MIS Chapter 10

When did e-commerce begin?

1995

Which of the following best illustrates the sales revenue model?

Apple accepts micropayments for single music track downloads.

Which of the following types of e-commerce involves businesses selling goods and services directly to individuals via the Internet?

B2C e-commerce

Craigslist is an example of:

C2C e-commerce

Which of the following Internet business models involves a merchant creating an online digital environment that enables people with like interests to share information?

Community provider

As described in the opening case, what is the primary business model employed by YouTube?

Content provider

Amazon.com is known primarily for its use of which of the following business models?

E-tailer

Which of the following best illustrates the advertising revenue model?

Facebook provides a social network for free, but shows sponsored content in users' News Feeds.

Disintermediation does not benefit the consumer.

False

Information asymmetry exists when there is more information about one product than there is about a similar product.

False

Retail consumer e-commerce is growing at single-digit rates.

False

The Internet increases information asymmetry.

False

Traditional online marketing, such as display ads, have been replaced by video ads.

False

Which of the following dimensions of e-commerce technology has the potential to raise the quality of information?

Information density

All of the following are examples of "on demand" companies except:

Instagram.

Which of the following dimensions of e-commerce technology involves engaging consumers in a dialogue that dynamically adjusts the experience to the individual?

Interactivity

What standards are referred to when discussing universal standards as a unique feature of e-commerce?

Internet technology standards

What is the primary benefit to consumers of disintermediation?

Lower costs

What is the difference between personalization and customization, as applied to e-commerce technologies?

Personalization refers to adjusting marketing messages for a specific consumer; customization refers to adjusting a product or service based on a user's preferences.

Which of the following dimensions of e-commerce technology involves the integration of video, audio, and text marketing messages into a single marketing message and consumer experience?

Richness

What event marked the beginning of e-commerce?

The first paid advertisements placed on a website

All previous mass media in modern history, including the printing press, use a broadcast model where content is created in a central location by experts.

True

Behavioral targeting refers to targeting ad messages to a person's clickstream behavior.

True

Cost transparency refers to the ability of consumers to discover what merchants actually pay for products.

True

E-commerce refers to the use of the Internet and the web to transact business.

True

In general, for digital goods, the marginal cost of producing another unit is about zero.

True

Menu costs are the merchants' costs of changing prices.

True

Information ________ exists when one party in a transaction has more information that is important for the transaction than the other party.

asymmetry

Removing the business process layers in a distribution channel is called:

disintermediation.

Changing the prices of products based on the level of demand characteristics of the customer is called ________ pricing.

dynamic

Which of the following best illustrates the transaction fee revenue model?

eBay receives a small fee from a seller if a seller is successful in selling an item.

In the ________ revenue models, a firm offers some services for free but charges a subscription fee for premium services.

free/freemium

Compared to digital goods, traditional goods have:

higher costs of distribution.

Compared to traditional goods, digital goods have:

low marginal costs of production.

Compared to traditional markets, digital markets have:

lower search costs.

As described in the chapter case, Uber uses the ________ revenue model.

market creator

A marketplace extended beyond traditional boundaries and removed from a temporal and geographic location is called a(n):

marketspace.

In digital markets:

menu costs decline.

Content providers use ________ systems to process large amounts of very small monetary transactions cost-effectively.

micropayment

All of the following are unique features of e-commerce technology, except:

price discrimination.

Selling the same goods to different targeted groups at different prices is called:

price discrimination.

Market creators:

provide a digital environment where buyers and sellers can establish prices for products.

Transaction brokers:

save users money and time by processing online sales transactions.

The effort required to locate a suitable product is called:

search costs.

Information density refers to the:

total amount and quantity of information available to all market participants.