Foreign Trade University

E-COMMERCE 206

CHAPTER 7

1)Interest-based advertising is another name for behavioral targeting

2. Which of the following is not one of the advantages of online advertising?
3. Which of the following forms of online advertising is growing the fastest?
4. Research studies have shown that viewers scan search engine results pages:
5. CTR is a measure of the:
6. Merchants have found that online and offline catalogs compete directly with each other: A successful online catalog will result in fewer sales from the offline catalog.

7. All of the following are true statements about the choice of a domain name except:
8. Which of the following measures the average length of stay at a Web site?
9. Conversion rate is a measure of the:
10. The most expensive form of online advertising on a per thousand viewer basis is a(n):
11. Which of the following measures the ratio of items purchased to product views?
12. Recency refers to the:
13. Frequency of Web site use is a function of four independent variables: Web site organization, perceived ease of use, perceived usefulness of the Web site, and:
14. Typical video and rich media advertisements have a typical click-through rate of:
15. Hits are a measure of the:
16. Purchasing an online ad on a CPA basis means that the advertiser:
17. Amazon's "one-click" purchase capability is an example of using

                      to enhance sales.

18. A typical response rate for an e-mail campaign would be                              

percent.

19. CAN-SPAM imposes fines of                              for each unsolicited pornographic e-mail.

20. Online video advertising now accounts for the largest amount of the Internet advertising spending.

21. Which of the following is not a major Web design feature that impacts online purchasing?
22. The two different types of online catalogs are:
23. Legitimate e-mail addresses based on a high-quality commercial opt-in e- mail list might cost                                                                 per thousand.
24. Axe's posting of video ads online that were subsequently forwarded and shared by millions of Internet users is an example of:
25. A Crayola arts and crafts column on a parenting Web site is an example of what form of advertising?
26. Which of the following advertising messages is a branding communication?
27. All of the following are true statements about superstitials except:
28. In general, the costs for offline customer acquisition are lower than online, but more effective.

29. A majority of states in the United States have laws regulating or prohibiting spam.

30. All of the following statements about interstitials are true except:
31. Purchasing an online ad on a CPC basis means that the advertiser:
32. All of the following statements about CAN-SPAM are true except:
33. Which of the following is an example of "pull" advertising?
34. Impressions are a measure of the:
35. A typical banner ad might cost                             per 1,000 impressions.
36. Typical click-through rates for an online display ad are:
37. Acquisition rate is a measure of the:
38. View-through rate measures the                         response rate to an ad.
39. The sole purpose of marketing communications is sales.

40. Research indicates that social network influence may not extend to distant friends.

41. Which of the following measures the ratio of actual orders to checkouts started?

42. 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?
43. Which ethical principle tells you that it is wise to assume perfect information markets?
44. The principle of responsibility means that individuals, organizations, and societies should be held accountable to others for the consequences of their actions.

45. Which ethical principle emphasizes putting oneself into the place of others and thinking of oneself as the object of the decision?
46. Which of the following basic ethical concepts plays an important role in defining privacy?
47. 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?
48. Which ethical principle states that if an action cannot be taken repeatedly, then it is not right to take at all
49. The opt-in model for informed consent requires an affirmative action by the consumer before a company can collect and use information.

50. The European Data Protection Directive prohibits the transfer of PII to organizations or countries that do not have similar privacy protection policies.

51. Net neutrality refers to Internet backbone owners treating all Internet traffic equally.

52. Which of the following e-commerce technology dimensions creates greater opportunities for cyberbullying?
53. Thus far, the most important online privacy legislation that has been directly influenced by the Federal Trade Commission's FIP guidelines is the Children's Online Privacy Protection Act (COPPA).

54. The Unlawful Internet Gambling Enforcement Act has eliminated all online gambling in the United States.

55. In Western culture, the basic principles shared by ethical schools of thought are:
56. 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?

57. The ethical principle of Universalism states that if an action is not right for all situations, then it is not right for any situation.

58. What is the first step in analyzing an ethical dilemma?
59. 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.

60. Which of the following e-commerce technology dimensions has the potential to reduce cultural diversity in products?
61. Google defends its Library Project on the grounds of fair use.

62. Most adult social network participants do not have any expectation of personal privacy when using a social network.

63. The Children's Internet Protection Act (CIPA) requires schools and libraries in the United States to install technology protection measures in an effort to shield children from pornography.

64. 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?
65. The FTC's privacy approach is now focused on targeting practices that are likely to cause harm or unwarranted intrusion into consumers' daily lives.

66. What is the largest sector of the online travel services market in terms of revenue?
67. All of the following are challenges for catalog merchants except:
68. All of the following are strategic factors that pertain specifically to a firm and its related businesses except:
69. Which of the following sectors of the U.S. retail industry is the largest?
70. The term demand-pull refers to:
71. Operating margin is defined as:
72. Which of the following is not an example of a transaction broker?
73. Which of the following is not categorized as an operating expense?
74. All of the following services require extensive personalization except:
75. Which of the following statements about financial portals is not true?
76. Which of the following is not a key industry strategic factor?
77. Which of the following segments of the U.S. retail industry is the smallest?

78. Gross margin is defined as gross profit:
79. The lower the cost of sales compared to                          , the higher the gross profit.
80. Consumers are not primarily price-driven when shopping on the Internet.

81. All of the following statements about Amazon.com are true except:
82. Within the U.S. retail goods and services market, personal consumption of

                      accounts for the largest share.

83. In                       , all of a customer's financial (and even nonfinancial) data are pulled together at a single personalized Web site.
84. For a quick check of a firm's short-term financial health, examine its:
85. In the United States, the service sector accounts for about 75 percent of all economic activity.

86. Which of the following would not be considered a current asset?
87. For which online services segment is more revenue booked online than offline?
88. Which of the following has experienced the most significant online growth?
89. Which of the following segments of the U.S. retail market is highly concentrated, with large firms dominating sales?
90. Mobile commerce currently accounts for more retail goods sold than social commerce.

91. Which of the following is not one of the methods used by traditional retailers to develop multi-channel integration?
92. All of the following products are considered durable goods except:
93. Current liabilities are debts of the firm that will be due within:
94. Virtual merchants face potentially large costs for all of the following except:
95. All of the following are challenges faced by bricks-and-clicks firms except:
96. Which of the following is not one of the central challenges facing the online retail industry?
97. What is another name for pro forma earnings?

98. Contrary to predictions of analysts made during the early days of e- commerce, the Internet has led to both disintermediation and hypermediation on a widespread basis.

99. All of the following statements are true except:
100. Groupon is an example of local commerce.

101. All of the following are trends in the financial service industry except:
102. Which of the following companies is not primarily a catalog merchant?
103. Which of the following generates the largest share of media revenues?
104. Apple's iTunes Music Store primarily uses which of the following revenue models?
105. Which of the following is the most common revenue model used by online content publishers?
106. Which of the following is an example of technological convergence?
107. In the wholesale model of e-book distribution, pricing power is with the retailer.

108. All of the following are aspects of content convergence except:
109. DRM refers to a combination of                             for protecting digital content.
110. Which of the following three forms of media account for over 80 percent of the hours spent consuming media?
111. Which of the following is not an advantage of e-books, compared with traditional published works?
112. Which of the following occurs first in the process of media convergence?
113. Which of the following is not a major inhibiting factor in the growth of online content?
114. Which of the following attracts the highest per capita spending?
115. Which of the following is not a major contributing factor to net value?
116. Which of the following is not a factor in the current transformation of the entertainment industry?

117. Which of the following is not one of the factors required to charge for online content?
118. All of the following typically favor the elimination of DRM except:
119. All of the following are e-book formats except:
120. A television network that streams television shows over the Internet is an example of convergence.
121. The entertainment industry is generally considered to be composed of five players: television, Hollywood films, music, radio, and video games.

122. Which of the following are the top three producers of media revenues?
123.                       is the creator of the most common format for e-books.
124.                       is an industry standard for transmitting information about books, using XML tags.
125. The overall size of the online video audience is much larger than traditional television audiences.

126. An example of entertainment that offers high user control and high user focus would be:
127. The common notion of "the Internet means free information" is being replaced by consumer acceptance of paying for premium content.

128. Which of the following is not one of the four technology-based difficulties that slowed technology convergence of books with the Internet?
129. In comparison to hours spent at work, the average American adult spends                                 consuming various media.
130. Which of the following is not one of the typical portal revenue sources?
131. Which of the following types of dynamic pricing adjusts prices based on the merchant's estimate of how much the customer truly values the product?
132. Priceline's auctions are seller-biased.

133. A(n)                         is created by an organization for the purpose of pursuing organizational goals.