MIS 276 Exam 1

Online Travel Market Sectors

1. Airline tickets (greatest source of revenue) 2. Hotel Reservations 3. Car rentals 4. Travel Packages

Financial portals

1. Comparison shopping services, independent financial advice and financial planning 2. Revenues from advertising, referrals, subscriptions 3. Example: Quicken, MSN Money, Credit Karma

Online Retail Disadvantages

1. Consumer concerns about the security of transactions. 2. consumer concerns about the privacy of personal information given to websites. 3. Delays in delivery of goods when compared to store shopping 4. Inconvenience associated with return of damaged or exchange goods. 5. overcoming lack of consumer trust in online brand names 6. Added expenses for online photography, video, and animated presentations. 7. Online marketing costs for search, email, and displays 8. Added complexity to product offerings and customer service. 9. Greater customer information can translate into price competition and lower profits

Price competition is difficult

1. Industry impacted by meta-search engines 2. Commoditize online travel

Online Retail Advantages

1. Lower Supply Chain costs by aggregating demand at a single site and increasing purchasing power. 2. Lower cost of distribution using web sites rater than physical stores. 3. ability to reach and serve a much larger geographically distributed group of customers. 4. Ability to react quickly to customer tastes and demand. 5. Ability to change prices nearly instantly. 6. Ability to rapidly change visual presentation of goods. 7. Avoidance of direct marketing costs of catalogs and physical mail. 8. Increased opportunities for personalization, customization. 9. Ability to greatly improve information and knowledge delivered to customer 10. Ability to lower consumers overall market transaction costs

Account Aggregator

1. Pulls together all of a customers financial data at a personalized website 2. Privacy concerns: Control of personal data, security, and so on 3. Example: Yodlee

Manufacturing Direct major problems

1. switching from a supply push model to a demand pull model (to avoid holding inventor) has ben an uphill battle. 2. These firms have no prior direct marketing experience. 3. Their ordering and fulfillment systems are not retail oriented

E-commerce that is focused on engaging the consumer based on his or her current geographic location is known as _____________. A. Local E-Commerce B. Social E-Commerce C. C2C E-Commerce D. M-commerce

A. Local E-Commerce

The generic business strategy that emphasizes creating new product and bringing them to market on a regular basis is known as: A. Product Leadership B. Customer Intimacy C. Operational Excellence D. None of the Above

A. Product Leadership

An example of a company using the content provider model is: A. Spotify. B. Priceline. C. eBay. D. Dell.

A. Spotify.

Will apps make the web irrelevant? Which of the following is not true about the use of apps? A. Users still spend less time using apps than they do using desktops or mobile Web sites. B. Around 280 million people worldwide launch a smartphone app more than 60 times a day. C. The average U.S. consumer spends over two hours a day using apps. D. Apps are easier to control and monetize than Web sites.

A. Users still spend less time using apps than they do using desktops or mobile Web sites.

The biggest threat to the general purpose portal business model is _______________. A. declining advertising revenues. B. a dramatic increase in the average amount of time that consumers are spending at these sites. C. increasing consumer engagement with focused content at the site. D. falling unique visitor counts.

A. declining advertising revenues.

All of the following are solutions to the problem of high monitoring costs except: A. seller rating systems. B. fixed pricing. C. watch lists. D. proxy bidding.

A. seller rating systems.

The basic value proposition of community providers is: A. they offer a fast, convenient one-stop site where users can focus on their most important concerns and interests, share the experience with friends, and learn more about their own interests. B. they increase customers' productivity by helping them get things done faster and more cheaply. C. they offer consumers valuable, convenient, time-saving, and low cost alternatives to traditional service providers. D. they create a digital electronic environment for buyers and sellers to meet, agree on a price, and transact.

A. they offer a fast, convenient one-stop site where users can focus on their most important concerns and interests, share the experience with friends, and learn more about their own interests.

Which of the following statements about the wholesale and agency models for selling books is not true? A. In the wholesale model, the retailer decides at what price to sell a book to the consumer. B. Amazon supports the agency model. C. A result of the agency model was that Amazon's prices on e-books rose. D. Amazon surprised traditional publishers by selling e-books for below their wholesale cost.

B. Amazon supports the agency model.

Under the B2B business models ________ create and sell access to digital markets. A. E-distributors B. E-procurement firms C. Portals D. Market creators

B. E-procurement firms

A(n) ________, in which the highest bidder wins, is the most common form of auction. A. Dutch Internet auction B. English auction C. Japanese auction D. reverse auction

B. English auction

________ refers to any disparity in relevant market information among parties in a transaction. A. Ubiquity B. Information asymmetry C. Information density D. A network effect

B. Information asymmetry

Which of the following is a subscription-based retailer using predictive marketing and Big Data? A. Dell B. Stitch Fix C. Lands' End D. Macy's

B. Stitch Fix

Which of the following is not an example of a transaction broker? A. an employment agency B. a certified public accountant C. a real estate agent D. a stockbroker

B. a certified public accountant

Which of the following is not a primary activity in a firm value chain? A. outbound logistics B. accounting C. operations D. after-sales service

B. accounting

A firm that is first to market in a particular area and that moves quickly to gather market share is referred to as a(n) _____________. A. risk setter B. first mover C. early adopter D. curve leader

B. first mover

All of the following are aspects of content convergence except: A. production. B. price. C. design. D. distribution.

B. price.

E-commerce can be defined as: A. any digitally enabled transactions among individuals and organizations. B. the use of the Internet, the Web, and mobile apps to transact business. C. the use of any Internet technologies in a firm's daily activities. D. the digital enablement of transactions and processes within an organization.

B. the use of the Internet, the Web, and mobile apps to transact business.

Industry consolidation

Booking, airlines, car rentals

What is a vertical market portal? A. helps employees navigate to the enterprise's human resource and corporate content B. a website or app that provides subscriptions and sales of many digital magazines C. attempts to attract highly focused, loyal audiences with a deep interest in either community or specialized content D. acts as an intermediary market maker, providing a forum where consumers can discover prices and trade

C. attempts to attract highly focused, loyal audiences with a deep interest in either community or specialized content

Threatening negative feedback in return for a benefit is an example of: A. defensive shill feedback. B. offensive shill feedback. C. feedback extortion. D. sending spam.

C. feedback extortion.

Business-to-consumer (B2C) e-commerce in the United States: A. generates less revenue than C2C e-commerce. B. now constitutes over 40% of the overall U.S. retail market. C. has grown at double-digit rates in the last few years. D. has leveled off as it confronts its own fundamental limitations.

C. has grown at double-digit rates in the last few years.

All of the following statements are true except: A. auctions constituted a significant part of B2B e-commerce in 2014. B. Sam's Club is an example of an online B2C auction C. less than 2% of procurement officers use auctions to procure goods. D. in a C2C auction, consumers sell goods to other consumers.

C. less than 2% of procurement officers use auctions to procure goods.

Which of the following is not one of the typical portal revenue sources? A. tenancy deals B. subscription fees C. listing fees D. commissions on sales

C. listing fees

Which of the following is the fastest growing online gaming audience? A. laptop gamers B. social web gamers C. mobile gamers D. console gamers

C. mobile gamers

Which of the following is not one of the methods used by traditional retailers to develop omni-channel integration? A. online promotions for offline purchases B. online Web catalog C. online supply-push D. online order, in-store pickup

C. online supply-push

Interactivity in the context of e-commerce provides which of the following functionalities? A. the ability of consumers to create and distribute content B. the ability to physically touch and manipulate a product C. the enabling of two-way communication between consumer and merchant D. complexity and content of a message

C. the enabling of two-way communication between consumer and merchant

Which of the following gives a business model the most credibility with outside investors? A. the firm's value proposition B. the firm's market strategy C. the firm's management team D. the firm's market opportunity

C. the firm's management team

Customer Intimacy

Catering closely to customer needs

Subscription Fees

Charging for premium content

competitive priorities

Cost, quality, delivery, flexibility, and innovation

Product Leadership

Creating new products and bringing them to market on a regular basis

Online Publishing Industry

Newspaper transitions to online news sites, magazines transition to "interest" based web sites, and books are provided in a new format. The challenges facing this industry are discovering the business and revenue model that will allow these businesses to exist.

General Communities

Offer opportunities to interact with general audience organized into general topics. Advertising supported by selling ad space on pages and videos

Digital Rights Management (DRM)

Technical and legal means to protect digital content from unlimited reproduction and distribution. DRM hardware and software encrypts content. Proprietary file formats, operating systems and hardware creating a "walled garden"

The fact that e-commerce is conducted on the basis of universal standards reduces search costs for consumers. True False

True

sponsored communities

created by government, nonprofit, or for profit organizations for purpose of pursuing organizational goals

tenancy deals

fixed charge for number of impressions. Exclusive partnerships "Sole providers"

engagement

how are readers engaged with the content and the creaters of the content (journalists, writers, bloggers, authors, non-professionals)

search and discovery

how do readers find the content they are looking for

Technology platform

how, when and where is the content delivered to readers.

Practice networks

offer focused discussing groups, help, and knowledge related to area of shared practice. May be profit or non profit; rely on advertising or user donations

affinity communities

offer focused discussion and interaction with other people who share same affinity, demographic or geographic identification. Advertising and revenues from sales of products

Interest-based social networks

offer focused discussion groups based on shared interest in some specific subject. Usually advertising supported

corporate online booking solutions (COBS)

provide integrated airline, hotel, conference center, and auto rental services at a single site

content

they aggregate the type of content you are looking for. Original and from other sources

Commerce

they drive sales based on the type of content they provide

Portals navigation of the web

they help you find content that you are interested in

Operational Excellence

Low cost leader in the marketplace

The two most import things to remember about the freemium model are: A. (1) freemium is just another way of saying "free" in ecommerce and (2) it is ineffective in niche markets. B. (1) once fixed costs are accounted for via a healthy revenue stream, additional users add pure profit and (2) the model works best when paid subscribers are added slowly to the network so that the firm has time to scale up its technological resources C. (1) the freemium tactic rarely results in positive revenue for the firm and (2) it only works when the firm raises capital via an initial public offering. D. (1) the cost of adding a new free user must be zero or very close to zero (scale at no additional cost) and (2) the model must compel users to switch from free users to paying customers (the faster the better).

D. (1) the cost of adding a new free user must be zero or very close to zero (scale at no additional cost) and (2) the model must compel users to switch from free users to paying customers (the faster the better).

________ is the tendency to gravitate toward, and bid for, auction listings with one or more existing bids. A. Bid rigging B. Group buying C. Winner's regret D. Herd behavior

D. Herd behavior

All of the following are examples of technology convergence except: A. smartphones. B. Apple TV. C. the iPad. D. Netgear WiFi router

D. Netgear WiFi router

Which of the following statements is true about the traditional tradeoff between the richness and reach of a marketing message prior to the development of the Web? A. The smaller the audience reached, the less rich the message. B. Richness was unrelated to reach. C. Marketing messages had little richness. D. The larger the audience reached, the less rich the message.

D. The larger the audience reached, the less rich the message.

Which of the following statements about online banking is not true? A. Online and mobile banking transactions provide significant costs savings for banks. B. Top mobile banking activities include checking balances and transferring money from one account to another. C. Over 50% of the adult U.S. population used online banking in 2015. D. Wingspan and Netbank are two pure online banks (those that operate without a network of branches) that have grown to dominate the pure online banking market.

D. Wingspan and Netbank are two pure online banks (those that operate without a network of branches) that have grown to dominate the pure online banking market.

All of the following are benefits of auctions except: A. lower transaction costs. B. increased market efficiency. C. more efficient price discovery. D. decreased price transparency.

D. decreased price transparency.

SupplyOn, which is owned by industry giants Bosch (automotive components), Continental (tires and other automotive manufacturing) and Schaeffler (manufacturer of bearings) is an example of a(n): A. exchange. B. e-distributor. C. private industrial network. D. industry consortium.

D. industry consortium.

Which of the following is not a variation of the e-tailer business model? A. bricks-and-clicks B. virtual merchant C. manufacturer-direct D. market creator

D. market creator

Which of the following is not one of the three defining characteristics of a portal? A. commerce B. navigation of the Web C. content D. migration

D. migration

DRM refers to a combination of ________ for protecting digital content. A. local and remote policies B. hardware and software methods C. user and publisher agreements D. technical and legal means

D. technical and legal means

All of the following statements about the online insurance industry are true except: A. Internet usage has led to a decline in term life insurance prices industry-wide. B. Web sites of almost all the major firms provide the ability to obtain an online quote. C. the industry has been very successful in attracting visitors searching for information. D. the Internet has dramatically changed the insurance industry's value chain.

D. the Internet has dramatically changed the insurance industry's value chain.

A perfect market is one in which: A. one firm develops an advantage based on a factor of production that other firms cannot purchase. B. competition is at a minimum, as each niche market within an industry is served by the company with the greatest competitive advantage. C. one participant in the market has more resources than the others. D. there are no competitive advantages or asymmetries because all firms have equal access to all the factors to production.

D. there are no competitive advantages or asymmetries because all firms have equal access to all the factors to production.

Price transparency refers to the ability of consumers to discover the actual costs merchants pay for products. True False

False

General Advertising revenue

Has been in decline and treatens general portas who rely on this source the most

Awareness

How do readers become aware of content that they then want to find