Chapter 10

1. In 2015, what percentage of mobile phone users accessed the Internet by using their phones? About 10 percent About 33 percent About 50 percent About 75 percent About 90 percent

About 75 percent

1. Which of the following is the largest mobile advertising market? Google Yahoo Facebook Microsoft Twitter

Google

1. Which feature of Internet technology has had the most effect in the Internet's rapid spread across the globe? Ubiquity Global reach Universal standards Social technology Personalization

Universal standards

1. Content providers use ________ systems to process large amounts of very small monetary transactions cost-effectively. subscription mobile payment transaction fee micropayment freemium

micropayment

1. All of the following are increased in traditional markets compared to digital markets except: search costs. menu costs. switching costs. network effects. information asymmetry.

network effects.

1. Which of the following companies uses the market creator business model? Expedia ETrade Facebook Yahoo eBay

eBay

1. What percent of online retailers now have m-commerce websites? 15 percent 25 percent 55 percent 75 percent 85 percent

75 percent

1. Which of the following best describes the digital social graph? A person's direct and indirect relationships All of a person's closest digital relationships A mapping of all online social relationships All of the online and offline relationships a person has A map of your 10 closest friends

A mapping of all online social relationships

1. Which of the following best illustrates the sales revenue model? eBay receives a small fee from a seller if a seller is successful in selling an item. Yelp receives a fee after steering a customer to a participating website where he or she makes a purchase. Photobucket provides basic services for free, but charges a premium for advanced services. Apple accepts micropayments for single music track downloads. Pandora provides free service with limited play and advertising.

Apple accepts micropayments for single music track downloads.

1. Which of the following is the best description of ubiquity as it relates to e-commerce technology? E-commerce technology employs the same set of standards across the globe. E-commerce technology permits commercial transactions to cross cultural and national boundaries. E-commerce technology allows personalized messages to be delivered to individuals as well as to groups. E-commerce technology is available everywhere and anytime. E-commerce technology reduces information costs.

E-commerce technology is available everywhere and anytime.

1. Geoadvertising sends ads to users based on their: GPS locations. user addresses. shopping preferences. website behaviors. social media presence.

GPS locations.

1. The Foursquare website is an example of which of the following? Social graph Collaborative shopping Net marketplace Crowdsourcing application Geosocial services

Geosocial services

1. Which of the following dimensions of e-commerce technology involves engaging consumers in a dialog that dynamically adjusts the experience to the individual? Ubiquity Personalization/customization Richness Interactivity Information density

Interactivity

1. Disintermediation has which of the following effects? It reduces the ties between consumers and businesses. It lowers costs to the consumer. It increases costs of manufacturing. It reduces the cost of advertising. It has no impact.

It lowers costs to the consumer.

1. ________ attempts to leverage the fact that there is always some demand, however small, for a product. Long tail marketing Behavioral targeting Crowdsourcing Predictive marketing Profiling

Long tail marketing

1. Facebook's Like button is an example of which of the following? Social sign-on Collaborative shopping Network notification Social search Crowdsourcing

Network notification

1. Which of the following is the fastest growing form of location-based service in 2015? Geosocial services Geoinformation services On-demand economy firms Geomapping Geoadvertising

On-demand economy firms

1. Which of the following best illustrates the advertising revenue model? eBay receives a small fee from a seller if a seller is successful in selling an item. Yelp receives a fee after steering a customer to a participating website where he or she makes a purchase. Photobucket provides basic services for free, but charges a premium for advanced services. Apple accepts micropayments for single music track downloads. Pandora provides free service with limited play and advertising.

Pandora provides free service with limited play and advertising.

1. Which of the following statements about Net marketplaces is not true? Some Net marketplaces sell direct goods. Some Net marketplaces serve vertical markets. Some Net marketplaces sell indirect good. Some Net marketplaces support contractual purchases based on long-term relationships. Some Net marketplaces are owned by a single firm and used to link solely to the firm's suppliers and key business partners.

Some Net marketplaces are owned by a single firm and used to link solely to the firm's suppliers and key business partners.

1. Which of the following is a milestone for the Phase 1: Planning phase of developing an e-commerce presence? Website plan Web mission statement Functional website Social media plan Mobile media plan

Web mission statement

1. Which of the following best illustrates the affiliate revenue model? eBay receives a small fee from a seller if a seller is successful in selling an item. Yelp receives a fee after steering a customer to a participating website where he or she makes a purchase. Photobucket provides basic services for free, but charges a premium for advanced services. Apple accepts micropayments for single music track downloads. Pandora provides free service with limited play and advertising.

Yelp receives a fee after steering a customer to a participating website where he or she makes a purchase.

1. Netflix's public announcement of a reward for a technology solution to its movie recommendation system is an example of: prediction markets. behavioral targeting. long-tail marketing. crowdsourcing. social sign-on.

crowdsourcing.

1. Reducing the business process layers in a distribution channel is called: disintermediation. BPR. market segmentation. network effects. dynamic pricing.

disintermediation.

1. 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. Yelp receives a fee after steering a customer to a participating website where he or she makes a purchase. Photobucket provides basic services for free, but charges a premium for advanced services. Apple accepts micropayments for single music track downloads. Pandora provides free service with limited play and advertising.

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

1. Compared to traditional goods, digital goods have: greater pricing flexibility. lower marketing costs. higher production costs. higher inventory costs. higher marginal costs.

greater pricing flexibility.

1. Compared to digital markets, traditional markets have: lower search costs. stronger network effects. higher delayed gratification effects. higher transaction costs. greater transparency.

higher transaction costs.

1. Which of the following is an example of the content provider Internet business model? ETrade eBay iTunes Facebook Dropbox

iTunes

1. A marketplace extended beyond traditional boundaries and removed from a temporal and geographic location is called a(n): exchange. marketspace. online marketplace. e-hub. private industrial network.

marketspace.

1. The term management information systems refers to a specific category of information systems serving: integrated data processing throughout the firm. transaction process reporting. senior management. middle management functions. knowledge workers.

middle management functions.

1. Selling the same goods to different targeted groups at different prices is called: cost customization. cost optimization. price gouging. price discrimination. price optimization.

price discrimination.

1. Procurement involves all of the following except: negotiating with suppliers. paying for goods. making delivery arrangements. sourcing. production scheduling.

production scheduling.

1. Market creators: save users money and time by processing online sales transactions. provide a digital environment where buyers and sellers can establish prices for products. create revenue by providing digital content over the web. sell physical products directly to consumers or individual businesses. provide an online meeting place where people with similar interests can communicate.

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

1. When did e-commerce begin? 1965 1983 1995 1999 2000

1995

1. Which of the following is an example of a direct good in the automobile industry? Computer equipment Paper Office furniture Roofing shingles Sheet steel

Sheet steel

1. Netflix uses which of the following revenue models? Advertising Transaction fee Subscription Freemium Affiliate

Subscription

1. All of the following are examples of "on demand" companies except: Uber. Airbnb. Lyft. Instacart. Yummly.

Yummly.

1. Which of the following statements about B2B e-commerce is not true? Eighty percent of online B2B e-commerce is still based on EDI. B2B e-commerce represents approximately 10% of the overall B2B marketplace. B2B e-commerce only includes commercial transactions between firms. B2B e-commerce revenues are expected to grow to over $8 trillion by 2019. B2B e-commerce accounts for more revenue than B2C e-commerce.

B2B e-commerce represents approximately 10% of the overall B2B marketplace.

1. Which of the following types of e-commerce involves selling products and services directly to individual consumers via the Internet? B2B e-commerce G2B e-commerce M-commerce B2C e-commerce B2G e-commerce

B2C e-commerce

1. Which of the following is not one of the four main types of e-commerce presence? Social media Offline media Blog Email website

Blog

1. Which of the following types of e-commerce involves consumers selling goods and services to other consumers? B2B e-commerce C2C e-commerce M-commerce B2C e-commerce B2G e-commerce

C2C e-commerce

1. Craigslist is an example of: C2C e-commerce. B2B e-commerce. B2C e-commerce. M-commerce. B2G e-commerce.

C2C e-commerce.

1. Which of the following is the fastest growing format of online advertising? Search engine ads Video ads Rich media ads Classified ads Email

Classified ads

1. Which of the following Internet business models involves creating an online digital environment that enables people with like interests to share information? Community provider Service provider Market creator Transaction broker E-tailer

Community provider

1. Which of the following statements about exchanges is not true? Exchanges are independently owned third-party Net marketplaces. Some exchanges provide vertical markets. Exchanges are the most successful form of B2B commerce. Some exchanges enable a spot market. Go2Paper is an example of an exchange.

Exchanges are the most successful form of B2B commerce.

1. Which of the following statements about m-commerce is not true? In 2015, m-commerce represented about 25 percent of all e-commerce. M-commerce is the fastest growing form of e-commerce. In 2015, in-app sales to mobile devices account for about $9 billion in m-commerce revenues. In 2015, the main areas of growth are in mass market retailing and location-based services. In 2015, m-commerce generated over $75 billion in revenue.

In 2015, the main areas of growth are in mass market retailing and location-based services.

1. Which of the following dimensions of e-commerce technology has the potential to raise the quality of information? Information density Richness Customization Interactivity Ubiquity

Information density

1. 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? Ubiquity Personalization/customization Richness Interactivity Information density

Richness

1. In which of the following revenue models does a website charge a fee for access to some or all of its offerings on a continual, regular basis? Subscription Advertising Transaction fee Sales Affiliate

Subscription

1. Which of the following statements about EDI is not true? Each major industry in the United States has EDI standards. Today, EDI is only used for document automation. Many organizations still use private networks for EDI. EDI systems are increasingly web-enabled. About 80 percent of online B2B e-commerce is still based on EDI.

Today, EDI is only used for document automation.

1. Which of the following is not one of the unique features of e-commerce technology? Information density Transparency Richness Social technology Universal standards

Transparency

1. Information ________ exists when one party in a transaction has more information that is important for the transaction than the other party. transparency asymmetry complexity discrimination optimization

asymmetry

1. Exposing an individual to ads that are chosen and based on the online behavior of the individual is referred to as: clickstream advertising. behavioral targeting. online profiling. long tail marketing. prediction marketing.

behavioral targeting.

1. Varying a product's price according to the supply situation of the seller is called ________ pricing. menu flexible dynamic asymmetric transparent

dynamic

1. Compared to traditional goods, digital goods have: lower costs of production. higher marginal costs per unit. equivalent copying costs. similar inventory costs. lower distribution costs.

lower distribution costs.

1. A secure website that links a large firm to its suppliers and other key business partners is called a(n): e-hub. marketspace. exchange. private industrial network. Net marketplace.

private industrial network.

1. The process of sourcing goods and materials, negotiating with suppliers, paying for goods, and making delivery arrangements is called: social media. SCM. procurement. sourcing. EDI.

procurement.

1. Transaction brokers: generate revenue from advertising or from directing buyers to sellers. save users money and time by processing online sales transactions. provide a digital environment where buyers and sellers can establish prices for products. sell physical products directly to consumers or individual businesses. create revenue by providing digital content.

save users money and time by processing online sales transactions.

1. The effort required to locate a suitable product is called: price discrimination. search costs. menu costs. shopping costs. market entry costs.

search costs.

1. Net marketplaces typically provide all of the following except: catalogs. automated purchasing. processing and fulfillment. sourcing. shared product design and development.

shared product design and development.

1. Information density refers to the: richness-complexity and content-of a message. total amount and quantity of information delivered to consumers by merchants. total amount and quantity of information available to all market participants. amount of information available to reduce price transparency. ease with which consumers can find out the variety of prices in a market.

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