Chapter 10 – True/False – Flashcards
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E-commerce refers to the use of any networking technologies to transact business.
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FALSE
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Retail e-commerce has grown consistently at double-digit rates since 1995.
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FALSE
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The Internet shrinks information asymmetry.
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TRUE
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Information asymmetry exists when one party in a transaction has more information for the transaction than the other party.
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TRUE
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All previous mass media in modern history, including the printing press, used a broadcast model where content is created in a central location by experts.
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TRUE
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Disintermediation provides major benefits to the distributor.
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FALSE
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In general, for digital goods, the marginal cost of producing another unit is about zero.
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TRUE
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An example of the service provider business model is Netflix, an online video store and streaming media outlet.
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FALSE
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An example of the content provider business model is Salon.com, an online magazine.
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TRUE
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Podcasting allows subscribers to listen to live, streaming radio and other audio content.
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FALSE
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Intellectual property refers to all forms of human expression, both tangible and intangible.
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FALSE
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The goal of behavioral targeting is to increase the size of the audience to whom the advertiser can market a product.
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FALSE
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In the technique of product customization, merchants customize marketing messages to specific individuals by adjusting the message for the person's name and interests.
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FALSE
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Amazon.com uses Web personalization as a major marketing tool.
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TRUE
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EDI standards that take advantage of network communications have yet to be fully implemented at the industry level.
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FALSE
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Net marketplaces may either support contractual purchasing based on long-term relationships with designated suppliers or short-term spot purchasing.
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TRUE
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Exchanges have become one of the most popular types of Net marketplace because they encourage competitive bidding that drives prices down.
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FALSE
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Automotive manufacturing is an example of a vertical market.
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TRUE
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In general, the cost of hardware, software, and telecommunications for building and operating a Web site has fallen by over 50 percent since 2000.
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TRUE
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Because of outsourcing and increased automation, the costs of system maintenance and content creation have fallen and typically make up less than a quarter of Web site budgets.
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TRUE
