Chapter 3

1.	Why did the judge’s decision in the Microsoft case lead to the dot com crash? Microsoft was the heart of the Web. The public feared that the government was going to go after the Web next. Profits on the Web were very high. The Web was a major sales medium. None of the above.
2.	Why did Web advertising fail? Ad prices were too high. There were too many ads on the Web. The Web is a passive medium. Competing media combined to kill it. Few Web sites depended on ads for their revenue.
3.	Why did all Web supermarkets fail? Because no one wanted to have groceries delivered Because of the economics of the supermarket industry Because major chains fought them Because investors could not be found to start such enterprises Because selling groceries on the Web was a crazy idea
4.	What are the flaws in the Web certificate idea? There are none. It is a wonderful idea. Customers will give fake email names. Customers will give fake addresses. Customers will abuse the system by sending in for too many refund checks. Customers hate certificates and will not use them.
5.	Why did e-Citi fail? Citibank did not give it adequate funding or time. The e-Citi customers could not use Citibank branches. Citibank was not very well known. Citibank did not devote enough employees to the project. The reason is unknown, since most Web banks are highly successful.
6.	Why did eToys fail? It had inadequate market capitalization. Its site was not very sophisticated. Many competitors copied its ideas and stole its customers. It did not spend enough on its distribution network. The answer is unknown, since most Web-only merchants have been successful.
7.	Which was not suggested as a way for land-based businesses to be successful on the Web? Provide a dealer locator. Get customers to provide profiles. Keep customer communications to a minimum. Provide free information on your site. Personalize your site using cookies and customer profiles.
8.	Which was not suggested as a way to succeed on the Web? Provide free information. Eliminate telephone customer service. Sell replacements and parts. Have a Web site. Encourage publicity.
9.	Which does the chapter suggest is the most profitable single activity on the Web for a typical company? Selling replacement parts Advertising on the site Customer visits Certificates Customer service
10.	Which is the one reason not given for significant success from a Web site? Customer visits Advertising Publicity Customer service Consumer product sales

Answers

1.	(b) The public feared that the government was going to go after the Web next.
2.	(c) The Web is a passive medium.
3.	(b) Because of the economics of the supermarket industry
4.	(a) There are none. It is a wonderful idea.
5.	(b) The e-Citi customers could not use Citibank branches.
6.	(c) Many competitors copied its ideas and stole its customers.
7.	(c) Keep customer communications to a minimum.
8.	(b) Don’t try to compete with telephone customer service.
9.	(e) Customer service
10.	(e) Consumer product sales