any losses due to infringement.
A
51) All of the following statements about the Digital Millennium Copyright Act (DMCA) are true
except:
A) the DMCA makes it illegal to circumvent technological measures to protect works.
B) the DMCA makes Internet Service Providers (ISPs) responsible and accountable for
hosting Web sites or providing services to infringers regardless of whether the ISP is aware of
infringement.
C) the DMCA requires search engines to block access to infringing sites.
D) the DMCA allows libraries to make digital copies of works for internal use only.
B
52) Which of the following allows someone to obtain an exclusive monopoly on the ideas
behind an invention for 20 years?
A) copyright law
B) trade secret law
C) patent law
D) trademark law
C
53) All of the following statements about patents are true except:
A) it is more difficult to obtain a copyright than it is to obtain a patent.
B) the four types of inventions protected by patent law are machines, manmade products,
compositions of matter, and processing methods.
C) computer programs can be patented.
D) in order to be patented, an invention must be nonobvious.
A
54) Which case was instrumental in paving the way for Internet business methods patents?
A) Brown Bag v. Symantec
B) State Street Bank & Trust Co. v. Signature Financial Group, Inc.
C) Alice Corporation Pty. Ltd. v. CLS Bank International
D) Ticketmaster Corp. v. Tickets.com
B
55) Amazon has a patent on:
A) downloadbased sales.
B) display of thirdparty advertisements in floating windows.
C) oneclick purchasing.
D) hyperlinks.
C
56) Disputes over federal trademarks involve establishing:
A) underlying ideas.
B) intent.
C) piracy.
D) infringement.
D
57) Registering a domain name similar or identical to trademarks of others to extort profits
from legitimate holders is an example of:
A) cybersquatting.
B) cyberpiracy.
C) framing.
D) metatagging.
A
58) Which of the following handles cybersquatting cases under its Uniform Dispute Resolution
procedures?
A) ICANN
B) FTC
C) WIPO
D) USPTO
C
59) Registering a domain name similar or identical to trademarks of others to divert Web
traffic to their own sites is an example of:
A) cybersquatting.
B) cyberpiracy.
C) framing.
D) metatagging.
B
60) Registering the domain name Faceboik.com with the intent to divert Web traffic from
people misspelling Facebook.com is an example of:
A) cybersquatting.
B) typosquatting.
C) metatagging.
D) linking.
B
61) In which of the following cases did the U.S. Supreme Court rule that basic business
methods cannot be patented?
A) State Street Bank & Trust v. Signature Financial Group, Inc.
B) Bilski et al. v. Kappos
C) Alice Corporation Pty. Ltd. v. CLS Bank International
D) Brown Bag Software v. Symantec Corp.
C
62) The display of a thirdparty’s Web site or page within your own Web site is called:
A) cybersquatting.
B) metatagging.
C) framing.
D) deep linking.
C
63) The President’s Council of Advisors on Science and Technology has called for all of the
following except:
A) a consumer privacy bill of rights.
B) a data breach law requiring firms to report losses of consumer data.
C) amendment of the Electronic Communications Privacy Act to strengthen protections
against government surveillance.
D) a blanket prohibition on commercial data brokers.
D
64) Comcast’s proposed merger with which of the following would make it the highspeed
Internet provider for close to 40% of American homes?
A) Cablevision
B) AT&T
C) Verizon
D) Time Warner Cable
D
65) According to data from Pew Research Center, which of the following is the action which
the highest percentage of Internet users has taken to preserve their privacy online?
A) used an anonymous Web browsing service
B) encrypted their communications
C) cleared Web browser history and cookies
D) posted comments online anonymously
C
Value chains are
A) A stylized listing of the sequence of activities performed by a firm
B) Sometimes reconfigured or reshaped as a result of ecommerce
C) Sometimes broadly defined to include activities that take place outside the boundaries of the firm
D) All of the above
D
Which price determination rule for markets has become more common as a result of the
Internet and Web?
A)Bargaining
B)Negotiation
C)Posted prices
D)Auctions
D
Ecommerce changes the physical organization of markets by allowing
A)Greater spatial separation
B)More rapid adjustment
C)More complex forms of organization
D)All of the above
D
Which of the following statements is most accurate?
A)Reputation is less important in ecommerce than in traditional market transactions
B)Intermediaries are irrelevant for providing reputation in markets
C)Ecommerce reputations are affected by the rapid spread of information online
D)None of the above statements is accurate
C
Which of the following statements is least accurate?
A)Online exchanges and similar intermediaries provide matching services
B)Matching can involve buyers and sellers, or other forms of interaction
C)Online matching does not work because the information is unreliable
D)Online matching can involve sophisticated processes and institutions
C
The extent to which intermediaries operate, and the range of their functions depend on
A)Economies of scope
B)Economies of scale
C)Economies of specialization
D)All of the above
D
Information flows in ecommerce are different from traditional markets because
A)The costs of transmitting information are lower
B)Communications with customers can be more integrated with internal business processes
such as order processing and inventory management
C)Consumers can easily identify false statements on the Internet
D)Both a) and b)
D
Words, names, and symbols used by manufacturers and businesses to identify their goods and services are covered by
A)Trademark law
B)Trade secret law
C)Patent law
D)Copyright law
A
Digital products include
A)Content
B)Tokens of exchange
C)Processes and services
D)All of the above
D
It may be difficult to sustain perfect competition for digital products because they may
A)Be shareable
B)Be nonexcludable
C)Be easy to customize, leading to product differentiation
D)All of the above
D
Richness of information includes all of the following dimensions except:
A)Customization
B)Interactivity
C)Currency or timeliness
D)Cupidity
D
Services become more important in ecommerce because
A)Information is a shareable or nonrival good
B)Digital products are very durable
C)Automation based on information technology converts some variable costs of products to
fixed costs
D)All of the above
D
Which of the following is not a reason for organizing and conducting transactions within firms rather than through markets
A)Benefiting from complementarity of productive assets
B)Outsourcing some tasks or functions
C)Protecting proprietary knowledge
D)Economies of scope in coordinating provision of different services
B
Stock trading by individuals became one of the earliest and most dramatic markets to be
changed by the Internet and World Wide Web because
A)Financial claims are essentially just information, and are natural candidates for digitization
B)Much of the back office infrastructure was already electronic
C)Deregulation of financial services made new entry easier
D)All of the above
D
Which of the following is not a likely outcome of ecommerce?
A)Lower transaction costs
B)Greater interactivity between buyers and sellers
C)Guaranteed higher profit margins
D)Better matching of buyers and sellers
C
Which of these is not an economic reason for product differentiation?
A)Matching consumer tastes better
B)Supporting open standards
C)Supporting price discrimination
D)Making the demand for your products less elastic
B
Vertical product differentiation refers to the case where
A)One version is not unanimously considered to be better than another, but rather the ranking of
products depends on the subjective tastes of the customer
B)Users are unanimous in their ranking of products or services based on the gross value
C)Products are bundled
D)Products are homogeneous
B
Bundling is valuable for sellers when
A)The willingness to pay for bundles is less dispersed than the willingness to pay for
components
B)It increases switching costs for existing buyers
C)It increases selling costs
D)Only a) and b) above
D
A strategy of price discrimination can involve
A)Bundling
B)Quantity discounts
C)Versioning
D)Any of the above
D
Options for copyright strategy in ecommerce include
A)Free distribution of limited copyrighted content for promotional purposes
B)Lawsuits against possible copyright violators
C)Technologies to prevent copying
D)All of the above
D
Internetbased advertising methods include all of the following except:
A)Paid listings with search services
B)Email to customers and prospects
C)TV infomercials
D)Classified advertising on Craigslist
C
Pull advertising refers to
A)Advertising that pulls in the customer
B)Advertising that exerts a strong appeal
C)Advertising that is pulled in by the consumer, i.e., provided in response to a specific query
D)All of the above
C
Promotional pricing may be used when
A)A product is an experience good and consumers need to be induced to try it out
B)Consumers have switching costs
C)A new product is introduced and consumers do not know its characteristics
D)All of the above
D
Among the reasons marketing online is different from traditional marketing are
A)Customer information can be captured more directly and in greater quantities
B)New kinds of customer information, such as browsing patterns, can be captured and analyzed
C)’Onthefly’ customization is possible
D)All of the above
D
Experience goods are
A)Ones where you can learn all the important characteristics before buying
B)Ones where you can learn all the important characteristics by using the good
C)Ones where even using the good does not reveal important characteristics
D)None of the above
B

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