MNGT 220 chapter 10 review

Information ________ exists when one party in a transaction has more information that is important for the transaction than the other party.

asymmetry

Which of the following Internet business models involves a merchant creating an online digital environment that enables people with like interests to share information?

community provider

Changing the prices of products based on the level of demand characteristics of the customer is called ________ pricing.

dynamic

Amazon.com is known primarily for its use of which of the following business models?

e- tailer

Which of the following best illustrates the transaction fee revenue model?

eBay receives a small fee from a seller if a seller is successful is selling an item

true or false the internet increases information asymmetry

false

true or false Behavioral targeting cannot be used if a consumer is using a mobile app.

false

true or false Information asymmetry exists when there is more information about one product than there is about a similar product.

false

true or false The term switching costs refers to a merchant's costs of changing prices

false

Compared to digital goods, traditional goods have:

higher cost of distribution

Using the Internet to find potential customers inexpensively for products that have low demand is an example of:

long tail marketing

What is the primary benefit to consumers of disintermediation?

lower costs

Compared to traditional markets, digital markets have:

lower search costs

The universal standards of the Internet and e-commerce lower which of the following?

market entry cost

________ involves placing ads in social network newsfeeds or within traditional editorial content, such as a newspaper article.

native advertising

Describe the use of personalization and customization in e-commerce. What business value do these techniques have?

personalization allows merchants to tailor websites toward the consumer behavior based upon what they have visited in the past and items they have bought in the past. this allows the business to reduce its marketing cost. customization enables merchants to change the product being delivered based upon the users preference. the business value is improves sales results

Selling the same goods to different targeted groups at different prices is called:

price discrimination

A secure website that links a large firm to its suppliers and other key business partners is called a(n):

private industrial network

The process of sourcing goods and materials, negotiating with suppliers, paying for goods, and making delivery arrangements is called:

procurement

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?

richness

Transaction brokers:

save users money and time by processing transactions normally handled in person, by phone or email.

Information density refers to the

total amount and quantity of information available to market participants

true or false Advertising networks track a user's behavior at thousands of websites.

true

true or false Behavioral targeting refers to targeting ad messages to a person's clickstream behavior.

true

true or false E-commerce refers to the use of the Internet and the web to transact business.

true

true or false In general, for digital goods, the marginal cost of producing another unit is about zero.

true

true or false In the affiliate revenue model, firms derive revenue by referring consumers to other firms selling online

true

true or false 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.

true

What is an exchange, and why did many early exchanges fail?

Exchanges are independently owned third-party Net marketplaces that connect thousands of suppliers and buyers for spot purchasing. Many exchanges provide vertical markets for a single industry, such as food, electronics, or industrial equipment, and they primarily deal with direct inputs. Exchanges proliferated during the early years of e-commerce, but many failed. Suppliers were reluctant to participate because the exchanges encouraged competitive bidding that drove prices down and did not offer any long-term relationships with buyers or services to make lowering prices worthwhile.

Which of the following best illustrates the advertising revenue model?

Facebook provides a social network for free but shows sponsored content is users news feeds

Define location-based services and briefly describe the main categories of these services. Which of the categories do you feel has the most potential in terms of e-commerce revenues, and why?

Location-based services are services that use GPS mapping services available on smartphones to deliver value-added services. They include geosocial services, geoadvertising, and geoinformation services. A geosocial service can tell you where your friends are meeting. Geoadvertising services can tell you where to find the nearest Italian restaurant, and geoinformation services can tell you the price of a house you are looking at, or about special exhibits at a museum you are passing. geoadvertising has the most potential.

Craigslist is an example of:

C2C e- commerce