Chapter 10
What is a social graph?
A mapping of all significant online social relationships
The FASTEST-growing segment of E-Commerce today is:
B2B E-Commerce
What university researcher's work is MOST responsible for the development of modern business computing technology? ADr. Allen Newell BDr. Chris Diller CDr. Herb Simon DDr. Ron Coase
Dr. Allen Newell
Which of the following statements about digital goods is FALSE?
The marketing costs of digital goods are LOWER than physical goods
Which of the following media types (or "modalities") is the RICHEST? AAudio BAugmented/Enhanced Video CText DVideo
Video
Creating sites where thousands, even millions, of people can interact offers business firms new ways to market and advertise and to discover who likes (or hates) their products. Crowdsourcing is based on the assumption that ________.
large numbers of people can make better decisions about a wide range of topics or products than a single person or even a small committee of experts
Imagine if every single person on Earth spoke the same language. The strikingly unusual feature of e-commerce technologies is that the technical standards of the Internet and, therefore, the technical standards for conducting e-commerce are universal standards. From the perspective of Porter's Five Forces model, universal technical standards increases the threat of new entrants because they ________.
lower market entry costs
The fact that universal technical standards for the Internet and electronic commerce exist lowers ________ costs, making it cheaper for merchants to sell their goods.
market entry
A broad term to describe extending a marketplace beyond traditional boundaries is called ________.
marketspace
The fastest growing type of B2C e-commerce is ________.
mobile
Although e-commerce and the Internet have changed entire industries and enabled new business models, no industry has been more affected than marketing and marketing communications. Which of the following options best completes this sentence: Long tail marketing ________.
refers to the ability of firms to profitably market goods to very small online audiences, largely because of the lower costs of reaching very small market segments (people who fall into the long tail ends of a Bell curve)
The primary benefit of disintermediation to the consumer is ________.
removing layers and reducing costs
The ________ of the web makes it possible to deliver messages with text, audio, and video simultaneously to large numbers of people.
richness
In information systems, SaaS stands for ________.
software as a service
E-commerce has become more ________.
social, mobile, and local
Firms often use Social Network Analysis to identify:
"Social Influencers" -- people who might influence others' buying decisions
Changes in the economics of information described earlier have created the conditions for entirely new business models to appear while destroying older business models. Amazon, with its Amazon Web Services (AWS), was one of the first companies to introduce a pay-as-you-go cloud computing that scales to provide users with computing, storage or throughput as needed. Which e-commerce business model best represents Amazon's Web Services in which companies pay for computing, storage or throughput as needed?
Service provider
iTunes has dramatically ________ illegal music downloads.
decreased
A(n) ________ is an Internet business model that provides an initial point of entry to the web along with specialized content and other services.
portal
The Internet and web technology enable businesses to create electronic storefronts for selling to other businesses using the same techniques as used for B2C commerce. A __________ is owned by the buyer, and permits the firm and designated suppliers, distributors, and other business partners to share product design and development, marketing, production scheduling, inventory management, and unstructured communication, including graphics and e-mail.
private industrial network
VW Group Supply is a network that links the Volkswagen Group and its suppliers. VW Group Supply handles 90 percent of all global purchasing for Volkswagen, including all automotive and parts components. VW Group Supply is an example of a(n) ________.
private industrial network
According to the E-Commerce Presence Map, activities such as conversation and engagterm-68ement are considered a(n) ________ type of presence.
social media
What revenue model offers basic services or content for free, while charging a premium for advanced or special features?
Free/freemium revenue model
According to your text, Elemica's Web site for buying and selling chemicals is an example of ________ electronic commerce.
business-to-business (B2B)
BarnesandNoble.com is an example of ________ electronic commerce.
business-to-consumer (B2C)
Global B2B
$7.7 trillion in 2016
Price discrimination
- Perfect (1st degree): each unit priced differently - 2nd degree: different prices / different quantities - 3rd degree: different prices / different groups
The form of e-commerce whose platform enables people to sell goods and services directly to each other is called ________.
C2C
The GPS capabilities of smartphones make geoadvertising, geosocial, and geoinformation services possible. __________ include Foursquare and new offerings by Facebook and Google.
Geosocial services
________ is another name for e-hubs.
Net marketplaces
Which item below would be considered direct goods?
Sheet steel used for auto body construction
Which list below contains the correct four kinds of e-commerce presence?
Web sites, email, social media, and offline media
A(n) ________ is an Internet business model that provides an online meeting place where people with similar interests can communicate and share information.
community provider
Buying a silver coin from an individual on eBay is an example of ________ electronic commerce.
consumer-to-consumer (C2C)
A(n) ________ is an Internet business model in which information content is sold and distributed.
content provider
Downloading a movie from the Internet is an example of ________.
digital good
If a Web site changes its prices based on the demand characteristics (e.g., concert tickets), this would be an example of ________.
dynamic pricing
According to the E-Commerce Presence Map, activities such as education and branding are considered a(n) ________ type of presence.
offline media
According to the E-Commerce Presence Map, activities including newsletters are a(n) ________ type of presence.
A(n) ________ is an Internet business model that sells products directly to consumers or to individual businesses.
e-tailer
The impact of the Internet on the market for digital goods is nothing short of revolutionary, and we see the results around us every day. Businesses dependent on physical products for sales—such as bookstores, music stores, book publishers, music labels, and film studios—face the possibility of declining sales and even destruction of their businesses. Which of the following is true of digital goods?
The cost of producing the original first unit of a digital good is nearly the total cost of the product.
What is information density?
The total amount and quality of information available to all market participants, consumers, and merchants alike
In traditional commerce, a marketplace is a physical place, such as a retail store, that you visit to transact business. Now, the marketplace is extended beyond traditional boundaries and is removed from a temporal and geographic location. Which dimension of e-commerce technology describes the fact that the Internet is available at work, at home, and elsewhere via desktop and mobile services?
Ubiquity
The GPS capabilities of smartphones make geoadvertising, geosocial, and geoinformation services possible. Which of the following statements is true of a geoinformation service?
Waze is an example of a geoinformation service.
A firm's revenue model describes how the firm will earn revenue, generate profits, and produce a superior return on investment. In the __________ revenue model, websites send visitors to other websites in return for a referral fee or percentage of the revenue from any resulting sales.
affiliate
A social commerce feature that provides consumers the ability to share their shopping experiences with others is called _________.
collaborative shopping
The impact of the Internet on the market for digital goods is nothing short of revolutionary, and we see the results around us every day. Businesses dependent on physical products for sales—such as bookstores, music stores, book publishers, music labels, and film studios—face the possibility of declining sales and even destruction of their businesses. Goods that can be delivered over a digital network are called __________.
digital goods
Another way to classify e-commerce is by the platform used to complete transactions. The use of smartphones and tablet computers are used ________ for transactions.
in M-commerce
The global positioning system (GPS) enables ________ -based services for consumers via their smartphones.
location
On-demand firms such as Uber and Airbnb are location-based services, and examples of mobile commerce. The foundation for ________ is the global positioning system (GPS).
location-based services
In 2005, James Surowiecki wrote a book based on the thesis that a diverse collection of independently deciding individuals is likely to make certain types of decisions and predictions better than individuals or even experts. Which of the following statements best describes the phenomenon called "the wisdom of crowds"?
"Wisdom of crowds" refers to the belief that large numbers of people can make better decisions about a wide range of topics or products than a single person or even a small committee of experts.
There are many ways to classify electronic commerce transactions—one is by looking at the nature of the participants. The three major electronic commerce categories are business-to-consumer (B2C) e-commerce, business-to-business (B2B) e-commerce, and consumer-to-consumer (C2C) e-commerce. The ________ describes an e-commerce transaction that involving the sale of goods and services among businesses.
B2B
________ targeting techniques increase the effectiveness of banners, rich media, and video ads.
Behavioral
Websites collect data on visitor browser activity and store it in a database. They can collect specific pages visited on a particular site, the time spent on each page of the site, the types of pages visited, and what the visitors purchased. Firms then analyze this information about customer interests and behavior to develop precise profiles of existing and potential customers. Which of the following does the scenario illustrate?
Behavioral targeting
E-commerce websites and advertising platforms have tools to track a shopper's every step through an online store and then across the web as shoppers move from site to site. All websites collect data on visitor browser activity and store it in a database. Firms analyze this information about customer interests and behavior to develop precise profiles of existing and potential customers. Which of the following best describes behavioral targeting?
Behavioral targeting refers to the tracking of the clickstreams (the history of clicking behavior) of individuals across multiple websites for the purpose of understanding their interests and intentions, and exposing them to advertisements that are uniquely suited to their interests.
________ enables the computer-to-computer exchange between two organizations of standard transactions such as invoices, shipmentschedules, or purchase orders.
EDI
What are the two most important management challenges in building a successful e-commerce presence?
Developing a clear understanding of your business objectives and knowing how to choose the right technology to achieve those objectives
The REMOVAL of businesses/firms responsible for intermediary steps in a value chain is called:
Disintermediation
B2B e-commerce refers to the commercial transactions that occur among business firms. Increasingly, these transactions are flowing through a variety of Internet-enabled mechanisms. What is it called when transactions are automatically transmitted from one information system to another through a network, eliminating the printing and handling of paper at one end and the inputting of data at the other?
Electronic Data Exchange (EDI)
The Internet and web technology enable businesses to create electronic storefronts for selling to other businesses using the same techniques as used for B2C commerce. __________ are independently owned third-party Net marketplaces that connect thousands of suppliers and buyers for spot purchasing.
Exchanges
TRUE or FALSE: EDI standards are customizable, meaning a COMPANY can format these data streams however they want.
False
TRUE or FALSE: Price Discrimination is illegal.
False
When Skype first launched, its big selling point was its voice over internet protocol (VOIP) abilities. While it would go on to facilitate voice calls to landlines and mobile devices, its Skype to Skype voice calling function remains a key component of its service. Skype revenue model is an example of a "free plus paid services" model. In which of the following revenue models do firms offer basic services or content for free, while charging a fee for advanced or special features?
Free/freemium revenue model
What type of service can tell you the price of a house you are looking at or about special exhibits at a museum you are passing?
Geoinformation services
Building a successful e-commerce presence requires a clear understanding of the business objectives to be achieved and selection of the right platforms, activities, and timeline to achieve those objectives. An e-commerce presence includes not only a corporate website but also a presence on Facebook, Twitter, and other social networking sites and smartphone apps. What is done in the planning phase for the development of an e-commerce presence for a start up company?
In this phase you would envision your Web presence and write a Web mission statement.
The Internet and the web vastly increase the total amount and quality of information available to all market participants, consumers, and merchants alike. This has greatly changed the relationships and negotiations of all participants. Which of the following is true of the effect of information density in e-commerce markets?
Information density increases price transparency for consumers.
E-commerce involves digitally enabled commercial transactions between and among organizations and individuals. Which of the following is true of the effect of the ubiquitous nature of the Internet on e-commerce?
It reduces transaction costs for a customer.
The Internet provides marketers with new ways of identifying and communicating with millions of potential customers at costs far lower than traditional media, including search engine marketing, data mining, recommender systems, and targeted email. Which of the following refers to the ability of firms to profitably market goods to very small online audiences, largely because of the lower costs of reaching very small market segments?
Long tail marketing
What is the fastest growing form of e-commerce, with some areas expanding at a rate of 30 percent or more per year, and which is estimated to grow to $337 billion by 2022?
M-commerce
Which of the following options is NOT a unique feature of e-commerce technology?
Our geographic boundaries now determine our network experience.
Building a successful e-commerce presence requires a clear understanding of the business objectives to be achieved and selection of the right platforms, activities, and timeline to achieve those objectives. An e-commerce presence includes not only a corporate website but also a presence on Facebook, Twitter, and other social networking sites and smartphone apps. __________ is the first phase in a timeline to start up a new e-commerce presence.
Planning
The Internet and e-commerce technologies are much richer and more powerful than previous technology revolutions. The total amount and quality of information available to all market participants has vastly increased. __________ refers to the ease with which consumers can find out the variety of prices in a market.
Price transparency
Imagine if every single person on Earth spoke the same language. The strikingly unusual feature of e-commerce technologies is that the technical standards of the Internet and, therefore, the technical standards for conducting e-commerce are universal standards. What is an effect of the universal technical standards of the Internet and e-commerce on customers?
Reducing search costs
Google Apps, Photobucket.com, and Dropbox all provide Web 2.0 applications such as photo sharing, video sharing, and user-generated content as services. Google Apps, Photobucket.com, and Dropbox are all examples of which e-commerce business model?
Service provider
Exchanges proliferated during the early years of e-commerce. Today, many exchanges provide vertical markets for a single industry, such as food, electronics, or industrial equipment, and they primarily deal with direct inputs. Why have many exchanges failed?
Suppliers were reluctant to participate because the exchanges drove prices down and did not offer any long-term relationships with buyers.
The fastest growing form of retail trade in the United States, Europe, and Asia is ________.
e-commerce
About 80 percent of online B2B e-commerce is still based on proprietary systems for ____________.
electronic data interchange (EDI)
One way of classifying electronic commerce transactions is in terms of the platforms participants use in a transaction. M-commerce involves the use of ________.
handheld wireless devices for purchasing goods and services from any location
