Test Your E-Commerce Knowledge

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Questions and Answers

What is the basic system functionality used to display goods on a website?

  • Product database (correct)
  • Network externalities
  • Customer self-service sites
  • Amazon's inventory control system

What is disintermediation?

  • The process of reducing the business process layers in a distribution channel (correct)
  • The process of adding more business process layers in a distribution channel
  • The process of creating more intermediaries in a distribution channel
  • The process of increasing the cost of the distribution channel

Which platform has not introduced social commerce functionality like buy buttons, shoppable ads, and marketplaces?

  • None of the above
  • LinkedIn
  • Tumblr (correct)
  • Amazon

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Study Notes

  1. The website must have a system functionality to personalize or customize a product for a client.
  2. The basic system functionality used to display goods on a website is a product database.
  3. Slow-loading pages, pop-under ads, and splash pages annoy customers.
  4. Network externalities are related to the richness of e-commerce technology.
  5. Amazon's inventory control system is an example of e-business.
  6. LinkedIn attracts a highly educated, professional, and managerial audience.
  7. Consumer skills in online behavior refer to the knowledge consumers have about how to conduct online transactions.
  8. Customer self-service sites typically require a high percentage of secure pages.
  9. Tumblr has not introduced social commerce functionality like buy buttons, shoppable ads, and marketplaces.
  10. Disintermediation is reducing the business process layers in a distribution channel.

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