Chapter 11
Which of the following is a community of members who self-identify with a demographic or geographic category? A) practice network B) sponsored community C) affinity community D) interest-based social network
affinity community
Pinterest visitors spend ________ a month on Facebook. A) over an hour B) about 15 minutes C) 6.5 minutes D) approximately 2.5 hours
6.5 minutes
Around what percentage of Internet users in the United States use social networks on a regular basis? A) 54% B) 67% C) 85% D) 94%
85%
An example of a practice network is: A) Nike. B) Instagram. C) DebatePolitics.com. D) Linux.org.
Linux.org
Which of the following involves e-mailing another seller's bidders and offering the same product for less? A) transaction interception B) bid siphoning C) shill bidding D) persistent bidding
bid siphoning
The time spent watching and reviewing auction bids is a part of ________ costs. A) pricing B) monitoring C) delayed consumption D) fulfillment
monitoring
The term ________ refers to the advantages conferred as an auction site becomes larger in terms of visitors and products for sale. A) siphoning B) herd behavior C) network effects D) channel expansion
network effects
Which of the following is the most successful of Facebook's apps? A) Messenger B) Home C) Camera D) Riff
Messenger
Which of the following early leaders in social networking has been reinvented as a music-oriented social network? A) Vevo B) Myspace C) Polyvore D) Tumblr
Myspace
________ of procurement officers use auctions to purchase goods. A) 80% B) Less than a quarter C) Over one third D) 25%
Over one third
A community site created by a corporation is called a sponsored community site.
TRUE
One of the first online virtual communities was: A) The Well. B) Myspace. C) AOL. D) Salon.com.
The Well
Facebook purchased which of the following for $22 billion? A) Slingshot B) Snapchat C) WhatsApp D) Poke
________ refers to the feeling that one has paid too high a price for an item won at auction. A) Seller's lament B) Winner's lament C) Loser's regret D) Winner's regret
Winner's regret
Healthboards is an example of a(n) ________ social network. A) practice-based B) interest-based C) affinity-based D) general
affinity-based
Which of the following is not one of the three defining characteristics of a portal? A) commerce B) content C) auctions D) navigation of the Web
auctions
AOL is focusing its strategy on all of the following except: A) display advertising. B) online video. C) being an ISP. D) being a niche content provider.
being an ISP.
All of the following are benefits of auctions except: A) more efficient price discovery. B) lower transaction costs. C) decreased price transparency. D) increased market efficiency.
decreased price transparency
Instagram is an example of a(n): A) interest-based social network. B) affinity community/social network. C) general community/social network. D) practice network
general community/social network
Which of the following is the market leader in C2C auctions? A) Amazon B) eBay C) uBid D) eBid
eBay
Threatening negative feedback in return for a benefit is an example of: A) feedback extortion. B) offensive shill feedback. C) defensive shill feedback. D) sending spam.
feedback extortion
One partial solution to high monitoring costs is ________ pricing. A) fixed B) dynamic C) allocated D) distress
fixed
A(n) ________, in which the highest bidder wins, is the most common form of auction. A) Dutch Internet auction B) Japanese auction C) English auction D) reverse auction
English auction
Keeping bid increments low both decreases the number of bidders and lowers the frequency of their bids
FALSE
Which of the following companies was an early investor in Facebook? A) Google B) Apple C) Microsoft D) LinkedIn
Microsoft
________ refers to the use of secondary user IDs or bidders who have no actual intention to buy to artificially raise the price of an item. A) Bid manipulation B) Shill feedback C) Shill bidding D) Bid rigging
Shill bidding
Each of the following is one of the top six social network sites in the United States except: A) Tumblr. B) Snapchat. C) Instagram. D) Pinterest.
Snapchat
Auction prices are often higher than prices in fixed priced markets
TRUE
Open bidding offers the advantage of herd effects
TRUE
Priceline's auctions utilize fixed pricing.
TRUE
Facebook was the leader in U.S. ad spending revenues on social networks in 2015. What company earned the second most amount of ad spending revenue? A) MySpace B) LinkedIn C) Pinterest D) Twitter
In 2015, Fortune 500 companies used ________ more than Facebook. A) no other social networks B) Twitter C) Google+ D) Pinterest
The technology used by early online communities was limited to mostly: A) instant messaging. B) FTP. C) e-mail. D) bulletin boards
bulletin boards
When did the first online communities form? A) the 1970s B) the 1980s C) the 1990s D) the 2000s
the 1980s
Howard Rheingold, one of The Well's early participants, coined the term ________ to refer to "cultural aggregations that emerge when enough people bump into each other often enough in cyberspace." A) social networks B) virtual communities C) community portals D) social forums
virtual communities
A ________ permits the consumer to monitor specific auctions of interest, requiring the consumer to pay close attention only in the last few minutes of bidding. A) bidding fee auction B) channel manager C) watch list D) rating system
watch list
The profit a seller makes at auction is a function of all of the following except: A) initial pricing B) auction length. C) the number of units for auction. D) watch lists.
watch lists
In B2C auctions, consumers control assets and use dynamic pricing to establish the price.
FALSE
In a Dutch Internet auction, a single seller puts up a single item for bidding.
FALSE
It costs no money to bid in a penny auction.
FALSE
________ is the tendency to gravitate toward, and bid for, auction listings with one or more existing bids. A) Group buying B) Winner's regret C) Herd behavior D) Bid rigging
Herd behavior
Which of the following has the highest penetration of social network usage among the general population? A) North America B) Latin America C) Europe D) Asia-Pacific
North America
The value of portals to advertisers and content owners is primarily a function of the size of the audience the portal reaches and the length of time visitors stay on the site.
TRUE
The amount of time visitors spend on a site is a measure of ________. A) reach B) loyalty C) conversation D) engagement
engagement
A(n) ________ offers members focused discussion groups, help, information, and knowledge related to an area of shared practice. A) practice network B) general community C) affinity community D) interest-based social network
practice network
Which of the following is not a risk or cost of Internet auctions? A) delayed consumption costs B) equipment costs C) price transparency D) trust risks
price transparency
Which of the following allows the consumer to enter a maximum price and the auction software automatically places incremental bids up to that maximum price as their original bid is surpassed? A) watch lists B) proxy bidding C) sealed bidding D) price matching
proxy bidding
Which of the following is not one of the typical portal revenue sources? A) commissions on sales B) subscription fees C) tenancy deals D) referral fees
referral fees
In 2015, which age group has the fastest growing rate of Facebook usage? A) 12-34 B) 35-44 C) 45-64 D) 64 and older
64 and older
Which of the following types of auctions is perfect for sellers that have many identical items to sell? A) English auctions B) Name Your Own Price auctions C) Dutch Internet auctions D) group buying auctions
Dutch Internet auctions
All of the following types of auctions involve single units except: A) English auction. B) Dutch Internet. C) Name Your Own Price auction. D) penny auction
Dutch Internet.
Less than two-thirds of Internet users worldwide participate in social networks.
FALSE
The increasing price of display ads have contributed to Yahoo's struggles over the last three years.
FALSE
Yahoo owns all of the following except: A) Tumblr. B) Flickr. C) Aviate. D) Instagram.
Which of the following statements about Instagram is not true? A) Instagram is owned by Twitter. B) Instagram is a photo-sharing app. C) Facebook developed its Camera app to compete with Instagram. D) In terms of time spent per month by users, Instagram is second only to Facebook.
Instagram is owned by Twitter
Priceline is an example of a(n): A) English auction. B) Dutch auction. C) penny auction. D) Name Your Own Price auction
Name Your Own Price auction
Which of the following types of auctions "shields the brand" of the seller? A) English auction B) Name Your Own Price auction C) Dutch auction D) penny auction
Name Your Own Price auction
Consumers in auctions are not driven solely by value maximization.
TRUE
Facebook is the slowest growing of the most popular social networks.
TRUE
Portals are not subject to network effects.
TRUE
The original portals in the early days of e-commerce were search engines.
TRUE
Which of the following statements illustrates the network effects that portals are subject to? A) Specialized vertical market portals attract only 2-10% of the audience, while a few large megaportals garner most of the market. B) The value of the portal to advertisers and consumers increases geometrically as reach increases. C) The greater the amount of content provided by a portal, the greater its value to the community. D) The greater number of portals available, the greater the potential audience for each.
The value of the portal to advertisers and consumers increases geometrically as reach increases.
Which of the following is the second leading social network in the United States in terms of number of members? A) Twitter B) LinkedIn C) Google+ D) Pinterest
Which of the following is a leading social network in Russia? A) VK B) Tuenti C) Orkut D) Qzone
VK
After Google, the next portal/search engine site with the most unique visitors is: A) Yahoo. B) Microsoft. C) AOL. D) Facebook.
Yahoo.
NaturallyCurly is an example of a(n): A) interest-based social network. B) affinity community. C) sponsored community. D) practice network.
affinity community
The fact that participating in an Internet auction means that you will need to purchase a computer, learn to use it, and pay for Internet access, is an example of ________ costs. A) equipment B) fulfillment C) delayed consumption D) monitoring
equipment
ESPN.com is an example of a: A) general purpose portal. B) vertical market portal based on affinity group. C) vertical market portal based on focused content. D) focused content portal.
focused content portal
A Web site designed to give yachting enthusiasts a common discussion area would be classified as a(n): A) interest-based social network. B) affinity community. C) practice network. D) sponsored community
interest-based social network
Which of the following is not one of the top factors a business should consider when planning an Internet auction? A) type of product B) type of auction C) location of auction D) bid increments
location of auction
Which social network functionality allows users to view a list of updates from friends as well as advertisements and notifications in chronological order? A) message board B) timeline C) newsfeed D) friends networks
newsfeed
When sellers agree informally or formally to set floor prices below which they will not sell on auction items, this is known as: A) discriminatory pricing. B) price matching. C) bid rigging. D) distress pricing
price matching
All of the following are solutions to the problem of high monitoring costs except: A) seller rating systems. B) watch lists. C) proxy bidding. D) fixed pricing.
seller rating systems
Which of the following involves a concern that one will never know how much the ultimate winner might have paid, or the true value to the final winner? A) herd behavior B) winner's regret C) seller's lament D) loser's lament
seller's lament
E-mailing buyers to warn them away from a seller is a type of auction fraud known as ________. A) transaction interference B) bid siphoning C) bid rigging D) shill bidding
transaction interference
