Chapter 10 – True/False

question

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

FALSE
question

Retail e-commerce has grown consistently at double-digit rates since 1995.
answer

FALSE
question

The Internet shrinks information asymmetry.
answer

TRUE
question

Information asymmetry exists when one party in a transaction has more information for the transaction than the other party.
answer

TRUE
question

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.
answer

TRUE
question

Disintermediation provides major benefits to the distributor.
answer

FALSE
question

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

TRUE
question

An example of the service provider business model is Netflix, an online video store and streaming media outlet.
answer

FALSE
question

An example of the content provider business model is Salon.com, an online magazine.
answer

TRUE
question

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

FALSE
question

Intellectual property refers to all forms of human expression, both tangible and intangible.
answer

FALSE
question

The goal of behavioral targeting is to increase the size of the audience to whom the advertiser can market a product.
answer

FALSE
question

In the technique of product customization, merchants customize marketing messages to specific individuals by adjusting the message for the person’s name and interests.
answer

FALSE
question

Amazon.com uses Web personalization as a major marketing tool.
answer

TRUE
question

EDI standards that take advantage of network communications have yet to be fully implemented at the industry level.
answer

FALSE
question

Net marketplaces may either support contractual purchasing based on long-term relationships with designated suppliers or short-term spot purchasing.
answer

TRUE
question

Exchanges have become one of the most popular types of Net marketplace because they encourage competitive bidding that drives prices down.
answer

FALSE
question

Automotive manufacturing is an example of a vertical market.
answer

TRUE
question

In general, the cost of hardware, software, and telecommunications for building and operating a Web site has fallen by over 50 percent since 2000.
answer

TRUE
question

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.
answer

TRUE

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