MIS 276 Test 1

What is a vertical market portal?

Attempts to attract highly focused, loyal audiences with a deep interest in either community or specialized content

Which of the following is the fastest frowning online gaming audience? A. laptop gamers B. mobile gamers C. social web gamers D. console gamers

B. mobile gamers

Which of the following is not one of the methods used by traditional retailers to develop omni-chanel integration? A. online Web catalog B. online supply-push C. online promotions for offline purchases D. online order, in-store pickup

B. online supply-push

Which of the following is not one of the three defining characteristic of a portal? A. commerce B. content C. migration D. navigation of the Web

C. migration

All of the following are examples of technology convergence except: A. smartphones B. the iPad C. Apple TV. D. Netgear WiFi router

D. Netgear WiFi router

All of the following statements about the online insurance industry are true except: A. Web sites of almost all the major firms provide the ability to obtain an online quote B. Internet usage has led to a decline in term life insurance prices industry-wide C. the industry has been very successful in attracting visitors searching for information D. the Internet has dramatically changed the insurance industry's value chain

D. the Internet has dramatically changed the insurance industry's value chain

Which of the following gives a business model the most credibility with outside investors? A. the firm's market strategy B. the firm's value proposition C. the firm's market opportunity D. the firm's management team

D. the firm's management team

The biggest threat to general portal business model is __________

Declining advertising revenue

Under the B2B business models ________ create and sell access to digital markets.

E-procurement firms

A(n) ______, in which the highest bidder wins, is the most common form of auction

English auction

T or F: Price transparency refers to the ability of consumers to discover the actual costs merchants pay for products.

False

Commerce that is focused on engaging the consumer based on his or her current geographic location is known as _________.

Location E-Commerce

The generic business strategy the emphasizes creating new product and bringing them to market on a regular basis in known as:

Product Leadership

An example of a company using the content provider model is:

Spotify

T or F: The fact that e-commerce is conducted on the basis of universal standards reduces search costs for consumers.

True

DRM refers to a combination of ________ for protecting digital content.

technical and legal means

A perfect market is one in which:

there are no competitive advantages or asymmetries because all firms have equal access to all the factors to production.

Business-to-consumer (B2C) e-commerce in the United States: A. Now constitutes over 40% of the overall U.S. retail market B. Has leveled off as it confronts its own fundamental limitations C. Has grown at double-digit rates in the last few years D. Generates less revenue than C2C e-commerce

C. Has grown at double-digit rates in the last few years

The two most important things to remember about the freemium model are:

(1) the cost of adding a new free user must be zero or very close to zero (scale at no additional cost) and (2) the model must compel users to switch from free users to paying customers (the faster the better)

All of the following are aspects of content convergence expect: A. Price B. Distribution C. Design D. Production

A. Price

Which of the following statements about online banking is not true? A. Wingspan and netbank are two pure online banks (those that operate without a network of branches) that have grown to dominate the pure online banking market B. Over 50% of the adult U.S. population used online banking in 2015 C. Top mobile banking activities included checking balances and transferring money from one account to another D. Online and mobile banking transactions provide significant costs savings for banks

A. Wingspan and netbank are two pure online banks (those that operate without a network of branches) that have grown to dominate the pure online market

All of the following statements are true except: A. less than 2% of procurement officers use auctions to procure goods B. Sam's Club is an example of an online B2C auction C. auctions constituted a significant part of B2B-commerce in 2014 D. in a C2C auction, consumers sell goods to other consumers

A. less than 2% of procurement officers use auctions to procure goods

Which of the following is not one of the typical portal revenue sources? A. listing fees B. tenancy deals C. commissions on sales D. subscription fees

A. listing fees

Which of the following is not a variation of the e-tailer business model? A. market creator B. manufacturer-direct C. virtual merchant D. brick-and-click

A. market creator

Which of the following statements is true about the traditional tradeoff between the richness and reach of a marketing message prior to the development of the Web? A. Marketing messages had little richness B. The larger the audience reaches, the less rich the message C. The smaller the audience reaches, the less rich the message D. Richness was unrelated to reach

B. The larger the audience reaches, the less rich the message

Will apps make the web irrelevant? Which of the following is not true about the use of apps? A. Apps are easier to control and monetize than Web sites B. Users still spend less time using apps than they do using desktops or mobile Web sites C. The average U.S. consumer spends over two hours a day using apps D. Around 280 million people worldwide launch a smartphone app more than 60 times a day

B. Users still spend less time using apps then they do using desktops or mobile Web sites.

Which of the following is not an example of transaction broker? A. a real estate agent B. a certified public accountant C. a stockbroker D an employment agency

B. a certified public accountant

Which of the following is not a primary activity in a firm value chain? A. outbound logistics B. accounting C. operations D. after-sales service

B. accounting

All of the following are benefits of auctions except: A. more efficient price discovery B. decreased price transparency C. increases market efficiency D. lower transaction costs

B. decrease price transparency

All of the following are solutions to the problem of high monitoring costs except: A. faces pricing B. seller rating systems C. watch lists D. proxy bidding

B. seller rating system

Interactivity in the context of e-commerce provides which of the falling functionalities? A. the ability to physically touch and manipulate a product B. complicity and content of a message C. the enabling of two-way communication between consumer and merchant D. the ability of consumers to create and distribute content

C. the enabling of two-way communication between consumer and merchant

Which of the following statements about the wholesale and agency models for selling books is not true? A. Amazon surprised traditional publishers by selling e-books of below their wholesale cost B. In the wholesale model, the retailer decides at what price to sell a book to the consumer C. A result of the agency model was that Amazon's prices on e-books rose D. Amazon supports the agency model

D. Amazon supports the agency model

Which of the following is a subscription-based retailer using predictive marketing and Big Data? A. Macy's B. Dell C. Land's End D. Stitch Fix

D. Stitch Fix

Threatening negative feedback in return for a benefit is an example of:

Feedback extortion

A firm that is first to market in a particular area and that moves quickly to gather market share is referred to as a(n) _____.

First Mover

____ is the tendency to gravitate toward, and bid for, auction listings with one or more existing bids

Herd behavior

SupplyOn, which is owned by industry giants Bosch (automotive components), Continental (tires and other automotive manufacturing) and Schaeffler (manufacturer of bearings is an example of a(n):

Industry consortium

_______ refers to any disparity in relevant market information among parties in a transaction

Information asymmetry

E-commerce can be defined as:

The use of the internet, the Web, and mobile app to transact business.

The basic value of community providers is:

They offer a fast, convenient one-stop site where users can focus on their most important concern and interests, share the experience with friends, and learn more about their own interests