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1) Offline media is typically used for all of the following marketing activities except: A) education. B) exposure. C) conversation. D) branding. Answer: C Difficulty: Difficult AACSB: Applicat... ion of knowledge LO: 4.1: Understand the questions you must ask and answer, and the steps you should take, in developing an e-commerce presence. 2) The cost of hardware, software, and telecommunications services needed to build a Web site have ________ over the last decade. A) increased dramatically B) increased moderately C) decreased dramatically D) decreased slightly Answer: C Difficulty: Moderate AACSB: Application of knowledge LO: 4.1: Understand the questions you must ask and answer, and the steps you should take, in developing an e-commerce presence. 3) Which of the following types of e-commerce presence is best suited for creating an ongoing conversation with one's customers? A) Web site B) e-mail C) social media D) offline media Answer: C Difficulty: Moderate AACSB: Application of knowledge LO: 4.1: Understand the questions you must ask and answer, and the steps you should take, in developing an e-commerce presence. 4) In developing an e-commerce presence, what questions must be asked and answered about the firm's target audience? Answer: Without a clear understanding of a firm's target audience, it is difficult to develop a successful e-commerce presence. There are two primary questions: who is the target audience and where can they best be reached? A target audience can be described in a number of ways: demographics, behavior patterns (lifestyle), current consumption patterns (online vs. offline purchasing), digital usage patterns, content creation preferences (blogs, social networks, sites like Pinterest), and buyer personas (profiles of your customer). Understanding the demographics of the firm's target audience is usually the first step. Demographic information includes age, income, gender, and location. Difficulty: Moderate AACSB: Application of knowledge; Written and oral communication LO: 4.1: Understand the questions you must ask and answer, and the steps you should take, in developing an e-commerce presence. 5) What are the phases, activities, and milestones for developing an e-commerce presence for a typical start-up Web site over a one-year period? Answer: A one-year e-commerce presence timeline might include the following phases, activities, and milestones. Phase 1/Planning, in which an e-commerce presence would be envisaged and personnel developed, with a milestone of creating a mission statement; Phase 2/Web site development, in which content would be acquired, a site design developed, and hosting arranged for the site, with a milestone of creating a Web site plan; Phase 3/Web implementation, in which keywords and metatags would be developed, search engine optimization strategies deployed, and potential sponsors identified, with a creation of a functional Web site as the milestone; Phase 4/Social media plan, in which appropriate social platforms and content for products and services would be identified, with the creation of a social media plan as the milestone; Phase 5/Social media implementation, in which a Facebook, Twitter, Pinterest and other social media presence would be developed, with a functioning social media presence as the milestone; and Phase 6/Mobile plan, in which a mobile plan would be developed with options for porting the Web site to the mobile platform considered, and with a mobile media plan as the relevant milestone. Phase 6/Mobile plan might also be the first phase for a firm that wanted to employ mobile first design. Difficulty: Moderate AACSB: Application of knowledge; Written and oral communication LO: 4.1: Understand the questions you must ask and answer, and the steps you should take, in developing an e-commerce presence. 6) Your e-commerce design company has received an RFP to help create an e-commerce presence for Tucci's, a renowned gourmet and specialty butcher that now wishes to sell goods over the Internet. Describe the elements you will include in your proposal to Tucci's. Answer: Student answers will vary, but should include the following: Elements that will be in the proposal include the (1) business goals, or vision, or mission statement, (2) identification of the target audience, (3) description of the marketspace, (4) a strategic analysis or SWOT analysis, (5) the content to be included, (6) a development timeline, and (7) a budget. Other recommendations that the student should mention include using social, local, or mobile marketing. Difficulty: Moderate AACSB: Analytical thinking; Information technology; Written and oral communication LO: 4.1: Understand the questions you must ask and answer, and the steps you should take, in developing an e-commerce presence. 7) What are the two most important management challenges in building a successful ecommerce presence? A) developing a clear understanding of business objectives and knowing how to choose the right technology to achieve those objectives B) having an accurate understanding of your business environment and an achievable business plan C) building a team with the right skill sets and closely managing the development process D) identifying the key components of your business plan and selecting the right software, hardware, and infrastructure for your site Answer: A Difficulty: Difficult AACSB: Application of knowledge LO: 4.2: Explain the process that should be followed in building an e-commerce presence. 8) In order from beginning to end, the major steps in the SDLC are: A) systems analysis/planning; systems design; building the system; testing; and implementation. B) systems design; testing; building the system; and implementation. C) systems analysis/planning; systems design; building the system; implementation; and testing. D) systems analysis/planning; implementation; building the system; and testing. Answer: A Difficulty: Difficult AACSB: Application of knowledge LO: 4.2: Explain the process that should be followed in building an e-commerce presence. 9) ________ are the types of information systems capabilities needed to meet business objectives. A) Information requirements B) System functionalities C) System design specifications D) Physical design specifications Answer: B Difficulty: Moderate AACSB: Application of knowledge LO: 4.2: Explain the process that should be followed in building an e-commerce presence. 10) Which of the following basic system functionalities is used to display goods on a Web site? A) product database B) digital catalog C) shopping cart system D) customer database system Answer: B Difficulty: Moderate AACSB: Information technology LO: 4.2: Explain the process that should be followed in building an e-commerce presence. 11) Which system functionality must your Web site have in order to be able to personalize or customize a product for a client? A) an ad server B) a site tracking and reporting system C) an inventory management system D) customer on-site tracking Answer: D Difficulty: Difficult AACSB: Information technology LO: 4.2: Explain the process that should be followed in building an e-commerce presence. 12) Which of the following are the two main components of a systems design? A) logical design and physical design B) behavioral design and technological design C) business objectives and technology requirements D) front-end systems and back-end systems Answer: A Difficulty: Moderate AACSB: Information technology LO: 4.2: Explain the process that should be followed in building an e-commerce presence. 13) Which of the following helps you engage your customers in a conversation? A) shopping cart B) product database C) on-site blog D) site tracking and reporting system Answer: C Difficulty: Moderate AACSB: Information technology LO: 4.2: Explain the process that should be followed in building an e-commerce presence. 14) Which of the following is not one of the basic business objectives for an e-commerce site? A) display goods B) execute a transaction C) provide production and supplier links D) optimize system architecture Answer: D Difficulty: Moderate AACSB: Information technology LO: 4.2: Explain the process that should be followed in building an e-commerce presence. 15) All of the following are basic information requirements for a product database except: A) product descriptions. B) stock numbers. C) customer ID numbers. D) inventory levels. Answer: C Difficulty: Moderate AACSB: Information technology LO: 4.2: Explain the process that should be followed in building an e-commerce presence. 16) Which of the following typically includes a data flow diagram to describe the flow of information for an e-commerce site? A) physical design B) logical design C) testing plan D) co-location plan Answer: B Difficulty: Moderate AACSB: Information technology LO: 4.2: Explain the process that should be followed in building an e-commerce presence. 17) Which of the following details the actual hardware components to be used in a system? A) architecture plan B) system functionalities plan C) logical design D) physical design Answer: D Difficulty: Moderate AACSB: Information technology LO: 4.2: Explain the process that should be followed in building an e-commerce presence. 18) Which of the following verifies that the business objectives of the system as originally conceived are in fact working? A) system testing B) acceptance testing C) unit testing D) implementation testing Answer: B Difficulty: Moderate AACSB: Information technology LO: 4.2: Explain the process that should be followed in building an e-commerce presence. 19) Which of the following involves testing a site program's modules one at a time? A) system testing B) acceptance testing C) unit testing D) implementation testing Answer: C Difficulty: Moderate AACSB: Information technology LO: 4.2: Explain the process that should be followed in building an e-commerce presence. 20) Most of the time required to maintain an e-commerce site is spent on: A) debugging code. B) responding to emergency situations. C) general administration and making changes and enhancements to the system. D) changes in reports, data files, and links to backend databases. Answer: C Difficulty: Moderate AACSB: Information technology LO: 4.2: Explain the process that should be followed in building an e-commerce presence. 21) All of the following are simple steps for optimizing Web page content that can reduce response times except: A) reducing unnecessary HTML comments. B) segmenting computer servers to perform dedicated functions. C) using more efficient graphics. D) avoiding unnecessary links to other pages on the site. Answer: B Difficulty: Moderate AACSB: Information technology LO: 4.2: Explain the process that should be followed in building an e-commerce presence. 22) Which of the following is the minimum system architecture requirement for an ecommerce Web site that processes orders? A) single-tier architecture B) two-tier architecture C) three-tier architecture D) multi-tier architecture Answer: B Difficulty: Moderate AACSB: Information technology LO: 4.2: Explain the process that should be followed in building an e-commerce presence. 23) All of the following offer Web site building tools except: A) Weebly. B) Google Sites. C) WordPress. D) Apache. Answer: D Difficulty: Moderate AACSB: Information technology LO: 4.2: Explain the process that should be followed in building an e-commerce presence. 24) All of the following are major players in hosting/co-location/cloud services except: A) GoDaddy. B) WordPress. C) Rackspace. D) CenturyLink. Answer: B Difficulty: Moderate AACSB: Information technology LO: 4.2: Explain the process that should be followed in building an e-commerce presence. 25) Which form of testing compares a control page with one that is very different? A) template test B) new concept test C) funnel test D) system test Answer: B Difficulty: Moderate AACSB: Application of knowledge LO: 4.2: Explain the process that should be followed in building an e-commerce presence. 26) A template test is a form of which type of testing? A) unit testing B) system testing C) acceptance testing D) A/B testing Answer: D Difficulty: Moderate AACSB: Information technology LO: 4.2: Explain the process that should be followed in building an e-commerce presence. 27) When using multivariate testing, if you wish to test two different versions of an image, a button, and a piece of text, how many combinations will you need to test? A) 2 B) 4 C) 6 D) 8 Answer: D Difficulty: Difficult AACSB: Information technology LO: 4.2: Explain the process that should be followed in building an e-commerce presence. 28) The process of comparing a Web site with that of its competitors in terms of response speed, quality of layout, and design is known as: A) split testing. B) funnel testing. C) benchmarking. D) system testing. Answer: C Difficulty: Moderate AACSB: Information technology LO: 4.2: Explain the process that should be followed in building an e-commerce presence. 29) The systems development life cycle methodology that can be used to create an ecommerce Web site has five major steps. Answer: TRUE Difficulty: Moderate AACSB: Information technology LO: 4.2: Explain the process that should be followed in building an e-commerce presence. 30) When developing an e-commerce presence, it is important to understand that the business must drive technology decisions, not the reverse. Answer: TRUE Difficulty: Moderate AACSB: Application of knowledge LO: 4.2: Explain the process that should be followed in building an e-commerce presence. 31) Using prebuilt templates is typically one of the most expensive choices when building an e-commerce site. Answer: FALSE Difficulty: Easy AACSB: Information technology LO: 4.2: Explain the process that should be followed in building an e-commerce presence. 32) The annual maintenance cost for a Web site is typically much lower than its development cost. Answer: FALSE Difficulty: Moderate AACSB: Information technology LO: 4.2: Explain the process that should be followed in building an e-commerce presence. 33) Two-tier architecture typically includes a Web server and a database server. Answer: TRUE Difficulty: Difficult AACSB: Information technology LO: 4.2: Explain the process that should be followed in building an e-commerce presence. 34) Apache Web server software works with Linux and Unix operating systems. Answer: TRUE Difficulty: Moderate AACSB: Information technology LO: 4.2: Explain the process that should be followed in building an e-commerce presence. 35) Describe the major issues surrounding the decisions to build and/or host your own ecommerce Web site or to outsource some aspects of site development. Include the advantages and disadvantages of each decision. Answer: If you decide to build an e-commerce Web site in-house, you will need a multiskilled staff including programmers, graphic artists, Web designers, and project managers. You will also have to select and purchase software and hardware. Building a site from scratch involves a great deal of risk, and the costs can be high because many of the required elements of an e-commerce site such as shopping carts, credit card authentication and processing, inventory management, and order processing are quite complex. Specialized firms have already perfected these tools and your staff will often have to learn to build all of these features themselves. The advantage is that you and your staff may be able to build a site that exactly suits the specific needs of your company. Another advantage is that you will be developing a skilled staff and consequently acquiring an invaluable supply of in-house knowledge that will enable your firm to change the site if necessary due to the rapidly changing business environment. If, on the other hand, you decide to purchase an expensive site-building package, you will have to evaluate different packages to decide which one will be best suited to your firm's needs. This can be a lengthy process and some packages may have to be modified. Additional vendors may have to be hired to execute the modifications, and this can cause the costs to mount rapidly. You can also purchase less expensive, prebuilt templates, but you will be limited to the functionality already built into the template. You can choose templates from merchantsolution vendors such as Amazon Stores, or use the templates from a site-building tool such as WordPress. Brick-and-mortar retailers can generally design a site themselves because they have a skilled staff in place and have made large investments in information technology, such as databases and telecommunications. They will usually use outside vendors to build the e-commerce applications for the site. Medium-size startups will often purchase a prepackaged site-building tool and make modifications as necessary. Small startups that only require a simple virtual storefront will usually use a template. The hosting decision is independent from the building decision, but the two are usually considered at the same time. Most businesses choose to outsource hosting because it is generally less expensive than it would be for them to purchase all of the hardware and the physical space, lease the communications lines, and hire the staff. Large hosting firms can build the telecommunication links and emergency power supplies and achieve economies of scale by establishing huge "server farms" in strategic locations around the country. If you host your own site you must also build the security and backup capabilities yourself. Another option is co-location in which a firm purchases or leases a Web server and has total control over its operation, but the server is located in the vendor's physical facility. In a co-location agreement, the vendor maintains the facility, the machinery, and the communication lines. Small ISPs may not be able to provide service that is as reliable as the large providers. The disadvantage of outsourcing hosting is that as your business grows, you may need more power or services than the hosting company can provide. This is the main reason that firms will decide to host their own sites, but the costs will almost always be higher than if they had chosen an outsourcing firm. Difficulty: Moderate AACSB: Analytical thinking; Information technology; Written and oral communication LO: 4.2: Explain the process that should be followed in building an e-commerce presence. 36) All of the following might be part of a Web site's middle-tier layer except: A) a database server. B) an ad server. C) legacy corporate applications. D) a mail server. Answer: C Difficulty: Moderate AACSB: Information technology LO: 4.3: Identify and understand the major considerations involved in choosing Web server and e-commerce merchant server software. 37) The leading Web server software is: A) Apache. B) Microsoft Internet Information Server. C) Sun Solaris. D) Google Enterprise Server. Answer: A Difficulty: Moderate AACSB: Information technology LO: 4.3: Identify and understand the major considerations involved in choosing Web server and e-commerce merchant server software. 38) All of the following are basic functionality provided by Web servers except: A) site management tools. B) data capture tools. C) security services. D) a shopping cart. Answer: D Difficulty: Moderate AACSB: Information technology LO: 4.3: Identify and understand the major considerations involved in choosing Web server and e-commerce merchant server software. 39) Which of the following is used to process certificates and private/public key information? A) HTTP B) Secure Sockets Layer/Transport Layer Security C) File Transfer Protocol D) data capture tools Answer: B Difficulty: Difficult AACSB: Information technology LO: 4.3: Identify and understand the major considerations involved in choosing Web server and e-commerce merchant server software. 40) Which of the following would you use to verify that links on Web pages are valid? A) HTTP B) FTP C) data capture tools D) site management tools Answer: D Difficulty: Moderate AACSB: Information technology LO: 4.3: Identify and understand the major considerations involved in choosing Web server and e-commerce merchant server software. 41) Which of the following is an example of a CMS? A) Apache B) WordPress C) Dreamweaver CC D) Webtrends Analytics Answer: B Difficulty: Moderate AACSB: Information technology LO: 4.3: Identify and understand the major considerations involved in choosing Web server and e-commerce merchant server software. 42) Advantages of dynamic page generation include all of the following except: A) lowered menu costs. B) market segmentation. C) nearly cost-free price discrimination. D) client-side execution of programming. Answer: D Difficulty: Difficult AACSB: Information technology LO: 4.3: Identify and understand the major considerations involved in choosing Web server and e-commerce merchant server software. 43) Which of the following cannot be used to retrieve objects from a database? A) CGI B) ASP C) JSP D) HTML Answer: D Difficulty: Moderate AACSB: Information technology LO: 4.3: Identify and understand the major considerations involved in choosing Web server and e-commerce merchant server software. 44) Which of the following type of application server monitors and controls access to a main Web server and implements firewall protection? A) proxy server B) list server C) groupware server D) mail server Answer: A Difficulty: Moderate AACSB: Information technology LO: 4.3: Identify and understand the major considerations involved in choosing Web server and e-commerce merchant server software. 45) Which of the following technologies is used to separate the design and presentation of content from the content creation process? A) Apache web server B) proxy server C) shopping cart D) CMS Answer: D Difficulty: Moderate AACSB: Information technology LO: 4.3: Identify and understand the major considerations involved in choosing Web server and e-commerce merchant server software. 46) MySQL is which of the following? A) open source database software B) a scripting language embedded in HTML documents C) Web server software D) Web site analytics software Answer: A Difficulty: Moderate AACSB: Information technology LO: 4.3: Identify and understand the major considerations involved in choosing Web server and e-commerce merchant server software. 47) All of the following are basic functionality provided by e-commerce merchant server software except: A) a product catalog. B) marketing software. C) a shopping cart. D) credit card processing. Answer: B Difficulty: Moderate AACSB: Information technology LO: 4.3: Identify and understand the major considerations involved in choosing Web server and e-commerce merchant server software. 48) Which of the following is not an open source software tool? A) WebSphere B) Apache C) MySQL D) PHP Answer: A Difficulty: Moderate AACSB: Information technology LO: 4.3: Identify and understand the major considerations involved in choosing Web server and e-commerce merchant server software. 49) Which of the following is a standard that makes it possible to access data from any application regardless of the database and operating system software being used? A) CGI B) ODBC C) MySQL D) HTTP Answer: B Difficulty: Difficult AACSB: Information technology LO: 4.3: Identify and understand the major considerations involved in choosing Web server and e-commerce merchant server software. 50) The Web server software used has a significant impact on how a Web site's Web pages look on a user's computer. Answer: FALSE Difficulty: Moderate AACSB: Information technology LO: 4.3: Identify and understand the major considerations involved in choosing Web server and e-commerce merchant server software. 51) Prior to the development of e-commerce, Web sites primarily delivered static HTML pages. Answer: TRUE Difficulty: Moderate AACSB: Information technology LO: 4.3: Identify and understand the major considerations involved in choosing Web server and e-commerce merchant server software. 52) Dynamic page generation lowers menu costs. Answer: TRUE Difficulty: Moderate AACSB: Application of knowledge LO: 4.3: Identify and understand the major considerations involved in choosing Web server and e-commerce merchant server software. 53) A list server can be used to manage e-mail marketing campaigns. Answer: TRUE Difficulty: Moderate AACSB: Information technology LO: 4.3: Identify and understand the major considerations involved in choosing Web server and e-commerce merchant server software. 54) Explain the main functionalities included in e-commerce merchant server software and the decision-making process for a manager choosing from among the various ecommerce merchant server software packages. Answer: The main functionalities included in e-commerce merchant server software are online catalog, order taking capabilities using an online shopping cart, and online credit card processing. Merchant server software typically includes a database and the capability to post lists, product descriptions, product photographs, and in larger sites even sound, animations, videos, or interactivities with product demonstrations and customer service representatives. Online shopping carts enable customers to set aside items they wish to purchase while they continue to shop at the site. Online shopping cart capabilities must also include the ability for consumers to review the items they have set aside and delete or edit items as necessary. Finally, the customer must be able to click a button to begin the order processing system. Credit card processing must work in conjunction with the shopping cart so that the customer's credit card can be verified, the charge can be debited to the card, and a credit to the firm's account can be made. Merchant server software/e-commerce suites offer an integrated environment that promises to provide most or all of the functionality and capabilities you will need to develop a sophisticated, customer-centric site. E-commerce suites come in three general ranges of price and functionality: basic, mid-range, and high-end. Key factors to consider when selecting a package include functionality, support for different business models, business process modeling tools, visual site management tools and reporting, performance and scalability, connectivity to existing business systems, compliance with standards, global and multicultural capability, and local sales tax and shipping rules. For instance, although e-commerce suites promise to do everything, your business may require special functionality. You will need a list of business functionality requirements. Your business may involve several different business models. Be sure the package can support all of your business models. You may wish to change your business processes, such as order taking and order fulfillment. Does the suite contain tools for modeling business process and work flows? Understanding how your site works will require visual reporting tools that make its operation transparent to many different people in your business. A poorly designed software package will drop off significantly in performance as visitors and transactions expand into the thousands per hour, or minute. Check for performance and scalability by stress testing a pilot edition or obtaining data from the vendor about performance under load. You will have to connect the e-commerce suite to your traditional business systems. How will this connection to existing systems be made, and is your staff skilled in making the connection? Because of the changing technical environment – in particular, changes in mobile commerce platforms – it is important to document exactly what standards the suite supports now, and what the migration path will be toward the future. Finally, your e-commerce site may have to work both globally and locally. You may need a foreign language edition using foreign currency denominations. And you will have to collect sales taxes across many local, regional, and national tax systems. Does the e-commerce suite support this level of globalization and localization? Difficulty: Difficult AACSB: Analytical thinking; Information technology; Written and oral communication LO: 4.3: Identify and understand the major considerations involved in choosing Web server and e-commerce merchant server software. 55) The term stateless refers to the fact that: A) no one government entity controls the Internet. B) the server does not have to maintain an ongoing dedicated interaction with the client computer. C) system performance degrades as more simultaneous users require service. D) Web servers may maintain multiple instances of server software to handle requests. Answer: B Difficulty: Moderate AACSB: Information technology LO: 4.4: Understand the issues involved in choosing the most appropriate hardware for an e-commerce site. 56) Which of the following types of sites typically needs a high percentage of secure pages? A) Web services B) customer self-service C) trading D) publishing/subscription Answer: C Difficulty: Difficult AACSB: Application of knowledge LO: 4.4: Understand the issues involved in choosing the most appropriate hardware for an e-commerce site [Show More]

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