CHP10

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

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

A

18) Compared to traditional goods, digital goods have: A) a lower marginal cost of production on a per unit basis. B) higher delivery costs. C) lower initial production costs. D) higher inventory costs. E) higher marginal costs.

A

2) All of the following are examples of social commerce companies except: A) Uber. B) Facebook. C) Twitter. D) Pinterest. E) Instagram.

A

39) Craigslist is an example of: A) C2C e-commerce. B) B2B e-commerce. C) B2C e-commerce. D) M-commerce. E) B2G commerce.

A

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

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

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

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

5) The universal standards of the Internet and e-commerce lower which of the following? A) Market entry costs B) Richness C) Information density D) Ubiquity E) Interactivity

A

52) Which of the following revenue models generates almost all of Yahoo's revenue? A) Advertising B) Transaction fee C) Subscription D) Freemium E) Affiliate

A

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

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

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

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

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

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

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

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

B

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

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

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

B

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

46) Airbnb uses the ________ business model. A) service provider B) market creator C) community provider D) portal E) transaction broker

B

64) According to small world theory, you are only ________ links away from any other person on earth. A) 5 B) 6 C) 10 D) 2550 E) 100

B

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

76) 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

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

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

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

C

41) Which of the following is an example of a company primarily engaged in B2B e-commerce? A) Uber B) Walmart C) Elemica D) Yahoo E) eBay

C

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

6) 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

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

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

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

77) 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

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

80) 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

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

C

92) What percent of top retailers now have m-commerce websites? A) 17 percent B) 27 percent C) 47 percent D) 57 percent E) 67 percent

C

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

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

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

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

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

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

51) Which of the following companies uses the subscription revenue model? A) Expedia B) E*Trade C) Facebook D) Netflix E) Yelp

D

63) Using the Internet to find potential customers inexpensively for products that have low demand is an example of: A) clickstream advertising. B) behavioral targeting. C) online profiling. D) long tail marketing. E) crowdsourcing.

D

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

78) 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

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) Email

D

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

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

62) Pepsico using Super Bowl viewers to build an online video is an example of: A) prediction markets. B) behavioral targeting. C) long-tail marketing. D) social shopping. E) crowdsourcing.

E

79) 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

81) 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

82) 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

83) 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

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

23) In 2020, B2C e-commerce revenues are expected to grow at single-digit rates.

F

24) The Internet increases information asymmetry.

F

26) Disintermediation does not benefit the consumer.

F

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

F

31) The term switching costs refers to a merchant's costs of changing prices.

F

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

F

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

F

69) Social marketing enables firms to tightly control their brands.

F

70) Behavioral targeting cannot be used if a consumer is using a mobile app.

F

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

F

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

T

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.

T

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

T

28) Using the number of unique visitors a website produces as a measure of marketing success is a carryover from the world of television.

T

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

T

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

T

53) Streaming is a publishing method for music and video files that flows a continuous stream of content to a user's device without being stored locally on the device.

T

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

T

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

T

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

T

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

T

73) A majority of Americans want a Do Not Track option in browsers that will stop websites from collecting information about their online behavior.

T

84) EDI can be used as a system for continuous replenishment.

T

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

T

87) Indirect goods are goods that are not directly involved in the production process.

T