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Unformatted text preview: Exam
Name___________________________________ TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
1) E-commerce is the buying and selling of goods and services over public and private computer
networks. 1) 2) The U.S. Census Bureau, which publishes statistics on e-commerce activity, defines merchant
companies as those that take title to the goods they sell. 2) 3) The U.S. Census Bureau defines nonmerchant companies as those that buy goods and then resell
them. 3) 4) A manufacturer that uses an e-commerce site to sell computer hardware to the U.S. Department of
State is engaging in B2B commerce. 4) 5) An electronic exchange is a type of clearinghouse that matches buyers and sellers; the business
process is similar to that of a stock exchange. 5) 6) Using an auction, a company can learn just what the top price for an item is, but not the second,
third, and other prices from the losing bids. In this way, the company can determine the shape of
elasticity curve. 6) 7) E-commerce allows manufacturers to offer lower prices and still make a profit thereby leading to
price conflict with their traditional channels. 7) 8) Customer-service expenses are more likely to decrease for manufacturers that use e-commerce to
sell directly to consumers. 8) 9) Web 2.0 generally refers to a loose grouping of capabilities, technologies, business models, and
philosophies. 9) 10) In Web 2.0 processing, business models rely on the sale of software licenses. 10) 11) Web 2.0 applications are thick clients. 11) 12) A characteristic of Web 2.0 is that the value of a site increases with users and use. 12) 13) Web 2.0 interfaces carefully control the users' experience. In contrast, traditional interfaces are
organic. 13) 14) Google pioneered Web 2.0 advertising. With its AdWords software, vendors pay a certain amount
for particular search words. 14) 15) Compared to the traditional advertising model, the cost of reaching a particular, qualified person is
much smaller in Web 2.0. 15) 1 16) Karl Marx defined capital as the investment of resources for future profit. 16) 17) Human capital is the investment in human knowledge and skills for current profit. 17) 18) When you attend a business function for the purpose of meeting people and reinforcing
relationships, you are investing in your social capital. 18) 19) According to Henk Flap, the value of social capital is determined by the number of relationships in
a social network, by the strength of those relationships, and by the resources controlled by those
related. 19) 20) Unlike humans, organizations do not have social capital. 20) 21) Social networking information systems make the transmission of your opinions less reliable but
longer lasting. 21) 22) A viral hook is something that induces people to share a message with others. 22) 23) Social networks provide four forms of value: influence, information, social credentials, and
reinforcement. If an organization can induce those in its relationships to provide more of any of
those factors, it has strengthened that relationship. 23) 24) Social capital does not depreciate. 24) 25) The multiplicative nature of social capital means that a huge network of relationships to people
who have few resources may be lower than that of a smaller network with people with substantial
resources. 25) 26) A social networking group is an association of social networking members related to a particular
topic, event, activity, or other collective interest. 26) 27) In social networking, an invitation group cannot be found by searching, and members must be
invited to join. 27) 28) From a business perspective, the usefulness of social networking groups is limited to marketing. 28) 29) Social networking applications run on servers provided by the application's creator. 29) 30) Social networking groups give application vendors more control over the users' experience than
applications do. 30) 31) Meaningful social networking applications use information in the social graph. 31) 32) Meaningful social networking applications share a personal perspective on the world. 32) 33) Microblogging has not been widely adopted because most users find the medium highly
intimidating. 33) 2 34) Twitter is an example of a category of applications called microblogs. 34) 35) Microblogs like Twitter do not make everyone a publisher. 35) 36) Businesses are actively experimenting with microblogging, because it helps them in public
relations, relationship sales, and market research. 36) 37) Pure sales pitches are the most effective when microblogging. People start following sources that
only publish ads and sales pitches. 37) 38) User-Generated Content (UGC) is a fairly recent trend on the Internet. 38) 39) Discussion groups, wikis, blogs, and videos are types of User-Generated Content. 39) 40) Crowdsourcing is the process by which users provide services to or on behalf of the vendor. 40) 41) Crowdsourcers may participate in the creation of product specifications, designs, and complete
products, on behalf of the vendor. 41) 42) The use of User-Generated Content has been decreasing with the growth of e-commerce and Web
2.0. 42) 43) Social CRM is the creation and use of the Enterprise 2.0 collaborative relationship between
businesses and customers. 43) 44) Enterprise 2.0 provides a set of capabilities that workers use to collaborate and that allows content
to be preplanned, rather than to just emerge. 44) 45) A folksonomy is content structure that has emerged from the processing of many user tags. 45) 46) With Social CRM, relationships between organizations and customers emerge as both parties create
and process content. 46) 47) Using a social networking vendor for a business purpose makes the business vulnerable to the
reliability and performance the SN vendor provides. 47) 48) The license agreements of social networking vendors are strongly biased in favor of the vendor. 48) 49) Deleting content on User-Generated-Content sites should be reserved for contributions that
criticize a firm's products or services. 49) 50) In the context of CRM, emergence means that the vendor loses control of the customer relationship. 50) 3 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
51) The U.S. Census Bureau, which publishes statistics on e-commerce activity, defines nonmerchant
companies as ________.
A) those that arrange for the purchase and sale of goods without ever owning the goods
B) those that take title to the goods they sell
C) those that buy goods and then resell them
D) those that sell the services that they provide 51) 52) ________ take title to the goods they sell.
A) Electronic exchanges
C) Nonmerchant companies 52) B) Merchant companies
D) Clearinghouses 53) Which of the following is an e-commerce merchant company?
C) exchanges D) clearing houses 53) 54) Traditional B2C information systems rely on ________ that customers use to enter and manage
A) brick and mortar stores
B) electronic data interchanges
C) Web storefronts
D) point-of-sale systems 54) 55) Which of the following is the best-known auction company?
C) Priceline 55) D) Lixtor 56) Clearinghouses ________.
A) take title to the goods they sell
B) provide goods and services at a stated price
C) support competitive-bidding processes
D) do not arrange for the delivery of goods 56) 57) E-commerce leads to ________, which is the elimination of middle layers of distributors and
B) horizontal integration
C) economies of scale
D) disintermediation 57) 58) Price elasticity measures the ________.
A) amount that demand rises or falls with changes in price
B) value generated for the manufacturer through electronic exchange
C) number of bids a product can generate in the market
D) revenue earned due to disintermediation 58) 59) In the context of e-commerce market efficiencies, managing prices by direct interaction with the
customer aids in the knowledge of ________.
A) channel conflict
B) price conflict
D) price elasticity 59) 60) E-commerce ________
A) lowers a firm's logistics expense
B) results in lower customer service expenses
C) reduces the likelihood of channel conflict
D) increases the possibility of price conflict 60) 4 61) Which one of the following characteristics is true for companies such as Google, Amazon.com, and
eBay that exemplify Web 2.0?
A) fixed product value
B) controlled, fixed interface
C) viral marketing
D) infrequent, controlled releases 61) 62) If a product requires advertising to be successful, then it is not a Web 2.0 product. Keeping this in
mind, which one of the following products requires extensive advertising to be successful?
D) Microsoft 62) 63) Web 2.0 applications are thin clients. What does this imply?
A) They need to be installed on the user's computer.
B) Web servers download these programs as code within HTML.
C) New features are added to these applications with much fanfare.
D) Their users don't expect frequent updates. 63) 64) The Web 2.0 business model relies on ________.
C) software license fees 64) B) venture capital
D) revenue from brick and mortar stores 65) Software as a service clashes with the software model used by traditional software vendors, such
as Microsoft, Oracle, and SAP. Traditional software vendors depend on ________.
A) user participation
B) organic interfaces and mashups
C) software license fees
D) viral marketing 65) 66) In the Web 2.0 world software is provided ________.
A) as a free service
B) as a licensed product with hefty fees
C) as a non-installable product
D) with controlled releases 66) 67) A characteristic of Web 2.0 is that the value of a Web site increases ________.
A) with users and use
B) in a linear fashion
C) over time
D) as the amount of capital invested in it increases 67) 68) Web 2.0 encourages ________, which occur(s) when the output from two or more Web sites is
combined into a single user experience.
B) fixed interfaces
D) viral hooks 68) 69) Who pioneered Web 2.0 advertising?
B) Yahoo 69) C) Google D) eBay 70) Business literature defines three types of capital. Karl Marx defined capital as the investment of
resources for future profit. This traditional definition refers to investments into resources such as
A) social relations
B) human knowledge
C) emotional understanding
D) factories and machines 5 70) 71) By taking an academic course, you are investing in your own ________ capital. You are investing
your money and time to obtain knowledge that you hope will differentiate you from other workers
and ultimately give you a wage premium in the workforce.
D) mechanical 71) 72) When you attend a business function for the purpose of meeting people and reinforcing
relationships, you are investing in your ________ capital.
D) technical 72) 73) According to Nan Lin, which of the following types of capital adds value through information,
influence, and personal reinforcement?
A) industrial capital
B) human capital
C) mechanical capital
D) social capital 73) 74) Being linked to a network of highly regarded contacts is a form of social ________.
D) credential 74) 75) According to Henk Flap, the ________ is determined by the number of relationships in a social
network, by the strength of those relationships, and by the resources controlled by those related.
A) wisdom of the crowd
B) curse of dimensionality
C) value of social capital
D) strength of a viral hook 75) 76) The term ________ refers to any activity that an entity (individual, project, or organization) takes
with entities with which it is related.
A) viral marketing
B) social networking
C) mashing up
D) human capital 76) 77) The Web 2.0 world does not rely on marketing. New product features are released and vendors
wait for users to spread the news to one another, one friend sending a message to many friends;
most of whom send that message, in turn, to their friends. The something that induces people to
share your message is called a ________.
C) viral hook
D) folksonomy 77) 78) To an organization, the ________ is the likelihood that an entity (person or other organization) in
the relationship will do something that benefits the organization.
A) lifetime value of a customer
B) principle of reciprocity
C) margin of a business process
D) strength of a relationship 78) 79) How can a firm use social networks to increase the strength of its relationships?
A) By limiting its interaction with those in its social network
B) By encouraging the creation of User-Generated-Content.
C) By deleting content that criticizes a firm's products from UGC sites.
D) By connecting only with people who possess substantial resources. 79) 80) Traditional capital ________.
C) is cyclic in value 80) B) always increases in value over time
D) depreciates 6 81) Social capital does depreciate, but such depreciation can be ameliorated by ________.
A) dropping older relationships
B) reducing the level of investment in relationships
C) increasing ones human capital
D) adding something of value to the interaction 81) 82) Which of the following best represents the value of social capital?
A) NumberRelationships + RelationshipStrength + EntityResources
B) (NumberRelationships - RelationshipStrength) / EntityResources
C) NumberRelationships * RelationshipStrength * EntityResources
D) NumberRelationships - RelationshipStrength - EntityResources 82) 83) Which of the following observations is true?
A) A huge network of relationships to people who have few resources is of greater value than a
smaller network with people with substantial resources.
B) The value fo social capital is best expressed as the summation of the number of relationships
in a social network, the strength of those relationships, and the resources controlled by those
C) Social capital depreciates and such depreciation cannot be ameliorated by adding something
of value to the interaction.
D) Most organizations today ignore the value of entity assets and simply try to connect to more
people with stronger relationships. 83) 84) Social networking groups can be of three types. The group that anyone can find by searching, and
anyone can join it is a(n) ________ group.
D) public 84) 85) Social networking groups can be of three types. An invitation group ________.
A) can be found by searching
B) cannot be found by searching
C) is also known as a private group
D) is open to everyone 85) 86) Social networking groups can be of three types. The group that cannot be found by searching, and
members must be invited to join is a(n) ________ group.
D) invitation 86) 87) Social networking applications run on servers provided by ________.
A) the application's creator
B) the social networking site
C) the cloud
D) an external third party 87) 88) A(n) ________ is a network of relationships.
C) crowdsource 88) B) organic interface
D) social graph 89) Meaningful social networking applications ________.
A) rarely change their content
B) address real needs
C) do not compel users to come back
D) provide generic information 89) 90) ________ is a Web 2.0 application that allows users to publish 140-character descriptions of
A) Amazon Kindle
C) Google Search
D) Yahoo news 90) 7 91) A ________ is a Web site on which users can publish their opinions, just like a Web blog, but the
opinions are restricted to small amounts of text.
A) tag cloud
B) social graph
D) social network 91) 92) Which of the following is true about microblogging?
A) Most users find it more intimidating than blogging.
B) It isn't necessary to spell correctly.
C) The use of abbreviations is looked down upon.
D) Users must be able to write well-constructed paragraphs. 92) 93) Microblogging enables ________ publishing, worldwide.
D) one-way 93) 94) One of the applications of microblogging in business is ________.
A) public relations
C) price discrimination
D) intermediation 94) 95) Social networking in general and microblogging in particular are all about relationships—forming
new relationships and strengthening existing ones. Such relationships can serve as an ideal channel
for sales. But experience has shown that ________ are ineffective when microblogging.
A) links to resources
B) advice and assistance
C) pure sales pitches
D) thought-provoking opinions 95) 96) "Product ratings and surveys have been used for years. Product opinions are also common. Recent
research indicates that ratings and opinions of fellow customers are far more trusted than any
advertising." This statement refers to types of ________.
A) social graph
C) social capital
D) human capital 96) 97) ________ are a form of User-Generated-Content in which customers and partners can offer advice
and assistance regarding products.
A) Google searches
B) Wikis and blogs
C) Company Web sites
D) Amazon book lists 97) 98) ________ is the process by which users provide services to or on behalf of a vendor.
D) Crowdsourcing 98) 99) ________ is the creation and use of the Enterprise 2.0 collaborative relationship between businesses
A) Customer CRM
B) Social CRM
C) Business CRM
D) Traditional CRM 99) 100) ________ is the application of Web 2.0 technologies, collaboration systems, social networking, and
related technologies to facilitate the cooperative work of people in organizations.
A) Enterprise resource planning
B) Enterprise architecture
C) Enterprise application integration
D) Enterprise 2.0 100) 101) A ________ is content structure that has emerged from the processing of many user tags.
D) mashup 101) 8 102) In McAfee's SLATES Enterprise 2.0 model, "L" is for ________.
C) links D) LAN 103) In McAfee's SLATES Enterprise 2.0 model, "A" is for ________.
C) affiliation D) avatar 102) 103) 104) In Enterprise 2.0, pushing enterprise content to users based on subscriptions and alerts is part of
________, according to McAfee's Enterprise 2.0 model.
D) links 104) 105) Enterprise 2.0 workers want applications to enable them to rate tagged content and to use the tags
to predict content that will be of interest to them, a process McAfee refers to as ________.
D) signals 105) 106) Before a business plunges headlong into any commercial application of social networking, it
should be aware of the risks that these tools entail. One of the major risks is ________.
A) thought-provoking opinions
B) favorable reviews
C) advice on products
D) dependency on the social networking vendor 106) 107) Responding to problematic content on social networking sites is best reserved for when ________.
A) the problematic content represents reasonable criticism of the organization's products or
B) the problematic content is obscene and contributed by crackpots
C) the problematic content has caused the organization to do something positive as a result
D) the problematic content is truthful and legitimate 107) 108) If the problematic content posted on a social networking site represents reasonable criticism of the
organization's products or services, the best response would be to ________.
A) rewrite it
B) delete it
C) leave it
D) edit it 108) 109) Deleting problematic content on social networking sites is best reserved for when ________.
A) the content has been contributed by non-users of a product or service
B) the content is negative, but legitimate
C) the content represents reasonable criticism of the organization's products or services
D) the content is obscene and inappropriate 109) 110) In the context of CRM, emergence means that the vendor loses control of the customer relationship.
Customers use all the touch points they can find with the vendor to craft their own relationships.
Emergence in the context of management means loss of control of ________.
D) customers 110) ESSAY. Write your answer in the space provided or on a separate sheet of paper.
111) Differentiate between merchant and non-merchant companies. Can a company be both?
112) List the economic factors that disfavor e-commerce. Explain the effect of any two of these factors on
organizations. 9 113) What is meant by viral marketing and a viral hook?
114) Define the three types of capitals listed in business literature. How does social capital add value, according to
115) What is a social networking group? Briefly explain the different types of social networking groups.
116) What is a microblog? Briefly explain any one application of microblogging used by businesses.
117) What is Enterprise 2.0? List its characteristics as defined by McAfee.
118) List the major risks for business that indulge in commercial applications of social networking. Discuss any one
of them briefly.
119) How should organizations respond to social networking problems? Which one of them is a dangerous
approach and why?
120) What does emergence mean in the context of CRM and management? 10 ...
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This note was uploaded on 01/13/2012 for the course BCIS 3610 taught by Professor Sherry during the Spring '11 term at University of Texas at Austin.
- Spring '11