276 Exam 1 Study Guide

________ is the tendency to gravitate toward, and bid for, auction listings with one or more existing bids.

Correct A. Herd behavior B. Bid rigging C. Winner's regret D. Group buying

An example of a company using the content provider model is:

Correct A. Pandora. B. Dell. C. Priceline. D. eBay.

Which of the following is not an example of a transaction broker?

Correct A. a certified public accountant B. an employment agency C. a real estate agent D. a stockbroker

All of the following are aspects of content convergence except:

Correct A. price. B. distribution. C. design. D. production.

The basic value proposition of community providers is:

Correct A. they offer a fast, convenient one-stop site where users can focus on their most important concerns and interests, share the experience with friends, and learn more about their own interests. B. they offer consumers valuable, convenient, time-saving, and low cost alternatives to traditional service providers. C. they increase customers' productivity by helping them get things done faster and more cheaply. D. they create a digital electronic environment for buyers and sellers to meet, agree on a price, and transact.

Price transparency refers to the ability of consumers to discover the actual costs merchants pay for products.

False

The fact that e-commerce is conducted on the basis of universal standards reduces search costs for consumers.

True

Which of the following is a vertical market portal affinity group designed to appeal to disgruntled Facebook users by promising never to sell its users' information to third parties?

A. Polyvore Correct B. Ello C. Tagged D. Myspace

All of the following use an advertising revenue model except:

A. Twitter. B. Yahoo. C. Google. Correct D. Amazon.

In general, the key to becoming a successful content provider is to:

A. provide other services as well as online content. Correct B. own the content being provided. C. provide online content for free. D. own the technology by which content is created, presented, and distributed.

All of the following are solutions to the problem of high monitoring costs except:

A. proxy bidding. Correct B. seller rating systems. C. watch lists. D. fixed pricing.

Which of the following is not a variation of the e-tailer business model?

A. virtual merchant B. manufacturer-direct C. bricks-and-clicks Correct D. market creator

Which of the following statements about the wholesale and agency models for selling books is not true?

A. Amazon surprised traditional publishers by selling e-books for below their wholesale cost. Correct B. Amazon supports the agency model. C. A result of the agency model was that Amazon's prices on e-books rose. D. In the wholesale model, the retailer decides at what price to sell a book to the consumer.

Which of the following is a subscription-based retailer using predictive marketing and Big Data?

A. Lands' End B. Macy's C. Dell Correct D. Birchbox

Which of the following statements is true about the traditional trade off between the richness and reach of a marketing message prior to the development of the Web?

A. Marketing messages had little richness. B. The smaller the audience reached, the less rich the message. Correct C. The larger the audience reached, the less rich the message. D. Richness was unrelated to reach.

Which of the following statements about online banking is not true?

A. Over 50% of the adult U.S. population used online banking in 2015. B. Online and mobile banking transactions provide significant costs savings for banks. C. Top mobile banking activities include checking balances and transferring money from one account to another. Correct D. Wingspan and Netbank are two pure online banks (those that operate without a network of branches) that have grown to dominate the pure online banking market.

Under the B2B business models ________ create and sell access to digital markets.

A. Portals B. Market creators C. E-distributors Correct D. E-procurement firms

E-commerce that is focused on engaging the consumer based on his or her current geographic location is known as

A. Social E-Commerce B. M-commerce C. C2C E-Commerce Correct D. Local E-Commerce

Will apps make the web irrelevant? Which of the following is not true about the use of apps?

A. The average U.S. consumer spends over two hours a day using apps. B. Apps are easier to control and monetize than Web sites. C. Around 280 million people worldwide launch a smartphone app more than 60 times a day. Correct D. Users still spend less time using apps than they do using desktops or mobile Web sites.

________ refers to any disparity in relevant market information among parties in a transaction

A. Ubiquity B. A network effect Correct C. Information asymmetry D. Information density

Which of the following is not one of the three defining characteristics of a portal?

A. content B. navigation of the Web C. commerce Correct D. migration

A firm that is first to market in a particular area and that moves quickly to gather market share is referred to as a(n)

A. early adopter B. curve leader Correct C. first mover D. risk setter

DRM refers to a combination of ________ for protecting digital content.

A. hardware and software methods B. user and publisher agreements C. local and remote policies Correct D. technical and legal means

The biggest threat to the general purpose portal business model is _______________.

A. increasing consumer engagement with focused content at the site. Correct B. declining advertising revenues. C. falling unique visitor counts. D. a dramatic increase in the average amount of time that consumers are spending at these sites.

Which of the following is the fastest growing online gaming audience?

A. laptop gamers Correct B. mobile gamers C. console gamers D. social web gamers

All of the following are benefits of auctions except:

A. more efficient price discovery. B. increased market efficiency. Correct C. decreased price transparency. D. lower transaction costs.

Threatening negative feedback in return for a benefit is an example of:

A. offensive shill feedback. Correct B. feedback extortion. C. defensive shill feedback. D. sending spam.

Which of the following is not one of the methods used by traditional retailers to develop omni-channel integration?

A. online promotions for offline purchases B. online Web catalog Correct C. online supply-push D. online order, in-store pickup

Which of the following is not a primary activity in a firm value chain?

A. outbound logistics B. after-sales service Correct C. accounting D. operations

SupplyOn, which is owned by industry giants Bosch (automotive components), Continental (tires and other automotive manufacturing) and Schaeffler (manufacturer of bearings) is an example of a(n):

A. private industrial network. B. exchange. C. e-distributor. Correct D. industry consortium.

A(n) ________, in which the highest bidder wins, is the most common form of auction.

A. reverse auction B. Japanese auction Correct C. English auction D. Dutch Internet auction

All of the following are examples of technology convergence except:

A. smartphones. Correct B. Netgear WiFi router C. Apple TV. D. the iPad.

Which of the following is not one of the typical portal revenue sources?

A. tenancy deals B. commissions on sales Correct C. listing fees D. subscription fees

E-commerce can be defined as:

A. the digital enablement of transactions and processes within an organization. B. any digitally enabled transactions among individuals and organizations. C. the use of any Internet technologies in a firm's daily activities. Correct D. the use of the Internet, the Web, and mobile apps to transact business.

Which of the following gives a business model the most credibility with outside investors?

A. the firm's market opportunity B. the firm's market strategy C. the firm's value proposition Correct D. the firm's management team

Business-to-consumer (B2C) e-commerce in the United States:

Correct A. has grown at double-digit rates in the last five years. B. has leveled off as it confronts its own fundamental limitations. C. generates less revenue than C2C e-commerce. D. now constitutes over 40% of the overall U.S. retail market

All of the following statements are true except:

Correct A. less than 2% of procurement officers use auctions to procure goods. B. Sam's Club is an example of an online B2C auction C. in a C2C auction, consumers sell goods to other consumers. D. auctions constituted a significant part of B2B e-commerce in 2014.

All of the following statements about the online insurance industry are true except:

Correct A. the Internet has dramatically changed the insurance industry's value chain. B. Web sites of almost all the major firms provide the ability to obtain an online quote. C. the industry has been very successful in attracting visitors searching for information. D. Internet usage has led to a decline in term life insurance prices industry-wide.

Interactivity in the context of e-commerce provides which of the following functionalities?

Correct A. the enabling of two-way communication between consumer and merchant B. complexity and content of a message C. the ability to physically touch and manipulate a product D. the ability of consumers to create and distribute content

A perfect market is one in which:

Correct A. there are no competitive advantages or asymmetries because all firms have equal access to all the factors to production. B. one participant in the market has more resources than the others. C. competition is at a minimum, as each niche market within an industry is served by the company with the greatest competitive advantage. D. one firm develops an advantage based on a factor of production that other firms cannot purchase.