INSS 360 6-7-9

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The most basic business database is comprised of

five tables: for customers, employees, suppliers, products, and sales.

A characteristic or quality describing an entity is called a(n):


A grouping of characters into a word, a group of words, or a complete number is called a record.


Every record in a file should contain at least one key field.


What is the first step you should take in managing data for a firm?

identify the data needed to run the business

Which of the following best illustrates the relationship between entities and attributes?

The entity CUSTOMER with the attribute ADDRESS

The type of logical database model that treats data as if they were stored in two-dimensional
tables is the:

relational DBMS.

What are the relationships that the relational database is named for?

Relationships between entities

In a table for customers, the information about a single customer would reside in a single:


In a relational database, a record is also called a(n):


A field identified in a table as holding the unique identifier of the table’s records is called the:

primary key

A field identified in a record as holding the unique identifier for that record is called

key field

A schematic of the entire database that describes the relationships in a database is called a(n):

entity-relationship diagram.

A one-to-one relationship between two entities is symbolized in a diagram by a line that ends:

in two short marks

A one-to-many relationship between two entities is symbolized in a diagram by a line that ends:

with a crow’s foot preceded by a short mark.

A table that links two tables that have a many-to-many relationship is often called a(n)

intersection relation.

The process of streamlining data to minimize redundancy and awkward many-to-many
relationships is called


DBMS simplify how end users work with databases by separating the logical and physical views
of the data.


A DBMS makes the

physical database available for different logical views

The logical view of a database

presents data as they would be perceived by end users.

Which of the following is not a typical feature of DBMS?

Query wizard tool

In a relational database, the three basic operations used to develop useful sets of data are

select, project, and join

The select operation:

creates a subset consisting of all records in the file that meets stated criteria

The project operation:

creates a subset consisting of columns in a table

An automated or manual file that stores information about data elements and data
characteristics such as usage, physical representation, ownership, authorization, and security is

data dictionary.

The most prominent data manipulation language today is:


End users use a data manipulation language to manipulate data in the database


A physical view shows data as it is organized on the storage media


A DBMS is special software for creating, storing, organizing, and accessing data from a database


What is the purpose of a DBMS’s data definition function?

Structuring the database

A foreign key is a field that links to a separate table


An example of a pre-digital database is a:

library’s card-catalog.

Which of the following best describes the importance of creating an accurate data model for your business’s database?

Critical, as without one, your data may be inaccurate, incomplete, or difficult to retrieve

You are working in the IT department of a small paper supply company and planning a new database that monitors employee benefits and productivity. What would be the relationship you need to establish between Employee_ID in the Employee table and Parking_spot_number in the Perks table?


Relational database systems use ________ to ensure that relationships between coupled tables remain consistent.

referential integrity rules

Both oracle and Microsoft Access use SQL to retrieve information from the database


Web mining is the discovery of useful patterns on the web


Most back-end databases are able to interpret HTML commands


Hadoop can process large quantities of an type of data, including video and Twitter feeds


The two key services of Hadoop are HDFS and in-memory computing


A data warehouse may include information from legacy systems


A data warehouse is typically comprised of several smaller data marts.


OLAP is a key tool of BI.


OLAP is used to find hidden patterns and relationships in large databases, and infer rules from


Implementing a Web interface for a database requires changes to the database itself


Common Gateway Interface is a specification for processing data on a Web server.


MongoDB and SimpleDB are both example of:

NoSQL databases

In linking databases to the Web, the role of the application server is to host the DBMS


Access is a

DBMS for desktop systems

In clustering, a data mining tool will:

find new groupings within data

MySQL is a

popular open-source DBMS

Data mining is more ___ than OLAP

discovery driven

All of the following are tools or technologies for extracting information from unstructured data sets except:

SQL queries

DBMS typically include report-generating tools in order to:

display data in an easier-to-read format

Which of the following database types would be best suited for storing multimedia

non-relational DBMS

Pre-configured hardware-software systems that use both relational and non-relational technology optimized for analyzing datasets are referred to as

Analytic Platforms

Which of the following statements about data warehouses is not true?

Data warehouse systems provide easy-to-use tools for managers to easily update data.

A data mart usually can be constructed more rapidly and at lower cost than a data warehouse

it typically focuses on a single subject area or line of business

Tools for consolidating, analyzing, and providing access to vast amounts of data to help users
make better business decisions are known as

business intelligence

The tool that enables users to view the same data in different ways using multiple dimensions is


OLAP is a tool for enabling

users to obtain online answers to ad hoc questions in a rapid amount of time.

Data mining is a tool for allowing users to

find hidden relationships in data

In terms of the data relationships found by data mining, associations refers to

occurrences linked to a single event

In terms of the data relationships found by data mining, sequences refers to

events linked over time

Which of the following would you use to find patterns in user interaction data recorded by Web

Web usage mining

Which of the following would you use to find out which Web sites with content related to
database design were the most often linked to by other Web sites?

Web structure mining

Businesses use ________ tools to search and analyze unstructured data sets, such as e-mails and

text mining

Hadoop is a(n):

open-source software framework designed for distributing data-processing over inexpensive computer

A data ___ stores current and historical data of potential interest to decision makers throughout the company


A(n) _____ is a dedicated computer in a client/server environment that hosts a DBMS

database server

A firm’s information policy lays out who is responsible for updating and maintaining the
information in a database system.


The use of different terms for identifying data in a firm’s various information systems is an example of redundant data


Within a corporate information services department the task of creating the physical database and its logical relations are responsibilities of the ____ function

database administration

An information policy specifies the procedures and rules for defining the structure and content of corporate databases


Data administration is a special organizational function that manages the policies and procedures through which data can be managed as an organizational resource


Data cleansing is the same process as data scrubbing.


The confusion created by ________ makes it difficult for companies to create customer
relationship management, supply chain management, or enterprise systems that integrate data from different sources.

data redundancy

Detecting and correcting data in a database or file that are incorrect, incomplete, improperly
formatted, or redundant is called

data scrubbing

A(n) ____ is a structured survey of the accuracy and level of completeness of the data in an information system

data quality audit

In-memory computing relies on a computer’s main memory for storing data


Telephone networks are fundamentally different from computer networks.


Increasingly, voice, video, and data communications are all based on Internet technology.


To create a computer network, you must have at least two computers.


An NOS must reside on a dedicated server computer in order to manage a network


A hub is a networking device that connects network components and is used to filter forward data to specified destinations on the network.


In a client/server network, a network server provides every connected client with an address so it can be found by others on the network.


Central large mainframe computing has largely replaced client/server computing.


Circuit switching makes much more efficient use of the communications capacity of a network than does packet switching.


Two computers using TCP/IP can communicate even if they are based on different hardware and software platforms.


TCP/IP was developed in the 1960 to enable university scientists to transmit data from computer to computer


A device that acts as a connection point between computers and can filter and forward data to a specified destination is called a:


The Internet is based on the following three key technologies

Client/server computing, packet switching, and the development of widely used communications standards for linking networks and computers.

The method of slicing digital messages into parcels, transmitting them along different communication paths, and reassembling them at their destinations is called:

Packet switching

The telephone system is an example of a:

Circuit-switched network

Which of the following is NOT a characteristic of packet switching

Packet switching requires point-to-point circuits

In TCP/IP, IP is responsible for:

Disassembling and reassembling of packets during transmission

In a telecommunications network architecture, a protocol is

A standard set of rules and procedures for control of communications in a network.

what are the four layers of the TCP/IP reference model?

application, transport, internet, and network interface

Which protocol is the internet based on?


The most common web server today, controlling 65 percent of the market, is:

Apache HTTP Server

The ____ is special software that routes and manages communications on the network and coordinates networks resources.

network operating system

A router is a device that forwards packets of data through different networks, ensuring that the data gets the right address


Prior to the development of _____ , computer networks used leased, dedicated telephone circuits to communicate with other computers in remote locations

packet switching

Coaxial cable is similar to that used for cable television and consists of thickly insulated copper wire.


Fiber-optic cable is more expensive and harder to install than wire media.


The number of cycles per second that can be sent through any telecommunications medium is measured in kilobytes.


In a large company today, you will often find an infrastructure that includes hundreds of small LANs linked to each other as well as to corporate-wide networks.


Which signal types are represented by a continuous waveform?


To use an analog telephone system for sending digital data, you must us


Which type of network is used to connect digital devices within a half-mile or 500-meter radius?


Which type of network serves a small group of computers, allowing them to share resources and peripherals without using a dedicated server?


Which type of network would be most appropriate for a business that comprised three employees and a manager located in the same office space, whose primary need is to share documents?

Peer-to-peer network

A network that spans a city, and sometimes its major suburbs as well, is called a:


A network that covers entire geographical regions is most commonly referred to as a(n):

Wide area network

Bandwidth is the:

difference between the highest and lowest frequencies that can be accommodated on a single channel.

The total amount of digital information that can be transmitted through any
telecommunications medium is measured in:


Digital subscriber lines:

Operate over existing telephone lines to carry voice, data, and video

T lines

are high-speed data lines providing guaranteed service levels

A LAN would be used to connect

all of the computers in a city.

An analog signal is a discrete, binary waveform that transmits data coded into two discrete states such as 1-bits and 0-bits.


Today, most Americans connect to the internet through broadband connections at speeds up to 15 Mbps


Mobile search makes up approximately 10% of all Internet searches


In blogging, a trackback is a list of entries in other blogs in other blogs that refer to a post in the first blog.


The Domain Name System (DNS) converts domain names to IP addresses.


VoIP technology delivers voice information in digital form using packet switching.


Web 3.0 is a collaborative effort to add a layer of meaning to the existing Web in order to reduce the amount of human involvement in searching for and processing Web information.


Which of the following is considered by many to be the defining Web 2.0 application?

Social Networking

Which of the following enables multiple users to create and edit Web documents?


The "Internet of Things" refers to:

a vision of a pervasive Web, in which common objects are connected to and controlled over the Internet.

What service converts IP addresses into more recognizable alphanumeric names?


The child domain of the root is the:

top-level domain.

In the domain name "", what are the root, top-level, second-level, and third-level
domains, respectively?

".", com, blogging, myspace

Which organization helps define the overall structure of the Internet?


IPv6 is being developed in order to:

create more IP addresses.

Which of the following services enables logging on to one computer system and working on another?


Instant messaging is a type of ________ service.


________ integrate(s) disparate channels for voice communications, data communications, instant messaging, e-mail, and electronic conferencing into a single experience.

Unified communications


is an encrypted private network configured within a public network.

Together, a protocol prefix, a domain name, a directory path, and a document name, are called a(n):

uniform resource locator

What technology allows people to have content pulled from Web sites and fed automatically to their computers?


Which of the following statements is not true about search engines?

There are hundreds of search engines vying for user attention, with no clear leader having yet emerged.

Which of the following is an example of the visual web


Which process is used to protect transmitted data in a VPN?


An ISP is a commercial organization that owns a region of transcontinental high-speed backbone networks carrying the bulk of Internet traffic.


The trunk lines of the Internet are typically owned by network service providers.


A Web server is a dedicated computer that delivers Web pages to client computers


Which of the following is a challenge posed by Wi-Fi networks?

Susceptibility to interference from nearby wireless systems

The most appropriate wireless networking standard for creating PANs is:


Bluetooth can be used to link up to ________ devices within a 10-meter area using low-power, radio-based communication.


One or more access points positioned on a ceiling, wall, or other strategic spot in a public place to provide maximum wireless coverage for a specific area are referred to as:


The 802.11 set of standards is known as:


The WiMax standard can transmit up to a distance of approximately:

30 miles

What is the primary difference between 3G and 4G cellular systems?

4G systems have greater transmission speeds.

In Europe, and much of the world, the standard for cellular services is:


A(n) ________ is a box consisting of a radio receiver/transmitter and antennas that links to a wired network, router, or hub.

access point

RFID technology is being gradually replaced by less costly technologies such as WSNs


Which of the following statements about RFID is not true

RFIDs require line-of-sight contact to be read

Based on your reading of the examples

Managing the supply chain

Smartphones have the same security flaws as other Internet-connected devices


In 2013, the security firm McAfee identified approximately 35,000 kinds of mobile malware


Viruses can be spread through e-mail


The term cracker is used to identify a hacker whose specialty is breaking open security systems


Wireless networks are vulnerable to penetration because radio frequency bands are easy to scan


Computer worms spread much more rapidly than computer viruses


One form of spoofing involves forging the return address on an e-mail message appears to come from someone other than the sender


Sniffers enable hackers to steal proprietary information from anywhere on a network, including e-mail messages, company files, and confidential reports.


DoS attacks are used to destroy information and access restricted areas of a company’s information system.


Zero defects cannot be achieved in larger programs because fully testing programs that contain thousands of choices and millions of paths would require thousands of years.


Over 70 percent for malware today is aimed at small businesses


________ refers to policies, procedures, and technical measures used to prevent unauthorized access, alternation, theft, or physical damage to information system


______ refers to all of the methods, policies, and organizational procedures that ensure the safety of the organization’s assets, the accuracy and reliability of its accounting records, and operational adherence to management standards.


Large amounts of data stored in electronic form are ________ than the same data in manual form.

vulnerable to many more

Electronic data are more susceptible to destruction, fraud, error, and misuse because information systems concentrate data in computer files that

may be accessible by anyone who has access to the same network

Specific security challenges that threaten the communications lines in a client/server environment include

tapping; sniffing; message alteration; radiation

Specific security challenges that threaten clients in a client/server environment include

unauthorized access; errors; spyware

Specific security challenges that threaten corporate servers in a client/server environment include:

hacking; vandalism; denial of service attacks

The Internet poses specific security problems because

it was designed to be easily accessible

Which of the following statements about the Internet security is not true?

VoIP is more secure than the switched voice network

A salesperson clicks repeatedly on the online ads of a competitor’s in order to drive the competitor’s advertising costs up. This is an example of

Click fraud

An independent computer program that copies itself from one computer to another over a network is called a


In 2004, ICQ users were enticed by a sales message from a supposed anti-virus vendor. On the vendor’s site, asmall program called Mitglieder was downloaded to the user’s machine. The program enabled outsiders to infiltrate the user’s machine. What type of malware is this an example of?

Trojan Horse

Redirecting a Web link to a different address is a form of


A keylogger is a type of:


Hackers create a botnet by:

by causing other people’s computers to become "zombie" PCs following a master computer.

Using numerous computers to inundate and overwhelm the network from numerous launch points is called a ________ attack


Which of the following is not an example of a computer used as a target of crime?

Illegally accessing stored electronic communication

Which of the following is
an example of a computer used as an instrument of crime?

Breaching the confidentiality of protected computerized data

Phishing is a form of:


An example of phishing is:

Setting up fake medical web site that asks for users for confidential information.

Evil Twins are

Bogus wireless network access points that look legitimate to others

Pharming involves:

Redirecting users to a fraudulent Web site even when the user has types in the correct address in the Web browser

You have been hired as a security consultant for a law firm. Which of the following constitutes the greatest source of security threats to the firm?


Tricking employees to reveal their passwords by pretending to be a legitimate member of a company is called

social engineering

How do software vendors correct flaws in their software after it has been distributed?

They issue patches

Which of the following is a type of ambient data?

A file deleted from a hard disk

A practice in which eavesdroppers drive by buildings or park outside and try to intercept wireless network traffic is referred to as ________.

war driving

Malicious software programs referred to as spyware include a variety of threats such as computer viruses, worms, and Trojan horse


________ is a crime in which an imposter obtains key pieces of personal information to impersonate someone else.

identity theft

Computer forensics tasks include all of the following except:

collecting physical evidence on the computer

____ identify the access points in a Wi-Fi network


A foreign country attempting to access government networks in order to disable a national power grid would be an example of:


The HIPPAA Act of 1996

outlines medical security and privacy rules

The Gramm-Leach-Bliley Act:

requires financial institutions to ensure the security of customer data

The Sarbanes-Oxley Act

imposes responsibility on companies and management to safeguard the accuracy of financial information.

The most common type of electronic evidence is:


All of the following are types of information systems general controls except

application controls

An acceptable use policy defines the acceptable level of access to information assets for different users


Your company, an online clothing store, has calculated that a loss of Internet connectivity for 5 hours results in a
potential loss of $1,000 to $2,000 and that there is a 50% chance of this occurring. What is the annual expected
loss from this exposure?


Application controls:

can be classified as input controls, processing controls, and output controls

________ controls ensure that valuable business data files on either disk or tape are not subject to unauthorized access, change, or destruction while they are in use or in storage.

Data security

Analysis of an information system that rates the likelihood of a security incident occurring and its cost is included in a(n)

risk assessment

Statements ranking information risks and identifying security goals are included in a(n):

security policy.

To secure mobile devices, a company will need to implement special mobile device management software


The distributed nature of cloud computing makes it somewhat easier to track unauthorized access


Biometric authentication is the use of physical characteristics such as retinal images to provide identification


Packet filtering catches most types of network attacks


NAT conceals the IP addresses of the organization’s internal host computers to deter sniffer programs


SSL is a protocol used to establish a secure connection between two computers


Public key encryption two keys


Smartphones typically feature state-of-the-art encryption and security features, making them highly secure tools for businesses.


Which of the following specifications replaces WEP with a stronger security standard that features changing encryption keys?


Rigorous password systems:

may hinder employee productivity.

An authentication token is a(n):

gadget that displays passcodes

Biometric authentication:

can use a person’s voice as a unique, measurable trait

A firewall allows the organization to:

enforce a security policy on data exchanged between its network and the Internet

________ use scanning software to look for known problems such as bad passwords, the removal of important files, security attacks in progress, and system administration errors.

Intrusion detection systems

Currently, the protocols used for secure information transfer over the Internet are:


Most antivirus software is effective against:

only those viruses already known when the software is written.

In which method of encryption is a single encryption key sent to the receiver so both sender and receiver share the same key?

Symmetric key encryption

A digital certificate system:

uses third-party CAs to validate a user’s identity.

For 100 percent availability, online transaction processing requires:

fault-tolerant computer systems.

In controlling network traffic to minimize slow-downs, a technology called ________ is used to examine data files and sort low-priority data from high-priority data.

deep-packet inspection

The development and use of methods to make computer systems resume their activities more quickly after mishaps is called:

recovery-oriented computing.

Smaller firms may outsource some or many security functions to:


Authorization refers to the ability to know that a person is who he or she claims to be


Comprehensive security management products, with tools for firewalls, VPNs, intrusion detection systems, and more, are called ________ systems.


A walkthrough is type of software testing used before software is even written


When errors are discovered in software programs, the sources of the errors are found and eliminated through a process called debugging


Enterprise systems include analytical tools


An enterprise system helps reduce redundant business processes


From your reading of the chapter’s opening case, NVIDIA implemented new information systems in order to achieve which of the following business objectives?

Improved decision making

A suite of integrated software modules for finance and accounting, human resources, manufacturing and production, and sales and marketing that allows data to be used by multiple functions and business processes best describes

ERP systems.

Enterprise software is built around thousands of predefined business processes that reflect:

best practices

Which of the following is not true about enterprise systems?

Enterprise software is expressly built to allow companies to mimic their unique business practices.

You have been asked to implement enterprise software for a manufacturer of kitchen appliances. What is the first step you should take?

Select the functions o the system you wish to use

When tailoring a particular aspect of a system to the way a company does business, enterprise software can provide the company with:

configuration tables

In order to achieve maximum benefit from an enterprise software package, a business:

changes the way it works to match the software’s business processes.

Which of the following business objectives would be most helped by implementing an enterprise applications

Customer and supplier intimacy

Which of the following features is the main reason an enterprise system helps a business improve decision-making?

Up-to-the-minute data sharing

Supply chain management systems are a type of enterprise system


The upstream portion of the supply chain consists of the organizations and processes for distributing and delivering products to the final customers.


Supply chain inefficiencies can waste as much as 25 percent of a company’s operating costs.


Safety stock acts as an inexpensive buffer for the lack of flexibility in the supply chain.


The bullwhip effect is the distortion of information about the demand for a product as it passes from one entity to the next across the supply chain.


Supply chain execution systems enable the firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product.


In the pre-Internet environment, supply chain coordination was hampered by the difficulties of making information flow smoothly among different internal supply chain processes.


Inefficiencies in a supply chain are primarily caused by inaccurate information


In a pull-based model of SCM systems, production master schedules are based on forecasts of demand for products.


Dell Inc., which produces many personalized computers as they are ordered, is an example of a pull-based supply-chain model


Total supply chain costs in some industries approach 75 percent of the total operating budget


Supply chain complexity and scale increases when firms

produce products and services that coordinate with hundreds or more firms and suppliers.

A network of organizations and business processes for procuring raw materials, transforming these materials into intermediate and finished products, and distributing the finished products to customers is called a

supply chain

Components or parts of finished products are referred to as

intermediate products

A company’s suppliers, supplier’s suppliers, and the processes for managing relationships with them is the

upstream portion of the supply chain

A company’s organizations and processes for distributing and delivering products to the final customers is the

downstream portion of the supply chain.

Uncertainties arise in any supply chain because of

Unforeseeable events

Why is overstocking warehouses not an effective solution for a problem of low availability?

It increases inventory costs

Which of the following traditional solutions enables manufacturers to deal with uncertainties in the supply chain?

Safety stock

A scheduling system for minimizing inventory by having components arrive exactly at the moment they are needed and finished goods shipped as soon as they leave the assembly line best describes a ________ strategy.


A distortion of information about the demand for a product as it passes from one entity to the next cross the supply chain is called the ___ effect


Supply chain software can be classified as either supply chain ________ systems or supply chain ________ systems.

planning; execution

Systems that enable a firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product best describes supply chain ________ systems.


Supply chain planning systems:

identify the transportation mode to use for product delivery.

Which supply chain planning function determines how much product is needed to satisfy all customer demands?

demand planning

Supply chain ________ systems manage the flow of products through distribution centers and warehouses to ensure that products are delivered to the right locations in the most efficient manner.


Capabilities of supply chain execution systems would not include

identifying the optimal transportation mode.

From your reading of the Land O’ Lakes case study, the company implemented which type of system to
improve supply chain efficiency?

Supply-chain planning system

A supply chain driven by actual customer orders or purchases follows a ________ model.

pull-based model

A build-to-order supply-chain model is also called a ________ model


Concurrent supply chains are made possible by which technology?

The Internet

The business value of an effective supply-chain management system includes all of the following except

increased inventory levels.

The bullwhip effect is countered by:

reducing information uncertainty

A company’s supply chain describes how raw materials are transformed into finished products and shipped to retailers and customers


To model its existing supply chain and develop optimal manufacturing plans, a firm would implement a supply chain execution system


With new flows of information made possible by Web-based tools, supply chain management can more easily follow a push-based model


SFA modules in CRM systems would provide tools for

managing sales prospect and contact information.

Customer service modules in CRM systems provide tools for:

assigning and managing customer service requests.

CRM systems help businesses obtain which business objective?

Customer and supplier intimacy

Marketing modules in CRM systems would provide tools for

identifying profitable and unprofitable customers.

Selling a customer with a checking account a home improvement loan is an example of


management is an important capability for service processes that is found in most major CRM software products.


Which of the following is an important capability for sales processes that is found in most major CRM software products?

Lead management

Customer relationship management applications dealing with the analysis of customer data to provide information for improving business performance best describes ________ applications.

analytical CRM

Operational CRM applications include tools for:

salesforce automation

Which of the following is not one of the four types of customers described in the case study on Graybar

Niche customers

Analyzing customer buying patterns is an example of:

analytical CRM

Which metric is based on the relationship between the revenue produced by a specific customer, the expenses incurred in acquiring and servicing that customer, and the expected life of the relationship between the customer and the company?


The measurement of the number of customers who stop using or purchasing products or services from a company is called:

Churn Rate

The downstream portion of the supply chain includes retailers and customers


A company having difficulty with timely delivery of parts to its manufacturing plants should look to implementing a supply chain planning system


It can cost six times more to sell a product to a new customer than to an existing customer


All CRM packages contain modules for PRM and ERM


Major CRM application software vendors include Oracle and SAP


Cross-selling markets complementary products to customers


CRM software can help organizations identify high-value customers for preferential treatments


Analytical CRM uses a customer data warehouse and tools to analyze customer data collected from the firm’s customer touch points and from other sources


A ____ is a method of interaction with a customer, such as telephone or customer service desk

touch point

Which of the following would NOT be considered a contact point


modules use many of the same data, tools, and systems as CRM to enhance collaboration between a company and its selling partners.


______ modules deal with issues such as setting objectives, employee performance management, and performance based compensation


Customer relationship management systems typically provide software and online tools for sales, customer service, and


odules in CRM systems help sales staff increase their productivity by focusing sales efforts on the most profitable customers, those who are good candidates for sales and services.


CRM includes customer-facing applications such as tools for sales force automation, call center and customer service support, and marketing automation.


Enterprise systems require fundamental changes in the way the business operates.


Which of the following statements about enterprise applications is not true?

Enterprise applications are best implemented when few changes in business processes are required

Which of the following is not an example of next-generation enterprise applications?

Stand-alone suites

Enterprise application vendors have created ________ to make their own customer relationship management, supply chain management, and enterprise systems work closely together with each other

e-business suites

Enterprise application vendors are now including _________________ features, such as tools for data visualization, flexible reporting, and ad hoc analysis, as part of the application

business intelligence

E-commerce refers to the use of any networking technologies to transact business.


Retail consumer e-commerce is still growing at double-digit rates.


The Internet shrinks information asymmetry.


All previous mass media in modern history, including the printing press, use a broadcast model where content is created in a central location by experts.


Disintermediation provides major benefits to the distributor.


In general, for digital goods, the marginal cost of producing another unit is about zero.


Ninety-six percent of all U.S. households with Internet access use a broadband connection.


Advertising networks track user behavior at a multitude of popular Web sites in order to build profiles of each user.


Through what channel did e-commerce first evolve?

Online advertising sales

Based on your reading of the chapter, e-commerce is:

still in a revolutionary phase

A marketplace extended beyond traditional boundaries and removed from a temporal and geographic location


Which of the following is NOT a recent development in e-commerce?

The music recording industry is disrupted as music creation and distribution became decentralized

How is the Internet and e-commerce causing severe disruption to the existing advertising business model?

Technology players such as Yahoo! seek to dominate online advertising and expand into offline ad brokerage

The quality of ubiquity, as it relates to e-commerce, is illustrated by:

the availability of the Internet everywhere and anytime.

Which of the following is NOT one of the unique features of e-commerce technology?


The act of engaging consumers in a dialog that dynamically adjusts the experience to the individual describes which dimension of e-commerce technology?


The integration of video, audio, and text marketing messages into a single marketing message and consumer experience describes which dimension of e-commerce technology?


The lowered cost of information storage, processing, and communication, along with the improvement of data quality has resulted in what unique quality of e-commerce?

Information Density

The effort required to locate a suitable product

Search costs

Information density refers to:

The total amount and quantity of information available to all market participants

Selling the same goods to different targeted groups at different prices is called:

Price Discrimination

Information ___________ exists when one party in a transaction has more information that is important for the transaction than the other party.


Which feature of Internet technology has had the most effect in the Internet’s rapid spread across the globe?

universal standards

Varying a product’s price according to the supply situation of the seller is called ________ pricing.


Reducing the business process layers in a distribution channel is called


Digital goods are goods that are

delivered digitally.

Compared to digital markets, traditional markets have

higher transaction costs

Compared to traditional goods, digital goods have

greater pricing flexibility

Compared to traditional goods, digital goods incur:

lower distribution costs

Price transparency refers to the ability of consumers to discover what merchants actually pay for products


Switching costs are the merchants’ costs of changing prices


An example of the service provider business model is Flickr, a photo management and sharing Web site


An example of the content provider business model is, a retailer of printed books


Podcasting allows subscribers to listen to live, streaming radio and other audio content


Intellectual property refers to all forms of human expression, both tangible and intangible


In the free/freemium revenue model, firms offer basic services for free and charge a fee for special features


Which of the following Internet business models does use?


EBay is an example of:

C2C e-commerce

Selling products and services directly to individual consumers via the Internet best describes:

B2C e-commerce

Consumers selling goods and services electronically to other consumers best describes:

C2C e-commerce

Which of the following businesses utilizes the content provider Internet business model?

Transaction brokers:

save users money and time by processing online sales transactions.

In which of the following Internet business models does a merchant create an online digital environment that enables people with like interests to share information or buy and sell goods?

Community provider

Market creators:

provide a digital environment where buyers and sellers can establish prices for products.

Which of the following best illustrates the sales revenue model?

Apple accepts micropayments for single music track downloads.

Which of the following best illustrates the affiliate revenue model?

Epinions receives a fee after steering a customer to a participating Web site where he or she makes a purchase.

Which of the following best illustrates the transaction fee revenue model?

EBay receives a small fee from a seller if a seller is successful in selling an item.

In which of the following revenue models does a Web site charge a fee for access to some or all of its offerings on a continual, regular basis?


Content providers use ________ systems to process large amounts of very small monetary transactions cost-effectively.


Rich media advertisements are a sales-oriented marketing format


Web personalization is used primarily as a major marketing tool


Behavioral targeting occurs at two levels: individual Web sites and through ISPs


________ describes the concept that a large group of people is better at making correct decisions than a single person.

The wisdom of crowds

Netflix’s public announcement of a reward for a technology solution to its movie recommendation system is an example of


Exposing an individual to ads that are chosen and based on the recorded and analyzed online behavior of the individual is referred to as

behavioral targeting.

Which of the following best describes the digital social graph?

A mapping of all online social relationships

Which of the following social commerce features allows social network sites to gather and distribute to others information about which products a user likes and dislikes?

Network notification

Which of the following is a marketing format that uses banner ads and pop-ups with interactive features?

Display ads

Viral marketing is like traditional word-of-mouth marketing except that it is spread via online communities


The Internet enables ________ marketing, by leveraging the fact that there is always some demand, however small, for a product.


The behavioral targeting of ads results in consumers responding ten times more frequently than when delivered ads randomly


______ is a peer-to-peer market in which participants bet on the outcomes of current events, business, or social trends.

A prediction market

EDI standards that take advantage of network communications have yet to be fully implemented at the industry level


Net marketplaces may either support contractual purchasing based on long-term relationships with designated suppliers, or short-term spot purchasing


Exchanges have become one of the most popular types of Net marketplace because they encourage competitive bidding that drives prices down


Automobile manufacturing is an example of a vertical market


Which of the following statements about B2B commerce is not true?

B2B e-commerce represents approximately 10% of the overall

EDI is:

the exchange between two organizations of standard transactions through a network.

The process of sourcing goods and materials, negotiating with suppliers, paying for goods, and making delivery arrangements is called:


A secure Web site that links a large firm to its suppliers and other key business partners is called a(n):

private industrial network

E-hubs are more ________ than private industrial networks.

transaction oriented

Net marketplaces:

are industry owned or operate as independent intermediaries between buyers and sellers.

A third-party Net marketplace that connects many buyers and suppliers for spot purchasing is called a(n):


Goods that are involved in the actual production process are referred to as:

direct goods

Indirect goods are not involved firsthand in the production process


Which of the following statements about m-commerce is not true?

In 2013, the main areas of growth are in online growth are in online banking and location-based services

A new social mobile app you are developing allows users to find friends who are logged in and within a 10-mile radius. This would be categorized as a ________ service.


Geoadvertising sends ads to users based on their:

GPS locations.

Which of the following is not one of the platforms to be considered in building a Web site presence?

Facebook platform

Which of the following is not one of the four main types of e-commerce presence?


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