IS 3003 Chapter 10

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

False

Rich media advertisements are a sales-oriented marketing format.

False

What two duel-related concepts rule in the word of social-mobile-local e-commerce?

Conversation and engagement.

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?

Information density

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

Interactivity

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

Richness

Based on your reading of the chapter, e-commerce is:

still in a revolutionary phase.

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

the availability of the Internet everywhere and anytime.

What is Electronic Data Interchange? (EDI)

the computer-to-computer exchange of business documents from a retailer to a vendor and back

Traditional online marketing (display ads, video ads, emails) constitutes what percentage of online marketing?

58%

Mobile ads account for what percent of all digital advertising?

74%

What is the advertising revenue model?

A widely-used model in e-commerce that involves a website with a large user base generating revenue by exposing users to advertisements.

With digital goods, the highest cost is generally the cost of what?

Cost of production

Goods that can be transported over a digital network are called _______ goods

Digital

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

False

Disintermediation provides major benefits to the distributor.

False

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

False

Generally, the costs of digital markets compared to the cost of traditional markets tend to be

Lower

Online-marketing has shifted from the home computer to what?

Mobile devices.

Through what channel did e-commerce first evolve?

Online advertising sales

The emphasis on online marketing has shifted from a focus on eyeballs to a focus on what?

Participating in customer-oriented conversations.

The biggest changes to e-commerce is to the extent that it has become more of what three things?

Social, mobile, and local.

What two systems exchange with each other in EDI model?

Supplier systems and firm systems

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

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

What are menu costs?

The merchant's cost for changing prices.

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

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

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

Transparency

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

An example of the service provider business model is Flickr, a photo management and sharing Web site.

True

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

True

The Internet shrinks information asymmetry.

True

Web personalization is used primarily as a major marketing tool.

True

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

Universal standards

What is for more effective than display ads?

Video ads.

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

asymmetry

Digital goods are goods that are

delivered digitally.

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

disintermediation.

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

dynamic

Compared to traditional goods, digital goods have:

greater pricing flexibility.

Compared to digital markets, traditional markets have:

higher transaction costs.

The internet has given consumers access to more information regarding the products they wish to purchase, which in turn reduces __________ between the consumers and the manufacturers.

information asymmetry

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

marketspace.

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

price discrimination.

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.

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

zero