MIS Chapter 10

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

18) 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

19) 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

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

A

37) 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

38) 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

40) 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

44) 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

45) 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) 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

A

67) ________ 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

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

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

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

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

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

39) 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

41) 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

43) 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

62) 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

64) 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

78) 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

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

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

14) 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

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

C

47) 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

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

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

63) 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

65) 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

79) 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

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

82) 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

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

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

16) 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

35) 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

42) 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

46) 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

69) 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

7) 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

80) 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

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

17) 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

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

E

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

E

61) 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

66) 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

81) 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

83) 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

84) 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

85) 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) 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

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

FALSE

25) Disintermediation provides major benefits to the distributor.

FALSE

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

FALSE

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

FALSE

30) Switching costs are the merchants' costs of changing prices.

FALSE

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

FALSE

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

FALSE

70) Rich media advertisements are a sales-oriented marketing format.

FALSE

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

FALSE

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

FALSE

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

FALSE

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

TRUE

23) The Internet reduces information asymmetry.

TRUE

24) 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

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

TRUE

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

TRUE

50) Uber uses a form of dynamic pricing.

TRUE

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

TRUE

52) MSN is an example of the portal business model.

TRUE

53) Web personalization is used primarily as a marketing tool.

TRUE

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

TRUE

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

TRUE

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

TRUE

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

TRUE

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

TRUE