Chapter 10

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

85 percent

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

1995

Exposing an individual to ads that are chosen based on the choices of their friends is an example of:! online profiling. crowdsourcing. social marketing. clickstream advertising. behavioral targeting.

behavioral targeting.

An environment where consumers can share their shopping experiences with one another by viewing products, chatting, or texting about brands, products, and services is an example of:! web personal marketing. collaborative shopping. social sign-on. network notification. social search.

collaborative shopping.

Changing the prices of products based on the level of demand characteristics of the customer is called ________ pricing.! customized flexible asymmetric dynamic menu

dynamic

Which of the following best illustrates the transaction fee revenue model?! Apple accepts micropayments for single music track downloads.! Yelp receives a fee after steering a customer to a participating website where he or she makes a purchase. Pandora provides basic services for free, but charges a premium for advanced services. Netflix charges customers a monthly fee for access to its library of movies. eBay receives a small fee from a seller if a seller is successful in selling an item.

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.! subscription sales free/freemium affiliate transaction fee

free/freemium

Compared to digital goods, traditional goods have:! lower copying costs. more variable pricing. lower marginal costs per unit. higher costs of distribution. lower inventory costs.

higher costs of distribution.

Compared to traditional goods, digital goods have:! higher delivery costs. lower initial production costs. higher inventory costs. higher marginal costs. low marginal costs of production.

low marginal costs of production.

Compared to traditional markets, digital markets have:! lower search costs. weaker network effects. higher transaction costs. greater asymmetry. lower delayed gratification effects.

lower search costs.

As described in the chapter case, Uber uses the ________ revenue model.! market creator transaction broker portal service provider community provider

market creator

In digital markets:! information asymmetry increases. search costs increase. menu costs decline switching costs decline. network costs decline.

menu costs decline

All of the following are unique features of e-commerce technology, except:! personalization/customization. richness. interactivity. price discrimination. global reach.

price discrimination

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

price discrimination.

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

private industrial network.

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

production scheduling.

As described in the opening case, what is YouTube's revenue model?! Transaction fee Advertising Freemium Affiliate Subscription

Advertising

Which of the following best describes the digital social graph? A collection of millions of personal social graphs - All of the online and offline relationships a person has All of a person's closest digital relationships A person's direct and indirect relationships All of the relationships in an online community

All of the relationships in an online community

Which of the following best illustrates the sales revenue model?! Apple accepts micropayments for single music track downloads. Netflix charges customers a monthly fee for access to its library of movies. Yelp receives a fee after steering a customer to a participating website where he or she makes a purchase. Pandora provides basic services for free, but charges a premium for advanced services. eBay receives a small fee from a seller if a seller is successful in selling an item.

Apple accepts micropayments for single music track downloads.

Information ________ exists when one party in a transaction has more information that is important for the transaction than the other party.! complexity transparency discrimination Asymmetry competition

Asymmetry

Which of the following types of e-commerce involves businesses selling goods and services directly to individuals via the Internet?! B2C e-commerce C2C e-commerce B2B e-commerce M-commerce P2P e-commerce

B2C e-commerce

Craigslist is an example of:! C2C e-commerce. B2B e-commerce. P2P-commerce. B2C e-commerce. M-commerce.

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?! Market creator Community provider Service provider Portal

Community provider

As described in the opening case, what is the primary business model employed by YouTube?! Transaction broker E-tailer Portal Content provider Market creator

Content provider

Which of the following is not one of four types of presence to be considered when building an e-commerce presence?! E-mail Offline media Websites Corporate Social media

Corporate

Ikea asked for the help of its customers in designing new furniture. This is an example of:! social shopping. behavioral targeting. long-tail marketing. Crowdsourcing. prediction markets.

Crowdsourcing.

Removing the business process layers in a distribution channel is called:! market segmentation. network effects. market transparency. Disintermediation. BPR.

Disintermediation.

Amazon.com is known primarily for its use of which of the following business models?! Content provider Transaction broker E-tailer Market creator Portal

E-tailer

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

Exchanges are the most successful form of B2B commerce.

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. Facebook provides a social network for free, but shows sponsored content in users' News Feeds. Apple accepts micropayments for single music track downloads. Netflix charges customers a monthly fee for access to its library of movies.

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

Geoadvertising sends ads to users based on their:! shopping preferences. Google Maps settings. home addresses. website behaviors. GPS locations

GPS locations

Which of the following is the largest mobile advertising platform?! Twitter Yahoo Facebook Microsoft Google

Google

Which of the following dimensions of e-commerce technology has the potential to raise the quality of information?! Global reach Customization Interactivity Information density Richness

Information density

All of the following are examples of "on demand" companies except:! Uber. Airbnb. Instagram. Lyft. Sidecar.

Instagram.

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

Interactivity

What standards are referred to when discussing universal standards as a unique feature of e-commerce?! Universal measuring standards Internet technology standards EDI standards Universal advertising and media format standards Common spoken and written languages

Internet technology standards

What is the primary benefit to consumers of disintermediation?! Faster service Lower costs Higher quality Greater choices None, because disintermediation primarily benefits manufacturers.

Lower costs

A marketplace extended beyond traditional boundaries and removed from a temporal and geographic location is called a(n):! exchange. net marketplace. e-hub. online marketplace. Marketspace.

Marketspace.

Content providers use ________ systems to process large amounts of very small monetary transactions cost-effectively.! mobile payment Micropayment subscription affiliate revenue transaction fee

Micropayment

_______ involves placing ads in social network newsfeeds or within traditional editorial content, such as a newspaper article.! Native advertising Lead generation marketing Demand prediction software Behavioral targeting Crowdsourcing

Native advertising

Which of the following companies uses the subscription revenue model?! Google Search ETrade Expedia Facebook Netflix

Netflix

Which of the following is not an example of location-based services?! Foursquare Netflix Waze Google Maps Uber

Netflix

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

Network notification

What is the difference between personalization and customization, as applied to e-commerce technologies?! Customization is any type of adjustment made to a product by the user; personalization refers to a business changing a product or service for the user. Personalization is any type of adjustment made to a product by the user; customization refers to a business changing a product or service for the user. Customization refers to adjusting marketing messages for a consumer; personalization refers to adjusting a product or service based on a user's preferences. Personalization refers to adjusting marketing messages for a specific consumer; customization refers to adjusting a product or service based on a user's preferences. There is no difference. Both terms refer to changing a product or communication for the consumer.

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

The process of sourcing goods and materials, negotiating with suppliers, paying for goods, and making delivery arrangements is called:! e-procurement. Procurement. SCM. distribution production.

Procurement.

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 Personalization/customization Ubiquity Interactivity Social technology

Richness

Which of the following marketing formats is sales-oriented, rather than branding-oriented or a mix?! Display ads Search engine Lead generation Rich media Video

Search engine

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

Sheet steel

Which of the following statements about Net marketplaces is not true?! Some Net marketplaces sell indirect goods. Some Net marketplaces sell direct goods. 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 serve vertical markets.

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

What event marked the beginning of e-commerce?! The first domain name registered The first product advertised online The first paid advertisements placed on a website The first product sold online The first e-mail sent

The first paid advertisements placed on a website

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

Today, EDI is only used for document automation.

Which of the following is an example of a private industrial network?! VW Group Supply Go2Paper Expedia Exostar Elemica

VW Group Supply

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

Web mission statement

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

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

Transaction brokers:! generate revenue from advertising or from directing buyers to sellers. provide online meeting places where people with similar interests can communicate. 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.

save users money and time by processing online sales transactions.

The effort required to locate a suitable product is called:! shopping costs. search costs. menu costs. location costs. price discrimination.

search costs.

In planning a robust e-commerce presence, you will want to consider the blog platform as part of your ________ presence.! social media e-mail website offline media community

social media

Information density refers to the:! amount of physical storage space needed to store data about a specific entity, such as a product or consumer. total amount and quantity of information delivered to consumers by merchants. richness-complexity and content-of a message. amount of information available to reduce price transparency. total amount and quantity of information available to all market participants.

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