Chapter 10 CIS

Advertising networks track a user's behavior at thousands of websites. A) TRUE B) FALSE

A

All of the following are examples of firms that use the community provider Internet business model except: A) eBay. B) Facebook. C) Twitter. D) Instagram. E) Pinterest.

A

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. A) TRUE B) FALSE

A

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

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

Craigslist is an example of: A) C2C e-commerce. B) B2B e-commerce. C) B2C e-commerce. D) M-commerce. E) P2P-commerce.

A

Geoadvertising sends ads to users based on their: A) GPS locations. B) home addresses. C) shopping preferences. D) website behaviors. E) Google Maps settings.

A

In general, for digital goods, the marginal cost of producing another unit is about zero. A) TRUE B) FALSE

A

In planning a robust e-commerce presence, you will want to consider the blog platform as part of your ________ presence. A) social media B) e-mail C) community D) website E) offline media

A

In the ________ revenue models, a firm offers some services for free but charges a subscription fee for premium services. A) free/freemium B) subscription C) transaction fee D) affiliate E) sales

A

Indirect goods are not involved firsthand in the production process. A) TRUE B) FALSE

A

MSN is an example of the portal business model. A) TRUE B) FALSE

A

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

A

Reducing the business process layers in a distribution channel is called: A) disintermediation. B) BPR. C) market segmentation. D) network effects. E) market transparency.

A

Retail consumer e-commerce is growing at double-digit rates. A) TRUE B) FALSE

A

The Internet reduces information asymmetry. A) TRUE B) FALSE

A

The behavioral targeting of ads results in consumers responding ten times more frequently than when delivered ads randomly. A) TRUE B) FALSE

A

Traditional online marketing, such as display ads, still constitutes the majority of all online marketing. A) TRUE B) FALSE

A

Uber uses a form of dynamic pricing. A) TRUE B) FALSE

A

Viral marketing is like traditional word-of-mouth marketing except that it is spread via online communities. A) TRUE B) FALSE

A

Web personalization is used primarily as a marketing tool. A) TRUE B) FALSE

A

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. B) Yelp receives a fee after steering a customer to a participating website where he or she makes a purchase. C) Pandora provides basic services for free, but charges a premium for advanced services. D) Apple accepts micropayments for single music track downloads. E) Netflix charges customers a monthly fee for access to its library of movies.

A

Which of the following dimensions of e-commerce technology has the potential to raise the quality of information? A) Information density B) Richness C) Customization D) Interactivity E) Global reach

A

Which of the following is the largest mobile advertising market? A) Google B) Yahoo C) Facebook D) Microsoft E) Twitter

A

Which of the following types of e-commerce involves businesses selling goods and services directly to individuals via the Internet? A) B2C e-commerce B) B2B e-commerce C) C2C e-commerce D) M-commerce E) P2P e-commerce

A

________ attempts to leverage the fact that there is always some demand, however small, for a product. A) Long tail marketing B) Behavioral targeting C) Crowdsourcing D) Demand prediction software E) Lead generation marketing

A

eBay is an example of the market creator business model. A) TRUE B) FALSE

A

A marketplace extended beyond traditional boundaries and removed from a temporal and geographic location is called a(n): A) exchange. B) marketspace. C) online marketplace. D) e-hub. E) net marketplace.

B

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. A) geosocial B) geoinformation C) geoadvertising D) geomapping E) geolocating

B

Behavioral targeting occurs at two levels: individual websites and through ISPs. A) TRUE B) FALSE

B

Disintermediation provides major benefits to the distributor. A) TRUE B) FALSE

B

E-commerce refers to the use of any networking technologies to transact business. A) TRUE B) FALSE

B

EDI standards that take advantage of network communications have yet to be fully implemented at the industry level. A) TRUE B) FALSE

B

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

B

Exposing an individual to ads that are chosen and based on the recorded and analyzed online behavior of the individual is referred to as: A) clickstream advertising. B) behavioral targeting. C) online profiling. D) long tail marketing. E) crowdsourcing.

B

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

B

Information ________ exists when one party in a transaction has more information that is important for the transaction than the other party. A) transparency B) asymmetry C) complexity D) discrimination E) competition

B

Information asymmetry exists when there is more information about one product than there is about a similar product. A) TRUE B) FALSE

B

Market creators: A) save users money and time by processing online sales transactions. B) provide a digital environment where buyers and sellers can establish prices for products. C) create revenue by providing digital content over the web. D) sell physical products directly to consumers or individual businesses. E) generate revenue from advertising or from directing buyers to sellers.

B

Podcasting allows subscribers to listen to live, streaming radio and other audio content. A) TRUE B) FALSE

B

Price transparency refers to the ability of consumers to discover what merchants actually pay for products. A) TRUE B) FALSE

B

Rich media advertisements are a sales-oriented marketing format. A) TRUE B) FALSE

B

Switching costs are the merchants' costs of changing prices. A) TRUE B) FALSE

B

The effort required to locate a suitable product is called: A) price discrimination. B) search costs. C) menu costs. D) shopping costs. E) location costs.

B

Transaction brokers: A) generate revenue from advertising or from directing buyers to sellers. B) save users money and time by processing online sales transactions. C) provide a digital environment where buyers and sellers can establish prices for products. D) sell physical products directly to consumers or individual businesses. E) provide online meeting places where people with similar interests can communicate.

B

What is the primary benefit to consumers of disintermediation? A) Faster service B) Lower costs C) Higher quality D) Greater choices E) None, because disintermediation primarily benefits manufacturers.

B

What standards are referred to when discussing universal standards as a unique feature of e-commerce? A) Internet technology standards B) Common spoken and written languages C) Universal measuring standards D) Universal advertising and media format standards E) EDI standards

B

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 B) Service provider C) Market creator D) Transaction broker E) Portal

B

Which of the following best illustrates the affiliate revenue model? A) eBay receives a small fee from a seller if a seller is successful in selling an item. B) Yelp receives a fee after steering a customer to a participating Web site where he or she makes a purchase. C) Pandora provides basic services for free, but charges a premium for advanced services. D) Apple accepts micropayments for single music track downloads. E) Netflix charges customers a monthly fee for access to its library of movies.

B

Which of the following is a milestone for the Phase 1: Planning phase of developing an e-commerce presence? A) Website plan B) Web mission statement C) Functional website D) Social media plan E) Mobile media plan

B

Which of the following marketing formats is sales oriented, rather than branding oriented or a mix? A) Lead generation B) Search engine C) Rich media D) Display ads E) Video

B

Which of the following statements about EDI is not true? A) Each major industry in the United States has EDI standards. B) Today, EDI is only used for document automation. C) Many organizations still use private networks for EDI. D) EDI systems are increasingly web-enabled. E) About 80 percent of online B2B e-commerce is still based on EDI.

B

All of the following are unique features of e-commerce technology, except: A) personalization/customization. B) interactivity. C) transparency. D) richness. E) global reach.

C

Facebook's Like button is an example of which of the following? A) Social sign-on B) Collaborative shopping C) Network notification D) Social search E) Newsfeed

C

Information density refers to the: A) richness—complexity and content—of a message. B) total amount and quantity of information delivered to consumers by merchants. C) total amount and quantity of information available to all market participants. D) amount of information available to reduce price transparency. E) amount of physical storage space needed to store data about a specific entity, such as a product or consumer.

C

Netflix uses which of the following revenue models? A) Advertising B) Transaction fee C) Subscription D) Freemium E) Affiliate

C

The process of sourcing goods and materials, negotiating with suppliers, paying for goods, and making delivery arrangements is called: A) e-procurement. B) SCM. C) procurement. D) sourcing. E) production.

C

Varying a product's price according to the supply situation of the seller is called ________ pricing. A) menu B) flexible C) dynamic D) asymmetric E) customized

C

When did e-commerce begin? A) 1965 B) 1983 C) 1995 D) 1999 E) 2000

C

Which of the following best describes the digital social graph? A) A person's direct and indirect relationships B) All of a person's closest digital relationships C) A mapping of all online social relationships D) All of the online and offline relationships a person has E) All of the relationships in an online community

C

Which of the following best illustrates the advertising revenue model? A) eBay receives a small fee from a seller if a seller is successful in selling an item. B) Yelp receives a fee after steering a customer to a participating website where he or she makes a purchase. C) Facebook provides a social network for free, but shows sponsored content in users' News Feeds. D) Apple accepts micropayments for single music track downloads. E) Netflix charges customers a monthly fee for access to its library of movies.

C

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? A) Ubiquity B) Personalization/customization C) Richness D) Interactivity E) Social technology

C

Which of the following is a milestone for the website development phase of building an e-commerce presence? A) Web mission statement B) Social media plan C) Website plan D) Web presence map E) Functional website

C

Which of the following statements about exchanges is not true? A) Exchanges are independently owned third-party Net marketplaces. B) Some exchanges provide vertical markets. C) Exchanges are the most successful form of B2B commerce. D) Some exchanges enable a spot market. E) Go2Paper is an example of an exchange.

C

A secure website that links a large firm to its suppliers and other key business partners is called a(n): A) e-hub. B) marketspace. C) exchange. D) private industrial network. E) net marketplace.

D

All of the following are increased in traditional markets compared to digital markets except: A) search costs. B) menu costs. C) switching costs. D) network effects. E) information asymmetry.

D

Amazon.com is known primarily for its use of which of the following business models? A) Content provider B) Portal C) Market creator D) E-tailer E) Transaction broker

D

Content providers use ________ systems to process large amounts of very small monetary transactions cost-effectively. A) subscription B) mobile payment C) transaction fee D) micropayment E) affiliate revenue

D

What event marked the beginning of e-commerce? A) The first product sold online. B) The first domain name registered. C) The first e-mail sent. D) The first paid advertisements placed on a website. E) The first product advertised online.

D

What is the difference between personalization and customization, as applied to e-commerce technologies? A) Customization is any type of adjustment made to a product by the user; personalization refers to a business changing a product or service for the user. B) Personalization is any type of adjustment made to a product by the user; customization refers to a business changing a product or service for the user. C) Customization refers to adjusting marketing messages for a consumer; personalization refers to adjusting a product or service based on a user's preferences. D) Personalization refers to adjusting marketing messages for a consumer; customization refers to adjusting a product or service based on a user's preferences. E) There is no difference. Both terms refer to changing a product or communication for the consumer.

D

What percent of online retailers now have m-commerce websites? A) 15 percent B) 25 percent C) 55 percent D) 75 percent E) 85 percent

D

Which of the following best illustrates the sales revenue model? A) eBay receives a small fee from a seller if a seller is successful in selling an item. B) Yelp receives a fee after steering a customer to a participating website where he or she makes a purchase. C) Pandora provides basic services for free, but charges a premium for advanced services. D) Apple accepts micropayments for single music track downloads. E) Netflix charges customers a monthly fee for access to its library of movies.

D

Which of the following dimensions of e-commerce technology involves engaging consumers in a dialog that dynamically adjusts the experience to the individual? A) Ubiquity B) Personalization/customization C) Richness D) Interactivity E) Information density

D

Which of the following is not one of four types of presence to be considered when building an e-commerce presence? A) Offline media B) Websites C) Social media D) Corporate E) E-mail

D

All of the following are examples of "on demand" companies except: A) Uber. B) Airbnb. C) Lyft. D) Instacart. E) Instagram.

E

Compared to digital markets, traditional markets have: A) lower search costs. B) stronger network effects. C) higher delayed gratification effects. D) reduced asymmetry. E) higher transaction costs.

E

Foursquare is an example of which of the following? A) Social graph B) Collaborative shopping C) Net marketplace D) Crowdsourcing application E) Geosocial services

E

Netflix's public announcement of a reward for a technology solution to its movie recommendation system is an example of: A) prediction markets. B) behavioral targeting. C) long-tail marketing. D) social shopping. E) crowdsourcing.

E

Procurement involves all of the following except: A) negotiating with suppliers. B) paying for goods. C) making delivery arrangements. D) sourcing. E) production scheduling.

E

Selling the same goods to different targeted groups at different prices is called: A) cost customization. B) cost optimization. C) price gouging. D) cost personalization. E) price discrimination.

E

Which of the following companies uses the service provider business model? A) Expedia B) ETrade C) Facebook D) Yahoo E) Dropbox

E

Which of the following is a marketing format that uses banner ads and pop-ups with interactive features? A) Search engine ads B) Video ads C) Rich media ads D) E-mail ads E) Display ads

E

Which of the following is an example of a direct good in the automobile industry? A) Computer equipment B) Paper C) Office furniture D) Roofing shingles E) Sheet steel

E

Which of the following is an example of a private industrial network? A) Exostar B) Go2Paper C) Elemica D) Expedia E) VW Group Supply

E

Which of the following statements about Net marketplaces is not true? A) Some Net marketplaces sell direct goods. B) Some Net marketplaces serve vertical markets. C) Some Net marketplaces sell indirect goods. D) Some Net marketplaces support contractual purchases based on long-term relationships. E) Some Net marketplaces are owned by a single firm and used to link solely to the firm's suppliers and key business partners.

E