Q&A Hero

Q: Major advantages of e-commerce to sellers include each of the following except A) charging less for items. B) lower supply chain costs. C) reacting quickly to customer's needs. D) competing with larger companies.

Q: Major advantages of e-commerce to buyers include A) finding products and services that are not available in local stores. B) buying in groups. C) shopping globally. D) all of the above.

Q: (p. 65) According to the dominance theory, business abuses the power its size and wealth confer in a number of ways.

Q: Which of the following is a characteristic of e-tailing? A) Competition is local. B) Customer relations are less stable due to anonymous contacts. C) Price changes are expensive, but can be done at anytime. D) Fewer resources are needed to increase customer loyalty.

Q: (p. 65) The pluralist theory of business power was supported by Karl Marx.

Q: With all else being equal in the online environment, goods with any of the following product characteristics are expected to facilitate greater online sales except A) relatively expensive items. B) high brand recognition. C) digitized format. D) frequently purchased items.

Q: (p. 64) The dominance theory holds that business is preeminent in American society, primarily because of its control of wealth, and that its power is both excessive and inadequately checked.

Q: (p. 61) Activity in the environmental sphere is the primary force for change.

Q: Each of the following sells well on the Internet except A) tobacco. B) travel. C) cars. D) health and beauty.

Q: (p. 60) The laws of the United States have been shaped by the consequences of the industrial activities.

Q: Retailers who sell over the Internet are A) e-tailers. B) disintermediaries. C) marketing managers. D) multichannel marketers.

Q: (p. 59) On the surface level, corporate power shapes society over time through the aggregate changes of industrial growth.

Q: Each of the following describes retailing except A) a retailer is a sales intermediary. B) many manufacturers sell directly to consumers and through wholesalers and retailers. C) e-tailing makes it easier for a manufacturer to sell directly to customers by cutting out the intermediary. D) companies that produce a large number of products, such as Procter & Gamble, do not need retailers for efficient distribution.

Q: According to Internet Retailer (2009), approximately ________ percent of adult U.S. Internet users shop online or research offline sales online. A) 25 B) 60 C) 65 D) 85

Q: (p. 59) Corporate actions have an impact on society at two levels.

Q: (p. 58) The grounds of legitimacy of business power are the same in all societies.

Q: Amazon.com experienced each of the following except A) maintaining its position as the number one B2C money-making EC site in the world. B) driving growth largely by product diversification and its international presence. C) declaring its first profit in 2005. D) patenting its 1-click feature which allows customers to place an order in a secure manner without having to enter personal, billing, and shipping information each time they shop.

Q: A major problem in B2C is the increasing rate of online fraud.

Q: (p. 58) The strength to act or to compel another entity to act is called power.

Q: Channel conflict occurs when the addition of an online distribution channel causes problems with existing distribution channels.

Q: Discuss the five trends in the legal environment that restrain business behavior.

Q: An electronic pouch is a program that expedites online shopping by containing a shopper's information.

Q: How does the cultural environment create change in the relationships between business, governments, and societies?

Q: Electronic coughing describes the attention-grabbing behavior of agencies that go out to consumer environments and boast about how great a brand or item is in order to spread the word.

Q: (p. 37) What does the economic environment consist of? Define the terms "trade liberalization" and "foreign direct investment."

Q: As a paid content category, dating services are the largest attractor of Internet users.

Q: (p. 34) Briefly discuss dominant ideologies.

Q: The direct sale of digital content through digital download allows a producer of digital content to bypass the traditional retail channel, thereby reducing overall costs and capturing greater profits.

Q: Discuss the impact of globalization over the years.

Q: An on-demand delivery service is express delivery made fairly quickly after an online order is received.

Q: Discuss in brief the waves of innovation that have taken place since the beginning of the Industrial Revolution.

Q: Both online banks and click-and-mortar banks carry some risks and problems, especially in international banking, including hackers and liquidity risk.

Q: How has technology impacted societies? What will be the impact of new technologies?

Q: Only a few pure-play virtual banks failed by 2003 due to lack of financial viability.

Q: What are the factors that will drive future population changes? Discuss the implications of these population trends.

Q: Electronic banking refers to the various banking activities conducted from home or the road using an Internet connection.

Q: Discuss the problem of global income inequality.

Q: Online banking and other financial services are growing slowly on the Internet because many customers are not yet embracing it.

Q: Why did the Industrial Revolution begin in Great Britain?

Q: Virtual banks have a brick-and-mortar location and also conduct online transactions.

Q: (p. 32) Define the term "globalization."

Q: The major risk of online trading is security.

Q: What is replacement fertility rate?

Q: Many insurance companies use a dual strategy, keeping human agents but also selling online.

Q: (p. 26) What is a Gini index?

Q: Assessing their market value is an advantage of the electronic job market for employers.

Q: (p. 25) What is the Industrial Revolution?

Q: The electronic job market creates high turnover costs for employers by facilitating employees' movement to better jobs.

Q: (p. 25) What is meant by a historical force?

Q: When compared to the traditional job market, the online job market has low reliability.

Q: WAYN is a social networking Web site with a goal of uniting college student travelers from North America.

Q: (p. 45) Which of the following is an internal business environment? A. Culture B. Shareholders C. Economy D. Government

Q: Competition among online travel e-tailers is fierce, with low margins, little customer loyalty, and increasing commoditization of products and services.

Q: (p. 44) The _____ is calculated as the total land area, in hectares, required to maintain worldwide human consumption of food, wood, fiber, energy, and water. A. Living Planet Index B. Environmental Impact Index C. Ecological Footprint D. Water Footprint

Q: (p. 44) The _____ measures human consumption of renewable natural resources. A. Living Planet Index B. Environmental Performance Index C. Water Footprint D. Ecological Footprint

Q: Private shopping clubs and group gifting online are two variations of the personalized event shopping model.

Q: (p. 43) The _____ combines in one measure thousands of population trends among terrestrial, freshwater, and marine vegetable species. A. Living Planet Index B. Ecological Footprint C. Environmental Performance Index D. Water Footprint

Q: Event-based commerce is a wireless based technology in which vendors send advertisements relevant to the location where customers are at a given time.

Q: (p. 42) Voluntarily adopted guidelines for corporate behavior derived from emerging norms and standards in international codes, declarations, and conventions are called: A. diplomatic laws. B. soft laws. C. case laws. D. traditional laws.

Q: Viral marketing, market makers, and information portals are types of B2C business models.

Q: (p. 42) Which of the following is a trend that works in the legal environment to constrain business behavior? A. Laws and regulations steadily decline in number and complexity. B. Legal duties to protect the rights of stakeholders have lessened. C. Globalization has decreased the complexity of the legal environment by shielding corporations from the laws of foreign nations. D. Although requirements of ethical behavior and corporate social responsibility go beyond legal duty, they are continuously encoded into law.

Q: Types of online malls include referring directories and event shopping malls.

Q: (p. 41) Which of the following is a characteristic of a democracy? A. Single party rule B. Universal suffrage C. Enforced political authority D. Country is ruled by famous citizens

Q: Target, Sears, and Macys are click-and-mortar businesses selling in a multichannel business model.

Q: (p. 41) _____ is a form of government requiring popular sovereignty, political liberty, and majority rule. A. Democracy B. Socialism C. Communism D. Liberalism

Q: Click-and-mortar retailers are brick-and-mortar retailers that offer a transactional Web site from which to conduct business.

Q: (p. 40) Values based on assumptions of security and affluence are known as _____ values. A. survival B. self-expressive C. postmaterialist D. materialist

Q: Direct marketing describes marketing that takes place over the Internet involving wholesalers and retailers.

Q: (p. 39) A system of shared knowledge, values, norms, customs, and rituals that are acquired by social learning is called a: A. value chain. B. civilization. C. culture. D. value network.

Q: A business model is a description of how an organization intends to generate revenue through its business operations.

Q: (p. 38) A Web site open to collaborative editing by multiple individuals is known as a: A. tag. B. wiki. C. blog. D. forum.

Q: With all else being equal in the online environment, goods that are relatively expensive or frequently purchased are expected to have higher sales volumes than goods that are inexpensive or infrequently purchased.

Q: (p. 38) Technology that is developed on the scale of one-billionth of a meter is known as: A. picotechnology. B. microtechnology. C. nanotechnology. D. femtotechnology.

Q: (p. 37) _____ refers to capital investment by private firms outside their home countries. A. Foreign direct investment B. Foreign portfolio debt investment C. Foreign portfolio equity investment D. Capital transfers

Q: When new capabilities are required to conduct EC, for example capabilities in logistics and distribution, one method is to obtain them through external strategic alliances.

Q: (p. 37) _____ is a philosophy in which nations promote trade by easing restrictions, including both tariff and non-tariff barriers. A. Foreign direct investment B. Trade liberalization C. Monopoly D. Oligopoly

Q: A retailer is a sales intermediary, a seller that operates between manufacturers and customers.

Q: (p. 37) Which of the following is considered to be the bedrock of economic globalization? A. Monopoly B. Foreign direct investment C. Oligopoly D. Trade liberalization

Q: E-tailing is retailing conducted online over the Internet.

Q: (p. 36) The _____ environment consists of forces that influence market operations, like commodity prices and interest rates. A. economic B. technological C. cultural D. legal