Chapter 10 T/F

Netflix is an example of the freemium revenue model.

False

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

False

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

False

Rich media advertisements are a sales-oriented marketing format.

False

Disintermediation provides major benefits to the distributor.

False

E-commerce refers to the use of any networking technologies to transact business.

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

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

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

Automobile manufacturing is an example of vertical market.

True

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

True

In the free/freemium revenue model, firms offer basic services for free and charge a fee for special features.

True

Indirect goods are not involved firsthand in the production process.

True

Menu costs are the merchants' costs of changing prices.

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

Uber uses a form of dynamic pricing.

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 marketing tool.

True