MIS Chapter 10

A third-party Net marketplace that connects many buyers and suppliers for spot purchasing is called a(n) A) exchange. B) vertical market. C) private exchange. D) e-hub.

A

Compared to traditional goods, digital goods have A) greater pricing flexibility. B) lower marketing costs. C) higher production costs. D) higher inventory costs.

A

Compared to traditional markets, digital markets have A) lower distributed delivery costs. B) higher marginal costs per unit. C) equivalent copying costs. D) similar inventory costs.

A

E-hubs are more ________ than private industrial networks. A) transaction-oriented B) collaborative C) independent D) supply-chain oriented

A

Reducing the business process layers in a distribution channel is called A) disintermediation. B) BPR. C) market segmentation. D) network effects.

A

A mapping of a person's significant online, personal relationships is called a social A) Web. B) graph. C) community. D) map.

B

Consumers selling goods and services electronically to other consumers best describes A) disintermediation. B) C2C e-commerce. C) M-commerce. D) B2C e-commerce.

B

The effort required to locate a suitable product is called A) price discrimination. B) search costs. C) menu costs. D) shopping costs.

B

Which of the following is an example of a geosocial mobile service? A) Kickstarter.com B) Foursquare C) Shopkick D) Facebook

B

The lowered costs of information storage, processing, and communication, along with the improvement of data quality, has resulted in which unique quality of e-commerce? A) information density B) richness C) customization D) interactivity

A

Which of the following is not one of the current main areas of growth in mobile e-commerce? A) sales of financial services B) retail sales at the top mobile companies C) sales of digital content D) sales of apps

A

You are advising an accounting firm that wants to establish its first Web site. Approximately how much of the Web site budget should you assign to purchasing software? A) 10 percent B) 25 percent C) 50 percent D) none, as no software will need to be purchased

A

________ describes the concept that a large group of people is better at making correct decisions than a single person. A) The wisdom of crowds B) Outsourcing C) Crowdsourcing D) Social graphing

A

eBay is an example of A) C2C e-commerce. B) B2B e-commerce. C) B2C e-commerce. D) M-commerce.

A

Which of the following statements about m-commerce is not true? A) In 2012, m-commerce represented less than 10 percent of all e-commerce. B) M-commerce is the fastest growing form of e-commerce. C) M-commerce annual revenues are approximately $30 billion. D) In 2012, the top-grossing category of m-commerce was e-book sales.

D

In which of the following revenue models does a Web site charge a fee for access to some or all of its offerings on a continual, regular basis? A) subscription B) free/freemium C) transaction fee D) sales

A

Through what channel did e-commerce first evolve? A) online advertising sales B) Internet portals C) online book sales D) Internet service providers

A

Which of the following best describes why small world theory is important to e-commerce? A) The products bought online by one individual will influence purchases by others. B) The greater the number of people using your product, the more valuable it becomes. C) You do not need to attract a large consumer base to become profitable. D) Global products create a global community.

A

Which of the following best illustrates the transaction fee revenue model? A) eBay receives a small fee from a seller if a seller is successful in selling an item. B) Epinions receives a fee after steering a customer to a participating Web site where he or she makes a purchase. C) Flickr provides basic services for free, but charges a premium for advanced services. D) Apple accepts micropayments for single music track downloads.

A

EDI is A) the use of Internet technologies for electronic data transactions. B) the exchange between two organizations of standard transactions through a network. C) electronic data invoicing. D) electronic delivery infrastructure.

B

Exposing an individual to ads that are chosen and based on the recorded and analyzed online behavior of the individual is referred to as A) clickstream advertising. B) behavioral targeting. C) online profiling. D) long tail marketing.

B

Goods that are involved in the actual production process are referred to as A) raw materials. B) direct goods. C) purchasing goods. D) indirect goods.

B

How are the Internet and e-commerce causing severe disruption to the existing advertising business model? A) Ties between customer and businesses are being rethought. B) Technology players such as Yahoo! seek to dominate online advertising and expand into offline ad brokerage. C) New methods of advertising, such as blog advertising, are emerging. D) The market entry costs for online advertising services are extremely low.

B

Information ________ exists when one party in a transaction has more information that is important for the transaction than the other party. A) transparency B) asymmetry C) complexity D) discrimination

B

Market creators A) save users money and time by processing online sales transactions. B) provide a digital environment where buyers and sellers can establish prices for products. C) create revenue by providing digital content over the Web. D) sell physical products directly to consumers or individual businesses.

B

Transaction brokers A) generate revenue from advertising or from directing buyers to sellers. B) save users money and time by processing online sales transactions. C) provide a digital environment where buyers and sellers can establish prices for products. D) sell physical products directly to consumers or individual businesses.

B

Which of the following best illustrates the affiliate revenue model? A) eBay receives a small fee from a seller if a seller is successful in selling an item. B) Epinions receives a fee after steering a customer to a participating Web site where he or she makes a purchase. C) Flickr provides basic services for free, but charges a premium for advanced services. D) Apple accepts micropayments for single music track downloads.

B

Which of the following is not one of the unique features of e-commerce technology? A) information density B) transparency C) richness D) social technology

B

Which of the following is the least costly way to build a Web site? A) Outsource the Web site development to overseas vendors. B) Use a hosted solution and pre-built templates. C) Build your site yourself from scratch using existing software. D) Use a site-building package.

B

Which of the following statements about B2B commerce is not true? A) Eighty percent of online B2B e-commerce is still based on EDI. B) B2B e-commerce represents approximately three-quarters of the overall B2B marketplace. C) B2B e-commerce only includes commercial transactions between firms. D) B2B e-commerce revenues in 2012 were over $4 trillion.

B

You are building an e-commerce Web site that will sell e-books and are looking for a hosted solution. Which of the following functionalities is least important for your business goals? A) site tracking system B) inventory management C) digital catalog D) customer database

B

Digital goods are goods that are A) produced digitally. B) sold over digital networks. C) delivered digitally. D) used with digital equipment

C

Information density refers to the A) richness—complexity and content—of a message. B) total amount and quantity of information delivered to consumers by merchants. C) total amount and quantity of information available to all market participants. D) amount of information available to reduce price transparency.

C

The integration of video, audio, and text marketing messages into a single marketing message and consumer experience describes which dimension of e-commerce technology? A) ubiquity B) personalization/customization C) richness D) interactivity

C

The process of sourcing goods and materials, negotiating with suppliers, paying for goods, and making delivery arrangements is called A) e-procurement. B) SCM. C) procurement. D) sourcing.

C

Varying a product's price according to the supply situation of the seller is called ________ pricing. A) menu B) flexible C) dynamic D) asymmetric

C

Which feature of Internet technology has had the most effect in the Internet's rapid spread across the globe? A) ubiquity B) global reach C) universal standards D) social technology

C

Which of the following businesses utilizes the content provider Internet business model? A) Amazon.com B) eBay.com C) CNN.com D) Motocross.com

C

Which of the following is not a recent development in e-commerce? A) Mobile e-commerce takes off. B) Social networking sites become a new platform for e-commerce. C) The music recording industry is disrupted as music creation and distribution become decentralized. D) Online entertainment business models surge.

C

An extranet that links a large firm to its suppliers and other key business partners is called a(n) A) e-hub. B) marketspace. C) exchange. D) private industrial network

D

Compared to digital markets, traditional markets have A) lower search costs. B) stronger network effects. C) higher delayed gratification effects. D) higher transaction costs.

D

Netflix's public announcement of a reward for a technology solution to its movie recommendation system is an example of A) prediction markets. B) behavioral targeting. C) long-tail marketing. D) crowdsourcing.

D

Selling products and services directly to individual consumers via the Internet best describes A) B2B e-commerce. B) C2C e-commerce. C) M-commerce. D) B2C e-commerce.

D

Selling the same goods to different targeted groups at different prices is called A) cost customization. B) cost optimization. C) price gouging. D) price discrimination.

D

The act of engaging consumers in a dialog that dynamically adjusts the experience to the individual describes which dimension of e-commerce technology? A) ubiquity B) personalization/customization C) richness D) interactivity

D

The quality of ubiquity, as it relates to e-commerce, is illustrated by A) the same set of standards being used across the globe. B) the spread of plentiful, cheap information. C) the enabling of commerce worldwide. D) the availability of the Internet everywhere and anytime.

D

Which of the following Internet business models does Amazon.com use? A) content provider B) portal C) market creator D) e-tailer

D

Which of the following best illustrates the sales revenue model? A) eBay receives a small fee from a seller if a seller is successful in selling an item. B) Epinions receives a fee after steering a customer to a participating Web site where he or she makes a purchase. C) Flickr provides basic services for free, but charges a premium for advanced services. D) Apple accepts micropayments for single music track downloads.

D

Which of the following was the leading online advertising format in 2012? A) display ads B) e-mail C) classifieds D) search engine

D

You are planning the requirements for a site tracking and reporting system for your company Web site. Which of the following information requirements would not be essential for this function? A) number of unique visitors B) pages visited C) products purchased D) secure credit card clearing

D