MIS Chapter 10

Which of the following types of e-commerce involves businesses selling goods and services directly to individuals via the Internet?

A) B2C e-commerce

Craigslist is an example of:

A) 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?

A) Community provider

Geoadvertising sends ads to users based on their:

A) GPS locations.

Which of the following is the largest mobile advertising market?

A) Google

Which of the following dimensions of e-commerce technology has the potential to raise the quality of information?

A) Information density

What standards are referred to when discussing universal standards as a unique feature of e-commerce?

A) Internet technology standards

________ attempts to leverage the fact that there is always some demand, however small, for a product.

A) Long tail marketing

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

A) disintermediation.

Which of the following best illustrates the transaction fee revenue model?

A) eBay receives a small fee from a seller if a seller is successful in selling an item.

All of the following are examples of firms that use the community provider Internet business model except:

A) eBay.

In the ________ revenue models, a firm offers some services for free but charges a subscription fee for premium services.

A) free/freemium

Compared to traditional goods, digital goods have: A) greater pricing flexibility. B) lower marketing costs. C) higher production costs. D) higher inventory costs. E) lower menu costs.

A) greater pricing flexibility.

Compared to traditional goods, digital goods have: A) lower costs of production. B) higher marginal costs per unit. C) equivalent copying costs. D) similar inventory costs. E) less disintermediation.

A) lower costs of production.

What is the primary benefit to consumers of disintermediation?

B) Lower costs

Which of the following marketing formats is sales oriented, rather than branding oriented or a mix?

B) Search engine

Which of the following statements about EDI is not true?

B) Today, EDI is only used for document automation.

Which of the following best illustrates the affiliate revenue model?

B) Yelp receives a fee after steering a customer to a participating Web site where he or she makes a purchase.

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

B) asymmetry

Exposing an individual to ads that are chosen and based on the recorded and analyzed online behavior of the individual is referred to as:

B) behavioral targeting.

A new social mobile app you are developing allows users to find friends who are logged in and within a 10-mile radius. This would be categorized as a ________ service.

B) geoinformation

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

B) marketspace.

Market creators:

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

Transaction brokers:

B) save users money and time by processing online sales transactions.

The effort required to locate a suitable product is called:

B) search costs.

When did e-commerce begin?

C) 1995

What percent of online retailers now have m-commerce websites?

C) 55 percent

Which of the following best describes the digital social graph?

C) A mapping of all online social relationships

Which of the following statements about exchanges is not true?

C) Exchanges are the most successful form of B2B commerce.

Which of the following best illustrates the advertising revenue model?

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

Facebook's Like button is an example of which of the following?

C) Network notification

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?

C) Richness

Netflix uses which of the following revenue models?

C) Subscription

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

C) dynamic

The process of sourcing goods and materials, negotiating with suppliers, paying for goods, and making delivery arrangements is called:

C) procurement.

Information density refers to the:

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

All of the following are unique features of e-commerce technology, except:

C) transparency.

Which of the following best illustrates the sales revenue model?

D) Apple accepts micropayments for single music track downloads.

Amazon.com is known primarily for its use of which of the following business models?

D) E-tailer

Which of the following dimensions of e-commerce technology involves engaging consumers in a dialog that dynamically adjusts the experience to the individual?

D) Interactivity

What is the difference between personalization and customization, as applied to e-commerce technologies?

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

What event marked the beginning of e-commerce?

D) The first paid advertisements placed on a website.

Content providers use ________ systems to process large amounts of very small monetary transactions cost-effectively.

D) micropayment

All of the following are increased in traditional markets compared to digital markets except:

D) network effects.

A secure website that links a large firm to its suppliers and other key business partners is called a(n):

D) private industrial network.

Which of the following is a marketing format that uses banner ads and pop-ups with interactive features?

E) Display ads

Which of the following companies uses the service provider business model?

E) Dropbox

Foursquare is an example of which of the following?

E) Geosocial services

All of the following are examples of "on demand" companies except:

E) Instagram.

Which of the following is an example of a direct good in the automobile industry?

E) Sheet steel

Which of the following statements about Net marketplaces is not true?

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

Which of the following is an example of a private industrial network?

E) VW Group Supply

Netflix's public announcement of a reward for a technology solution to its movie recommendation system is an example of:

E) crowdsourcing.

Compared to digital markets, traditional markets have:

E) higher transaction costs.

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

E) price discrimination.

Procurement involves all of the following except:

E) production scheduling.

Behavioral targeting occurs at two levels: individual websites and through ISPs.

FALSE

Disintermediation provides major benefits to the distributor.

FALSE

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

FALSE

EDI standards that take advantage of network communications have yet to be fully implemented at the industry level.

FALSE

Exchanges have become one of the most popular types of Net marketplace because they encourage competitive bidding that drives prices down.

FALSE

In the affiliate revenue model, firms derive revenue by selling information or services through partner e-commerce sites.

FALSE

Information asymmetry exists when there is more information about one product than there is about a similar product.

FALSE

Podcasting allows subscribers to listen to live, streaming radio and other audio content.

FALSE

Price transparency refers to the ability of consumers to discover what merchants actually pay for products.

FALSE

Rich media advertisements are a sales-oriented marketing format.

FALSE

Switching costs are the merchants' costs of changing prices.

FALSE

Advertising networks track a user's behavior at thousands of websites.

TRUE

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

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

TRUE

Indirect goods are not involved firsthand in the production process.

TRUE

MSN is an example of the portal business model.

TRUE

Net marketplaces may either support contractual purchasing based on long-term relationships with designated suppliers or short-term spot purchasing.

TRUE

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

TRUE

The Internet reduces information asymmetry.

TRUE

The behavioral targeting of ads results in consumers responding ten times more frequently than when delivered ads randomly.

TRUE

Traditional online marketing, such as display ads, still constitutes the majority of all online marketing.

TRUE

Uber uses a form of dynamic pricing.

TRUE

Viral marketing is like traditional word-of-mouth marketing except that it is spread via online communities.

TRUE

Web personalization is used primarily as a marketing tool.

TRUE

eBay is an example of the market creator business model.

TRUE