Ecommerce — Part 1 MCQs with Explanations

Term Definition: Global reach refers to the ability of a business or platform to connect with customers across the world, regardless of geographic location. In the context of e-commerce, it means selling and interacting with users in different countries using digital technologies. Explanation: In e-commerce, global reach is the dimension that allows businesses to operate and trade beyond their local or national markets. With the help of the internet, businesses can now market and sell their products or services to customers anywhere in the world. This expands the customer base and opens up new markets that were previously difficult or expensive to access. E-commerce platforms can handle transactions in different currencies, support multiple languages, and follow international shipping and tax regulations. Therefore, global reach is the correct answer because it directly refers to enabling commerce across national boundaries. Correct Answer: Option B: global reach

Correct Answer: A - Doing business electronically This option accurately captures the essence of e-commerce. It encompasses all aspects, including online transactions, digital marketing, online customer service, and other digital interactions related to business operations. Why other options are incorrect: Option B - Doing business: This is too broad. Traditional, offline business is also "doing business," but it's not e-commerce. Option C - Sale of goods: While a significant part of e-commerce, it's not the whole picture. E-commerce involves much more than just sales; it includes services, digital downloads, and various other transactions. Option D - All of the above: Because options B and C are not fully encompassing definitions of e-commerce, this option is also incorrect.

Term Definition: Types of e-commerce refer to the different models of online business transactions based on the parties involved. The major types include: B2B (Business to Business): Transactions between businesses. B2C (Business to Consumer): Transactions where businesses sell to consumers. C2C (Consumer to Consumer): Transactions between individual consumers using a platform. C2B (Consumer to Business): A model where individuals sell products or offer services to businesses. Explanation: While B2B, B2C, and C2C are widely recognized as major and traditional types of e-commerce , C2B is not considered one of the main types in many standard classifications. In the C2B model, the consumer creates value and a business consumes that value. For example, a graphic designer (consumer) selling a logo design to a company (business). Although C2B exists and is growing in relevance with platforms like freelancing websites, it is not typically included in the original or major categories of e-commerce used in foundational commerce studies. Therefore, the correct answer is Option A: C2B because it is not traditionally classified as one of the major types of e-commerce.

B2B, B2C and C2B is part of the four main types for e‐commerce.

Preservation is not considered to be one of the three phases of e-commerce. The act of keeping something the same or of preventing it from being damaged is basically preservation.

eBay, Amazon.com belong to B2Cs segments. The term business-to-consumer (B2C) refers to the process of selling products and services directly between consumers who are the end-users of its products or services.

The idealistic market envisioned at the outset of the development of e-commerce is called a Bertrand market.

C2C type of e‐commerce focuses on consumers dealing with each other. Consumer to consumer, or C2C, is the business model that facilitates commerce between private individuals. Whether it's for goods or services, this category of e-commerce connects people to do business with one another.

The primary source of financing during the early years of e-commerce was venture capital funds. Venture Capital is money invested in businesses that are small; or exist only as an initiative, but have huge potential to grow. The people who invest this money are called venture capitalists (VCs). The venture capital investment is made when a venture capitalist buys shares of such a company and becomes a financial partner in the business.

eBay is a platform where individual consumers sell products directly to other consumers. This type of transaction is called Consumer-to-Consumer (C2C) e-commerce. In C2C, both the buyer and the seller are individual consumers, not businesses. Option A: B2B (Business-to-Business) involves transactions between businesses, which does not apply to eBay's core model. Option B: C2B (Consumer-to-Business) involves individuals selling products or services to businesses, which also doesn't fit eBay’s primary model. Therefore, eBay is best categorized under C2C e-commerce. Hence, Option C is correct.

Spyware, cookies, and Gmail can all be used to collect or track user information online. Spyware is malicious software specifically designed to gather data from a user's device without consent. Cookies are small files stored on a user's browser to track browsing behavior and preferences. Gmail , while primarily an email service, can collect user data for targeted advertising and personalization. However, anonymizers are tools designed to protect user privacy. They hide or mask your identity and browsing behavior, making it difficult to gather information about you. Therefore, the correct answer is the one that does not gather information but instead prevents it: anonymizers. Hence, Option D is correct.

In Ebay.com Global Easy Buy is facilitated.

A business model is the set of planned activities designed to result in a profit in a marketplace.

The best products to sell in B2C e‐commerce are Digital products. A digital product is an intangible asset or piece of media that can be sold and distributed repeatedly online without the need to replenish inventory.

Universal standards is not a key element of a business model. 8 Key Elements of a business model and types of E commerce Business models are 1) Value Proposition. 2) Revenue Model. 3) Market Opportunity. 4) Competitive Environment. 5) Competitive Advantage. 6) Market Strategy. 7) Organizational Development. 8) Management Team.

The products that people are most likely to be more uncomfortable buying on the Internet are Furniture among the given options.

The source of revenue in a subscription revenue model is Fees from subscribers in exchange for access to content or services. The subscription business model is a business model in which a customer must pay a recurring price at regular intervals for access to a product or service.

The products that people are most likely to be more uncomfortable buying on the Internet are Books, PCs and CDs.

Yahoo is an example of a portal. Yahoo! is an Internet portal that incorporates a search engine and a directory of World Wide Web sites organized in a hierarchy of topic categories.

Digital products are best suited for B2C e‐commerce because they are commodity like products, can be mass‐customized and personalized and can be delivered at the time of purchase.

All of the following are major B2C business models except industry consortium. An industry consortium is a group that involves representatives from several different companies. Usually, consortia are composed of companies from within a single industry.

The solution for all business needs is ERP. Enterprise resource planning (ERP) is business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back office functions related to technology, services and human resources.

The exchange business model involves an independently owned vertical digital marketplace for direct inputs.

All of the following are techniques B2C e‐commerce companies use to attract customers, except Virtual marketing.

Compared to Internet users, the number of cell phone subscribers is much larger.

Industry structure is defined as the nature of the players in an industry and their relative bargaining power. Industry structure pertains to the number and size distribution of competitors in an industry, according to University of Maryland University College.

The area of actual or potential commercial value in which a company intends to operate is a market space. Minimum Viable Product or MVP is the most basic version of the product which the company wants to launch in the market.

Click‐through term represents a count of the number of people who visit one site, click on an ad, and are taken to the site of the advertiser.

A perfect market is one in which there are no competitive advantages or asymmetries because all firms have equal access to all the factors to production.

Sailnet is not a horizontal portal. Specialized website (portal) that serves as an entry point to several firms in the same industry or to the same type of suppliers.

Direct materials used in production in a manufacturing company or are placed on the shelf for sale in a retail environment.

A situation where there are no differences among products or services, and the only basis of choosing products is price is known as commoditization. Commoditization refers to the process of making something into a commodity. A commodity is a fundamental good used in commerce that is interchangeable with other commodities of the same type.

Indirect materials are necessary for running a modern corporation, but do not relate to the company's primary business activities.

A strategy designed to compete in all markets around the globe is called a scope strategy. Strategic scope refers to the products and services a company plans to offer over a specific period, and indicates where and to which target markets they will be sold.

Reverse auction is the process in which a buyer posts its interest in buying a certain quantity of items, and sellers compete for the business by submitting successively lower bids until there is only one seller left.

Globalization is not one of the stages of the development of the Internet. Globalization is the spread of products, technology, information, and jobs across national borders and cultures. In economic terms, it describes an interdependence of nations around the globe fostered through free trade.

Smart cards are plastic cards of the size of a credit card that contains an embedded chip on which digital information can be stored. A smart card, chip card, or integrated circuit card (ICC) is a physical electronic authorization device, used to control access to a resource.

In 1961, Leonard Kleinrock published a paper on "packet switching" networks. Kleinrock convinced Roberts of the theoretical feasibility of communications using packets rather than circuits, which was a major step along the path towards computer networking.

Most individuals are familiar with B2C form of e‐commerce. B2C eCommerce refers to the process of selling to individual customers directly.

The component of TCP/IP that provides the Internet's addressing scheme and is responsible for the actual delivery of packets is IP. TCP/IP is a shorthand for the two most important protocols used to make the Internet work. The Internet Protocol (IP) is responsible for transferring these data packets, while the Transmission Control Protocol (TCP) makes sure all packets arrive safely, retransmitting them if necessary.