Chapter 10

Choose the sequence of terms which complete the following sentences: ____ goods are not directly involved in the production process, such as office supplies. ____ goods are directly used in a production process, such as steel for auto body production. A. Indirect, Direct B. Direct, Indirect C. Traditional, Digital D. Digital, Traditional

A. Indirect, Direct

Which type of E-Commerce model involves the retailing of products/services to individual shoppers? A. Business-to-consumer (B2C) B. Business-to-business (B2B) C. Consumer-to-consumer (C2C) D. None of the above

A. Business-to-consumer (B2C) Business-to-consumer (B2C) E-Commerce involves transactions where businesses sell their products or services directly to individual customers.

According to the "EDI vs API" article, which of the following statements is true about Electronic Data Interchange (EDI)? A. EDI's are associated with longer integration times. B. EDI systems are easy to learn. C. EDI's do not have significant time/cost investments. D. EDI leverages modern Internet design principles.

A. EDI's are associated with longer integration times. EDI systems can be associated with longer integration times due to their traditional architecture and standards, as they may require substantial effort and time for setup, configuration, and integration with existing systems.

Which of the following statements best describes menu costs in terms of digital vs. traditional markets? A. In digital markets, menu costs are usually low, and in traditional markets, menu costs are usually high. B. In digital markets, menu costs are usually high, and in traditional markets, menu costs are usually low. C. Menu costs are usually low in both digital and traditional markets. D. Menu costs are usually high in both digital and traditional markets.

A. In digital markets, menu costs are usually low, and in traditional markets, menu costs are usually high. In digital markets, the costs associated with changing prices are generally lower due to the ease of altering digital prices, whereas in traditional markets (such as brick-and-mortar stores), changing prices often involves higher associated costs.

ABC Inc. is a "mashup" site which shows the price for Widgets sold by multiple retailers. When users click on the picture of a Widget, 30 different online retailer prices for those Widgets are shown on the screen. ABC Inc.'s site increases ______, or the ease with which consumers can find the variety of prices in the market. A. Price transparency B. Cost transparency C. Richness D. Interactivity

A. Price transparency ABC Inc.'s site enhances price transparency by providing consumers with easy access to various prices offered by different retailers for the same product (Widgets in this case).

Choose the sequence of terms which complete the sentences below: ____ are the costs associated with the effort required to find suitable products. ____ are the costs merchants must pay simply to bring their goods to market. A. Search costs, Market entry costs B. Market entry costs, Search costs C. Universal costs, Ubiquity costs D. Richness costs, Interactivity costs

A. Search costs, Market entry costs The completed sentences would be: "Search costs are the costs associated with the effort required to find suitable products. Market entry costs are the costs merchants must pay simply to bring their goods to market."

Which of the following statements best describes recent trends in E-Commerce? A. The growth of social media usage, smartphones, and interest in local marketing has cultivated a social-mobile-local E-commerce model of conversation and engagement. B. E-Commerce is reserved strictly for large companies who can buy display ads on large search engines like Yahoo. C. Social media and smartphone usage has weakened E-Commerce. D. Display ads are being replaced by video ads.

A. The growth of social media usage, smartphones, and interest in local marketing has cultivated a social-mobile-local E-commerce model of conversation and engagement. This statement accurately reflects how recent trends in E-Commerce have been influenced by the growth of social media, increased smartphone usage, and the focus on local marketing strategies, leading to the development of a social-mobile-local E-commerce model.

_____ networks create a network of several thousand of the most popular websites, tracking the behavior of these users across the entire network, building profiles of each user, and then selling these profiles to advertisers in a real-time bidding environment. A. Estimated B. Advertising C. Intellectual D. Long tail

B. Advertising

____ marketing refers to tracking clickstreams of individuals on thousands of websites to understand interests and intentions, and expose them to advertisements that are uniquely suited to their online behavior. A. Micropayment B. Behavioral C. Affiliate D. Transaction fee

B. Behavioral

____ allows users to change the delivered product or service based on preferences or prior behavior. ______ allows merchants to target their marketing messages to specific individuals by adjusting the message to a person's clickstream behavior, name, interests, and past purchases. A. Market entry costs, Search costs B. Customization, Personalization C. Personalization, Customization D. Price transparency, Cost transparency

B. Customization, Personalization

___ enables the computer-to-computer exchange between two organizations of standard transactions such as invoices, bills, shipment schedules, or purchase orders. A. Intellectual property B. Electronic Data Interchange (EDI) C. Consumer-to-consumer (C2C) Networks D. Crowdsourcing

B. Electronic Data Interchange (EDI)

_____ is the method of publishing audio or video broadcasts through the Internet, allowing subscribing users to download audio or video files to their personal computers. A. Vlog B. Podcast/podcasting C. Intellectual property D. Blog

B. Podcast/podcasting

A ___ typically consists of a large firm using a secure website to link its suppliers and other key business partners. The buyer owns the network, and it permits the firm and designated suppliers, distributors, and other business partners to share information such as product design and development, marketing, and production scheduling. A. Consumer-to-consumer (C2C) Network B. Private industrial network/private exchange C. Crowdsource D. Advertising network

B. Private industrial network/private exchange

In a phenomenon known as _______, some argue that large numbers of people can make better decisions about a wide range of topics or products than a single person or event a small committee of experts. A. Timelines B. Wisdom of crowds C. Intellectual property D. Newsfeeds

B. Wisdom of crowds

In a(n) ___ revenue model, display ads, video ads, and search engine text ads are utilized in order to expose a large audience of visitors to advertisements. A. Subscription B. Advertising C. Sales D. Micropayment

B. Advertising In an advertising revenue model, display ads, video ads, and search engine text ads are utilized to expose a large audience of visitors to advertisements. This model generates revenue by selling ad space on a website or platform to advertisers looking to reach the platform's audience.

Which type of E-Commerce model involves the sales of goods and services among businesses? A. Business-to-consumer (B2C) B. Business-to-business (B2B) C. Consumer-to-consumer (C2C) D. None of the above

B. Business-to-business (B2B) Business-to-business (B2B) E-Commerce involves commercial transactions between businesses, where one business sells products or services to another business.

Which of the following would best fit the definition of a digital good? A. Lawnmowing service arranged through an "app." B. Movies or music C. Clothing D. A new car purchased online

B. Movies or music Digital goods are those that can be delivered or accessed electronically, primarily over the internet. Movies and music are examples of digital goods that can be purchased, downloaded, or streamed online.

A ___ describes how the firm will earn revenue, generate profits, and produce a superior return on investment. A. Intellectual property B. Revenue model C. Business-to-consumer (B2C) Model D. Business-to-business (B2B) Model

B. Revenue model A revenue model is a crucial component of a business strategy, defining the methods and approaches through which a company will generate income, cover costs, and achieve profitability.

According to the Interactive Session "Uber: Digital Disruptor," which of the following statements is true about Uber? A. Uber does not rely on users to provide feedback about its drivers. B. Uber has been accused of denying its drivers benefits of employee status by classifying them as contractors. C. Uber does not provide a Smartphone based platform. D. Uber's proliferation has not led to any conflicts with traditional taxi services.

B. Uber has been accused of denying its drivers benefits of employee status by classifying them as contractors. Uber has faced various legal and labor-related controversies regarding the classification of its drivers as independent contractors rather than as employees, which has led to accusations of denying them the benefits associated with employee status.

Which of the following statements best aligns with the concept of "User content generation?" A. User content generation is the same as the traditional "broadcast model", where content is created in a central location by experts, and shared with audiences concentrated in huge numbers. B. User content generation describes the ability for technology users to create and share content with their friends, in the form of text, videos, music, or photos.

B. User content generation describes the ability for technology users to create and share content with their friends (and a larger worldwide community), in the form of text, videos, music, or photos. User content generation refers to the capability of technology users to produce and distribute content, such as text, videos, music, or photos, among their friends and a broader global community.

Which of the following scenarios best illustrate disintermediation? A. XYZ Inc. used to sell its Widgets directly to customers. Last year, XYZ Inc. decided to discontinue its direct to consumer business and chose 3 popular retail stores to sell its product. B. XYZ Inc. used to sell its Widgets to customers through retailers. Last year, XYZ Inc. discontinued its relationship with retailers, and launched its own website to sell and ship Widgets directly to customers.

B. XYZ Inc. used to sell its Widgets to customers through retailers. Last year, XYZ Inc. discontinued its relationship with retailers and launched its own website to sell and ship Widgets directly to customers. Disintermediation involves the elimination or reduction of intermediaries, such as retailers, between the manufacturer or provider and the end customer, allowing for direct sales or transactions without intermediaries. In this scenario, XYZ Inc. removed the retailers from its sales channel by selling directly to customers through its website.

Which of the following statements describe "E-Commerce"? A. E-Commerce is about digitally enabled commercial transactions between and among organizations and individuals. B. E-Commerce refers to the use of the Internet and the web to transact business. C. Both A and B D. None of the above.

C. Both A and B E-Commerce involves digitally enabled commercial transactions between and among organizations and individuals, utilizing the Internet and the web to transact business.

_______ describes the scenario when one party in a transaction has more information that is more important for the transaction than the other party. A. Information density B. Information super highway C. Information asymmetry D. Information richness

C. Information asymmetry

According to the "EDI vs API" article, which of the following statements is true about EDI data points? A. EDI data standards dictate the position of each datapoint. B. EDI data standards dictate the relationships between two or more data points. C. Both A and B D. None of the Above

C. Both A and B EDI data standards typically dictate the position of each data point and the relationships between two or more data points, ensuring the proper structure and format for data transmission and interpretation.

According to the "EDI vs. API" article, what is an option for organizations with previous investments in EDI? A. Use the EDI to front end integration with partners. B. Build an API layer underneath the EDI. C. Complement the existing EDI infrastructure with APIs; build an API layer on top of the EDI. D. Completely remove and decommission the EDI, and replace it with API's.

C. Complement the existing EDI infrastructure with APIs; build an API layer on top of the EDI. This approach allows organizations to leverage their existing EDI infrastructure while enhancing and complementing it with modern API technology to achieve more agile and flexible data integration.

Which type of E-Commerce model involves consumers selling directly to consumers (for example, on Ebay)? A. Business-to-consumer (B2C) B. Business-to-business (B2B) C. Consumer-to-consumer (C2C) D. None of the above

C. Consumer-to-consumer (C2C) Consumer-to-consumer (C2C) E-Commerce involves transactions where individual consumers sell products or services directly to other individual consumers.

____ refers to tangible and intangible products of the mind for which the creator claims a property right. A. Podcast B. E-Tailer C. Intellectual property D. Blog

C. Intellectual property Intellectual property encompasses creations of the mind, such as inventions, literary and artistic works, designs, symbols, names, and images used in commerce, for which the creator asserts rights and legal protection.

In a(n) ____ revenue model, companies derive revenue by selling goods, information, or services to customers. Companies such as Amazon, LLBean.com, and Gap.com all have this type of revenue model. A. Advertising B. Subscription C. Sales D. Transaction fee

C. Sales In a sales revenue model, companies derive revenue by selling goods, information, or services directly to customers. Companies like Amazon, LLBean.com, and Gap.com follow this model by selling products directly to consumers through their online platforms.

In a(n) ____ revenue model, a website offering content or services charges a subscription fee for access to some or all of its offerings on an ongoing basis. A. Transaction fee B. Advertising C. Subscription D. Sales

C. Subscription In a subscription revenue model, a website offering content or services charges a subscription fee for access to some or all of its offerings on an ongoing basis. Users pay a regular fee to access the content or services provided by the platform or website.

Match each Internet business model with its definition. Content provider - A. B. C. D. E. F. G. Community provider - A. B. C. D. E. F. G. Portal - A. B. C. D. E. F. G. Service provider

Content provider: B. Creates revenue by producing digital content, such as news, music, photos, or video, over the web. The customer may pay to access the content, or revenue my be generated by selling advertising space. Community provider: G. Provides an online meeting place where people with similar interests can communicate and find useful information. Portal: C. Provides an initial point of entry to the web along with specialized content and other services. Service provider: A. Provides applications such as photo sharing, video sharing, and user-generated content as services; provides other services such as online data storage and backup.

According to the "EDI vs API" article, ___ can simplify data down to a list of elements, rather than focusing on positions and relationships. A. Points B. Hubs C. Segments D. API's (Application Programming Interfaces)

D. API's (Application Programming Interfaces)

In a(n) ____ revenue model, a company receives a fee for enabling or executing a transaction. For example, eBay provides an online auction marketplace and receives a small transaction fee from the seller if the seller is successful in selling an item. A. Sales B. Advertising C. Subscription D. Transaction fee

D. Transaction fee In a transaction fee revenue model, a company receives a fee for facilitating or executing a transaction. For instance, eBay operates on this model, taking a small transaction fee from the seller upon a successful sale of an item on its online auction marketplace.

ABC Inc. is a travel "mashup" website who collects a referral fee or percentage of revenue any time it refers a user to XYZ Hotel Inc. to book a room. What type of revenue model is ABC Inc. leveraging? A. Advertising revenue model B. Transaction fee revenue model C. Subscription revenue model D. Affiliate revenue model

D. Affiliate revenue model In an affiliate revenue model, a company or website earns a commission or referral fee for directing customers to another company's products or services. In this scenario, ABC Inc. earns revenue by referring users to XYZ Hotel Inc. and receiving compensation in return.

ABC Inc. is an online retailer. The normal retail price for a Widget on ABC Inc.'s site is $3.00. When ABC Inc. exceeds a specific threshold of Widget inventory in its warehouse, the ABC Inc. website will temporarily reduce the retail Widget price by .10 cents for 24 hours. What type of pricing strategy is ABC Inc. using? A. Information density pricing B. Brand pricing C. Search cost D. Dynamic pricing

D. Dynamic pricing ABC Inc. is employing dynamic pricing by adjusting the retail price of the Widget based on inventory levels for a temporary period.

As _____ increases, information collection, storage, processing, and communication costs are reduced. A. Price discrimination B. Market entry cost C. Search cost D. Information density

D. Information density As information density increases, the costs associated with information collection, storage, processing, and communication are reduced. Higher information density implies more information is available in a given amount of space, which can lead to reduced costs in managing and utilizing that information.

Match each Internet business model with its definition. - A. B. C. D. E. F. G. E-Tailer - A. B. C. D. E. F. G. Transaction broker - A. B. C. D. E. F. G. Market creator - A. B. C. D. E. F. G.

E-Tailer: D. Sells physical products directly to consumers or to individual businesses. Transaction broker: F. Saves users money and time by processing online sales transactions and generating a fee each time a transaction occurs. Market creator: E. Provides a digital environment where buyers and sellers can meet, search for products, display products, and establish prices for those products; can serve consumers or B2B E-commerce, generating revenue from transaction fees.

According to the "EDI vs API" article, EDI response times are generally fast, and validations occur in real-time. True False

False. EDI (Electronic Data Interchange) systems might not always guarantee fast response times and real-time validations. The traditional setup and structure of EDI can sometimes lead to longer processing times and delayed validations compared to modern API systems.

Only consumer-to-consumer (C2C) transactions can be conducted on Mobile devices. Business-to-consumer (B2C) and Business-to-business (B2B) E-Commerce transactions cannot be conducted on Mobile devices. True False

False All three types of E-Commerce transactions—Business-to-consumer (B2C), Business-to-business (B2B), and Consumer-to-consumer (C2C)—can be conducted on mobile devices. Mobile E-Commerce platforms and applications facilitate various forms of transactions, allowing users to engage in buying and selling activities across these different models through their mobile devices.

The global positioning system (GPS) on Smartphones has had nothing to do with the proliferation of geolocation based services. True False

False. The global positioning system (GPS) integrated into smartphones has significantly contributed to the proliferation of geolocation-based services. Smartphones' GPS technology enables various applications and services to provide location-based features, such as maps, location sharing, geotagging, local search, and navigation, among others.

Exchanges proliferated during the early years of E-commerce, but many have failed. Suppliers were reluctant to participate because exchanges encouraged competitive bidding which drove prices down. True False

True. During the early years of E-commerce, numerous exchanges emerged, but many encountered failure. Some suppliers were reluctant to participate in these exchanges due to the competitive nature, as the structure often encouraged competitive bidding, resulting in downward pressure on prices.

A. Internet/web technology is available everywhere: at work, at home, and elsewhere by desktop and mobile devices. Mobile devices extend service to local areas and merchants. B. The technology works through interaction with the user. C. The technology reduces information costs and raises quality. D. Video, audio, and text messages are possible. E. One set of technology standards, namely Internet standards.

Universal standards: E. One set of technology standards, namely Internet standards. Ubiquity: A. Internet/web technology is available everywhere: at work, at home, and elsewhere by desktop and mobile devices. Mobile devices extend service to local areas and merchants. Richness: D. Video, audio, and text messages are possible. Interactivity: B. The technology works through interaction with the user. Information Density: C. The technology reduces information costs and raises quality.