Quiz 10

An example of the portal business model is Facebook.

False

Behavioral targeting occurs at two levels: individual Web sites and through ISPs.

False

Disintermediation provides major benefits to the distributor.

False

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

False

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

False

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

False

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

False

Intellectual property refers to all forms of human expression, both tangible and intangible.

False

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

False

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

False

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

False

Rich media advertisements are a sales-oriented marketing format.

False

Switching costs are the merchants' costs of changing prices.

False

Advertising networks track a user's behavior at thousands of Web sites.

True

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

An example of the market creator business model is eBay, a C2C auction site.

True

E-commerce refers simply to the use of the Internet and the Web to transact business.

True

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

True

Indirect goods are not involved firsthand in the production process.

True

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

True

The Internet shrinks information asymmetry.

True

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

True

Traditional online marketing, such as display ads, is still the majority of all online marketing.

True

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

True

Web personalization is used primarily as a major marketing tool.

True

EDI

electronic data interchange (EDI): The direct computer-to-computer exchange between two organizations of standard business transactions, such as orders, shipment instructions, or payments.