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Chapter 1 Overview of Electronic Commerce
1.1 True/False
1) Every company needs a business model describing how the company operates, how it generates sales, and how it provides value to the customers and eventually profit to its owners.
Answer: TRUE
2) The terms e-commerce and e-business can be used interchangeably.
Answer: TRUE
3) The form EC takes depends on the degree of digitization of the product sold, the process, and the delivery method.
Answer: TRUE
4) In order for a situation to be considered as electronic commerce, the product, process, and delivery method should all be digital.
Answer: FALSE
Purchasing a computer from Dells Web site is partial EC because the merchandise is physically delivered. Answer: TRUE
A can be classified as a click-and-mortar organization.
Answer: TRUE
7) Pure-play organizations are old-economy organizations that perform their primary business offline, selling physical products by means of physical agents.
Answer: FALSE
8) According to Mockler, over 85 percent of EC volume is B2B.
Answer: TRUE
9) Transactions conducted on P are examples of collaborative commerce.
Answer: FALSE
The introduction of the World Wide Web was a major milestone in electronic commerce development. Answer: TRUE
Online publishing is an electronic commerce application.
Answer: TRUE
12) A person purchasing a pair of shoes from Zappos is an example of B2B.
Answer: FALSE
13) Economic, legal, societal, and technological factors have created a highly competitive business environment in which customers are becoming less powerful.
Answer: FALSE
14) Business models are a subset of a business plan or business case and refer to methods of doing business by which a company can generate revenue.
Answer: TRUE
15) The structure of a social network is often very simple.
Answer: FALSE
1.2 Multiple Choice
1) The process of buying, selling, or exchanging products, services, or information via the computer best defines
A) electronic collaboration. B) electronic commerce.
C) Twe
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