Quiz 10
An example of the portal business model is Facebook.
False
Behavioral targeting occurs at two levels: individual Web sites and through ISPs.
False
Disintermediation provides major benefits to the distributor.
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
In the affiliate revenue model, firms derive revenue by selling information or services through partner e-commerce sites.
False
Information asymmetry exists when there is more information about one product than there is about a similar product.
False
Intellectual property refers to all forms of human expression, both tangible and intangible.
False
Podcasting allows subscribers to listen to live, streaming radio and other audio content.
False
Price transparency refers to the ability of consumers to discover what merchants actually pay for products.
False
Retail consumer e-commerce is growing at single-digit rates.
False
Rich media advertisements are a sales-oriented marketing format.
False
Switching costs are the merchants' costs of changing prices.
False
Advertising networks track a user's behavior at thousands of Web sites.
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
An example of the market creator business model is eBay, a C2C auction site.
True
E-commerce refers simply to the use of the Internet and the Web to transact business.
True
In general, for digital goods, the marginal cost of producing another unit is about zero.
True
Indirect goods are not involved firsthand in the production process.
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
The behavioral targeting of ads results in consumers responding ten times more frequently than when delivered ads randomly.
True
Traditional online marketing, such as display ads, is still the majority of all online marketing.
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 major marketing tool.
True
EDI
electronic data interchange (EDI): The direct computer-to-computer exchange between two organizations of standard business transactions, such as orders, shipment instructions, or payments.
