Information technology for managers 2nd edition reynolds test bank

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CHAPTER 7— E-COMMERCE MULTIPLE CHOICE 1. _____ involves the exchange of money for goods and services over electronic networks. a. E-mail b. E-meeting c. E-commerce d. E-governance ANS: C RATIONALE: E-commerce involves the exchange of money for goods and services over electronic networks.

2. Which of the following was a reason for the failure of dot-com companies during the late 1990s? a. Generating revenues in excess of costs b. Increasing the market share with equal importance given for bottom-line profits c. Too much focus on bottom-line profits with little regard for market share d. Increasing the market share with little regard for bottom-line profits ANS: D RATIONALE: During the late 1990s, many poor ideas for Web-related businesses were proposed and funded in a wave of "irrational exuberance" for all things associated with the dot-com economy. In many cases, these new businesses ignored traditional business models built on delivering fundamental value for customers, achieving operational excellence, and generating revenues in excess of costs. Instead many companies placed an unhealthy emphasis on increasing market share with little regard for bottom-line profits. With their focus on the wrong things, it really was not a surprise when hundreds of the dot-com companies failed.

3. _____ are private stores that offer additional customer services beyond simply placing an order. a. Customer portals b. Private company marketplaces c. Industry consortia-sponsored marketplaces d. Omnichannel portals ANS: A RATIONALE: Customer portals are private stores that offer additional customer services beyond simply placing an order.

4. Which of the following is a type of Business-to-business (B2B) Web site? a. Omnichannel retailing b. The long tail c. A private company marketplace d. Multichannel retailing

ANS: C RATIONALE: Business-to-business (B2B) Web sites in operation today take a variety of forms, including private stores, customer portals, private company marketplaces, and industry consortia–sponsored marketplaces.

5. Buyers need to enter a company's identification code and password to make a purchase from a selection of products at a prenegotiated price in: a. private stores. b. omnichannel retailing. c. e-governance. d. e-procurement software.

ANS: A RATIONALE: Access to a private store requires that the buyer enter a company identification code and password to make a purchase from a selection of products at prenegotiated prices typically based on an established annual minimum purchase quantity.

6. A high percentage of Business-to-business (B2B) transactions take place between companies called: a. original equipment buyers. b. original equipment suppliers. c. original equipment manufacturers. d. original equipment dealers.

ANS: C RATIONALE: A high percentage of B2B transactions take place between companies called original equipment manufacturers (OEMs) that supply parts and components and the companies that sell the final product.

7. Often, large manufacturers manage their purchasing functions using a(n): a. omnichannel portal. b. customer portal. c. industry consortia–sponsored marketplace. d. private company marketplace.

ANS: D RATIONALE: Often, large manufacturers that purchase goods and services from many small suppliers build a private company marketplace to manage their purchasing functions through a Web site.

8. When companies do not have sufficient purchasing power, they create a(n): a. private company marketplace. b. industry consortia–sponsored marketplace. c. customer portal. d. private store.

ANS: B

RATIONALE: In many cases, companies are not large enough or do not have sufficient purchasing power to require suppliers to deal with them through a private company marketplace. In such a situation, several companies in a particular industry may join forces to create an industry consortia–sponsored marketplace to gain the advantages of the private company marketplace for all members of the consortia.

9. Which of the following allows a company to create an electronic catalog with search capability? a. Omnichannel software b. Private company marketplace software c. Industry consortia–sponsored marketplace software d. E-procurement software ANS: D RATIONALE: E-procurement software allows a company to create an electronic catalog with search capability.

10. Creating, reviewing, and approving purchase orders are features of: a. private company market places. b. e-procurement softwares. c. customer portals. d. private stores.

ANS: B RATIONALE: E-procurement software can automate key functions of the purchasing process, including creating, reviewing, and approving purchase orders and transmitting these purchase orders electronically to the supplier.

11. Which of the following models of e-commerce should focus on retaining the customers to capture additional future sales? a. Business-to-consumer (B2C) b. Business-to-business (B2B) c. Consumer-to-consumer (C2C) d. Government-to-consumer (G2C) ANS: A RATIONALE: Business-to-consumer (B2C) Web sites must focus on attracting prospects, converting them into customers, and retaining them to capture additional future sales.

12. _____ retailing is the application of the same business strategy across all marketing channels. a. Multichannel b. Long tail c. Omnichannel d. Convenience ANS: C

RATIONALE: Omnichannel retailing is the application of the same business strategy cross all marketing channels (e.g., mobile Internet devices, computers, brick-and-mortar stores, television, radio, direct mail, and catalog), with each channel using the same database of customer information, products, prices, promotions, and so on.

13. Consumer-to-consumer (C2C) e-commerce is the exchange of goods and services between: a. business organizations and individual consumers. b. individuals facilitated by a third party. c. businesses via computer networks. d. the government and businesses.

ANS: B RATIONALE: Consumer-to-consumer (C2C) e-commerce is the exchange of goods and services among individuals, typically facilitated by a third party.

14. Which of the following technologies is used by e-government (e-gov) commerce? a. Assistive technology b. Banking technology c. Nanotechnology d. Information technology ANS: D RATIONALE: E-government (e-gov) commerce involves the use of information technology (such as Wide Area Networks, the Internet, and mobile computing) by government agencies to transform relations between the government and citizens (G2C), the government and businesses (G2B), and among various branches of the government (G2G).

15. An online shopping and ordering system that provides access to thousands of contractors and millions of products and services is called: a. eBuy. b. GSA Advantage. c. GSA eLibrary. d. eMod. ANS: B RATIONALE: GSA Advantage! is an online shopping and ordering system that provides access to thousands of contractors and millions of products and services.

16. An online tool designed to facilitate the submission of requests for quotations for a wide range of commercial products and services is _____. a. eMod b. GSA Advantage! c. GSA eLibrary d. eBuy

ANS: D RATIONALE: eBuy is an online Request for Quotation (RFQ) tool designed to facilitate the submission of requests for quotations for a wide range of commercial products and services.

17. Which of the following is an online source that contains the latest contract award information? a. GSA eLibrary b. GSA eOffer c. GSA eMod d. GSA eBuy ANS: A RATIONALE: GSA eLibrary is an online source for the latest contract award information.

18. _____ is a Web-based application that allows vendors to prepare and submit their GSA contract offers and contract modification requests electronically. a. GSA Advantage! b. GSA eLibrary c. eOffer d. eBuy ANS: C RATIONALE: eOffer/eMod is a Web-based application that allows vendors to prepare and submit their GSA contract offers and contract modification requests electronically.

19. The buying and selling of goods and services using a mobile device is called: a. mobile computing. b. m-commerce. c. e-commerce. d. cloud computing.

ANS: B RATIONALE: Mobile commerce (m-commerce) is the buying and selling of goods and/or services using a mobile device, such as a tablet, smartphone, or other portable devices.

20. Which of the following is a top-level domain that provides fast and efficient internet access to mobile devices? a. .Link b. .Net c. .Info d. .Mobi ANS: D RATIONALE: .Mobi is a top-level domain approved by the International Corporation of Assigned Names and Numbers (ICANN) and managed by the mTLD global registry. Its goal is to deliver the Internet to mobile devices.

21. Identify a major drawback of browsing Web pages on mobile devices. a. Size of the screen b. Speed of the internet c. Bandwidth of the internet d. Voice quality of the network ANS: A RATIONALE: Worldwide, there are more digital mobile phones than personal computers and TVs combined. Most mobile phones now have full Internet capabilities. However, these mobile phones have a number of limitations that make it difficult to view standard Web pages. The main limitation of course, is the size of the viewing screen.

22. The technology to obtain and validate tickets from mobile devices is called: a. eTicketing. b. iTicketing. c. mobile ticketing. d. integrated ticketing.

ANS: C RATIONALE: Mobile ticketing is a means to order, pay for, obtain, and validate tickets from mobile devices. The tickets are sent to the mobile device as a text message with a special bar code or alphanumeric code, and users present their phones to ticket collectors at the venue to gain entrance.

23. In mobile ticketing, the tickets are sent to mobile devices as a text message with a(n): a. morse code. b. alphanumeric code. c. genetic code. d. cipher code.

ANS: B RATIONALE: The tickets are sent to the mobile device as a text message with a special bar code or alphanumeric code, and users present their phones to ticket collectors at the venue to gain entrance.

24. Which of the following services is used to track the whereabouts of an individual? a. Location-based service b. Card-based service c. Long tail d. Web 2.0 ANS: A RATIONALE: A location-based service is a computer program that uses location data to control its features and the information it provides. Some location-based services are query based, allowing a user to request local maps and directions to points of interest, local traffic and weather information, or even information on the whereabouts of a friend or coworker.

25. Which of the following is a technology through which customers use a mobile device to perform banking operations? a. Net banking b. Mobile banking c. Branch banking d. E-mail banking ANS: B RATIONALE: With mobile banking, customers can use a mobile device to access balance information, pay bills, transfer funds, and find nearby ATMs or banking centers.

26. Identify the term that describes the change in technology and Web site design to enhance information sharing, collaboration, and functionality on the Web. a. Podcast b. Mashup c. Forum d. Web 2.0 ANS: D RATIONALE: Web 2.0 is a term describing changes in technology and Web site design to enhance information sharing, collaboration, and functionality on the Web. 27. One of the key decisions in running an e-commerce Web site is to decide: a. who will operate the host site. b. where to create a backup. c. how to make it user-friendly. d. how to allow guest users to buy a product.

ANS: A RATIONALE: Two key decisions that must be made in establishing and running an e-commerce Web site are who will build the site and who will operate (host) the site.

28. Identify the feature that involves the storing, serving, and creating backup of files for one or more Web sites. a. Web server hosting b. Web site hosting c. Web browser hosting d. Proxy server hosting ANS: B RATIONALE: Web site hosting involves the storing, serving, and creating backup of files for one or more Web sites.

29. Dedicated hardware and virtual private servers are the services that are offered by:

a. cloud computing. b. Web 2.0. c. mobile commerce. d. Web hosting.

ANS: D RATIONALE: Web hosting services may offer dedicated hardware or virtual private servers in which multiple organizations share hardware and Internet connections but otherwise have isolated, virtualized software.

30. Which of the following is an advantage of a shared server environment over dedicated servers? a. Security b. Performance c. Cost effectiveness d. Reliability ANS: C RATIONALE: A shared server environment is less expensive than dedicated servers.

31. Identify the drawback of a dedicated server when compared to a shared server environment. a. Expensive b. Reduced performance c. Low reliability d. Insecure ANS: A RATIONALE: A shared server environment is less expensive than dedicated servers; however, it may not provide the desired level of security, performance, and reliability.

32. The effective use of a _____ is critical to attracting prospects to a Web site. a. newsletter b. forum c. browser cookie d. search engine ANS: D RATIONALE: The effective use of a search engine is critical to attracting prospects to a Web site.

33. A search engine uses the _____ of Web pages to quickly display the URLs of those pages that "best match" the user's search term. a. contents b. popularity c. index d. bandwidth

ANS: C RATIONALE: A search engine is a software that maintains an index of billions of Web pages and uses that index to quickly display the URLs of those pages that "best match" the user's search term.

34. Which of the following is a tool used by search engines to score Web sites? a. Parser b. Crawler c. Cookie d. Sticker ANS: B RATIONALE: To perform the matching process, many search engines such as Google, Yahoo!, and Bing use software called crawlers to score Web sites.

35. The _____ of a Web site depends on link popularity, density, and frequency of keywords in the page content. a. score b. rank c. average d. median ANS: A RATIONALE: The score of a site is based on how relevant the site is to the search term, based on criteria such as link popularity, density, frequency of keywords in the page content, number of other Web sites referencing the site, and numerous other factors.

36. Which of the following is a type of search engine result that provides users with a list of potential Web sites based on the keyword relevancy? a. Paid list b. Organic list c. Social list d. Local list ANS: B RATIONALE: An organic list is a type of search engine result in which users are given a listing of potential Web sites based on their content and keyword relevancy.

37. Identify the technique that uses graphics with a hyperlink to direct customers to a Web site. a. Search engine optimization b. Paid listings c. Banner advertising d. Organic list ANS: C

RATIONALE: An organization can attract potential customers to its site through the use of Web page banner ads that display a graphic and include a hyperlink to the advertisers' Web site.

38. The _____ network acts as a broker between Web sites and advertisers. a. paid listing b. banner advertising c. organic listing d. search engine optimization ANS: B RATIONALE: The banner advertising network acts as a broker between Web sites and advertisers.

39. Web sites provide a simple search tool that returns search results with thumbnails of actual products. This is a strategy to provide a(n): a. easy and safe payment method. b. efficient order fulfillment. c. smooth return policy. d. good customer online experience.

ANS: D RATIONALE: The ultimate goals of most Web sites are to increase sales as well as to improve customer satisfaction and loyalty to an organization. To accomplish these goals, a company must create a Web site that will compel customers to return repeatedly. A few of the key steps include designing the home page to be informative and visually appealing to your target customer, ensuring that the navigation is highly intuitive, and providing a simple search tool that returns search results with thumbnails of actual products.

40. Identify a feature that makes an e-commerce Web site successful. a. Selling products at a lower price b. Getting back old customers c. Special focus on the Web site design d. Popularity of the Web site ANS: B RATIONALE: Successful e-commerce Web sites are able to get their customers to return time and time again. Indeed getting customers to come back is what separates a prosperous business from a failed one.

41. Which of the following features of a website ensures that visitors return to the site? a. Sticky b. Navigation c. Bookmark d. Cookie ANS: A

RATIONALE: A key tactic to make visitors return to your Web site is to design it to be a sticky Web site, so that visitors engage with your site and want to spend time there.

42. A way of drawing customers to a Web site is by: a. generating a referral link for them. b. making the return process easier. c. asking them to review a recently purchased item. d. thanking them for the recently purchased item.

ANS: C RATIONALE: Asking customers to review a recently purchased item can also draw customers back to your site and provides another opportunity to show related products or other items in which the customer may be interested.

43. Which of the following steps needs to be considered to ensure efficient order fulfillment? a. Send a confirmation mail following the placement of an order. b. Ask the customers to review a recently purchased item. c. Allow the usage of credit cards and debit cards for payment. d. Secure adequate storage for inventory.

ANS: D RATIONALE: A number of components and processes must be considered when designing a timely, efficient order-fulfillment system. Adequate storage must be secured for inventory. Items must be stored safely and accessed easily for fast order fulfillment. Systems and processes must be capable of receiving fast and accurate deliveries from suppliers.

44. Identify a factor that enables management to minimize inventory levels and provide a high rate of order fulfillment. a. Sales forecasting b. Customer review c. Web site popularity d. Easy payment method ANS: A RATIONALE: Accurate inventory counts and the ability to do sales forecasting with some degree of accuracy are also critical. This enables management to minimize inventory levels (and the associated costs) while still providing a high rate of order fulfillment.

45. Distribution processes must be capable of meeting customer expectations for a product's: a. quality. b. cost. c. popularity. d. availability.

ANS: B

RATIONALE: Distribution processes must be capable of meeting customer expectations for delivery times and costs.

46. Which of the following is a strategy that should be adopted by Web sites to increase sales and repeat business? a. A variety of easy and secure payment modes should be offered. b. Systems and processes must be capable of receiving fast and accurate deliveries from suppliers. c. Incentives should be provided for cash payments. d. Only one type of payment mode must be accepted.

ANS: A RATIONALE: Web sites need to accept a variety of easy and secure payment methods to increase sales and encourage repeat business.

47. Identify the technique used by secure Web sites to protect the confidentiality of online transactions. a. Encryption and authorization b. Decryption and authentication c. Encryption and authentication d. Decryption and authorization ANS: C RATIONALE: A secure Web site uses encryption and authentication to protect the confidentiality of online transactions.

48. Which of the following computer applications alert users while entering or leaving a secure site? a. Web server b. Antivirus c. Operating system d. Web browser ANS: D RATIONALE: By default, the most commonly used computer Web browsers (including Chrome, Internet Explorer, Firefox, Safari, and Opera) will inform you when you are entering or leaving a secure site.

49. Which of the following protocols verifies the Web site to which a user is connected? a. Inter-Switch Link b. Internet Protocol Control Protocol c. Tool Command Language d. Secure Sockets Layer ANS: D RATIONALE: The most commonly used protocol for Web security is the Secure Sockets Layer (SSL), which can be used to verify that the Web site to which a user is connected is what it purports to be.

50. Which of the following is a multifaceted security standard that requires retailers to implement a set of security management policies, network architecture, and other critical protective measures to safeguard cardholder data? a. PDI Data Security Standard b. PCI Data Security Standard c. PDA Data Security Standard d. PCA Data Security Standard ANS: B RATIONALE: Payment Card Industry (PCI) Data Security Standard is a multifaceted security standard that requires retailers to implement a set of security management policies, procedures, network architecture, software design, and other critical protective measures to safeguard cardholder data.

51. Identify the duration set by the Payment Card Industry (PCI) Data Security Standard to store a user's card data in the event of dispute with the card holder. a. 6 months b. 12 months c. 18 months d. 24 months ANS: C RATIONALE: Payment Card Industry (PCI) Data Security Standard is a multifaceted security standard that requires retailers to implement a set of security management policies, procedures, network architecture, software design, and other critical protective measures to safeguard cardholder data. It also requires retailers to store certain card data for up to 18 months in the event of a dispute with the cardholder.

52. Identify the component present in a smart card that can process instructions and store data for use in various applications. a. Macrochip b. Microchip c. Magnetic tape d. Magnetic stripe ANS: B RATIONALE: A smart card resembles a credit card in size and shape, but it contains an embedded microchip that can process instructions and store data for use in various applications such as electronic cash payments, storage of patient information, and providing access to secure areas.

53. A microchip in a smart card stores the same data as the _____ on a payment card. a. magnetic tape b. magnetic recorder c. magnetic coil d. magnetic stripe

ANS: D RATIONALE: The microchip can store the same data as the magnetic stripe on a payment card and more.

54. Which of the following components enables a contactless card to connect wirelessly with a contactless card reader? a. Microchip b. Macrochip c. Embedded circuit d. Embedded magnetic stripe ANS: C RATIONALE: Contactless smart cards do not have a contact area, but rather have an embedded circuit, which allows them to connect with a contactless card reader wirelessly.

55. Which of the following methods of financial transactions is considered the most secure? a. Europay MasterCard Visa transaction b. Magnetic stripe transaction c. Near Field Communication transaction d. payWave transaction ANS: A RATIONALE: Europay MasterCard Visa (EMV) financial transactions are considered more secure than traditional credit card payments due to the use of advanced encryption algorithms to provide authentication of the card. Unfortunately, smart card processing takes longer than an equivalent magnetic stripe transaction, partly due to the additional processing to decrypt messages.

56. Which of the following is used by Europay MasterCard Visa (EMV) transactions to confirm the identity of a card holder? a. Signature b. Photo c. Telephone number d. Personal identification number ANS: D RATIONALE: Europay MasterCard Visa (EMV) financial transactions are considered more secure than traditional credit card payments due to the use of advanced encryption algorithms to provide authentication of the card. Unfortunately, smart card processing takes longer than an equivalent magnetic stripe transaction, partly due to the additional processing to decrypt messages. Furthermore, many implementations of EMV cards and terminals confirm the identity of the cardholder by requiring the entry of a Personal Identification Number (PIN) rather than signing a paper receipt.

57. Identify the technology that measures and analyzes human physical characteristics such as eye retinas, fingerprints, or voice patterns for security purposes. a. Cryptography b. Biometrics

c. Phishing d. Steganography ANS: B RATIONALE: In the United States, many banks and financial services companies have been reluctant to impose additional requirements for authentication because they don't want to add additional steps (and time) to the checkout process. In the future, systems may be upgraded to use biometrics (technology that measures and analyzes human physical characteristics such as eye retinas, fingerprints, or voice patterns for security purposes).

58. Identify a drawback of biometrics. a. Requires a very high initial investment. b. Does not provide a high degree of confidence in user identity. c. Requires the user to remember complex numeric passwords. d. Increases password administration costs.

ANS: A RATIONALE: In the United States, many banks and financial services companies have been reluctant to impose additional requirements for authentication because they don't want to add additional steps (and time) to the checkout process. In the future, systems may be upgraded to use biometrics (technology that measures and analyzes human physical characteristics such as eye retinas, fingerprints, or voice patterns for security purposes); however, this approach is not currently considered economical for retail applications.

59. Each time a payment is made through a credit card, the retailer has to pay a certain amount called _____ to the card company. a. one time fees b. value added tax c. swipe fees d. additional tax ANS: C RATIONALE: A coalition of retailers known as the Merchant Customer Exchange (MCX) and including retailers such as Best Buy, CVS, Dunkin' Donuts, Lowe's, Rite-Aid, and Walmart plan to launch a competing payment network called CurrentC, which will draw money directly from a consumer's bank account or store-funded credit card instead of charging a bank credit card like Apple Pay does. This would allow retailers to avoid payments to credit card companies—called "swipe fees"—each time a consumer pays with a credit card.

60. Which of the following strategies contributes to the increase in product sales and eliminates returns? a. Giving a short description of the products b. Highlighting only the advantages of the products c. Displaying low resolution snapshots or small photos of the products d. Displaying customer-written product reviews

ANS: D RATIONALE: Well-written product descriptions, thumbnail (or larger) photos, and customer-written product reviews can not only increase product sales but can also go a long way toward eliminating returns.

61. Strict handling of returns results in: a. permanent savings. b. short-term customer loyalty. c. the expansion of future sales. d. high product quality.

ANS: B RATIONALE: Strict handling of returns can result in temporary savings but at the expense of long-term customer loyalty and future sales.

62. Companies that sell products from both physical locations and e-commerce Web sites are known as: a. click-and-mortar retailers. b. brick-and-mortar retailers. c. click-and-pack retailers. d. brick-and-pack retailers.

ANS: A RATIONALE: Click-and-mortar retailers are those who sell products from both physical locations and ecommerce Web sites.

63. The benefits of e-commerce are due to the: a. excess time and cost associated with selling. b. excess time and cost associated with purchasing. c. global exposure of products sold on the Web. d. global exposure of products sold offline.

ANS: C RATIONALE: Many advantages result from the use of e-commerce. Interestingly, these advantages are not one-sided; some advantages accrue to the seller, some to the buyer, and some to society as a whole. Most of these benefits are possible because of the global exposure of products sold on the Web and the ability of e-commerce to reduce the time and costs associated with both selling and purchasing.

64. Customers fear the misuse of their personal data due to the: a. nature of the payment gateway. b. sticky Web site. c. global exposure of products sold on the web. d. publicity of consumer data breaches.

ANS: D

RATIONALE: Consumers have long had concerns about whether online data is secured from access by unauthorized users or hackers. These concerns are rising based on the widespread publicity of recent consumer data breaches.

65. Which of the following is an approach followed by Web sites to overcome cultural and linguistic obstacles? a. Think globally, act locally b. Think locally, act globally c. Think locally, act locally d. Think globally, act globally ANS: A RATIONALE: Web site designers must avoid creating cultural and linguistic obstacles that make a site less attractive or effective for any subgroup of potential users. Potential customers will feel more comfortable buying your products and services if you speak to them in their own language. Thus, Web sites increasingly offer visitors the option to select their home country on an initial home page; this choice prompts the site to display a version designed to accommodate people from that country, with correct language or regional dialect, print characters, and culture-appropriate graphics and photos. This design approach is often called "think globally, act locally."

TRUE/FALSE 1. E-commerce reduces operating efficiencies.

ANS: False RATIONALE: E-commerce enables organizations and individuals to build new revenue streams, to create and enhance relationships with customers and business partners, and to improve operating efficiencies.

2. Dot-com companies failed due to the emphasis on bottom-line profits.

ANS: False RATIONALE: During the late 1990s, many poor ideas for Web-related businesses were proposed and funded in a wave of "irrational exuberance" for all things associated with the dot-com economy. In many cases, these new businesses ignored traditional business models built on delivering fundamental value for customers, achieving operational excellence, and generating revenues in excess of costs. Instead many companies placed an unhealthy emphasis on increasing market share with little regard for bottom-line profits. With their focus on the wrong things, it really was not a surprise when hundreds of the dot-com companies failed.

3. Multichannel retailing is the application of different strategies for an individual channel.

ANS: False RATIONALE: Multichannel retailing is the application of different strategies for different channels.

4. Mobile ticketing helps to reduce the number of unsold tickets.

ANS: True RATIONALE: Mobile ticketing increases the revenue for event promoters and ticket vendors who can sell tickets up until the last minute—they can even sell unclaimed tickets at the last second.

5. Web 2.0 allows visitors to share their opinions about a retail organization and its products and services.

ANS: True RATIONALE: Web 2.0 capabilities require a retailer to relinquish control and allow visitors to have their say—good, bad, or indifferent—about the retail organization and its products and services.

6. Visitors will return to a Web site if its contents are always static.

ANS: False RATIONALE: Visitors will want to return to a Web site if it always includes fresh, interesting, and useful content such as that provided by an effective blog or a forum, which can build up a community around your brand and encourage positive feelings from your visitors for your product.

7. Creating a social networking profile will hamper the popularity of a Web site.

ANS: False RATIONALE: Creating a Facebook page for your Web site enables customers who are engaged with your brand to like your page and encourages people to return to your Web site.

8. Hackers find it tougher to intrude a smart card than a credit card.

ANS: True RATIONALE: A smart card resembles a credit card in size and shape, but it contains an embedded microchip that can process instructions and store data for use in various applications such as electronic cash payments, storage of patient information, and providing access to secure areas. The microchip can store the same data as the magnetic stripe on a payment card and more. Thus, no name or card number need appear on the smart card, making it more difficult for thieves to use.

9. Contact smart cards have a contact area on the rear side of the card to interface with a payment terminal.

ANS: False RATIONALE: Contact smart cards have a contact area on the front face of the card to interface with a payment terminal.

10. A successful business organization should provide customer service for a fixed duration in a day.

ANS: False

RATIONALE: Because a Web site is open 24 hours a day, many online customers expect to be able to receive customer service at any time of the day or night. If an organization cannot provide some level of customer service 24 hours a day, it may lose business to competitors.

ESSAY 1. List out the E-commerce initiatives that are considered risky and challenging.

Answer: E-commerce initiatives can be risky and extremely challenging due to a variety of factors, including an organization's lack of e-business skills, uncertainty in regard to how business processes and policies must be changed to facilitate e-commerce, and the need to make new investments in IT-related hardware and software. Before embarking on such a risky journey, an organization must consider carefully how each potential e-commerce initiative fits into its overall business strategy.

2. A police officer who went on a rescue operation in a village is missing. How would you find the whereabouts of the policeman using the technological advances in mobile commerce?

Answer: The location of the policeman is tracked by a location-based service. A location-based service is a computer program that uses location data to control its features and the information it provides.

Some location-based services are query based, allowing a user to request local maps and directions to points of interest, local traffic and weather information, or even information on the whereabouts of a friend or coworker.

3. Describe the process of Web site hosting.

Answer: Web site hosting involves the storing, serving, and creating backup of files for one or more Web sites. Web hosting services store an organization's Web site files on Internet-connected Web server computers. When users type in the URL, they are connected to the Web server holding the files for the site; the server then transfers that data back to the user's computer, allowing the user to view the pages of the site. Web site hosting responsibilities typically include anything related to managing the Web servers and Internet connections—their software, security, support, reliability, speed, maintenance, and disaster recovery.

4. Describe the structure and working of a smart card.

Answer: A smart card resembles a credit card in size and shape, but it contains an embedded microchip that can process instructions and store data for use in various applications such as electronic cash payments, storage of patient information, and providing access to secure areas. The microchip can store the same data as the magnetic stripe on a payment card and more. Thus, no name or card number need appear on the smart card, making it more difficult for thieves to use.