E-Commerce Strategy and Implementation
Exam Preparation Guide
Course Introduction
This course explores the fundamental principles and advanced strategies involved in launching and managing successful e-commerce ventures. Students will examine key frameworks for digital business models, online customer engagement, and revenue generation, with a focus on both B2B and B2C environments. The course covers essential topics such as website design, digital marketing, supply chain integration, security issues, and regulatory considerations. Through case studies and practical projects, students will develop skills to evaluate market opportunities, formulate strategic e-commerce plans, and implement technology solutions to achieve organizational objectives.
Recommended Textbook
E Commerce 2016 Business Technology Society 12th Edition by Kenneth C. Laudon
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Chapter 1: The Revolution Is Just Beginning
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Sample Questions
Q1) 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 e-commerce.
Answer: C
Q2) In 2015, the world's online population was estimated to be around:
A)310 million.
B)3)1 billion.
C)31 billion.
D)310 billion.
Answer: B
Q3) Which of the following is an example of an on-demand service company?
A)YouTube
B)Airbnb
C)Tumblr
D)Facebook
Answer: B
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Page 3
Chapter 2: E-Commerce Business Models and Concepts
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Q1) Which of the following would be considered an indirect competitor of Priceline?
A)Travelocity
B)Expedia
C)Orbitz
D)TripAdvisor
Answer: B
Q2) Who are the e-commerce enablers and why are they important?
Answer: No discussion of e-commerce business models would be complete without mention of a group of companies whose business model is focused on providing the infrastructure necessary for e-commerce companies to exist, grow, and prosper. E-commerce enablers provide the hardware, operating system software, networks and communications technology, applications software, Web design, consulting services, and other tools required for e-commerce. While these firms may not be conducting e-commerce per se (although in many instances, e-commerce in its traditional sense is in fact one of their sales channels), as a group they have perhaps profited the most from the development of e-commerce.
Q3) E-commerce has increased price competition in nearly all markets.
A)True
B)False
Answer: True
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Chapter 3:
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Q1) What are the implications of cloud computing for e-commerce?
Answer: Cloud computing has many significant implications for e-commerce. For e-commerce firms, cloud computing radically reduces the cost of building and operating Web sites because the necessary hardware infrastructure and software can be licensed as a service from cloud service providers at a fraction of the cost of purchasing these services as products. This means firms can adopt "pay-as-you-go" and "pay-as-you-grow" strategies when building out their Web sites. For instance, according to Amazon, hundreds of thousands of customers use Amazon Web Services. For individuals, cloud computing means you no longer need a powerful laptop or desktop computer to engage in e-commerce or other activities. Instead, you can use much less-expensive tablet computers or smartphones that cost a few hundred dollars. For corporations, cloud computing means that a significant part of hardware and software costs (infrastructure costs)can be reduced because firms can obtain these services online for a fraction of the cost of owning, and they do not have to hire an IT staff to support the infrastructure.
Q2) T1 and T3 refer to international telephone standards for digital communication.
A)True
B)False
Answer: True
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Chapter 4: Building an E-Commerce Presence: Web Sites, Mobile Sites, and Apps
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Sample Questions
Q1) The annual maintenance cost for a Web site is typically much lower than its development cost.
A)True
B)False
Q2) The process of comparing a Web site with that of its competitors in terms of response speed, quality of layout, and design is known as:
A)split testing.
B)funnel testing.
C)benchmarking.
D)system testing.
Q3) Offline media is typically used for all of the following marketing activities except: A)education.
B)exposure.
C)conversation.
D)branding.
Q4) What are the phases, activities, and milestones for developing an e-commerce presence for a typical start-up Web site over a one-year period?
Q5) What are widgets and how are they used? How do they differ from mashups?
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Chapter 5: E-Commerce Security and Payment Systems
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Q1) ________ refers to the ability to ensure that e-commerce participants do not deny their online actions.
A)Nonrepudiation
B)Authenticity
C)Availability
D)Integrity
Q2) Symmetric key cryptography is also known as:
A)public key cryptography.
B)secret key cryptography.
C)PGP.
D)PKI.
Q3) Explain how an online credit card transaction works, identifying the parties involved and describing how SSL/TLS is involved. What are the limitations of online credit card payment systems?
Q4) All of the following are used for authentication except:
A)digital signatures.
B)certificates of authority.
C)biometric devices.
D)packet filters.
Q5) What is a sniffing attack and how does it differ from a MitM attack?
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Chapter 6: E-Commerce Marketing and Advertising Concepts
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Q1) 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.
Q2) 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.
Q3) 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
Q4) What are two methods being developed to track consumers across devices?
Page 8
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Chapter 7: Social, Mobile, and Local Marketing
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Q1) 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
Q2) How does the multi-screen environment change the marketing funnel?
Q3) A cell phone's GPS is accurate to within five feet of the actual location of the phone.
A)True
B)False
Q4) 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 generates almost two-thirds of all mobile search ad spending.
Q5) What are the implications for marketers given that mobile users spend over 70% of their smartphone time using apps and that on average, users only use about 26 apps a month?
Q6) How do people actually use their mobile devices today?
Page 9
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Chapter 8: Ethical, Social, and Political Issues in E-Commerce
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Q1) Which of the following is not true about the evolution of Facebook's privacy policies over the ten-year period from 2005 to 2015?
A)The amount of information gathered and monitored by Facebook increased.
B)Facebook's privacy policies improved from 2005 to 2009.
C)Facebook's privacy policy became easier to understand.
D)Facebook's privacy policies have steadily declined since 2009.
Q2) Which of the following technologies allows you to send e-mail without a trace?
A)anonymous surfing
B)P3P
C)anonymous remailers
D)public key encryption
Q3) Liability is a feature of political systems in which a body of law is in place that permits individuals to recover damages done to them by other actors, systems, or organizations.
A)True
B)False
Q4) Explain why the taxation of e-commerce raises governance and jurisdiction issues.
Q5) Define privacy, information privacy, the right to be forgotten, and informed consent.
Page 10
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Chapter 9: Online Retailing and Services
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Q1) Omni-channel merchants are also referred to as:
A)virtual merchants.
B)bricks-and-clicks companies.
C)catalog merchants.
D)manufacturer-direct firms.
Q2) Craigslist is a player in which of the following online services markets?
A)real estate services and career services
B)insurance services and brokerage services
C)travel services
D)online accounting services
Q3) Virtual merchants face potentially large costs for all of the following except:
A)building and maintaining a Web site.
B)building and maintaining physical stores.
C)building an order fulfillment infrastructure.
D)developing a brand name.
Q4) About 90% of Internet users in the United States are now online buyers.
A)True
B)False
Q5) Define economic viability and explain the factors involved in assessing a firm's economic viability.
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Chapter 10: Online Content and Media
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Q1) Which of the following has the highest share of the e-book market?
A)Amazon
B)Apple
C)Google
D)Barnes & Noble
Q2) Approximately ________ of the Internet population in the United States reads magazines online.
A)one-quarter
B)one-third
C)one-half
D)three-quarters
Q3) Which of the following statements about mobile gaming is not true?
A)Mobile games will generate an estimated $2 billion in 2015.
B)Mobile games have proven difficult to monetize.
C)Mobile games appeal to a younger demographic than console games.
D)Mobile games are expensive to develop.
Q4) Online readership of newspapers is growing by more than 10% a year.
A)True
B)False
Q5) Describe the three basic revenue models for digital content delivery.
Page 12
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Chapter 11: Social Networks, Auctions, and Portals
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Q1) All of the following are benefits of auctions except:
A)more efficient price discovery.
B)lower transaction costs.
C)decreased price transparency.
D)increased market efficiency.
Q2) Around what percentage of Internet users in the United States use social networks on a regular basis?
A)54%
B)67%
C)85%
D)94%
Q3) Which social network functionality allows users to view a list of updates from friends as well as advertisements and notifications in chronological order?
A)message board
B)timeline
C)newsfeed
D)friends networks
Q4) What business models do portals use?
Q5) Describe four shared characteristics of social networks.
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Chapter 12: B2b E-Commerce: Supply Chain Management and
Collaborative Commerce
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Q1) Which of the following is an example of an e-distributor?
A)AmazonSupply
B)PowerSource Online
C)VWGroupSupply
D)Elemica
Q2) WW Grainger is an example of a(n)________.
A)e-distributor
B)exchange
C)private industrial network
D)e-procurement Net marketplace
Q3) Identify and describe the major stages in the development of B2B commerce.
Q4) An ________ primarily serves businesses that primarily buy indirect goods on a contract purchasing basis.
A)e-distributor
B)e-procurement Net marketplace
C)exchange
D)industry consortium
Q5) Describe at least five characteristics of Net marketplaces.
Q7) What services do e-procurement Net marketplaces provide? Page 14
Q6) What does "supply chain visibility" refer to and what benefits does it bring?
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