Final Commerce
Which of the following is not a current trend in online content? A) Americans continue to spend more on streaming music than downloaded music. 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 e-sports is not true? A) Many colleges now to offer scholarships for players on their video game teams. B) YouTube Gaming accounts for over 80% of the online e-sports viewing in the United States. C) E-sports tournaments routinely draw an online audience equal to professional football games. D) The e-sport audience is predominantly composed of males between the ages of 21 and 34.
B) YouTube Gaming accounts for over 80% of the online e-sports viewing in the United States.
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
B) e-procurement company
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.
Apart from Amazon, the top online retail firms in terms of online sales are all primarily ______ firms. A) manufacturer-direct B) omni-channel C) web-only D) catalog merchant
B) omni-channel
In 2019, which of the following was the producer of the largest percentage of revenues in the U.S. entertainment industry? A) radio B) television C) box office movies D) games
B) television
A survey of Fortune 500 companies found that 98% of those companies used: A) Twitter B) Facebook C) LinkedIn D) Instagram
C) LinkedIn
________ 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
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
Which of the following is not one of the defining functions of a portal? A) commerce B) content C) auctions D) navigation of the Web
C) auctions
The majority of 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.
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.
The online retail sector of the retail industry is most similar to the ________ sector. A) specialty stores B) general merchandise C) mail order/telephone order (MOTO) D) consumer durables
C) mail order/telephone order (MOTO)
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
Hollywood's practice of staggering the distribution of movies in different channels, such as box office and DVDs, is referred to as: A) dynamic pricing B) content convergence C) the release windows D) digital rights management
C) the release windows
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
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.
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 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) friends' network D) newsfeed
D) newsfeed
Within the major service industry groups, companies can be categorized generally into those that provide transaction brokering and those that involve which of the following? A) retailing goods B) personalization C) information brokering D) providing hands-on services
D) providing hands-on services
T/F In B2C auctions, consumers control assets and use dynamic pricing to establish the price.
F
T/F Keeping bid increments low decreases the number of bidders and lowers the frequency of their bids.
F
T/F MRO goods are also known as direct goods.
F
T/F Online retail constitutes about 20% of the total retail market today.
F
T/F Penny auctions don't require money to bid.
F
T/F Personal consumption of retail goods and services accounts for over 80% of total gross domestic product (GDP).
F
T/F Private industrial networks are usually owned collectively by the major firms participating in the network, while exchanges usually are created by a single sponsoring company.
F
T/F Exchanges are not directly tied to ERP systems used by large firms.
T
T/F Exchanges are used for spot purchasing of MRO supplies.
T
T/F In 2019, digital games generated more than three times the amount of digital music revenues.
T
T/F Millennials are the first generation to be born into the digital revolution of the 20th century.
T
T/F More than three-quarters of Internet users worldwide participate in social networks.
T
T/F On-demand service companies collect a fee from both sellers and buyers who use the platform.
T
T/F Online retailing provides an example of the powerful role that intermediaries continue to play in retail trade.
T
T/F Operating on a global scale is one objective of private industrial networks.
T
T/F Purchasing managers are key players in the procurement process.
T
T/F Revenue generated by online TV and movies is expected to grow by nearly 20% between 2020 and 2022.
T
T/F Smartphones are an example of technological convergence.
T
T/F Streaming has replaced downloading as the preferred consumer viewing platform for home entertainment content.
T
T/F The Covid-19 pandemic has resulted in an increase in advertising revenue for online content providers.
T
Which of the following statements about e-books is not true? A) Most self-published e-books are not counted by the publishing industry reports on e-book sales. B) Apple is a distant second in the e-book market. C) E-book sales revenue in 2019 decreased significantly from the previous year. D) The vast majority of indie authors are unable to make a living solely from e-book sales.
A) Most self-published e-books are not counted by the publishing industry reports on e-book sales.
Which of the following primarily involve 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
A) e-distributors and exchanges
Which of the following primarily deal 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
A) e-distributors and independent exchanges
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
A website designed around a community of members who self-identify with a demographic or geographic category is classified as a(n): A) interest-based social network B) affinity community C) practice network D) sponsored community
A) interest-based social network
All of the following statements about the MOTO sector are true except: A) compared to general merchandisers, the transition to e-commerce was easier for MOTO firms. B) the MOTO sector is also referred to as the specialty store sector. C) MOTO was the last technological retailing revolution that preceded e-commerce. D) improvements in telephone systems and the expansion of the credit card industry and associated technologies fueled the development of the MOTO sector.
b) the MOTO sector is also referred to as the specialty store sector.
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
Which of the following statements best describes the potential impact of network effects with respect to portals? 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
Name your own price auction
A pricing tactic in which the consumer submits a bid at the price they are willing to pay for a product or service, and the auction site conducts a search to find matches with prices set by suppliers.
________ 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
Which of the following is an example of a practice network? A) PredictWallstreet B) Instagram C) DebatePolitics D) Doximity
D) Doximity
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
T/F A private industrial network is an independently owned online marketplace that connects many suppliers and buyers.
F
T/F Closed bidding offers the advantage of herd effects.
F
T/F The primary goal of tight coupling is to reduce excess inventory to a bare minimum.
F
T/F The existence of substitute products is a key industry strategic factor.
T
T/F The original portals in the early days of e-commerce were search engines.
T
T/F The value of portals to advertisers and content owners is primarily a function of the size of the audience the portal reaches, and the length of time visitors stay on the site.
T
T/F The video game industry accounts for the second highest percentage of U.S. media revenues.
T
T/F In 2020, almost 75% of the adult U.S. population was expected to use online banking.
T
T/F In 2020, the number of online buyers in the United States was around 205 million.
T
T/F Service industries (i.e., finance & travel) typically are very knowledge- and information-intense.
$T
The Procurement Process - tasks in order
1 Search 2 Qualify 3 Negotiate 4 Purchase Order 5 Invoicing 6 Shipping 7 Remittance Payment
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.
Which of the following U.S. media channels generates the most revenue? A) broadcast television/pay TV B) video games C) newspapers D) box office movies
A) broadcast television/pay
EDI began as a(n) ________ system. A) document automation B) document exchange C) invoice generation D) MRP
A) document automation
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
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.
Which of the following 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
Online Retail: Advantages and Challenges
Advantages: Lower supply chain and distribution cost by using website react quickly Adaptable Challenges: concerns about security/ privacy Delays in deliver of goods Lack customers trust
Which of the following categories generated the highest percentage of online retail revenue in 2019? A) computers and electronics B) apparel and accessories C) books/music/video D) automobile and automobile parts and accessories
B) apparel and accessories
Which of the following was 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
39) 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
Content convergence describes convergence in the design, production, and ________ of content. A) sales B) distribution C) marketing D) consumption
B) distribution
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
B) e-procurement company
________ is the market leader in C2C auctions. A) Amazon B) eBay C) Walmart D) eBid
B) eBay
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.
Which of the following enabled MOTO firms to make an easier transition to e-commerce? A) the national toll-free call system B) the fact that they already had efficient customer order fulfillment processes C) falling long distance telecommunications prices D) the growth of the credit card industry
B) the fact that they already had efficient customer order fulfillment processes
Which of the following types of online content is consumed by the highest percentage of U.S. Internet users? A) digital audio B) video C) digital games D) e-books
B) video
Which of the following involves the feeling after winning an auction that you paid too much for an item? A) herd behavior B) winner's regret C) seller's lament D) loser's lament
B) winner's regret
________ 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
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 requires "rich" marketing messages to reach new customers. 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 all 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.
Which of the following is another name for a private industrial network? A) industry consortia B) EDI system C) PTX D) net marketplace
C) PTX
All of the following are benefits of auctions except: A) more efficient price discovery B) lower transaction costs C) decreased price transparency D) increased market efficiency
C) decreased price transparency
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)
Instagram is an example of a(n) _______-based social network/community. A) interest B) affinity C) general D) practice
C) general
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 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) Today, each publisher makes an agreement with Amazon about the price of their books. D) A result of the agency model was that Amazon's prices on e-books declined.
D) A result of the agency model was that Amazon's prices on e-books declined.
Which of the following is a transaction database that operates on a distributed P2P network that connects all participant members in a single database and is highly secure, reliable, resilient, and inexpensive? A) SCM system B) Blockchain C) EDI D) Cloud-based B2B system
D) Cloud-based B2B system
Which of the following statements about Instagram is not true? A) Instagram trails only Facebook in U.S. ad revenue. B) Instagram is a social network that focuses on video and photo sharing. C) Instagram is growing more quickly than Facebook. D) Instagram users spend more time on Instagram than Facebook users spend on Facebook.
D) Instagram users spend more time on Instagram than Facebook users spend on Facebook.
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.
D) It requires a change of mindset and behavior of employees.
________ refers to the feeling of having been too cheap in bidding and failing to win an auction. A) Winner's lament B) Winner's regret C) Loser's lament D) Loser's regret
D) Loser's regret
Priceline at its start was an example of a(n): A) English Auction B) Dutch Internet auction C) Penny Auction D) Name Your Own Price Auction
D) Name Your Own Price Auction
Which of the following statements about the home entertainment industry is not true? A) Over 55% of the U.S. population uses an over-the-top (OTT) subscription service in addition to or instead of cable/satellite TV. B) Apple TV is the digital media device used by the most people in the United States. C) Both the television and movie industry share in home entertainment revenues. D) Neither the television nor film industries have built an industry-wide Internet delivery system.
D) Neither the television nor film industries have built an industry-wide Internet delivery system.
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 an example of a native digital news site? A) Huffington Post B) Buzzfeed C) Vice D) USA Today
D) USA Today
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
Which of the following primarily deal 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
D) exchanges and e-procurement Net marketplaces
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.
D) focus on selling direct products.
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
The amount of time visitors spend on a site is a measure of: A) reach B) loyalty C) conversation D) engagement
D)engagement
T/F Auction prices are often higher than prices in fixed priced markets.
F
T/F Consumers in auctions are driven solely by value maximization.
F
T/F Contrary to predictions of analysts made during the early days of e-commerce, the Internet has led to both disintermediation and hypermediation on a widespread basis
F
T/F E-distributors are sometimes referred to as many-to-one markets, with many sellers serving one firm.
F
T/F Facebook's current user growth is being driven by growth in the number of users in the United States.
F
T/F Few large firms today have Electronic Data Interchange (EDI) systems.
F
T/F Highly centralized supply chains produce higher short-term costs and lower long-term risk protection.
F
T/F The proliferation of mobile devices has led to a decrease in the total amount of time spent with media.
F
T/F The term fintech applies only to tech companies that are seeking use technology to unbundle traditional institutional financial services industries and instead deliver targeted solutions.
F
T/F Vox is an example of the Digital First business model.
F
T/F A community site created by a corporation is called a sponsored community site.
T
T/F B2B e-commerce websites tend to serve horizontal markets.
T
T/F Big data plays an important role in predictive marketing.
T
T/F Cannibalization is a major challenge facing book publishers.
T
T/F EDI systems generally serve vertical markets.
T
T/F EDI was developed to reduce the cost, delays, and errors inherent in the manual exchanges of documents among firms.
T
T/F In the wholesale model of e-book distribution, pricing power is with the publisher.
T
T/F Major newspapers withdrew from Facebook's Instant Articles program because it resulted in Facebook draining newspaper sites of visitors.
T
T/F The a la carte revenue model allows users to pay only for what they use.
T
T/F The amount of time the average American adult spends consuming media is about two-and-a half times the amount of time spent at work.
T
T/F The time spent on desktop computers and mobile devices now exceeds time spent in front of the television.
T
T/F Walmart is both the world's largest retailer and has the world's largest supply chain.
T
Dutch Internet auction
have identical items to sell. listing min price or biding for one item.
English auction
most common form of auction; the highest bidder wins
Internet-Based social network
offer member focused discussion groups based on a shared interest in some specific subject such as business carrer boats heath etc ex college confidentail
Practice networks
offer members focused discussion groups, help, information, and knowledge relating to an area of shared practice ex Doximity Linux.org
Affinity Communities
offer members focused discussions and interaction with other people who share the same affinity self group identification ex black planet
General Communities
offer members opportunities to interact with a general audience organized into general topics Ex: Twitter
Sponsored communities
online communities created for the purpose of pursuing organizational (and often commercial) goals ex tide.com
Penny Auction
raised by penny amounts and not large amounts cost to bid even if dont get to win
Which of the following statements about Millennials is not true? A) Millennials are more likely to have read a book in the past 12 months than older adults. B) Millennials overwhelmingly prefer e-books to printed books. C) Almost two-thirds of Millennials view digital videos daily. D) Millennials are much more to use streaming services such as Netflix, Hulu, and Amazon than older adults.
B) Millennials overwhelmingly prefer e-books to printed books.
________ occurs when sellers agree informally or formally to set floor prices below which they will not sell on auction items. A) Discriminatory pricing B) Price matching C) Bid rigging D) Distress pricing
B) Price matching
