Chapter 10
________ is a peer-to-peer market in which participants bet on the outcomes of current events, business, or social trends. A net marketplace A futures auction A private exchange Crowdsourcing A prediction market
A prediction market
Which of the following best illustrates the sales revenue model? eBay receives a small fee from a seller if a seller is successful in selling an item. Netflix charges customers a monthly fee for access to its library of movies. Apple accepts micropayments for single music track downloads. Flickr provides basic services for free, but charges a premium for advanced services. Epinions receives a fee after steering a customer to a participating Web site where he or she makes a purchase.
Apple accepts micropayments for single music track downloads.
________ refers to businesses selling goods and services electronically to individuals. B2C e-commerce M-commerce Disintermediation C2C e-commerce Social e-commerce
B2C e-commerce
eBay is an example of B2B e-commerce. M-commerce. C2C e-commerce. P2P-commerce. B2C e-commerce.
C2C e-commerce.
Which of the following best illustrates the affiliate revenue model? Apple accepts micropayments for single music track downloads. Flickr provides basic services for free, but charges a premium for advanced services. Epinions receives a fee after steering a customer to a participating Web site where he or she makes a purchase. eBay receives a small fee from a seller if a seller is successful in selling an item. Netflix charges customers a monthly fee for access to its library of movies.
Epinions receives a fee after steering a customer to a participating Web site where he or she makes a purchase.
An example of the portal business model is Facebook. True False
False
Behavioral targeting occurs at two levels: individual Web sites and through ISPs. True False
False
Disintermediation provides major benefits to the distributor. True False
False
EDI standards that take advantage of network communications have yet to be fully implemented at the industry level. True False
False
Exchanges have become one of the most popular types of Net marketplace because they encourage competitive bidding that drives prices down. True False
False
In the affiliate revenue model, firms derive revenue by selling information or services through partner e-commerce sites. True False
False
Information asymmetry exists when there is more information about one product than there is about a similar product. True False
False
Intellectual property refers to all forms of human expression, both tangible and intangible. True False
False
Podcasting allows subscribers to listen to live, streaming radio and other audio content. True False
False
Price transparency refers to the ability of consumers to discover what merchants actually pay for products. True False
False
Retail consumer e-commerce is growing at single-digit rates. True False
False
Rich media advertisements are a sales-oriented marketing format. True False
False
Switching costs are the merchants' costs of changing prices. True False
False
Geoadvertising sends ads to users based on their shopping preferences. home addresses. GPS locations. Google Maps settings. web site behaviors.
GPS locations.
Which of the following statements about m-commerce is not true? In 2014, mobile advertising is up over 80% from the previous year. M-commerce is the fastest growing form of e-commerce. In 2014, m-commerce represented about 19 percent of all e-commerce. Fifty-five percent of online retailers have m-commerce Web sites. In 2014, the main areas of growth are in online banking and location-based services.
In 2014, the main areas of growth are in online banking and location-based services.
Recent developments in e-commerce include all of the following except Internet-based models of computing, such as smartphone apps. social networking sites become a new platform for e-commerce. social sharing e-commerce sites extend the market creator business model. the online demographic of shoppers broadens to match that of ordinary shoppers. small businesses continue to flood the e-commerce marketplace.
Internet-based models of computing, such as smartphone apps.
What is the difference between personalization and customization, as applied to e-commerce technologies? Personalization refers to adjusting marketing messages for a consumer; customization refers to adjusting a product or service based on a user's preferences. Customization refers to adjusting marketing messages for a consumer; personalization refers to adjusting a product or service based on a user's preferences. There is no difference, both terms refer to changing a product or communication for the consumer. 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. 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.
Personalization refers to adjusting marketing messages for a consumer; customization refers to adjusting a product or service based on a user's preferences.
What event marked the beginning of e-commerce? The first product sold online. The first paid advertisements placed on a Web site. The first e-mail sent. The first domain name registered. The first product advertised online.
The first paid advertisements placed on a Web site.
________ describes the concept that a large group of people is better at making good decisions than a single person. Outsourcing Social graphing Social search Crowdsourcing The wisdom of crowds
The wisdom of crowds
Advertising networks track a user's behavior at thousands of Web sites. True False
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 False
True
An example of the market creator business model is eBay, a C2C auction site. True False
True
E-commerce refers simply to the use of the Internet and the Web to transact business. True False
True
In general, for digital goods, the marginal cost of producing another unit is about zero. True False
True
Indirect goods are not involved firsthand in the production process. True False
True
Net marketplaces may either support contractual purchasing based on long-term relationships with designated suppliers or short-term spot purchasing. True False
True
The Internet shrinks information asymmetry. True False
True
The behavioral targeting of ads results in consumers responding ten times more frequently than when delivered ads randomly. True False
True
Traditional online marketing, such as display ads, is still the majority of all online marketing. True False
True
Viral marketing is like traditional word-of-mouth marketing except that it is spread via online communities. True False
True
Web personalization is used primarily as a major marketing tool. True False
True
________ uses the community provider Internet business model. eBay Yahoo Google iTunes Twitter
Which of the following is a milestone for the Web site development phase of building an e-commerce presence? Web presence map functional Web site Web site plan Web mission statement social media plan
Web site plan
Which of the following best describes the digital social graph? all of the relationships in an online community a mapping of all online social relationships a person's direct and indirect relationships all of a person's closest digital relationships all of the online and offline relationships a person has
a mapping of all online social relationships
Net marketplaces are more relationship oriented than private industrial networks. are industry owned or operate as independent intermediaries between buyers and sellers. are geared towards short-term spot purchasing. focus on continuous business process coordination between companies for supply chain management. typically consist of a large firm linking to its suppliers and partners.
are industry owned or operate as independent intermediaries between buyers and sellers.
Information ________ exists when one party in a transaction has more information that is important for the transaction than the other party. transparency asymmetry complexity discrimination
asymmetry
Exposing an individual to ads that are chosen and based on the recorded and analyzed online behavior of the individual is referred to as long tail marketing. crowdsourcing. behavioral targeting. online profiling. clickstream advertising.
behavioral targeting.
What standards are referred to when discussing universal standards as a unique feature of e-commerce? universal advertising and media format standards common spoken and written languages universal measuring standards Internet technology standards EDI standards
common spoken and written languages
In which of the following Internet business models does a merchant create an online digital environment that enables people with like interests to share information? service provider portal transaction broker market creator community provider
community provider
Which of the following is not one of four types of presence to be considered when building an E-commerce presence? offline media corporate social media Web sites e-mail
corporate
Netflix's public announcement of a reward for a technology solution to its movie recommendation system is an example of behavioral targeting. crowdsourcing. social shopping. long-tail marketing. prediction markets.
crowdsourcing.
Digital goods are goods that are created with software. sold over digital networks. used with digital equipment. delivered digitally. produced digitally.
delivered digitally.
Goods that are involved in the actual production process are referred to as purchasing goods. products. raw materials. direct goods. indirect goods.
direct goods.
Reducing the business process layers in a distribution channel is called disintermediation. market transparency. market segmentation. BPR. network effects.
disintermediation.
Which of the following is a marketing format that uses banner ads and pop-ups with interactive features? video ads search engine ads rich media ads e-mail ads display ads
display ads
Varying a product's price according to the supply situation of the seller is called ________ pricing. asymmetric flexible menu dynamic customized
dynamic
Which of the following Internet business models does Amazon.com use? transaction brokder e-tailer market creator portal vontent provider
e-tailer
Which of the following best illustrates the transaction fee revenue model? Apple accepts micropayments for single music track downloads. Netflix charges customers a monthly fee for access to its library of movies. Flickr provides basic services for free, but charges a premium for advanced services. Epinions receives a fee after steering a customer to a participating Web site where he or she makes a purchase. eBay receives a small fee from a seller if a seller is successful in selling an item.
eBay receives a small fee from a seller if a seller is successful in selling an item.
A third-party Net marketplace that connects many buyers and suppliers for spot purchasing is called a(n) private exchange. vertical market. private industrial network. e-hub. exchange.
exchange.
In the ________ revenue models, a firm offers some services for free but charges a subscription fee for premium services. sales subscription free/freemium transaction fee affiliate
free/freemium
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. geoinformation geosocial geomapping geolocating geoadvertising
geoinformation
Compared to traditional goods, digital goods have lower menu costs. greater pricing flexibility. higher inventory costs. higher production costs. lower marketing costs.
greater pricing flexibility.
Compared to digital markets, traditional markets have lower search costs. reduced asymmetry. higher delayed gratification effects. higher transaction costs. stronger network effects.
higher transaction costs.
The lowered costs of information storage, processing, and communication, along with the improvement of data quality, has resulted in which unique quality of e-commerce? information density customization global reach interactivity richness
information density
The act of engaging consumers in a dialog that dynamically adjusts the experience to the individual describes which dimension of e-commerce technology? richness ubiquity information density interactivity personalization/customization
interactivity
The Internet enables ________ marketing, by leveraging the fact that there is always some demand, however small, for a product. behavioral long-tail lead generation crowdsource prediction
long-tail
What is the primary benefit to consumers of disintermediation? higher quality greater choices faster service lower costs None, disintermediation primarily benefits manufacturers.
lower costs
Compared to traditional goods, digital goods incur less disintermediation. equivalent copying costs. higher marginal costs per unit. similar inventory costs. lower distribution costs.
lower distribution costs.
A marketplace extended beyond traditional boundaries and removed from a temporal and geographic location is called a(n) marketspace. net marketplace. e-hub. exchange. online marketplace.
marketspace.
Content providers use ________ systems to process large amounts of very small monetary transactions cost-effectively. mobile payment affiliate revenue transaction fee micropayment subscription
micropayment
Which of the following social commerce features allows social network sites to gather and distribute to others information about which products a user likes and dislikes? newsfeed network notification social search collaborative shopping social sign-on
network notification
All of the following are activities related to establishing a Web presence except for affiliates. display. newsletters. apps. search.
newsletters.
Selling the same goods to different targeted groups at different prices is called price gouging. cost customization. price discrimination. cost personalization. cost optimization.
price discrimination.
A secure Web site that links a large firm to its suppliers and other key business partners is called a(n) e-hub. net marketplace. marketspace. exchange. private industrial network.
private industrial network.
The process of sourcing goods and materials, negotiating with suppliers, paying for goods, and making delivery arrangements is called production. SCM. e-procurement. sourcing. procurement.
procurement.
Market creators create revenue by providing digital content over the Web. generate revenue from advertising or from directing buyers to sellers. sell physical products directly to consumers or individual businesses. provide a digital environment where buyers and sellers can establish prices for products. save users money and time by processing online sales transactions.
provide a digital environment where buyers and sellers can establish prices for products.
The integration of video, audio, and text marketing messages into a single marketing message and consumer experience describes which dimension of e-commerce technology? personalization/customization social technology ubiquity richness interactivity
richness
Transaction brokers sell physical products directly to consumers or individual businesses. save users money and time by processing online sales transactions. provide online meeting places where people with similar interests can communicate. generate revenue from advertising or from directing buyers to sellers. provide a digital environment where buyers and sellers can establish prices for products.
save users money and time by processing online sales transactions.
The effort required to locate a suitable product is called search costs. shopping costs. location costs. menu costs. price discrimination.
search costs.
Which of the following marketing formats is sales oriented, rather than branding oriented or a mix? lead generation search engine rich media video display ads
search engine
In planning a robust e-commerce presence, you will want to consider the blog platform as part of your ________ presence. e-mail community social media offline media Web site
social media
Based on your reading of the chapter, e-commerce is still in a revolutionary phase. widely accepted by consumers, although technology is still quickly changing. well entrenched as a form of modern commerce. declining as users lose interest. not yet fully accepted by consumers, although much of its driving technology is firmly in place.
still in a revolutionary phase.
EDI is the use of Internet technologies for electronic data transactions. electronic data invoicing. slowly becoming the norm for B2B communications. the exchange between two organizations of standard transactions through a network. electronic delivery infrastructure.
the exchange between two organizations of standard transactions through a network.
Information density refers to the total amount and quantity of information delivered to consumers by merchants. richness complexity and content of a message. total amount and quantity of information available to all market participants. amount of information available to reduce price transparency. amount of physical storage space needed to store data about a specific entity, such as a product or consumer.
total amount and quantity of information available to all market participants.
All of the following are unique features of e-commerce technology, except global reach. personalization/customization. universality. richness. interactivity.
universality.
