Chapter 10 MIS NO LONG ANSWER

40) 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) B2C e-commerce

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

A) C2C e-commerce.

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

A) disintermediation.

48) 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) free/freemium

5) 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) Common spoken and written languages

20) 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) Lower costs

65) 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) Search engine

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

96) 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) Web mission statement

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

C) 1995

92) 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

C) 55 percent

64) 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 collection of millions of personal social graphs D) All of the online and offline relationships a person has E) All of the relationships in an online community

C) A collection of millions of personal social graphs

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

C) price discrimination.

78) 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) distribution E) production.

C) procurement.

99) 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) Corporate

38) 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) E-tailer

51) Which of the following companies uses the subscription revenue model? A) Expedia B) ETrade C) Facebook D) Netflix E) Google Search

D) Netflix

93) Which of the following is not an example of location-based services? A) Foursquare B) Google Maps C) Waze D) Uber E) Netflix

E) Netflix

82) 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) Sheet steel

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

19) Compared to digital goods, traditional goods have: A) lower inventory costs. B) lower marginal costs per unit. C) lower copying costs. D) more variable pricing. E) higher costs of distribution.

E) higher costs of distribution.

12) 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) price discrimination.

84) 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) production scheduling.

23) Retail consumer e-commerce is growing at single-digit rates.

FALSE

24) The Internet increases information asymmetry.

FALSE

26) Disintermediation does not benefit the consumer.

FALSE

28) Traditional online marketing, such as display ads, have been replaced by video ads.

FALSE

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

FALSE

69) Rich media advertisements are used to sell products and services online.

FALSE

73) Search engine marketing is the largest form of web marketing.

FALSE

22) E-commerce refers to the use of the Internet and the web to transact business.

TRUE

25) 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

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

TRUE

31) Menu costs are the merchants' costs of changing prices.

TRUE

32) Behavioral targeting refers to targeting ad messages to a person's clickstream behavior.

TRUE

53) YouTube does not use dynamic pricing.

TRUE

54) eBay is an example of the market creator business model.

TRUE

55) Yahoo is an example of the portal business model.

TRUE

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

TRUE

52) As described in the opening case, what is YouTube's revenue model? A) Advertising B) Transaction fee C) Subscription D) Freemium E) Affiliate

A) Advertising

43) 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

A) Community provider

91) 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) GPS locations.

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

A) Google

9) 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) Information density

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

90) 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

A) geosocial

18) Compared to traditional goods, digital goods have: A) low marginal costs of production. B) higher delivery costs. C) lower initial production costs. D) higher inventory costs. E) higher marginal costs.

A) low marginal costs of production.

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

A) lower search costs.

98) 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) social media

13) 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) asymmetry

14) Changing the prices of products based on the level of demand characteristics of the customer is called ________ pricing. A) menu B) dynamic C) flexible D) asymmetric E) customized

B) dynamic

46) As described in the chapter case, Uber uses the ________ revenue model. A) service provider B) market creator C) community provider D) portal E) transaction broker

B) market creator

3) 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) marketspace.

16) In digital markets: A) search costs increase. B) menu costs decline. C) switching costs decline. D) network costs decline. E) information asymmetry increases.

B) menu costs decline.

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

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

10) 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) search costs.

41) As described in the opening case, what is the primary business model employed by YouTube? A) Portal B) E-tailer C) Content provider D) Transaction broker E) Market creator

C) Content provider

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

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

68) ________ involves placing ads in social network newsfeeds or within traditional editorial content, such as a newspaper article. A) Behavioral targeting B) Crowdsourcing C) Native advertising D) Demand prediction software E) Lead generation marketing

C) Native advertising

66) 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) Network notification

8) 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) Richness

97) 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) Website plan

67) An environment where consumers can share their shopping experiences with one another by viewing products, chatting, or texting about brands, products, and services is an example of: A) network notification. B) web personal marketing. C) collaborative shopping. D) social search. E) social sign-on.

C) collaborative shopping.

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

45) 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) Apple accepts micropayments for single music track downloads.

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

D) Interactivity

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

1) 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) The first paid advertisements placed on a website

49) 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) micropayment

79) 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) private industrial network.

63) Exposing an individual to ads that are chosen based on the choices of their friends is an example of: A) clickstream advertising. B) behavioral targeting. C) online profiling. D) social marketing. E) crowdsourcing.

D) social marketing.

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

E) Instagram.

83) 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) VW Group Supply

62) Ikea asked for the help of its customers in designing new furniture. This is an example of: A) prediction markets. B) behavioral targeting. C) long-tail marketing. D) social shopping. E) crowdsourcing.

E) crowdsourcing.

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

FALSE

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

FALSE

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

FALSE

30) Cost transparency refers to the ability of consumers to discover what merchants actually pay for products.

TRUE

57) In the affiliate revenue model, firms derive revenue by referring consumers to other firms selling online.

TRUE

70) Behavioral targeting occurs at individual websites and within apps.

TRUE

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

TRUE

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

TRUE

88) Indirect goods are not involved firsthand in the production process.

TRUE