Econ 139A Quiz 2

A business model that uses advertising revenue to provide some content for free, combined with an option to obtain additional content for a price is called a(n) ________ model. A) sales B) distribution C) a la carte D) freemium

D) freemium

Service industry groups are categorized generally into two groups, those that provide transaction brokering and those that involve: A) retailing goods. B) personalization. C) information brokering. D) hands-on services.

D) hands-on services.

All of the following are terms used to describe on-demand service companies except: A) mesh economy. B) collaborative commerce. C) we-commerce. D) omni-channel commerce.

D) omni-channel commerce.

All of the following are strategic factors that pertain specifically to a firm and its related businesses except: A) core competencies. B) synergies. C) technology. D) power of customers

D) power of customers

Which of the following newspaper audience platforms has the highest percentage of readers? A) print/mobile B) Web only C) Web/mobile D) print

D) print

What is the first step in the procurement process? A) negotiate price B) qualify the seller and its products C) issue a purchase order D) search for suppliers

D) search for suppliers

All of the following statements about Amazon are true except: A) Amazon failed to show a profit in 2015. B) Amazon Web Services is now a major part of Amazon's business. C) eBay can be considered a competitor of Amazon. D) Amazon continues to generate revenue primarily by selling products.

A) Amazon failed to show a profit in 2015.

Which of the following streaming TV devices does not involve use of a remote controller? A) Google Chromecast B) Apple TV C) Amazon Fire TV D) Roku

A) Google Chromecast

Which of the following happened when newspapers used a print-centric business model? A) Google launched its search engine. B) Apple introduced the iPhone. C) Facebook opened to the public. D) The adoption of smartphones and tablets has grown rapidly.

A) Google launched its search engine.

Which of the following would not be considered a current asset? A) long-term investments B) cash C) accounts receivable D) marketable securities

A) long-term investments

E-distributors: A) make money by charging a mark-up on products they distribute. B) usually operate "private" markets. C) operate in vertical markets. D) focus on selling direct products.

A) make money by charging a mark-up on products they distribute.

The term supply-push refers to: A) making products prior to orders being received based on estimated demand. B) waiting for orders to be received before building a product. C) channel conflict. D) multi-channel manufacturers who sell directly online to consumers.

A) making products prior to orders being received based on estimated demand.

DRM refers to a combination of ________ for protecting digital content. A) hardware and software methods B) technical and legal means C) user and publisher agreements D) local and remote policies

B) technical and legal means

When did the first online communities form? A) the 1970s B) the 1980s C) the 1990s D) the 2000s

B) the 1980s

Which of the following was sued by the Justice Department for violating antitrust laws in connection with e-books? A) Amazon B) Google C) Apple D) Barnes & Noble

C) Apple

Which of the following types of auctions is most often associated with sellers that have many identical items to sell? A) English auctions B) Name Your Own Price auctions C) Dutch Internet auctions D) group buying auctions

C) Dutch Internet auctions

________ is the tendency to gravitate toward, and bid for, auction listings with one or more existing bids. A) Group buying B) Winner's regret C) Herd behavior D) Bid rigging

C) Herd behavior

Which of the following is the fastest growing segment of media revenues? A) magazines B) home video C) Internet media D) radio

C) Internet media

________ production is a set of production methods that focuses on the elimination of waste throughout the customer value chain. A) Green B) Sustainable C) Lean D) Just-in-time

C) Lean

________ recently acquired LinkedIn. A) Facebook B) Google C) Microsoft D) Verizon

C) Microsoft

Which social network functionality allows users to view a list of updates from friends as well as advertisements and notifications in chronological order? A) message board B) timeline C) newsfeed D) friends' networks

C) newsfeed

The MOTO sector of the retail industry is most like the ________ sector. A) specialty stores B) general merchandise C) online retail sales D) consumer durables

C) online retail sales

Which of the following is not a risk or cost of Internet auctions? A) delayed consumption costs B) equipment costs C) price transparency D) trust risks

C) price transparency

Which of the following involves a concern that one will never know how much the ultimate winner might have paid, or the true value to the final winner? A) herd behavior B) winner's regret C) seller's lament D) loser's lament

C) seller's lament

A ________ permits the consumer to monitor specific auctions of interest, requiring the consumer to pay close attention only in the last few minutes of bidding. A) bidding fee auction B) channel manager C) watch list D) rating system

C) watch list

________ is defined as the use of digital technologies to permit organizations to work together to design, develop, build, and manage products through their life cycles. A) SCM B) Social e-commerce C) EDI D) Collaborative commerce

D) Collaborative commerce

Yahoo owns all of the following except: A) Tumblr. B) Flickr. C) Aviate. D) Instagram.

D) Instagram.

Which of the following statements about mobile gaming is not true? A) Mobile games generated an estimated $3 billion in 2015. B) Mobile games have proven difficult to monetize. C) Mobile games appeal to a younger demographic than console games. D) Mobile games are expensive to develop.

D) Mobile games are expensive to develop.

Which of the following is another name for a private industrial network? A) industry consortia B) EDI system C) PTX D) PINS

C) PTX

Which of the following is not an example of a transaction broker? A) a stockbroker B) a real estate agent C) an accountant D) an employment agency

C) an accountant

________ accounted for the second largest amount of paid online content revenues in the United States in 2016. A) Online video games B) Internet radio C) Online music D) Online TV and movies

A) Online video games

________ purchasing involves the purchase of goods based on immediate needs in larger marketplaces that involve many suppliers. A) Spot B) Indirect C) Vertical D) Bulk

A) Spot

________ refers to the links that connect business firms with one another to coordinate production. A) Supply chain B) B2B e-commerce C) Vertical market D) Horizontal market

A) Supply chain

An ________ primarily serves businesses that buy indirect goods on a spot purchasing basis. A) e-distributor B) e-procurement company C) exchange D) industry consortium

A) e-distributor

Which of the following is not one of the seven major segments of the retail industry? A) electronics and computers B) specialty stores C) gasoline and fuel D) food and beverage

A) electronics and computers

Which of the following has the second-highest share of online retail sales? A) omni-channel merchants B) virtual merchants C) catalog merchants D) manufacturer-direct

A) omni-channel merchants

Which of the following is not a key industry strategic factor? A) synergies B) barriers to entry C) industry value chain D) existence of substitute products

A) synergies

All of the following are weaknesses of EDI except: A) EDI is not well suited for electronic marketplaces. B) EDI lacks universal standards. C) EDI does not provide a real-time communication environment. D) EDI does not scale easily.

B) EDI lacks universal standards.

Gross margin is defined as gross profit: A) minus total operating expenses. B) divided by net sales revenues. C) divided by cost of sales. D) minus net income.

B) divided by net sales revenues.

The time spent watching and reviewing auction bids is a part of ________ costs. A) pricing B) monitoring C) delayed consumption D) fulfillment

B) monitoring

An example of an indirect good in the fast-food industry is: A) mustard. B) paper napkins. C) beef. D) sugar.

B) paper napkins.

) ________ has the highest share of the e-book market. A) Amazon B) Apple C) Google D) Barnes & Noble

A) Amazon

All of the following services require extensive personalization except: A) financial services. B) legal services. C) medical services. D) accounting services.

A) financial services.

All of the following were parts of the vision during the early days of e-commerce except the belief that: A) new, "first-mover" middlemen, with expertise in e-commerce, would force traditional intermediaries out of business. B) online consumers were rational and cost-driven. C) entry costs to the online retail market would be much less than those needed to establish a physical storefront. D) the cost of acquiring customers would be much lower.

A) new, "first-mover" middlemen, with expertise in e-commerce, would force traditional intermediaries out of business.

Operating margin is defined as: A) operating income or loss divided by net sales revenues. B) operating income or loss divided by total operating expenses. C) net sales revenues divided by net income or loss. D) net assets divided by net liabilities.

A) operating income or loss divided by net sales revenues.

Which of the following forms of media generate the most revenue? A) television B) Internet C) newspapers D) box office

A) television

The Internet has resulted in lower search costs, increased price comparison, and lower prices to consumers for which insurance product line? A) term life insurance B) automobile insurance C) health insurance D) property and casualty insurance

A) term life insurance

Which of the following is not an example of a native digital news site? A) Huffington Post B) Buzzfeed C) Vice D) USA Today

D) USA Today

Content convergence describes convergence in the design, production, and ________ of content. A) sales B) distribution C) marketing D) consumption

B) distribution

Which of the following has the highest share of online retail sales? A) omni-channel merchants B) virtual merchants C) catalog merchants D) manufacturer-direct

B) virtual merchants

________ is an on-demand service company focused on lodging. A) Uber B) Lyft C) Airbnb D) Task Rabbit

C) Airbnb

All of the following are potential benefits of B2B e-commerce except: A) lower administrative costs. B) lower search costs. C) lower price transparency. D) lower transaction costs.

C) lower price transparency.

Each of the following is a top six social network site in the United States except: A) Tumblr. B) Myspace. C) Instagram. D) Pinterest.

B) Myspace.

Priceline is an example of a(n): A) English auction. B) Dutch auction. C) penny auction. D) Name Your Own Price auction.

D) Name Your Own Price auction.

________ has tentatively agreed to purchase Yahoo. A) AT&T B) Microsoft C) AOL D) Verizon

D) Verizon

________ is an example of an e-distributor. A) Amazon Business B) PowerSource Online C) SupplyOn D) Elemica

A) Amazon Business

Which of the following statements about Instagram is not true? A) Instagram is owned by Twitter. B) Instagram is a photo-sharing app. C) Instagram is growing more quickly than Facebook. D) In terms of time spent per month by users, Instagram is second only to Facebook.

A) Instagram is owned by Twitter.

All of the following are forms of collaboration among businesses except: A) RFQs. B) CPFR. C) demand chain visibility. D) marketing coordination and product design.

A) RFQs.

A(n) ________ market is one that provides expertise and products for a specific industry, such as automobiles. A) vertical B) horizontal C) indirect D) buyer-biased

A) vertical

Which of the following statements is not true about the automobile and automobile parts and accessories online retail category? A) Most of the revenue in this category is generated from the sales of automobiles. B) Automobile manufacturers use the Internet to deliver branding advertising. C) U.S. franchising law prohibits automobile manufacturers from selling cars directly to consumers. D) Automobile retailing is dominated by dealership networks.

A) Most of the revenue in this category is generated from the sales of automobiles.

Which of the following statements about cloud-based B2B systems is not true? A) Much of the expense of the system is shifted from the B2B network provider to the firm. B) B2B network providers charge customers on a demand basis. C) Network effects apply, enabling the spreading of costs. D) Cloud-based B2B data networks can be implemented in short periods of time.

A) Much of the expense of the system is shifted from the B2B network provider to the firm.

________ has the highest penetration of social network usage among the general population. A) North America B) Latin America C) Europe D) Asia-Pacific

A) North America

Which of the following statements about the movie industry is not true? A) Over 300 million Americans were expected to watch movies online in 2015. B) Online movie distribution is not dominated by a single distributor. C) Of the digital formats, the most revenue is generated by subscription streaming. D) DVD sales make up the largest share of movie revenues.

A) Over 300 million Americans were expected to watch movies online in 2015.

________ convergence describes the development of hybrid devices that can combine the functionality of two or more existing media platforms into a single device. A) Technological B) Content C) Media D) Industry

A) Technological

Which of the following statements about the newspaper industry is not true? A) The growth of the mobile platform and social networks has potential to lessen the disruption of the newspaper industry. B) Online readership of newspapers is increasing. C) The emergence of search engines such as Google has had a major impact on the newspaper industry. D) Newspaper circulation revenues have declined by 10% since 2000.

A) The growth of the mobile platform and social networks has potential to lessen the disruption of the newspaper industry.

Which of the following statements about online magazine publishing is not true? A) The total magazine audience size decreased in 2015, due entirely to the growth of digital magazines. B) More than 35% of tablet computer owners read magazine content once a week. C) The percentage of adults who read digital edition magazines has more than quadrupled since 2011. D) A recent survey found that over 40% of those surveyed had read an average of 2.5 digital magazine issues in the past month.

A) The total magazine audience size decreased in 2015, due entirely to the growth of digital magazines.

Which of the following statements is not true about OTT? A) To use OTT services, consumers must purchase a bundle of channels. B) OTT entertainment services are a threat to cable television. C) OTT refers to the fact that the entertainment service rides "on top" of other network services such as cable TV and telephone service. D) OTT entertainment services enable binge watching.

A) To use OTT services, consumers must purchase a bundle of channels.

Which of the following has introduced a tool known as Consumer Alerts to inform readers when a review is likely to be fraudulent? A) Yelp B) TripAdvisor C) Angie's List D) TripExpert

A) Yelp

Which of the following is not a major trend in the online recruitment services industry? A) disintermediation B) Millennials and GenX primarily use mobile devices to search for jobs. C) social recruiting D) hiring by algorithm

A) disintermediation

Electronic Data Interchange (EDI) began as a(n) ________ system. A) document automation B) document exchange C) invoice generation D) MRP

A) document automation

The fact that participating in an Internet auction means that you will need to purchase a computer, learn to use it, and pay for Internet access, is an example of ________ costs. A) equipment B) fulfillment C) delayed consumption D) monitoring

A) equipment

E-mailing buyers to warn them away from a seller is a type of auction fraud known as ________. A) transaction interference B) bid siphoning C) bid rigging D) shill bidding

A) transaction interference

For a quick check of a firm's short-term financial health, examine its: A) working capital. B) gross margin. C) long-term debt. D) cost of sales.

A) working capital.

Which of the following had the highest online sales revenue in 2015? A) Macy's B) Walmart C) Sears D) Target

B) Walmart

All of the following are potential benefits of B2B e-commerce except: A) increased production flexibility. B) increased product cycle time. C) increased opportunities to collaborate with suppliers and distributors. D) increased visibility and real-time information sharing among all participants in the supply chain network.

B) increased product cycle time.

Which of the following occurs first in the process of content convergence related to books? A) media integration B) media migration C) media transformation D) media maturity

B) media migration

Which of the following is not a typical barrier to the implementation of a private industrial network? A) It requires participating firms to share sensitive data. B) It requires the large network owners to give up some of its independence. C) It requires a significant investment of time and money. D) It requires a change of mindset and behavior of employees.

B) It requires the large network owners to give up some of its independence.

________ is the second leading social network in the United States in terms of monthly unique visitors. A) Twitter B) LinkedIn C) Instagram D) Pinterest

B) LinkedIn

Which of the following statements about the online newspaper audience is not true? A) The online newspaper is one of the most successful of all online media in terms of audience size. B) Most newspaper readers read the news using a combination of the Web, print and mobile. C) Over 65% of Internet users read newspaper content online. D) Online newspapers reach over 75% of individuals in households earning more than $100,000 a year.

B) Most newspaper readers read the news using a combination of the Web, print and mobile.

Which of the following early leaders in social networking has been reinvented as a music-oriented social network? A) Vevo B) Myspace C) Polyvore D) Tumblr

B) Myspace

Which of the following types of auctions "shields the brand" of the seller? A) English auction B) Name Your Own Price auction C) Dutch auction D) penny auction

B) Name Your Own Price auction

________ measures the percentage of sales revenue a firm retains after all expenses are deducted from gross revenues. A) Gross profit B) Net margin C) Operating margin D) Working capital

B) Net margin

Which of the following statements is not true? A) Price competition among online travel services is difficult as comparison shopping for better prices is easy. B) Online travel services are one of the few sectors in which extensive disintermediation has occurred. C) The ability of travel products and services to be commoditized is a significant factor in the explosive growth of the online travel services industry. D) The online travel services industry has gone through a period of consolidation.

B) Online travel services are one of the few sectors in which extensive disintermediation has occurred.

________ allows the consumer to enter a maximum price and the auction software automatically places incremental bids up to that maximum price as their original bid is surpassed. A) A watch list B) Proxy bidding C) Sealed bidding D) Price matching

B) Proxy bidding

Which of the following statements about the wholesale and agency models for selling books is not true? A) In the wholesale model, the retailer decides at what price to sell a book to the consumer. B) Amazon surprised traditional publishers by selling e-books for below their wholesale cost. C) Amazon supports the agency model. D) A result of the agency model was that Amazon's prices on e-books rose.

C) Amazon supports the agency model.

A(n) ________, in which the highest bidder wins, is the most common form of auction. A) Dutch Internet auction B) Japanese auction C) English auction D) reverse auction

C) English auction

Which of the following is a news aggregator app that organizes stories in a magazine format, with content drawn from traditional media and social sites, and then reassembled in an easy-to-navigate, personalized format for a mobile touchscreen environment? A) Reddit B) Huffington Post C) Flipboard D) Buzzfeed

C) Flipboard

________ was an early investor in Facebook. A) Google B) Apple C) Microsoft D) LinkedIn

C) Microsoft

Which of the following best explains why the service sector is a natural avenue for e-commerce? A) The service sector is less geographically reliant and more globally oriented. B) The service sector has historically been more technology-reliant. C) Much of the value in services is based on the collection, storage, and exchange of information. D) It is not; services are difficult to translate to e-commerce because they rely on face-to-face communication and barter.

C) Much of the value in services is based on the collection, storage, and exchange of information.

The essential characteristic of ________ are they bring hundreds to thousands of suppliers into a single Internet-based environment to conduct trade. A) industry communications B) exchanges C) Net marketplaces D) horizontal markets

C) Net marketplaces

House of Cards is an online TV series developed by which of the following? A) Amazon Studios B) HBO C) Netflix D) Hulu

C) Netflix

________ are the fastest growing form of B2B e-commerce. A) R-distributors B) Exchanges C) Private industrial networks D) Industry consortiums

C) Private industrial networks

________ refers to the use of secondary user IDs or bidders who have no actual intention to buy to artificially raise the price of an item. A) Bid manipulation B) Shill feedback C) Shill bidding D) Bid rigging

C) Shill bidding

All of the following statements about the MOTO sector are true except: A) compared to general merchandisers, the transition to e-commerce has been easier for MOTO firms. B) the MOTO sector is also referred to as the specialty store sector. C) MOTO was the last technological revolution that preceded e-commerce. D) distribution of catalogs is one of MOTO retailers' biggest expenses.

B) the MOTO sector is also referred to as the specialty store sector.

All of the following were factors that precipitated the growth of MOTO except: A) the national toll-free call system. B) the growth of the cellular phone industry. C) falling long distance telecommunications prices. D) the growth of the credit card industry.

B) the growth of the cellular phone industry.

Howard Rheingold, one of The Well's early participants, coined the term ________, to refer to "cultural aggregations that emerge when enough people bump into each other often enough in cyberspace." A) social networks B) virtual communities C) community portals D) social forums

B) virtual communities

Which of the following is a community of members who self-identify with a demographic or geographic category? A) practice network B) sponsored community C) affinity community D) interest-based social network

C) affinity community

Healthboards is an example of a(n) ________ social network. A) practice-based B) interest-based C) affinity-based D) general

C) affinity-based

Which of the following is not one of the three defining characteristics of a portal? A) commerce B) content C) auctions D) navigation of the Web

C) auctions

Which of the following provides a financial snapshot of a company's assets and liabilities (debts) on a given date? A) working capital B) operating margin C) balance sheet D) gross margin

C) balance sheet

Which of the following occurs when retailers of products must compete on price and currency of inventory directly against the manufacturer? A) disintermediation B) localization C) channel conflict D) hypermediation

C) channel conflict

Supply chain ________ refers to differentiating a firm's products or prices based on superior supply chain management. A) management B) simplification C) competition D) collaboration

C) competition

Most inter-firm trade involves: A) spot purchasing of direct goods. B) contract purchasing of indirect goods. C) contract purchasing of direct goods. D) spot purchasing of indirect goods.

C) contract purchasing of direct goods.

Which of the following routes to a newspaper website generates the most digital ad revenue for the newspaper? A) via a search engine B) via a social media site such as Facebook C) directly to a newspaper's home page D) via an online video

C) directly to a newspaper's home page

What is another name for pro forma earnings? A) net margin B) operating income C) earnings before income taxes, depreciation, and amortization (EBITDA) D) generally accepted accounting principles (GAAP) earnings

C) earnings before income taxes, depreciation, and amortization (EBITDA)

All of the following have led to the development of outsourcing of manufacturing around the world except: A) technology. B) globalization of trade. C) environmental concerns. D) high levels of wage disparity between the developed and undeveloped worlds.

C) environmental concerns.

An ________ primarily serves businesses that buy direct goods on a spot purchasing basis. A) e-distributor B) e-procurement company C) exchange D) industry consortium

C) exchange

Which of the following primarily deals with direct goods? A) e-distributors and independent exchanges B) exchanges and e-procurement Net marketplaces C) exchanges and industry consortia D) e-procurement Net marketplaces and industry consortia

C) exchanges and industry consortia

Instagram is an example of a(n): A) interest-based social network. B) affinity community/social network. C) general community/social network. D) practice network.

C) general community/social network.

________ is the largest online movie download distributor. A) Netflix B) Hulu C) iTunes D) Google Play

C) iTunes

EDI document structures are defined by: A) a single international standards body. B) individual suppliers and buyers. C) industry committees. D) each purchaser.

C) industry committees.

Which of the following is a method of inventory cost management that seeks to eliminate excess inventory? A) lean production B) sustainable production C) just-in-time production D) supply chain simplification

C) just-in-time production

Which of the following is not one of the top factors a business should consider when planning an Internet auction? A) type of product B) type of auction C) location of auction D) bid increments

C) location of auction

The term ________ refer(s) to the advantages conferred as an auction site becomes larger in terms of visitors and products for sale. A) siphoning B) herd behavior C) network effects D) channel expansion

C) network effects

Which of the following is not one of the methods used by traditional retailers to develop omni-channel integration? A) online catalog B) online order, in-store pickup C) online supply-push D) online promotions for offline purchases

C) online supply-push

Over the past five years, book publishing revenues have: A) decreased slightly. B) increased steadily. C) remained stable. D) decreased sharply.

C) remained stable.

Hollywood's practice of staggering the distribution of movies in different channels, such as box office and DVDs, is referred to as: A) price discrimination. B) content convergence. C) the release window. D) digital rights management.

C) the release window.

Which of the following most accurately describes the resolution of the dispute between Hachette, Simon & Schuster, and Amazon? A) The dispute remains unresolved. B) Publishers can set the prices of their books, but Amazon can offer incentives to publishers to reduce prices on selected books and publishers may pay Amazon to list their books. C) Amazon can determine the prices of books sold on its platform at its sole discretion. D) Amazon must not sell the books for any lower than the price they are offered by Apple.

B) Publishers can set the prices of their books, but Amazon can offer incentives to publishers to reduce prices on selected books and publishers may pay Amazon to list their books.

Which of the following is not a current trend in online content? A) Sales of music in digital form produce more revenue than sales of physical units. B) Readership of newspapers in print form continues to exceed online readership. C) E-book sales growth slows. D) Explosive growth of the mobile platform accelerates the transition to digital content.

B) Readership of newspapers in print form continues to exceed online readership.

Which of the following statements about the television industry is not true? A) Netflix is the leading distributor of streaming TV. B) The current transition to Internet and especially mobile delivery of television is leading to a decline in traditional television viewing. C) Americans spend more time watching television on a computer or mobile device than they do on a traditional television set. D) Over-the-top entertainment services are a threat to cable television distributors.

B) The current transition to Internet and especially mobile delivery of television is leading to a decline in traditional television viewing.

Which of the following statements illustrates the network effects that portals are subject to? A) Specialized vertical market portals attract only a small percentage of the audience, while a few large megaportals garner most of the market. B) The value of the portal to advertisers and consumers increases geometrically as reach increases. C) The greater the amount of content provided by a portal, the greater its value to the community. D) The greater number of portals available, the greater the potential audience for each.

B) The value of the portal to advertisers and consumers increases geometrically as reach increases.

________ is a method for ensuring that suppliers precisely deliver ordered parts at a specific time and to a particular location. A) Having an adaptive supply chain B) Tight coupling C) Supply-chain management D) Materials requirement planning

B) Tight coupling

Bloom is an example of a(n): A) interest-based social network. B) affinity community. C) sponsored community. D) practice network.

B) affinity community.

The term BYOD refers to employees: A) working from home. B) being allowed or encouraged to use their own mobile devices and laptops. C) using mobile devices for work. D) bringing work devices to the home.

B) being allowed or encouraged to use their own mobile devices and laptops

Which of the following involves e-mailing another seller's bidders and offering the same product for less? A) transaction interception B) bid siphoning C) shill bidding D) persistent bidding

B) bid siphoning

Omni-channel merchants are also referred to as: A) virtual merchants. B) bricks-and-clicks companies. C) catalog merchants. D) manufacturer-direct firms.

B) bricks-and-clicks companies.

Virtual merchants face potentially large costs for all of the following except: A) building and maintaining a website. B) building and maintaining physical stores. C) building an order fulfillment infrastructure. D) developing a brand name.

B) building and maintaining physical stores.

The lower the ________ compared to revenue, the higher the gross profit. A) assets B) cost of sales C) gross margin D) operating expenses

B) cost of sales

Which of the following primarily deals with indirect goods? A) e-distributors and industry consortia B) e-distributors and e-procurement Net marketplaces C) exchanges and industry consortia D) exchanges and e-procurement Net marketplaces

B) e-distributors and e-procurement Net marketplaces

Which of the following primarily serves horizontal markets? A) e-distributors and exchanges B) e-distributors and e-procurement Net marketplaces C) e-procurement Net marketplaces and industry consortia D) exchanges and industry consortia

B) e-distributors and e-procurement Net marketplaces

An ________ primarily serves businesses that buy indirect goods on a contract purchasing basis. A) e-distributor B) e-procurement Net marketplace C) exchange D) industry consortium

B) e-procurement Net marketplace

Which of the following is the market leader in C2C auctions? A) Amazon B) eBay C) uBid D) eBid

B) eBay

Private industrial networks are direct descendants of: A) e-procurement Net marketplaces. B) existing EDI networks. C) independent exchanges. D) industry consortia.

B) existing EDI networks.

A metered subscription model is most similar to which of the following revenue models? A) transaction fee B) freemium C) advertising D) affiliate

B) freemium

All of the following are important trends in B2B e-commerce in 2016-2017, except: A) the growing emphasis on obtaining real-time data. B) growing emphasis on lowest cost supply chains. C) generation and management of huge big data repositories. D) an increase in regional manufacturing and supply chains.

B) growing emphasis on lowest cost supply chains.

All of the following are examples of the challenges that traditional manufacturers experience when using the Internet to sell directly to the consumer except: A) moving to a demand-pull model. B) high cost structures. C) developing a fast-response online order and fulfillment system. D) channel conflict.

B) high cost structures.

TheSeam is an example of an ________. A) exchange B) industry consortium C) e-procurement Net marketplace D) e-distributor

B) industry consortium

Which of the following is not a type of digital gamers? A) casual gamers B) local gamers C) social gamers D) console gamers

B) local gamers

Zinio is an example of which of the following? A) interactive book developer B) magazine aggregator C) e-reader platform D) vanity press

B) magazine aggregator

In 2016, which of the following comprised the largest segment of the online gaming audience? A) social gamers B) mobile gamers C) casual gamers D) console gamers

B) mobile gamers

When sellers agree informally or formally to set floor prices below which they will not sell on auction items, this is known as: A) discriminatory pricing. B) price matching. C) bid rigging. D) distress pricing.

B) price matching.

) Which of the following is the largest producer of revenues in the entertainment industry? A) radio B) television C) films D) video games

B) television

B2B e-commerce websites: A) are a predecessor of industry consortia. B) tend to serve horizontal markets. C) are buyer-side solutions. D) are considered a type of EDI system.

B) tend to serve horizontal markets.

) In 2015, which age group has the fastest growing rate of Facebook usage? A) 12-34 B) 35-45 C) 46-65 D) Adults over 65

D) Adults over 65

Which of the following is not an example of a virtual merchant? A) Overstock B) Wayfair C) Rue La La D) Dell

D) Dell

________ is an example of a practice network? A) PredictWallstreet B) Instagram C) Debater D) Doximity

D) Doximity

Which of the following is not one of the top three players in e-book publishing? A) Barnes & Noble B) Apple C) Amazon D) Google

D) Google

Which of the following native digital news sites is owned by AOL? A) Vox B) Vice C) Reddit D) Huffington Post

D) Huffington Post

Which of the following statements about online banking is not true? A) Top mobile banking activities include checking balances and bank statements and viewing recent transactions. B) Online and mobile banking transactions provide significant costs savings for banks. C) Millennials are adopting mobile banking at a much higher rate than those who are older. D) More people use a tablet for mobile banking than a mobile phone.

D) More people use a tablet for mobile banking than a mobile phone.

Which of the following is not true about on-demand service firms? A) The growth of on-demand service firms is supported by the use of online reputation systems based on peer review. B) It is not likely that on-demand service firms will totally escape government regulation. C) On-demand service firms facilitate access to resources. D) On-demand service firms are a totally new phenomenon without precedent in the history of e-commerce.

D) On-demand service firms are a totally new phenomenon without precedent in the history of e-commerce.

A(n) ________ system continuously links the activities of buying, making, and moving products from suppliers to purchasing firms, as well as integrating order entry systems. A) EDI B) ERP C) CPFR D) SCM

D) SCM

Which of the following is not one of the three business models employed by newspapers between 1995 and 2015? A) The Print-centric model B) The Integrated Print/Web C) The Digital First model D) The Convergence model

D) The Convergence model

Which of the following is not a major trend in online retail for 2016-2017? A) Online retail remains the fastest growing retail channel. B) The average annual purchase of online buyers continues to increase. C) Online retailers place an increased emphasis on providing an improved "shopping experience." D) The number of online buyers begins to plateau.

D) The number of online buyers begins to plateau.

Which of the following is not a characteristic of the use of social networks in B2B e-commerce? A) It is typically unstructured. B) It helps develop a more personal relationship between participants in the supply chain. C) It enables participants to make decisions based on current conditions. D) They are always private.

D) They are always private.

Facebook was the leader in U.S. ad spending revenues on social networks in 2016. What company earned the second most amount of ad spending revenue? A) Snapchat B) LinkedIn C) Pinterest D) Twitter

D) Twitter

________ refers to the feeling that one has paid too high a price for an item won at auction. A) Seller's lament B) Winner's lament C) Loser's regret D) Winner's regret

D) Winner's regret

All of the following are challenges faced by bricks-and-clicks firms except: A) coordinating prices across channels. B) handling returns of online purchases at retail outlets. C) building a credible website. D) building a brand name.

D) building a brand name.

All of the following are challenges for catalog merchants except: A) high costs of printing and mailing. B) building a credible website. C) the need to bring staff in or manage new technology. D) building sophisticated order entry and fulfillment systems.

D) building sophisticated order entry and fulfillment systems.

All of the following are examples of direct goods in the auto industry except: A) sheet steel. B) shatter-resistant glass. C) rubber molding. D) desktop computers.

D) desktop computers.

Walmart's global supply chain has been criticized for all of the following except: A) exploiting labor in underdeveloped countries. B) bribing officials. C) wasting energy. D) failing to be efficient.

D) failing to be efficient.

ESPN.com is an example of a: A) general purpose portal. B) vertical market portal based on affinity group. C) vertical market portal based on focused content. D) focused content portal.

D) focused content portal.

Collaborative commerce systems: A) focus on structuring intra-firm communications. B) bring customers into the product development phase. C) provide open, competitive marketplaces. D) foster sharing sensitive internal information with suppliers and purchasers.

D) foster sharing sensitive internal information with suppliers and purchasers.

Which of the following is not a leading factor in changing the television industry? A) increasing broadband penetration B) development of the mobile platform C) increased popularity of binge watching compared to watching linear TV D) inability to attract customers to traditional products

D) inability to attract customers to traditional products

An ________ serves businesses that primarily buy direct goods on a contract purchasing basis. A) e-distributor B) e-procurement company C) exchange D) industry consortium

D) industry consortium

Which of the following is not one of the typical portal revenue sources? A) commissions on sales B) subscription fees C) tenancy deals D) referral fees

D) referral fees

All of the following statements about the online real estate services market are true except: A) most people use the Internet to search for a home, but still use the services of a real estate agent to complete the purchase. B) real estate differs from other types of online financial services because it is impossible to complete a property transaction online. C) the primary service offered by real estate sites is a listing of houses available. D) the Internet and e-commerce have created significant disintermediation in the real estate marketplace.

D) the Internet and e-commerce have created significant disintermediation in the real estate marketplace.

An ________ provides an online catalog that represents the products of thousands of direct manufacturers. A) e-distributor B) e-procurement company C) exchange D) industry consortium

A) e-distributor

NeweggBusiness is an example of a(n) ________. A) e-distributor B) exchange C) private industrial network D) e-procurement Net marketplace

A) e-distributor

The profit a seller makes at auction is a function of all of the following except: A) initial pricing B) auction length. C) the number of units for auction. D) watch lists.

D) watch lists.

One partial solution to high monitoring costs is ________ pricing. A) fixed B) dynamic C) allocated D) distress

A) fixed

A website designed to give horse enthusiasts a common discussion area would be classified as a(n): A) interest-based social network. B) affinity community. C) practice network. D) sponsored community.

A) interest-based social network.

Which of the following is not one of the central challenges facing the online retail industry? A) lack of physical store presence B) consumer concerns about the privacy of personal information C) inconvenience in returning goods D) delivery delays

A) lack of physical store presence

All of the following are aspects of content convergence except: A) language. B) design. C) production. D) distribution.

A) language.

A(n) ________ offers members focused discussion groups, help, information, and knowledge related to an area of shared practice. A) practice network B) general community C) affinity community D) interest-based social network

A) practice network

The liquidity of a market is measured by all of the following except: A) price transparency. B) number of buyers and sellers in market. C) volume of transactions. D) size of transactions.

A) price transparency.

Craigslist is a player in which of the following online services markets? A) real estate services and career services B) insurance services and brokerage services C) travel services D) online accounting services

A) real estate services and career services

Magazine print advertising revenues are expected to ________ through 2020. A) remain relatively flat B) more than double C) grow 20% D) significantly decrease

A) remain relatively flat

All of the following are solutions to the problem of high monitoring costs except: A) seller rating systems. B) watch lists. C) proxy bidding. D) fixed pricing.

A) seller rating systems.

The last step in the procurement process is: A) sending a remittance payment. B) sending the invoice. C) shipping the goods. D) delivering the goods.

A) sending a remittance payment.

Automated order entry systems: A) show goods from a single seller. B) increased the costs of inventory replenishment. C) are typically owned by the purchasing firm. D) no longer play an important role in B2B commerce.

A) show goods from a single seller.

Which of the following is an example of an e-procurement Net marketplace? A) TheSeam B) Ariba C) Grainger D) SupplyOn

B) Ariba

________ was/were the first step in the development of B2B e-commerce. A) Electronic Data Interchange (EDI) B) Automated order entry systems C) Computerized inventory databases D) Digital invoices

B) Automated order entry systems

Which of the following statements about B2B marketing is not true? A) Mobile B2B marketing consumes only 5% of B2B marketing budgets. B) B2B marketing accounts for over 25% of the total amount spent on digital marketing and advertising. C) Content marketing is one of the primary and most effective marketing tools in B2B marketing. D) The disparity between the amount spent on B2B marketing compared to B2C e-commerce reflects the different nature of much of B2B e-commerce when compared to B2C e-commerce.

B) B2B marketing accounts for over 25% of the total amount spent on digital marketing and advertising.

Which of the following is a subscription-based retailer using predictive marketing and Big Data? A) Macy's B) Birchbox C) Dell D) Lands' End

B) Birchbox

________ is another name for transorganizational business processes. A) Supply chain management B) Collaborative commerce C) B2B e-commerce D) Value chain management

B) Collaborative commerce

All of the following types of auctions generally involve single units except: A) English auction. B) Dutch Internet. C) Name Your Own Price auction. D) penny auction.

B) Dutch Internet.

Which of these job recruitment sites is not a job listing aggregator? A) Indeed B) SimplyHired C) Glassdoor D) CareerBuilder

B) SimplyHired

In 2015, Fortune 500 companies used ________ more than Facebook. A) no other social networks B) Tumblr C) LinkedIn D) Pinterest

C) LinkedIn

Expedia owns all of the following except: A) Travelocity. B) Orbitz. C) TripAdvisor. D) CheapTickets.

C) TripAdvisor.

All of the following have launched trials of Buy buttons except: A) Facebook. B) Pinterest. C) Instagram. D) Tumblr.

D) Tumblr.

The amount of time visitors spend on a site is a measure of ________. A) reach B) loyalty C) conversation D) engagement

D) engagement

All of the following are advantages of online retail except: A) lower supply chain costs. B) lower cost of distribution. C) ability to change prices. D) faster delivery of goods.

D) faster delivery of goods.

The merger of media enterprises into powerful, synergistic combinations that can cross-market content on many different platforms is referred to as: A) aggregation. B) repackaging. C) media transformation. D) industry convergence.

D) industry convergence.

) Which of the following is a leading social network in Russia? A) VK B) Tuenti C) Orkut D) Mixi

A) VK

After Google, the next portal/search engine site with the most unique visitors is: A) Yahoo. B) Microsoft. C) AOL. D) Facebook.

A) Yahoo.

All of the following are current major trends in B2B e-commerce, except: A) a movement toward implementing highly centralized supply chains to reduce risk. B) a growing emphasis on the use of business analytics software (business intelligence) to understand very large data sets. C) a growing emphasis on rapid-response and adaptive supply chains rather than lowest-cost supply chains. D) an increase in regional manufacturing and supply chains to attempt to combat the risks of far-flung global networks.

A) a movement toward implementing highly centralized supply chains to reduce risk.

In ________, all of a customer's financial (and even nonfinancial) data are pulled together at a single personalized website. A) account aggregation B) a financial portal C) integrated financial services D) EBPP systems

A) account aggregation

An ________ is an independently owned, online marketplace that connects hundreds to potentially thousands of suppliers and buyers in a dynamic, real-time environment. A) exchange B) e-distributor C) e-procurement company D) industry consortium

A) exchange

Threatening negative feedback in return for a benefit is an example of: A) feedback extortion. B) offensive shill feedback. C) defensive shill feedback. D) sending spam.

A) feedback extortion.

All of the following statements about the online insurance industry are true except: A) the Internet has dramatically changed the insurance industry's value chain. B) websites of almost all the major firms provide the ability to obtain an online quote. C) Internet usage has led to a decline in term life insurance prices industry-wide. D) the industry has been very successful in attracting visitors searching for information.

A) the Internet has dramatically changed the insurance industry's value chain.

Which of the following is not categorized as an operating expense? A) the cost of products being sold B) marketing costs C) administrative overhead D) amortization of goodwill

A) the cost of products being sold

One of the first online virtual communities was: A) The Well. B) Myspace. C) AOL. D) Salon.com.

A) The Well.

Which of the following statements about EDI systems is true? A) They typically serve vertical markets. B) They are seller-side solutions. C) They evolved from private trading exchanges. D) They still play an important role in B2C commerce.

A) They typically serve vertical markets.

On which of the following do users spent the least amount of time per month? A) Snapchat B) Tumblr C) LinkedIn D) Pinterest

C) LinkedIn

Facebook owns ________. A) Pinterest B) Snapchat C) WhatsApp D) Tumblr

C) WhatsApp

Which of the following was the most troubled (e.g., revenues) segment of the publishing industry in 2016? A) books B) magazines C) newspapers D) periodicals

C) newspapers

A(n) ________ supply chain is one in which the labor conditions in low-wage, underdeveloped producer countries are visible and morally acceptable to ultimate consumers in more developed industrial societies. A) sustainable B) ethical C) lean D) accountable

D) accountable

What is the largest sector of the online travel services market in terms of revenue? A) hotel reservations B) car reservations C) cruise/tour reservations D) airline reservations

D) airline reservations

The technology used by early online communities was limited to mostly: A) instant messaging. B) FTP. C) e-mail. D) bulletin boards.

D) bulletin boards.

Which of the following primarily involves long-term sourcing? A) e-distributors and exchanges B) e-distributors and industry consortia C) e-procurement Net marketplaces and exchanges D) e-procurement Net marketplaces and industry consortia

D) e-procurement Net marketplaces and industry consortia

All of the following are examples of technology convergence except: A) the iPad. B) Amazon Books Publishing. C) Apple TV. D) smartphones.

B) Amazon Books Publishing.

Which of the following categories generates the highest percentage of online retail revenue? A) computers and electronics B) apparel and accessories C) books/music/video D) automobile and automobile parts and accessories

B) apparel and accessories

The New York Times introduced which of the following revenue models in 2011? A) paywall B) metered subscription C) advertising D) walled garden

B) metered subscription

Which of the following statements about the music industry is not true? A) Music industry revenues have decreased by 50% since 1999. B) Digital revenues accounted for less than half of all U.S. music revenues in 2015. C) In 2015, sales of vinyl records grew by over 30%. D) Streaming music generates about 40% of all digital music sales.

B) Digital revenues accounted for less than half of all U.S. music revenues in 2015.