CH-5-6 Business-to-Business Activities: Improving Efficiency and Reducing Costs – Electronic Commerce : Exam Guide

This Document Contains Chapters 5 to 6 Chapter 05: Business-to-Business Activities: Improving Efficiency and Reducing Costs 1. An important characteristic of purchasing, logistics, and support activities is flexibility. a. True b. False Answer: True 2. A purchasing or logistics strategy that works this year may not work next year. a. True b. False Answer: True 3. The network purchasing model has one hierarchically structured firm negotiating purchase terms with several similarly structured supplier firms, playing each supplier against the others. a. True b. False Answer: False 4. Large companies usually assign responsibility for purchasing direct and indirect materials to the same department. a. True b. False Answer: False 5. Businesses make a distinction between direct and indirect materials. a. True b. False Answer: True 6. Direct materials that companies buy on a recurring basis are called MRO supplies. a. True b. False Answer: False 7. The use of Internet technologies in sourcing activities is called e-sourcing. a. True b. False Answer: True 8. States can reduce the cost of providing services by using Web technologies to serve their stakeholders. a. True b. False Answer: True 9. Many industry value chains no longer consist of a single sequence of companies linked in a single line but include many parallel lines that are interconnected in a web or network configuration. a. True b. False Answer: True 10. Industry-specific data interchange standards were used to exchange data between companies in different industries. a. True b. False Answer: False 11. Electronic data interchange (EDI) was the first form of electronic commerce to be widely used in business. a. True b. False Answer: True 12. Electronic receipts returned from AS2 transmissions used in the exchange of EDI transactions fail to establish nonrepudiation. a. True b. False Answer: False 13. The American National Standards Institute (ANSI) does not set standards, but maintains procedures for the development of national standards and accredits committees that follow those procedures. a. True b. False Answer: True 14. The Data Interchange Standards Association (DISA) and the EDI for Administration, Commerce, and Transport (UN/EDIFACT) group were successful in developing a common set of international standards for electronic data interchange. a. True b. False Answer: False 15. Electronic data interchange (EDI) increases the paper flow and disperses the interchange of information among departments within a company. a. True b. False Answer: False 16. In the past, most value-added networks (VANs) did not require an enrollment fee. a. True b. False Answer: False 17. In the past, one of the major advantages of VANs was the low cost of its application. a. True b. False Answer: False 18. An independent exchange is a B2B marketplace model. a. True b. False Answer: False 19. AS3 transmissions used for EDI transactions are insecure. a. True b. False Answer: False 20. Many companies use strategic alliances, partnerships, and long-term contracts to create relationships with other companies in the supply chains for the products that they manufacture or sell. a. True b. False Answer: True 21. By coordinating the efforts of supply chain participants, firms that engage in supply chain management are reaching beyond the limits of their own organization's hierarchical structure and creating a new network form of organization among the members of the supply chain. a. True b. False Answer: True 22. By engaging suppliers in cooperative, long-term relationships, companies have found that they can work together with these suppliers to identify new ways to provide their own customers with faster, cheaper, and better services. a. True b. False Answer: True 23. The ultimate goal of supply chain management is to achieve a higher-quality or lower-cost product at the end of the chain. a. True b. False Answer: True 24. A passive Radio Frequency Identification Device (RFID) tag does not need a power source. a. True b. False Answer: True 25. A vertical portal is an industry-focused hub that offers services to more than one industry. a. True b. False Answer: False 26. _________ generally includes all purchasing activities, plus the monitoring of all elements of purchase transactions. a. Procurement b. Logistics c. Distribution d. Sales Answer: a 27. _________ activities include managing the inbound movements of materials and supplies and the outbound movements of finished goods and services. a. Procurement b. Logistics c. Transaction d. Production Answer: b 28. The classic objective of _________ is to provide the right goods in the right quantities in the right place at the right time. a. procurement b. logistics c. marketing d. production Answer: b 29. One common support activity that underlies multiple primary activities is _________. a. warehousing b. purchasing c. training d. procuring Answer: c 30. _________ is the intentional collection, classification, and dissemination of information about a company, its products, and its processes. a. Database management b. Knowledge management c. Intelligence warehousing d. Data mining Answer: b 31. One trend that is becoming clear in purchasing, logistics, and support activities is the shift away from hierarchical structures toward _________ structures. a. vertical b. horizontal c. network d. bottom-up Answer: c 32. In _________, the company negotiates long-term contracts for most of the materials that it will need. a. replenishment purchasing b. blanket purchasing c. spot purchasing d. tactical purchasing Answer: a 33. The roots of Web technology for business-to-business transactions lie in a hierarchically structured approach to inter-firm information transfer called _________. a. power line communication b. data terminal interoperation c. object technology d. electronic data interchange Answer: d 34. EDI is the acronym for _________. a. Education Interchange b. Elementary Decision Implementation c. Electronic Data Interchange d. Electronic Distance Interface Answer: c 35. Most Electronic Data Interchange-Internet Integration (EDIINT) exchanges today are encoded using the _________ specification. a. Applicability Statement 1 (AS1) b. Applicability Statement 3 (AS3) c. Applicability Statement 2 (AS2) d. Applicability Statement 4 (AS4) Answer: c 36. Electronic data interchange (EDI) is still the single most commonly used technology in online _________ transactions. a. consumer-to-business b. business-to-business c. business-to-government d. business-to-consumer Answer: b 37. The _________ has been the coordinating body for standards in the United States since 1918. a. Association for Computing Machinery b. Institute of Electronic and Electrical Engineers c. American National Standards Institute d. Institution of Engineering and Technology Answer: c 38. In 1979, American National Standards Institute (ANSI) chartered a new committee to develop uniform electronic data interchange (EDI) standards. This committee is called the _________. a. ASC X12 b. DISA c. EDIFACT d. EDIINT Answer: a 39. _________ requires each business in the network to operate its own on-site electronic data interchange (EDI) translator computer. a. Open EDI b. Direct connection EDI c. Internet EDI d. Web EDI Answer: b 40. To use the services of a value-added network (VAN), a company must install electronic data interchange (EDI) _________ software that is compatible with the VAN. a. switch b. interpreter c. translator d. router Answer: c 41. _________ allows trading partners to pass messages through a value-added network instead of connecting their computers directly to each other. a. Indirect connection EDI b. Direct connection EDI c. Wireless EDI d. Repeated EDI Answer: a 42. Since electronic data interchange (EDI) transactions are business contracts and often involve large amounts of money, the existence of an independent audit log helps establish _________. a. secrecy b. abrogation c. nonrepudiation d. privacy Answer: c 43. Electronic data interchange (EDI) on the Internet is also called _________. a. open EDI b. closed EDI c. linked EDI d. digital EDI Answer: a 44. When companies integrate their supply management and logistics activities across multiple participants in a particular product’s supply chain, the job of managing that integration is called _________. a. supply chain management b. supply intelligence management c. supply resource planning d. supply workflow planning Answer: a 45. The long-term relationships that are created among participants in the supply chain are called _________. a. quality partnerships b. JIT alliances c. supply alliances d. joint partnerships Answer: c 46. Businesses that engage in supply chain management work to establish long-term relationships with a small number of very capable suppliers who are called _________. a. tier-one suppliers b. primary suppliers c. secondary suppliers d. tier-two alliances Answer: a 47. _________ are business-to-business (B2B) marketplace models used in electronic commerce. a. Independent exchanges b. Industry marketplaces c. Public marketplaces d. Customer portals Answer: d 48. A(n) _________ is a business-to-business (B2B) marketplace model that has a password-protected entrance and offers negotiated price reductions on a limited selection of products. a. industry marketplace b. public marketplace c. private store d. independent exchange Answer: c 49. A(n) _________ is a marketplace that provides auctions, request for quote postings, and other features to companies that want to operate their own marketplaces. a. private store b. independent industry marketplace c. customer portal d. private company marketplace Answer: d 50. A(n) _________ is a marketplace formed by several large buyers in a particular industry. a. private company marketplace b. independent industry marketplace c. industry consortia-sponsored marketplace d. customer portals marketplace Answer: c 51. Offshoring nonmanufacturing activities such as purchasing, research and development, recordkeeping, and information management is called _________. Answer: business process offshoring 52. The total dollar amount of the goods and services that a company buys during a year is called its _________. Answer: spend 53. In _________ purchasing, by negotiating contracts in advance, companies can obtain low prices and good delivery terms. Answer: replenishment 54. _________ are those materials that become part of the finished product in a manufacturing process. Answer: Direct materials 55. MRO is the acronym for maintenance, repair, and _________. Answer: operating 56. _________ give individual managers the ability to make multiple small purchases at their discretion while providing cost-tracking information to the procurement office. Answer: Purchasing cards 57. _________ business processes include activities such as making payments, processing payments received from customers, planning capital expenditures, and budgeting and planning to ensure that sufficient funds will be available to meet the organization’s obligations as they come due. Answer: Finance and administration 58. _________ processes include activities such as hiring, training, and evaluating employees; administering benefits; and complying with government record-keeping regulations. Answer: Human resource 59. The U.S. government’s Bureau of Public Debt operates the _________ site, which allows individuals to buy savings bonds and financial institutions to buy treasury bills, bonds, and notes. Answer: Treasury Direct 60. Some researchers use the term “_________” instead of “supply chain” because many industry value chains include many parallel lines that are interconnected in a network configuration made up of strategic alliances or complex configurations of outsourcing contracts. Answer: supply web 61. _________ are the names of the formats for specific business data interchanges. Answer: Transaction sets 62. A(n) _________ is a company that provides communications equipment, software, and skills needed to receive, store, and forward electronic messages that contain electronic data interchange (EDI) transaction sets. Answer: value-added network (VAN) value-added network VAN 63. _________ is the ability to establish that a particular transaction actually occurred. Answer: Nonrepudiation 64. A(n) _________ is the movement of money from one bank account to another. Answer: electronic funds transfer (EFT) EFT electronic funds transfer 65. _________ prevents either party involved in an electronic data interchange (EDI) transaction from denying the transaction’s validity or existence. Answer: Nonrepudiation 66. A(n) _________ system is a service that banks use to manage their accounts with each other. Answer: automated clearing house (ACH) ACH automated clearing house 67. _________ are small chips that use radio transmissions to track inventory. Answer: Radio Frequency Identification Devices (RFIDs) RFIDs Radio Frequency Identification Devices Radio Frequency Identification Device RFID Radio Frequency Identification Device (RFID) 68. _________ tags can be placed anywhere on or in most items and are readable even when covered with packing materials, dirt, or plastic bands. Answer: Radio Frequency Identification Device (RFID) RFID Radio Frequency Identification Device 69. The use of other organizations to perform specific activities is called _________. Answer: outsourcing 70. Companies in industries with long supply chains have, in the past, often found it difficult to maintain customer focus, which is sometimes called a(n) _________. Answer: ultimate consumer orientation 71. Vertical portals consisting of industry marketplaces, independent exchanges, and public marketplaces are known collectively as _________ marketplaces. Answer: independent industry 72. A(n) _________ is a vertical portal which is not controlled by a company that is an established buyer or seller in the industry. Answer: independent exchange 73. _________ are vertical portals which are open to new buyers and sellers just entering the industry. Answer: Public marketplaces 74. Firms that exchange data in specific standard formats of electronic data interchange are said to be _________. Answer: EDI compatible electronic data interchange compatible 75. Buying products from loosely organized markets is called _________. Answer: spot purchasing 76. Differentiate between purchasing activities and procurement activities. Answer: Purchasing activities include identifying and evaluating vendors, selecting specific products, placing orders, and resolving any issues that arise after receiving the ordered goods or services. Procurement generally includes all purchasing activities, plus the monitoring of all elements of purchase transactions. It also includes the job of managing and developing relationships with key suppliers. 77. Differentiate between direct and indirect materials. Answer: Direct materials are those materials that become part of the finished product in a manufacturing process. Indirect materials are all other materials that the company purchases, including factory supplies such as sandpaper, hand tools, and replacement parts for manufacturing machinery. 78. What is the difference between indirect connection electronic data interchange (EDI) and direct connection electronic data interchange (EDI)? Answer: Direct connection EDI requires each business in the network to operate its own on-site EDI translator computer. These EDI translator computers are then connected directly to each other using modems and dial-up telephone lines or dedicated leased-lines. With an indirect connection EDI, the trading partners pass messages through the VAN instead of connecting their computers directly to each other. 79. What are the advantages of using value-added networks (VANs)? Answer: Advantages of using VANs are as follows: 1) Users need to support only the VAN’s communications protocol instead of many possible protocols used by trading partners. 2) The VAN can provide translation between different transaction sets used by trading partners. 3) The VAN can perform automatic compliance checking to ensure that the transaction set is in the specified EDI format. 4) The VAN records message activity in an audit log. This VAN audit log becomes an independent record of transactions; this record can be helpful in resolving disputes between trading partners. 80. List the advantages of using Internet technologies in supply chain management. Answer: Suppliers can: 1) Share information about changes in customer demand 2) Receive rapid notification of product design changes and adjustments 3) Provide specifications and drawings more efficiently 4) Increase the speed of processing transactions 5) Reduce the cost of handling transactions 6) Reduce errors in entering transaction data 7) Share information about defect rates and types Chapter 06: Social Networking, Mobile Commerce, and Online Auctions 1. The Internet reduces transaction costs in value chains and offers an efficient means of communication to anyone with an Internet connection. a. True b. False Answer: True 2. Virtual communities began online after the Internet was in general use. a. True b. False Answer: False 3. In the second wave of electronic commerce, the Internet had become simply a tool that enabled communication among virtual community members. a. True b. False Answer: True 4. The general idea behind many social networking sites is that people are invited to join by existing members who think they would be valuable additions to the community. a. True b. False Answer: True 5. The 2008 U.S. elections saw the first major use of blogs as a political networking tool. a. True b. False Answer: False 6. In-person meetings arranged by people over social networking sites are called meetups. a. True b. False Answer: True 7. One of the first social shopping sites was craigslist, an information resource for San Francisco area residents that was created in 1995 by WELL member Craig Newmark. a. True b. False Answer: True 8. Many colleges and universities now offer courses that use distance learning platforms such as Blackboard for student-instructor interaction. a. True b. False Answer: True 9. Visitors spend a greater amount of time at portal sites than they do at most other types of Web sites, which is attractive to advertisers. a. True b. False Answer: True 10. Sites that monetize visitors by charging them are unconcerned about visitor backlash. a. True b. False Answer: False 11. A growing number of large organizations have built internal Web sites that provide opportunities for online social networking among their employees. a. True b. False Answer: True 12. The introduction of larger mobile phones and tablet devices has made the use of Wireless Application Protocol (WAP) mandatory. a. True b. False Answer: False 13. The Dutch auction is also called an ascending-price auction. a. True b. False Answer: False 14. In a double auction, buyers and sellers each submit combined price-quantity bids to an auctioneer. a. True b. False Answer: True 15. In sealed-bid auctions, bidders share information with each other. a. True b. False Answer: False 16. The most common third-party operating systems today are Apple iOS and BlackBerry 10. a. True b. False Answer: False 17. The most successful consumer auction Web site today is eBay. a. True b. False Answer: True 18. The lock-in effect makes the task of creating alternative successful general consumer Web sites much easier. a. True b. False Answer: False 19. The types of products that work well for group shopping sites are branded products with well-established reputations. a. True b. False Answer: True 20. In industries where there is a high degree of competition among suppliers, reverse auctions can be an efficient way to conduct and manage the price bidding that would naturally occur in that market. a. True b. False Answer: True 21. Phone manufacturers depended on third-party operating system software in the past but are now creating their own operating systems. a. True b. False Answer: False 22. Sniping software observes auction progress until the last second or two of the auction clock. a. True b. False Answer: True 23. Cricket Jr. was a mobile operating system software written by David Eccles in 1997. a. True b. False Answer: False 24. Because sniping software synchronizes its internal clock to the auction site clock and executes its bid with a computer’s precision, the software almost always wins out over a human bidder. a. True b. False Answer: True 25. The act of placing a winning bid at the last second is called a lock-in. a. True b. False Answer: False 26. _________ were computers that allowed users to connect using dial-up connections through telephone lines to read and post messages in a common discussion forum. a. Microblogs b. Web chat rooms c. Social networks d. Bulletin board systems Answer: d 27. A(n) _________ is a gathering place for people and businesses that does not have a physical existence. a. meetup b. online community c. lock-in d. public space Answer: b 28. A(n) _________ allows individuals to create and publish a profile, create a list of other users with whom they share a connection (or connections), control that list, and monitor similar lists made by other users. a. bulletin board system b. Usenet c. social networking site d. RSS feed Answer: c 29. The trend toward having readers help write their own news is called _________ journalism. a. participatory b. community c. social d. collaborative Answer: a 30. The earliest written records of auctions are from _________. a. Huanbei b. Babylon c. Rome d. Athens Answer: b 31. Compared to traditional advertising, an effective business use of social media tools is to _________. a. focus on the company's interests b. engage customers c. broadcast information d. promote products Answer: b 32. _________ are the prices that potential buyers in an auction are willing to pay for an item. a. Bids b. Proposals c. Offers d. Reserves Answer: a 33. The whole auction process is managed by a(n) _________. a. shill bidder b. auctioneer c. observer d. seller Answer: b 34. People employed by a seller or an auctioneer to make bids on behalf of the seller are called _________. a. auction agents b. faux bidders c. shill bidders d. auction dealers Answer: c 35. An English auction is sometimes called a(n) _________ because the bids are publicly announced. a. reverse auction b. double auction c. open auction d. sealed-bid auction Answer: c 36. The _________ auction is a form of open auction in which bidding starts at a high price and drops until a bidder accepts the price. a. English b. Dutch c. reverse d. sealed-bid Answer: b 37. In _________ auctions, bidders submit their bids independently and are usually prohibited from sharing information with each other. a. sealed-bid b. descending-price c. open-outcry d. seller-bid Answer: a 38. Mobile phones that function as credit cards are called _________. a. mobile wallets b. e-caches c. universal cards d. bitcoins Answer: a 39. Second-price sealed-bid auctions are commonly called _________ auctions. a. open-outcry b. Vickrey c. double d. Dutch Answer: b 40. In a(n) _________ auction, buyers and sellers each submit combined price-quantity bids to an auctioneer. a. reverse b. Dutch c. English d. double Answer: d 41. The most popular and fastest growing third-party mobile operating system is _________. a. BlackBerry 10 b. Apple iOS c. Android d. Symbian Answer: c 42. The New York Stock Exchange conducts _________ auctions of stocks and bonds in which the auctioneer, called a specialist, manages the market for a particular stock or bond issue. a. sealed-bid double b. open-outcry double c. descending-price d. ascending-price Answer: a 43. The most common format used on eBay is a computerized version of the _________ auction. a. Dutch b. sealed-bid c. English d. double Answer: c 44. One of the first operating systems for Internet-capable phones was made by _________ for their phones and other portable devices. a. Palm b. Linux Foundation c. BlackBerry d. Samsung Answer: a 45. A(n) _________ is an independent party that holds a buyer’s payment until the buyer receives the purchased item and is satisfied that the item is what the seller represented it to be. a. snipe b. liquidation broker c. escrow service d. auctioneer Answer: c 46. Existing auction sites, such as eBay, are inherently more valuable to customers than new auction sites. This basic economic fact is called a(n) _________. a. deadlock effect b. lock-in effect c. smoke-and-mirrors effect d. anti-pattern effect Answer: b 47. An auction where visitors describe items or services they want to buy, and a group of participating merchants reply with offers to supply the item at a particular price is called a _________. a. second-price sealed bid b. seller-bid c. first-price sealed-bid d. reverse bid Answer: d 48. Traditionally, large companies distribute excess inventory through _________. a. liquidation specialists b. liquidation brokers c. own Web auction sites d. third-party Web auction sites Answer: a 49. Smaller businesses often sell their unusable and excess inventory to _________, which are firms that find buyers for these items. a. inventory specialists b. liquidation brokers c. inventory removal services d. secondary marketers Answer: b 50. Wary bidders in low-price auctions can check the _________ to protect themselves from being cheated. a. seller's records b. liquidation brokers c. escrow services d. sniping software Answer: a 51. Started at Duke University in 1979, _________ was a set of interconnected computers devoted to storing information on specific topics. Answer: Usenet 52. Modifying an Apple iPhone's operating system is called _________ the phone. Answer: jailbreaking 53. Intra-community interaction among members of a virtual community is called _________. Answer: social networking 54. Modifying an Android operating system is called _________ the phone. Answer: rooting 55. Abstract communities based on the connections between opinions and contributions of community members are called _________ social media. Answer: idea-based 56. _________ software is developed by a community of programmers who make the software available for download at no cost. Answer: Open-source 57. One rough measure of _________—a Web site’s ability to keep visitors on the site and attract repeat visitors—is how long each user spends at a Web site. Answer: stickiness 58. An early attempt to monetize social networking by charging visitors a fee for a specific service was the _________ site. Answer: Google Answers 59. _________ refers to the conversion of existing regular site visitors seeking free information or services into fee-paying subscribers or purchasers of services. Answer: Monetizing 60. _________ is the practice of lending very small amounts of money to people who are starting or operating small businesses, especially in developing countries. Answer: Microlending 61. _________ allows Web pages formatted in HTML to be displayed on devices with small screens. Answer: Wireless Application Protocol (WAP) WAP Wireless Application Protocol 62. All eBay auctions have a(n) _________, the amount by which one bid must exceed the previous bid. Answer: minimum bid increment 63. _________ are amounts that bidders are willing to pay for an item. Answer: Private valuations 64. A(n) _________ is the price at which an auction begins. Answer: minimum bid 65. In English auctions, bidders risk becoming caught up in the excitement of competitive bidding and then bidding more than their private valuations. This phenomenon is called the _________. Answer: winner's curse 66. A(n) _________ auction is often better for the seller because the bidder with the highest private valuation will not let the bid drop much below that valuation for fear of losing the item to another bidder. Answer: Dutch 67. Dutch auctions are also called _________ auctions. Answer: descending-price 68. Farmers’ cooperatives in the Netherlands use the _________ auction to sell perishable goods such as produce and flowers. Answer: Dutch 69. If multiple items are being auctioned in a(n) _________ sealed-bid auction, successive lower (next highest) bidders are awarded the remaining items at the prices they bid. Answer: first-price 70. The process of finding a lender who can provide funds for a business idea through social networking sites is referred to as _________. Answer: crowdfunding 71. _________ auctions, either sealed bid or open outcry, work well only for items of known quality, such as securities or graded agricultural products, that are regularly traded in large quantities. Answer: Double 72. In a(n) _________ auction, multiple sellers submit price bids to an auctioneer who represents a single buyer. Answer: reverse seller-bid 73. In an eBay auction, a(n) _________ automatically increases a bid to the next highest increment needed to exceed any bid, up to a bidder-specified maximum bid. Answer: proxy bid 74. The site JustBeads.com is an example of a(n) _________ auction site that caters to buyers and sellers who are geographically dispersed but share highly focused interests. Answer: specialty consumer 75. The act of placing a winning bid at the last second is called a(n) _________. Answer: snipe 76. Describe the operation of a typical auction. Answer: In an auction, a seller offers an item or items for sale, but does not establish a price. Potential buyers are given information about the item or some opportunity to examine it; they then offer bids, which are the prices they are willing to pay for the item. The potential buyers, or bidders, each have developed private valuations, or amounts they are willing to pay for the item. The whole auction process is managed by an auctioneer. In some auctions, people employed by the seller or the auctioneer can make bids on behalf of the seller. These people are called shill bidders. Shill bidders can artificially inflate the price of an item and may be prohibited from bidding by the rules of a particular auction. 77. What is the difference between an English auction and a Dutch auction? Answer: In an English auction, bidders publicly announce their successive higher bids until no higher bid is forthcoming. At that point, the auctioneer pronounces the item sold to the highest bidder at that bidder's price. The Dutch auction is a form of open auction in which bidding starts at a high price and drops until a bidder accepts the price. 78. What is the main difference between eBay and a live English auction? Answer: The main difference between eBay and a live English auction is that on eBay, bidders do not know who placed which bid until the auction is over. The eBay English auction also allows sellers to specify that an auction be made private. In an eBay private auction, the site never discloses bidders' identities and the prices they bid. At the conclusion of the auction, eBay notifies only the seller and the highest bidder. 79. How does proxy bidding work on eBay? Answer: All eBay auctions have a minimum bid increment, the amount by which one bid must exceed the previous bid, which is about 3 percent of the bid amount. Bidders can enter a proxy bid, which automatically increases to the next highest increment needed to exceed any bid, up to a bidder-specified maximum bid. As new bidders enter the auction, the eBay site software continually enters higher bids for all bidders who placed proxy bids. Although this feature is designed to make bidding require less bidder attention, if a number of bidders enter proxy bids on one item, the bidding rises rapidly to the highest proxy bid offered. This rapid rise in the current bid often occurs in the closing minutes of the auction, when multiple bidders each raise their maximum proxy bid levels. 80. List the supply chain characteristics that support reverse auctions. Answer: The supply chain characteristics that support reverse auctions are as follows: • Suppliers are highly competitive. • Product features can be clearly specified. • Suppliers are willing to reduce the margin they earn on this product. • Suppliers are willing to participate in reverse auctions. Test Bank for Electronic Commerce Gary P. Schneider 9781285425436, 9781305867819, 9781133526827