E-commerce and Decision-Making Quiz

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Questions and Answers

What is one effect of greater price and cost transparency in E-commerce?

It limits interaction between consumers and businesses.

It increases the complexity of market entry.

It allows for more informed consumer decisions. (correct)

It decreases the chances of price discrimination.

How does ubiquity impact customer convenience in E-commerce?

It enhances convenience by allowing access anytime and anywhere. (correct)

It increases the time spent finding suitable products.

It restricts access to specific geographical locations.

It eliminates the need for physical stores entirely.

What is the significance of universal standards in E-commerce?

They increase market entry costs for merchants.

They facilitate communication between disparate systems globally. (correct)

They complicate communication between different systems.

They create competition among technical standards.

In E-commerce, what is the primary effect of media richness?

It allows simultaneous delivery of diverse message formats. Signup and view all the answers

How does interactivity enhance the consumer experience in E-commerce?

It involves consumers in a dynamic dialogue that personalizes their experience. Signup and view all the answers

Which type of decision is characterized by the absence of a well-understood procedure?

Unstructured Signup and view all the answers

What is the main objective of the intelligence stage in the decision-making process?

To identify and understand problems Signup and view all the answers

Which decision-maker is responsible for deciding parts inventory levels daily?

Inventory manager Signup and view all the answers

How many estimated annual decisions does the accounts manager make?

12 Signup and view all the answers

Which of the following describes semi-structured decisions?

Decisions with some clear answers but also involve judgment Signup and view all the answers

Which decision has the highest estimated annual value to the firm?

Identify competitive bids from major suppliers Signup and view all the answers

What is the main focus of the design stage in the decision-making process?

Exploring various solutions Signup and view all the answers

Which option represents repetitions in decision-making that follow established procedures?

Structured decisions Signup and view all the answers

During which stage of decision-making is the chosen alternative made operational?

Implementation Signup and view all the answers

Which component of decision-making focuses on the measurement of performance outcomes?

Business intelligence tools Signup and view all the answers

What percentage of all e-commerce does m-commerce represent in 2019?

45 percent Signup and view all the answers

Which of the following is NOT a main area of growth in m-commerce?

Physical retail storefronts Signup and view all the answers

What percentage of smartphone owners use location-based services and applications?

74 percent Signup and view all the answers

Which companies are the largest in the mobile advertising market?

Google and Facebook Signup and view all the answers

What is the primary benefit of improving decision-making in businesses?

Large annual value despite small individual improvements Signup and view all the answers

Which of the following is an example of geo information services?

Price information of passing houses Signup and view all the answers

What is a key characteristic of business intelligence and analytics?

They support decision making at all levels of a firm Signup and view all the answers

What distinguishes artificial intelligence (AI) from human intelligence?

AI is faster but lacks creativity Signup and view all the answers

What type of applications are included in the financial account management sector of m-commerce?

Banking and credit card apps Signup and view all the answers

How is m-commerce characterized in terms of its growth rate?

Growing at 30 percent or more per year Signup and view all the answers

What is the primary purpose of Business Performance Management (BPM)?

To translate strategies into operational targets Signup and view all the answers

How do Executive Support Systems (ESS) enhance data analysis?

They combine internal data with external data sources. Signup and view all the answers

Which AI technique involves capturing human expertise in a limited domain?

Expert systems Signup and view all the answers

What is a key feature of machine learning algorithms?

They improve performance by recognizing patterns from data. Signup and view all the answers

What capability do neural networks possess?

They find patterns in large datasets. Signup and view all the answers

Which AI technique is responsible for processing natural human language?

Natural language processing Signup and view all the answers

What are the primary components of an information system?

Input, Process, Output Signup and view all the answers

What type of data source refers to internal records such as sales data?

Internal Data Signup and view all the answers

What do computer vision systems emulate?

Human visual systems to interpret images Signup and view all the answers

What is the main advantage of using deep learning neural networks?

They can identify complex patterns in massive data sets. Signup and view all the answers

Which of the following does not contribute to the quality of information?

Geographic Location Signup and view all the answers

What is the significance of KPIs in business performance management?

They measure the progress toward operational targets. Signup and view all the answers

What is the primary purpose of the process component in an information system?

Produce usable information Signup and view all the answers

Which of the following best describes the 'database' in an information system?

The heart of the information system that organizes relevant data Signup and view all the answers

What aspect of AI has seen significant advancement due to big data and improved processing power?

Image recognition and natural language processing Signup and view all the answers

Which of the following statements about external data sources is true?

They can provide crucial insights into competitors and market conditions. Signup and view all the answers

What is the main role of feedback in an information system?

To provide corrective input for decision-making Signup and view all the answers

What aspect of information is NOT typically considered when evaluating its quality?

Emotional Impact Signup and view all the answers

What is the primary purpose of investing in information technology for businesses?

To achieve superior returns and productivity increases Signup and view all the answers

Which of the following is NOT a strategic business objective for investing in information systems?

Increased competition Signup and view all the answers

What defines a closed information system?

An IPO system with feedback Signup and view all the answers

What is considered the 'heart' of an information system?

The database Signup and view all the answers

Which quality of information refers to how accurately data reflects the real-world situation?

Validity Signup and view all the answers

How does improved decision-making benefit businesses?

It results in better resource allocation and responsiveness. Signup and view all the answers

Which system component is responsible for transforming input data into useful information?

Process Signup and view all the answers

What is a key characteristic of a business model enabled by new technologies?

Focuses on delivering products and services to generate revenue Signup and view all the answers

Which of the following represents an operational excellence achieved through information systems?

Service-level monitoring Signup and view all the answers

What is one consequence of misallocation of resources due to poor decision-making?

Overproduction or underproduction Signup and view all the answers

What is one major consequence of inefficiencies in the supply chain?

Increased operating costs Signup and view all the answers

What is the main characteristic of a data warehouse?

Consolidates and standardizes data from various systems Signup and view all the answers

Which of the following strategies involves components arriving as they are needed?

Just-in-time strategy Signup and view all the answers

What effect does the bullwhip effect have on supply chains?

It distorts information about product demand as it moves through the chain. Signup and view all the answers

Which service is provided by Amazon’s Relational Database Service?

MySQL Signup and view all the answers

Which of the following accurately describes a data mart?

A subset of a data warehouse for specific users Signup and view all the answers

What does a supply chain planning system primarily help organizations do?

Model existing supply chains and enable demand planning Signup and view all the answers

What is a key feature of blockchain technology?

Maintains a static, growing list of records called blocks Signup and view all the answers

Which model aligns with supply chains that are driven by customer orders?

Demand-driven model Signup and view all the answers

What is the primary function of Hadoop?

To break data tasks into manageable sub-problems Signup and view all the answers

What is one challenge of managing global supply chains?

Time differences and geographical distances Signup and view all the answers

Which statement is true regarding distributed databases?

Can be stored across multiple physical locations Signup and view all the answers

Which of the following is a characteristic of just-in-time inventory management?

Immediate response to production needs Signup and view all the answers

What role do supply chain execution systems play?

Manage product flow through distribution centers Signup and view all the answers

What is the function of MapReduce in Hadoop?

To distribute processing tasks into smaller sub-tasks Signup and view all the answers

What is a significant benefit of using cloud-based relational databases?

Pricing based on actual usage Signup and view all the answers

What is one of the key functions of Operational CRM?

Sales force automation Signup and view all the answers

Which of the following best defines 'Churn rate'?

Number of customers who stop using a service Signup and view all the answers

What is a primary benefit of implementing CRM systems?

Decreased customer retention costs Signup and view all the answers

Which of the following describes Analytical CRM?

It utilizes data from operational CRM systems. Signup and view all the answers

What is a challenge associated with enterprise applications?

They can have long development times. Signup and view all the answers

How can cloud-based versions of enterprise applications be described?

They enhance flexibility and accessibility. Signup and view all the answers

What represents a common outcome of successful CRM implementation?

Enhanced customer satisfaction Signup and view all the answers

What does the term 'Operational CRM' include?

Customer-facing applications Signup and view all the answers

What is a primary benefit of enterprise resource planning (ERP) systems?

They provide firm-wide information to support decision making. Signup and view all the answers

Which of the following correctly describes the structure of enterprise software?

It is built around predefined business processes that reflect best practices. Signup and view all the answers

How do supply chain management systems contribute to a firm's operations?

They coordinate planning, production, and logistics with suppliers. Signup and view all the answers

What challenge do enterprise applications typically face?

They must integrate seamlessly with existing systems and processes. Signup and view all the answers

Which function serves as a key aspect within enterprise systems that supports decision-making?

Real-time data collection from various internal processes. Signup and view all the answers

In what way do enterprise systems leverage new technologies?

By incorporating advanced analytical tools for business evaluation. Signup and view all the answers

What is one of the roles of enterprise resource planning systems in relation to customer requests?

They enable rapid responses to customer requests for information or products. Signup and view all the answers

What is a critical initial step when implementing enterprise software?

Mapping current business processes to software processes. Signup and view all the answers

Which type of decision is characterized by routine processes and established procedures?

Structured decisions Signup and view all the answers

What is the first stage in the decision-making process?

Intelligence Signup and view all the answers

Which decision-maker is responsible for managing call center daily demand?

Call Center management Signup and view all the answers

How many decisions does the inventory manager make annually regarding parts inventory levels?

365 Signup and view all the answers

Which option describes decisions that have both clear-cut answers and elements requiring personal judgment?

Semi-structured decisions Signup and view all the answers

Which of the following has the highest estimated annual value to the firm according to the provided data?

Identifying competitive bids Signup and view all the answers

What is the goal of the implementation stage in the decision-making process?

Monitoring how well the solution works Signup and view all the answers

Which type of decision requires judgment to solve nonroutine problems?

Unstructured decisions Signup and view all the answers

Study Notes

Business Information Systems

Information systems are used in daily life across various sectors, including grocery stores (POS), banks (ATM), and educational institutions (e-services).
Organizations utilize information systems to cut costs and gain a competitive edge in marketplaces.

Investments in Information Technology

Investments in IT yield superior returns, increasing productivity and revenue while boosting strategic positioning.
Revenue expenditure (like salaries) is recurring, while capital expenditure (like facility upgrades) is one-time.
Firms invest in IT to improve efficiency and profitability.

New Business Models

Traditional business models (like linear TV) are contrasted with new models that leverage data-driven performance.
Innovation in technology is central to the development of new models and their success.
Data-driven performance, sponsorship, and partnerships are critical components of modern models which help businesses to make money.

Perspectives on Information Systems (OPT)

An example is presented of how tracking systems, such as those used by FedEx, manage inventory and provide information.
Aspects of information systems that are important include organizational structures, monitoring service quality and cost, technology, and business drivers of information systems.
Firms invest in information systems to achieve operational excellence and strategic objectives.

New Products, Services, and Business Models

Businesses use information systems and technology to create new products and services and new business models such as Netflix.
Businesses use technology to improve customer and supplier intimacy, improve decision-making, and achieve a competitive advantage or even just to survive

Information Systems: What Is It?

An information system consists of components that work together, accepting input and producing output to support decision-making.
Information systems comprise interconnected and interdependent elements that gather, process, store, and distribute data, facilitating decision-making and coordination.

Major Components of an Information System

Raw facts or data provide the fundamental input for the system.
Data is gathered internally from sales records and externally from clients, suppliers, and other sources.
A system's process transforms data into useful information, making it valuable for decision-making.
Information is evaluated according to its usefulness and qualities, including timeliness, consistency, accuracy, relevance, verifiability and validity,

Database Management Systems (DBMS)

DBMS is software for creating, storing and retrieving data from a database.
It separates the logical and physical views so that users can interact with the data in a way that suited their needs.

Relational Databases

Relational databases store data in two-dimensional tables with rows and columns.
Tables store data for each specific entity (e.g., CUSTOMER, SUPPLIER, PART, SALES ), attributes are stored in Fields (columns), and rows represent specific records or tuples.
Each record is identified uniquely by a key field.

Establishing Relationships

Establishing relationships between tables through entity-relationship diagrams is essential for clarity in relational databases.
Referential integrity rules ensure the consistency of relationships.

Big Data

Large quantities of unstructured and semi-structured data from the internet.
Big data requires new technologies and tools to process its enormous volume, variety, and velocity (3Vs).

Non-Relational Databases

NoSQL databases are designed to handle large, unstructured data sets, unlike relational databases that use tables, columns, and rows.
NoSQL uses a flexible data model and can effectively handle unstructured data types like social media and graphics.

Cloud Databases and Distributed Databases

Cloud computing environments offer pre-built relational database services based on usage, ideal for small and medium-sized businesses.
Distributed databases store data across multiple locations for higher availability and resilience.

Blockchain

Blockchain is a decentralized and transparent distributed database for transactions where each record (called a block) is secured by cryptography.
Blocks are sequenced, and once recorded, they cannot be altered, making the system tamper-proof.
It reduces processing costs and enhances security of transactions.

Business Intelligence Infrastructure

Tools like data warehouses, data marts, Hadoop, in-memory computing, and analytical platforms support data analysis to extract usable information from various sources.

Data Warehouses

A data warehouse is a central repository of integrated data from multiple sources, both transactional and operational, to assist decision-makers.
Data marts are subsets of data warehouses, tailored for specific user groups.

Hadoop

Hadoop is an open-source framework that processes large amounts of diverse data by breaking tasks into smaller sub-problems and distributing them across multiple inexpensive computers.
Hadoop leverages distributed file systems and MapReduce processing.

Data Mining

Data mining uncovers hidden patterns from large datasets for insights to aid future behavior prediction.
Methods include association rule mining, sequence analysis, classification, clustering, and forecasting.

Analytical Tools

Statistical methods, multidimensional data analysis (OLAP), data mining tools are used to analyze relationships, patterns, and trends in data.

Online Analytical Processing (OLAP)

OLAP enables multi-dimensional data analysis for better business insight.
Views of the same data can be different perspectives.

Text Mining

Text mining focuses on unstructured data, primarily text files, to extract key elements, identify patterns, and summarize large sets of textual data.
Sentiment analysis is a text-mining technique for measuring customer sentiment from online feedback.

Web Mining

Web mining uses various techniques to extract patterns and information from web data to understand customer behavior and assess marketing success.
It includes content, structure, and usage mining.

Enterprise Systems

ERPs are integrated software suites with a common database to collect, consolidate and share data across multiple business divisions for improved decision-making.

Supply Chain Management

A network of organizations and processes involved in procuring, manufacturing, and delivering products.

Supply Chain Management Software

Supply chain planning systems model existing supply chains, enabling demand planning, optimizing sourcing, and transportation strategies and helps manage flows of products.
Supply chain execution systems manage product flows through distribution centers and warehouses.

Customer Relationship Management

Customer relationship management (CRM) systems capture, integrate, and analyze customer data from various sources for a holistic view.
CRM software tools typically include sales force automation (SFA), customer service tools, and marketing automation functionalities and typically help firms to achieve better customer intimacy.

Operational and Analytical CRM

Operational CRM supports daily customer interactions through applications like customer service and sales force automation.
Analytical CRM uses data warehousing and analytical tools to gain insights into customer behavior and preferences for targeted marketing decisions and improved revenue models.

Enterprise Applications: Challenges

Enterprise applications are costly to purchase and implement and require significant time for development and organizational change.
Adapting to evolving technology, business changes, and potential dependency on software vendors require continuous organizational learning and resources.

Next-Generation Enterprise Applications

Enterprise solutions/suites, typically web-enabled, integrated with other systems, incorporating SOA standards, and leveraging open-source applications, on-demand/cloud-based versions, and functionality for mobile platforms.
Next-generation applications also incorporate social CRM and business intelligence for improved decision-making and performance.

E-commerce

E-commerce refers to the use of the Internet and web to conduct business transactions.

E-commerce Business Models and Revenue Models

E-commerce business models include portal websites, online retailers (e-tailers), content providers, transaction brokers, market creators, and several others.
E-commerce revenue models include advertising, sales, subscriptions, and transaction fees.

Key Concepts in E-Commerce, Digital Markets, and Digital Goods

Internet and digital markets transformed business by reducing information asymmetry, menu costs, search costs, and transaction costs.
E-commerce includes disintermediation (cutting out intermediaries), dynamic pricing, and delayed gratification.
Digital goods, like software or ebooks, have reduced costs to deliver and high variable pricing due to low marginal costs to produce.

Mobile Commerce

Mobile commerce, or m-commerce, is rapidly growing and accounts for a significant portion of e-commerce.
It involves sales of digital content, mass-market retail, and in-App sales specific to mobile devices.

Location-Based Services and Applications

Location-based services are used by smartphones to find nearby businesses, friends, and even services such as house prices.
Many applications utilize GPS mapping and geosocial networks to provide accurate location-based services.

Other Mobile Commerce Services

Financial apps from credit card companies and banks manage financial accounts.
Mobile advertising has overtaken other channels due to easy access on mobile devices.

Improving Decision Making and Managing Artificial Intelligence

Various decision types exist, ranging from structured to unstructured and semi-structured, each requiring different methods for solution implementation.
Tools such as Business Performance Management (BPM)and Enterprise Support Systems (ESS) provide data for support of decision-making within organizations.
Artificial intelligence techniques, such as expert systems, machine learning, and neural networks, support improved decision-making and overall business efficiency.

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Description

Test your knowledge on key concepts in E-commerce and decision-making processes. This quiz covers critical aspects such as price transparency, customer convenience, and different types of decisions within organizational contexts. Challenge yourself with questions designed to enhance your understanding of these essential topics.