MIS Chapter 10

70) 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

42) eBay is an example of

A) C2C e-commerce.

49) 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.

54) ________ describes the concept that a large group of people is better at making correct decisions than a single person.

A) The wisdom of crowds

37) Reducing the business process layers in a distribution channel is called

A) disintermediation.

53) 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.

64) A third-party Net marketplace that connects many buyers and suppliers for spot purchasing is called a(n)

A) exchange.

40) Compared to traditional goods, digital goods have

A) greater pricing flexibility.

31) 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

41) Compared to traditional markets, digital markets have

A) lower distributed delivery costs.

21) Through what channel did e-commerce first evolve?

A) online advertising sales

22) Which of the following is not one of the current main areas of growth in mobile e-commerce?

A) sales of financial services

51) 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

62) E-hubs are more ________ than private industrial networks.

A) transaction-oriented

58) Which of the following statements about B2B commerce is not true?

B) B2B e-commerce represents approximately three-quarters of the overall B2B marketplace.

44) Consumers selling goods and services electronically to other consumers best describes

B) C2C e-commerce.

52) Which of the following best illustrates the affiliate revenue model?

B) Epinions receives a fee after steering a customer to a participating Web site where he or she makes a purchase.

23) Which of the following is an example of a geosocial mobile service?

B) Foursquare

24) How are the Internet and e-commerce causing severe disruption to the existing advertising business model?

B) Technology players such as Yahoo! seek to dominate online advertising and expand into offline ad brokerage.

69) Which of the following is the least costly way to build a Web site?

B) Use a hosted solution and pre-built templates.

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

B) asymmetry

56) Exposing an individual to ads that are chosen and based on the recorded and analyzed online behavior of the individual is referred to as

B) behavioral targeting.

65) Goods that are involved in the actual production process are referred to as

B) direct goods.

63) A mapping of a person's significant online, personal relationships is called a social

B) graph.

67) 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?

B) inventory management

48) Market creators

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

47) Transaction brokers

B) save users money and time by processing online sales transactions.

32) The effort required to locate a suitable product is called

B) search costs.

59) EDI is

B) the exchange between two organizations of standard transactions through a network.

27) Which of the following is not one of the unique features of e-commerce technology?

B) transparency

45) Which of the following businesses utilizes the content provider Internet business model?

C) CNN.com

26) Which of the following is not a recent development in e-commerce?

C) The music recording industry is disrupted as music creation and distribution become decentralized.

38) Digital goods are goods that are

C) delivered digitally.

36) Varying a product's price according to the supply situation of the seller is called ________ pricing.

C) dynamic

60) The process of sourcing goods and materials, negotiating with suppliers, paying for goods, and making delivery arrangements is called

C) procurement.

30) The integration of video, audio, and text marketing messages into a single marketing message and consumer experience describes which dimension of e-commerce technology?

C) richness

33) Information density refers to the

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

28) Which feature of Internet technology has had the most effect in the Internet's rapid spread across the globe?

C) universal standards

50) Which of the following best illustrates the sales revenue model?

D) Apple accepts micropayments for single music track downloads.

43) Selling products and services directly to individual consumers via the Internet best describes

D) B2C e-commerce.

66) Which of the following statements about m-commerce is not true?

D) In 2012, the top-grossing category of m-commerce was e-book sales.

55) Netflix's public announcement of a reward for a technology solution to its movie recommendation system is an example of

D) crowdsourcing.

46) Which of the following Internet business models does Amazon.com use?

D) e-tailer

39) Compared to digital markets, traditional markets have

D) higher transaction costs.

29) The act of engaging consumers in a dialog that dynamically adjusts the experience to the individual describes which dimension of e-commerce technology?

D) interactivity

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

D) price discrimination.

61) An extranet that links a large firm to its suppliers and other key business partners is called a(n)

D) private industrial network.

57) Which of the following was the leading online advertising format in 2012?

D) search engine

68) 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?

D) secure credit card clearing

25) The quality of ubiquity, as it relates to e-commerce, is illustrated by

D) the availability of the Internet everywhere and anytime.

1) E-commerce refers to the use of any networking technologies to transact business.

False

10) Amazon's recommender system is an example of the network notification feature of social e-commerce.

False

11) Podcasting allows subscribers to listen to live, streaming radio and other audio content.

False

12) Intellectual property refers to all forms of human expression, both tangible and intangible.

False

14) Behavioral targeting occurs at two levels: individual Web sites and through ISPs.

False

15) EDI standards that take advantage of network communications have yet to be fully implemented at the industry level.

False

17) Exchanges have become one of the most popular types of Net marketplace because they encourage competitive bidding that drives prices down.

False

2) Consumer e-commerce is still growing at approximately 25% annually.

False

20) Because of outsourcing and increased automation, the costs of system maintenance and content creation have fallen and typically make up less than a quarter of Web site budgets.

False

4) Eighty-five percent of online retailers now have m-commerce Web sites.

False

6) Disintermediation provides major benefits to the distributor.

False

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

False

8) Telecommunications hardware and software is typically the least costly portion of a Web site budget.

False

9) An example of the content provider business model is Barnesandnoble.com, a retailer of printed books.

False

13) Ninety-six percent of all U.S. households with Internet access use a broadband connection.

True

16) Net marketplaces may either support contractual purchasing based on long-term relationships with designated suppliers or short-term spot purchasing.

True

18) Automobile manufacturing is an example of a vertical market.

True

19) In general, the cost of hardware, software, and telecommunications for building and operating a Web site has fallen by over 50 percent since 2000.

True

3) The Internet shrinks information asymmetry.

True

5) 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