ECOM 210 Week 8 Final Exam

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ECOM 210 Week 8 Final Exam

Question 1.1. (TCO 2) The exchange of updated information with other computing devices is called (Points : 5)


data transferring.





Question 2.2. (TCO 2) All of the following describe retailing except (Points : 5)

A retailer is a sales intermediary.

Many manufacturers sell directly to consumers and through wholesalers and retailers.

E-tailing makes it easier for a manufacturer to sell directly to customers by cutting out the intermediary.

Companies that produce a large number of products, such as Procter & Gamble, do not need retailers for efficient distribution.



Question 3.3. (TCO 2) _____ enables the determination of the location of an enabled device. (Points : 5)







Question 4.4. (TCO 3) Software tools that scout the Web for stores that sell similar items at low prices are called (Points : 5)

shopping portals.


shopping browsers.

intelligent search engines.



Question 5.5. (TCO 3) Companies that implement social computing technologies on their own websites need to view it primarily as (Points : 5)

a way to improve customer communication.

a way to track customer satisfaction.

a sales tool.

a customer service tool.



Question 6.6. (TCO 3) Which of the following is an example of disintermediation? (Points : 5)

In addition to selling through catalogs, a firm begins to sell online.

In addition to selling through department stores, a firm begins to sell online.

Instead of selling through catalogs, a firm begins to sell online.

In addition to selling through catalogs, a firm begins to sell through department stores.



Question 7.7. (TCO 3) In an e-market, Federal Express is an example of a(n) (Points : 5)


service provider.

content disseminator.

viral marketer.



Question 8.8. (TCO 4) All of the following are true about a value proposition except (Points : 5)

a value proposition is a revenue model.

a value proposition refers to the intangible and non-quantitative benefits that a company can derive from a business model.

a value proposition defines how a company’s product or service fulfills the needs of customers.

a value proposition is an important part of any marketing plan of any product or service.



Question 9.9. (TCO 4) Authentication can be based on the public key infrastructure (PKI), which is based on (Points : 5)

message digest.



key space.



Question 10.10. (TCO 4) A host-based intrusion detection system (IDS) (Points : 5)

uses rules to analyze suspicious activity at the perimeter of a network or at key locations in the network.


resides on the server that is being monitored where it can detect whether critical or security-related files have been tampered with or whether a user has attempted to access files that he or she is not authorized to use.


can perform certain actions when an attack occurs, such as terminating network connections based on security policies.

consists of information system resources, firewalls, routers, web servers, database servers, and files that look like production systems but do no real work.



Question 11.11. (TCO 5) What looks like a credit card or debit card, acts like a credit card or debit card, but isn’t a credit card or debit card? (Points : 5)

Stored-value card

Closed-loop card

Open-loop card

All of the above



Question 12.12. (TCO 5) Why should EC companies comply with ethical privacy practices? (Points : 5)

Customers need to trust that the online marketplace and its businesses will not violate the right to privacy.

Unethical privacy practices can have both immediate and long-term negative business consequences.

Violators expose themselves to harsh penalties from various government agencies and victimized customers, as well as bloggers and consumer interest groups.

All of the above



Question 13.13. (TCO 7) Ethical issues raised by m-commerce include all of the following except (Points : 5)

limited access to data and documents.

privacy invasion.

infringing on workers’ personal time.




Question 14.14. (TCO 7) All of the following are security-related issues of m-commerce except (Points : 5)

posttransaction security issues of auditing and nonrepudiation are less difficult because cell phones have the ability to store the digital equivalent of a receipt.

the basic security goals of confidentiality, authentication, authorization, and integrity are just as important for m-commerce as they are for e-commerce.

as the capabilities of cell phones and PDAs increase and converge, the threat of attack from malicious code increases.

an appropriate level of security must be maintained on each network that traffic flows through, in spite of the fact that interoperability among the various networks is difficult.



Question 15.15. (TCO 8) A website provides details on a manufactured product. What type of website is this? (Points : 5)







Question 16.16. (TCO 8) Which of the following is not one of the steps in business formation? (Points : 5)

Identify a customer or business need.

Construct an interactive website.

Investigate the opportunity.

Determine the business owner’s ability to meet the need.


1. (TCO 1) Write a short essay that defines the term e-commerce, then describe how companies have utilized this new medium. (Points : 35)


E-commerce is the purchasing and selling of any goods or services, or the transmitting of data or funds over an electric network (the Internet). These types of transactions can occur either by business to business (B2B), business to customer (B2C), customer to customer (C2C), or customer to business (C2B).


Companies have been able to utilize e-commerce by using within their official websites. Several companies have implemented e-Payment systems on their websites and this has made purchasing goods or services on said websites a lot more convenient for customers all around the world. The popular types of e-payment for online shopping are (, n.d.):


(a)          Credit Cards.  This can be credit cards, debit cards, or prepaid cards. Customers who own any of these cards can pay for products and services just by providing their card information, card number, name of the owner, and security code to facilitate payment.  The funds will then be transferred by the issuing financial institution to settle the purchase.


(b)          Mobile Devices.  With the explosion of mobile devices in recent history, this is also a way that customers can pay for goods online.  Customers can pay by sending SMS messages, PIN numbers, using WAP or infrared and Bluetooth technology to transmit account data in order to facilitate payment by guaranteeing financial institutions.


As for third party online payment systems, there are several service provides that are quite notable for their excellent track record in facilitating payment for e-commerce sites or any type of business (Meyer, 2012).  Third-party online payment service providers have been popular for small business specifically, as they enable them to manage payment/cash flow more easily.  The fees are usually upfront and charged to client/users, thereby minimizing cost for the merchants.  The more critical advantage of contracting a third party payment system is that there are security measures and responsibilities that need to be followed, i.e., on customer privacy with regards to payment mechanisms, are placed mainly on them rather than the merchants themselves.


Reference: Meyer, R (15 May 2012) 10 Excellent Online Payment Systems.Six Revisions. Retrieved from


2. (TCO 4) Compare current motives of hackers to those of the past. (Points : 35)

A typical hackers motivation for doing what they do is either curiosity, commercial gain, or political/ideological propagation.


In the past, a hacker’s ethics and motives would reflect their resistance to obstacles, and their ideology of the liberatory power of technology. Below are 3 popular principles of the old hacker ethic:


1. Hands on Imperative: Hackers thought that access to a computer or advanced hardware should be given to everyone.


2. “Information Wants to be Free”: This can be meant in three different ways. All hackers believed one or more of these.

(a) no restrictions whatsoever

(b) no control whatsoever

(c) doesn’t cost anything to use


3. Mistrust Authority: Hackers would want to promote decentralization. Most hackers show a lot of hate and distrust towards the state, corporations, and computer administrative bureaucracies. Tools like the computer and the Internet allowed hackers to gain power (and to take it away) from large organizations.


The new hacker ethic is to protect privacy, leave no traces, and self defense. The main motives for current hackers are monetary gain, intellectual challenges, vengeance, or terrorism.




3. (TCO 2) List and describe the four basic types of B2B transactions and activities. (Points : 35)

The four basic types of B2B transactions are as follows:


1. Sell-side

2. Buy-side

3. Exchange

4. Supply chain improvements and collaborative commerce.


A sell-side transaction focuses on one selling selling to many different buyers. A buy-side transaction is one buyer purchasing goods/services from many different sellers. An exchange transaction involves many different sellers and buyers working together. The supply chain improvements and collaborative commerce transaction includes everything that the other transactions have, as well as providing supply chain improvements, communication, collaborating, and the sharing of ideas for joint designs, planning, and so on.


Reference: Our Text Pg 173.


4. (TCO 6) Discuss the role of intermediaries in B2B. Distinguish between buy-side and sell-side intermediaries. (Points : 35)

The major role of intermediaries in B2B transactions is to make sure that buy-side and sell-side conditionals coincide. Buy-side transactions focus on one buyer purchasing goods/services from many different sellers. The intermediaries job would be buy all the gods and services. In a sell-side transaction, the intermediaries would focus on selling goods and services to specific buyers.



Question 5. 5. (TCO 6) Define e-Procurement. (Points : 35)

e-Procurement refers to web based procurement networks in which case one or multiple businesses source out their suppliers at the lowest possible price. e-Procurement can cause a lot of issues for buyers that purchase things individually. In a lot of cases, buyers engage in maverick buying in order to save time.


An effective solution to such a e-Procurement problem is group all of the catalogs of any approved suppliers together, and combine them into one single electronic catalog. This way, the suppliers’ catalogs on their buyer’s server is easier to control all procurement. This type of aggregation is called an internal procurement marketplace.


Reference: Our Text Pg 190


6. (TCO 3) Explain how personalization is done in e-Commerce. (Points : 35)

Personalization in e-Commerce is the matching of services, advertising content, and products with single clients and their specific preferences. This matching process is based on what a business knows about their specific client(s).


If a company wants to keep clients interested in their products and services, then they need to offer them personalization. Acknowledging clients by offering them certain discounts based on past purchases would be one example of personalization.

Set 2

(TCO 2) Mobile devices used in m-commerce include (Points : 5)

cell phones and smart phones.


portable computers.

All of the above


(TCO 2) What is an example of mobile entertainment that you might utilize via your smartphone? (Points : 5)

Music and video

Mobile games

Mobile gambling

All of the above


(TCO 2) Infrastructures that support mobile computing are (Points : 5)

mobile devices, network access points, and servers.

WAP gateways, GPS locators, and GPS satellites.

PDAs, smartphones, and PCs.

web servers, mobile devices, and microbrowsers.


(TCO 3) Companies that have both a physical location and an online website are called (Points : 5)

brick-and-mortar retailers.

virtual or pure-play companies.

click-and-mortar retailers.

channel partners.


(TCO 3) The ethical issue by collaborative filtering is (Points : 5)


invasion of privacy.

theft of intellectual property.



(TCO 3) A company that creates and manages many-to-many markets is called a (Points : 5)

market maker.

transaction broker.

content disseminator.

viral marketer.


(TCO 4) Access to a network should be based on (Points : 5)

the policy of least privilege, where access to network resources is blocked and permitted only when needed to conduct business.

the policy of acceptable use, where access is restricted by the firewall.

role-specific security protocols, where access is limited by a user’s level of trust.

the policy of need to know, where access by all nonemployees is blocked.


(TCO 4) All of the following are characteristics of access control except (Points : 5)

access control determines which persons, programs, or machines can legitimately use a network resource and which resources he, she, or it can use.

access control lists (ACLs) define users’ rights, such as what they are allowed to read, view, write, print, copy, delete, execute, modify, or move.

all resources need to be considered together to identify the rights of users or categories of users.

after a user has been identified, the user must be authenticated.







(TCO 5) Sears’s marketing strategy would best be described as (Points : 5)


 a.  a brick-and-mortar strategy.

b.   a shared service mall strategy.

c.   a click-and-mortar strategy.

d.   direct marketing from a manufacturer.


(TCO 5) The combination of the encrypted original message and the digital signature using the recipient’s public key is called (Points : 5)

  1. Digital envelope


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