MIS 276 Test One

Under the B2B business models ___ create and sell access to digital markets A. Portals B. E-distributors C. E-procurement firms D. Market creators

C. E-procurement firms

All of the following are examples of technology convergence except: A. the iPad B. smartphones C. Netgear WiFi router D. Apple TV

C. Netgear WiFi router Technological devices that converge digital media (music, pictures, video) into a single device are technologically converging

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

A. Herd behavior

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

A. True

Which of the following is NOT one of the typical portal revenue sources? A. listing fees B. tenancy deals C. subscription fees D. commissions on sales

A. listing fees Listing fees are associated with auctions. Charging sellers a fee to post there items or sale

Which of the following is NOT a variation of the e-tailer business model? A. market creator B. virtual merchant C. bricks-and-clicks D. manufacturer-direct

A. market creator The market creator involves businesses whose primary purpose is to use internet technology to create markets that bring buyers and sellers together

Which of the following is NOT one of the three defining characteristics of a portal? A. migration B. content C. navigation of the Web D. commerce

A. migration Three characteristics have become the basic definition of portal sites: navigation of the web, content and commerce

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

A. price

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

A. the use of the Internet, the Web, and mobile apps to transact business

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

B. Amazon supports the agency model Amazon follows the wholesale model where they determine the prices for books

Which of the following is a vertical market portal affinity group designed to appeal to disgruntled Facebook users by promising never to sell its users' information to third parties? A. Tagged B. Ello C. Myspace D. Polyvore

B. Ello

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

B. English auction

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

B. False Cost transparency refers to the ability of consumers to discover the actual costs merchants pay for products.

_____ refers to any disparity in relevant market information among parties in a transaction. A. A network effect B. Information asymmetry C. Information density D. Ubiquity

B. Information asymmetry

E-commerce that is focused on engaging the consumer based on his or her current geographic location is known as _____. A. C2C E-Commerce B. Local E-Commerce C. M-Commerce D. Social E-Commerce

B. Local E-Commerce

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

B. fixed pricing fixed pricing is a feature of the "name your own price" auction and doesn't require monitoring as companies will submit offers to you based on the price that you offered to pay. it is a way of selling "perishable" inventory.

Which of the following is the fastest growing online gaming audience? A. social web gamers B. mobile gamers C. laptop gamers D. console gamers

B. mobile gamers

In general, the key to becoming a successful content provider is to: A. provide other services as well as online content B. own the content being provided C. own the technology by which content is created, presented, and distributed D. provide online content for free

B. own the content being provided

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

B. technical and legal means Digital rights management (DRM) is one attempt, through legal and technical means, to protect digital content from unlimited reproduction without permission

Interactivity in the context of e-commerce provides which of the following functionalities? A. the ability of consumers to create and distribute content B. the enabling of two-way communication between consumer and merchant C. the ability to physically touch and manipulate a product D. complexity and content of a message

B. the enabling of two-way communication between consumer and merchant

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

B. there are no competitive advantages or asymmetries because all firms have equal access to all the factors to production There are no perfect markets.

The basic value proposition of community providers is: A. they offer consumers valuable, convenient, time-saving, and low cost alternatives to traditional service providers B. they offer a fast, convenient one-stop site where users can focus their most important concerns and interests, share the experience with friends, and learn more about their own interests C. they create a digital electronic environment for buyers and sellers to meet, agree on price, and transact

B. they offer a fast, convenient one-stop site where users can focus their most important concerns and interests, share the experience with friends, and learn more about their own interests

Which of the following statements about online banking is NOT true? A. Over 50% of the adult U.S. population used online banking in 2015 B. Top mobile banking activities include checking balances and transferring money from one account to another C. Wingspan and Netbank are two pure online banks (those that operate without a network of branches) that have grown to dominate the pure online banking market D. Online and mobile banking transactions provide significant costs savings for banks

C. Wingspan and Netbank are two pure online banks (those that operate without a network of branches) that have grown to dominate the pure online banking market Wingspan and Netbank are the first two pure online banks, but have failed and no longer exist

Which of the following is NOT an example of a transaction broker? A. a stockbroker B. a real estate agent C. a certified public accountant D. an employment agency

C. a certified public accountant

Which of the following is NOT a primary activity in a firm value chain? A. after-sales service B. outbound logistics C. accounting D. operations

C. accounting The function of accounting is a secondary activity which will allow the firm to establish and track metrics of performance A firm value chain is the set of activities a firm engages in to create product from raw inputs and includes operations, logistics, sales, marketing and after sales service

The biggest threat to the general purpose portal business model is ___. A. increasing consumer engagement with focused content at the site B. falling unique visitor counts C. declining advertising revenues D. a dramatic increase in the average amount of time that consumers are spending at these sites

C. declining advertising revenues Display ad prices have been falling significantly due to the rise of intelligent ad placement (e.g. Goolge AdSense). With advertising traditionally being the largest source of revenue for these portals, the companies are struggling to replace revenue and continue to grow profitability

All of the following are benefits of auctions except: A. more efficient price discovery B. increased market efficiency C. decreased price transparency D. lower transaction costs

C. decreased price transparency The only time price transparency is not an advantage is when it is a closed action. the open auction is the standard and most auctions are open.

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

C. less than 2% of procurement officers use auctions to procure goods More than 3% of procurement officers (purchasing agents) at companies use auctions to procure goods for the firm

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

C. online supply-push Omni channel supports the traditional manufacturer to retailer supply chain which traditionally uses a supply/push model. Manufacturers who want to bypass retail and sell directly to consumers are needing to adopt the demand/pull model to avoid the management of large amounts of finished goods inventory

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

C. the Internet has dramatically changed the insurance industry's value chain The insurance industry value chain has not been dramatically change by e-commerce for a variety of reasons

Which of the following gives a business model the most credibility with outside investors? A. the firm's market opportunity B. the firm's market strategy C. the firm's management team D. the firm's value proposition

C. the firm's management team A strong management team gives a model instant credibility to outside investors, immediate market-specific knowledge, and experience in implementing plans.

All of the following use an advertising revenue model EXCEPT: A. Twitter B. Yahoo C. Google D. Amazon

D. Amazon Amazon acs as a e-tailer or market creator and generates revenue from the direct sale of goods or through transaction fees by brining buyers and sellers together

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

D. Birchbox

An example of a company using the content provider model is: A. Priceline B. Dell C. eBay D. Pandora

D. Pandora

Which of the following statements is true about the traditional tradeoff between the richness and reach of a marketing message prior to the development of the Web? A. Richness was unrelated to reach B. Marketing messages had little richness C. The smaller the audience reached, the less rich the message D. The larger the audience reached, the less rich the message

D. The larger the audience reached, the less rich the message

Will apps make the web irrelevant? Which of the following is NOT true about the use of apps? A. The average U.S. consumer spends over two hours a day using apps B. Apps are easier to control and monetize than Web sites C. Around 280 million people worldwide launch a smartphone app more than 60 times a day D. Users still spend less time using apps than they do using desktops or mobile Web sites

D. Users still spend less time using apps than they do using desktops or mobile Web sites In January of 2014, for the first time ever, Americans used apps more than desktop computers to access the internet

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

D. feedback extortion

A firm that is first to market in a particular area and that moves quickly to gather market share is referred to as a(n) _____. A. early adopter B. risk setter C. curve leader D. first mover

D. first mover

Business-to-consumer (B2B) e-commerce in the United States: A. now constitutes over 40% of the overall U.S. retail market B. generates less revenue than C2C e-commerce C. has leveled off as it confronts its own fundamental limitations D. has grown at double-digit rates in the last five years

D. has grown at double-digit rates in the last five years

SupplyOn, which is owned by industry gains Bosch (automotive components), Continental (tires and other automotive manufacturing) and Schaeffler (manufacturer of bearings) is an example of a(n): A. e-distributor B. exchange C. private industrial network D. industry consortium

D. industry consortium Industry consortia allow firms to work together to management their supply chains in order to improve processes, lowering costs and increasing profitability