INFO Test 3- Questions (CH10) – Flashcards
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(T/F) E-commerce refers to the use of any networking technologies to transact business.
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F
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(T/F) Retail e-commerce has grown consistently at double-digit rates since 1995.
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F
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(T/F) The Internet shrinks information asymmetry.
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T
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(T/F) Information asymmetry exists when one party in a transaction has more information for the transaction than the other party.
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T
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(T/F) 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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T
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(T/F) Disintermediation provides major benefits to the distributor.
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F
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(T/F) In general, for digital goods, the marginal cost of producing another unit is about zero.
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T
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(T/F) An example of the service provider business model is Netflix, an online video store and streaming media outlet.
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F
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(T/F) An example of the content provider business model is Salon.com, an online magazine.
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T
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(T/F) Podcasting allows subscribers to listen to live, streaming radio and other audio content.
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F
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(T/F) Intellectual property refers to all forms of human expression, both tangible and intangible.
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F
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(T/F) 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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F
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(T/F) 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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F
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(T/F) Amazon.com uses Web personalization as a major marketing tool.
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T
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(T/F) EDI standards that take advantage of network communications have yet to be fully implemented at the industry level.
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F
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(T/F) Net marketplaces may either support contractual purchasing based on long-term relationships with designated suppliers or short-term spot purchasing.
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T
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(T/F) 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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F
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(T/F) Automobile manufacturing is an example of a vertical market.
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T
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(T/F) 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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T
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(T/F) 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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F
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Based on your reading of the chapter, e-commerce is: A) still in a revolutionary phase. B) widely accepted by consumers, although technology is still quickly changing. C) not yet fully accepted by consumers, although much of its driving technology is firmly in place. D) well entrenched as a form of modern commerce.
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A
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The quality of ubiquity, as it relates to e-commerce, is illustrated by A) the same set of standards being used across the globe. B) the spread of plentiful, cheap information. C) the enabling of commerce worldwide. D) the availability of the Internet everywhere and anytime.
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D
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Which of the following events signified the beginning of e-commerce? A) the first online advertisements B) the first telephone sales C) the first online retail store D) the first web site
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A
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24) A marketplace extended beyond traditional boundaries and removed from a temporal and geographic location is called a(n) A) exchange. B) marketspace. C) online marketplace. D) e-hub.
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B
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Which of the following is not a recent development in e-commerce? A) Wireless Internet connections grow rapidly. B) Social networking sites become a new platform for e-commerce. C) The music recording industry is disrupted as music creation and distribution become decentralized. D) Online entertainment business models surge.
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C
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How are the Internet and e-commerce causing severe disruption to the existing advertising business model? A) Ties between customer and businesses are being rethought. B) Technology players such as Yahoo! seek to dominate online advertising and expand into offline ad brokerage. C) New methods of advertising, such as blog advertising, are emerging. D) The market entry costs for online advertising services are extremely low.
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B
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Which of the following is not one of the unique features of e-commerce technology? A) information density B) transparency C) richness D) social technology
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B
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The act of engaging consumers in a dialog that dynamically adjusts the experience to the individual describes which dimension of e-commerce technology? A) ubiquity B) personalization/customization C) richness D) interactivity
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D
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The integration of video, audio, and text marketing messages into a single marketing message and consumer experience describes which dimension of e-commerce technology? A) ubiquity B) personalization/customization C) richness D) interactivity
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C
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The effort required to locate a suitable product is called A) price discrimination. B) search costs. C) menu costs. D) shopping costs.
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B
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The lowered costs of information storage, processing, and communication, along with the improvement of data quality, has resulted in which unique quality of e-commerce? A) information density B) richness C) customization D) interactivity
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A
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Information density refers to the A) richnesscomplexity and contentof a message. B) total amount and quantity of information delivered to consumers by merchants. C) total amount and quantity of information available to all market participants. D) amount of information available to reduce price transparency.
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C
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Selling the same goods to different targeted groups at different prices is called A) cost customization. B) cost optimization. C) price gouging. D) price discrimination.
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D
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Information ________ exists when one party in a transaction has more information that is important for the transaction than the other party. A) transparency B) asymmetry C) complexity D) discrimination
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B
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Which of the following businesses uses the market creator business model? A) an online auction house B) an online newspaper C) a video-sharing site D) an online bookseller
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A
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Varying a product's price according to the supply situation of the seller is called ________ pricing. A) menu B) flexible C) dynamic D) asymmetric
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C
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Compared to digital markets, traditional markets have A) lower search costs. B) stronger network effects. C) higher delayed gratification effects. D) higher transaction costs.
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D
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Reducing the business process layers in a distribution channel is called A) disintermediation. B) BPR. C) market segmentation. D) network effects.
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A
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Digital goods are goods that are A) produced digitally. B) sold over digital networks. C) delivered digitally. D) used with digital equipment.
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C
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Compared to traditional goods, digital goods have A) greater pricing flexibility. B) lower marketing costs. C) higher production costs. D) higher inventory costs.
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A
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Compared to traditional markets, digital markets have A) lower distributed delivery costs. B) higher marginal costs per unit. C) equivalent copying costs. D) similar inventory costs.
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A
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Selling products and services directly to individual consumers via the Internet best describes A) B2B e-commerce. B) C2C e-commerce. C) M-commerce. D) B2C e-commerce.
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D
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Consumers selling goods and services electronically to other consumers best describes A) disintermediation. B) C2C e-commerce. C) M-commerce. D) B2C e-commerce.
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B
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EBay is an example of A) C2C e-commerce. B) B2B e-commerce. C) B2C e-commerce. D) M-commerce.
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A
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Your company provides online tax preparation software. Users can download forms and read tips online without paying, but a fee is charged for using the advanced tax form management services. This is an example of which type of revenue model? A) subscription B) affiliate C) transaction fee D) free/freemium
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D
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Which of the following businesses utilizes the content provider Internet business model? A) Amazon.com B) eBay.com C) CNN.com D) Motocross.com
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C
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In which of the following Internet business models does a merchant create an online digital environment that enables people with like interests to share information or buy and sell goods? A) community provider B) service provider C) market creator D) transaction broker
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A
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Transaction brokers A) generate revenue from advertising or from directing buyers to sellers. B) save users money and time by processing online sales transactions. C) provide a digital environment where buyers and sellers can establish prices for products. D) sell physical products directly to consumers or individual businesses.
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B
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Market creators A) save users money and time by processing online sales transactions. B) provide a digital environment where buyers and sellers can establish prices for products. C) create revenue by providing digital content over the Web. D) sell physical products directly to consumers or individual businesses.
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B
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Which of the following best illustrates the sales revenue model? A) EBay receives a small fee from a seller if a seller is successful in selling an item. B) Epinions receives a fee after steering a customer to a participating Web site where he or she makes a purchase. C) Flickr provides basic services for free, but charges a premium for advanced services. D) Apple accepts micropayments for single music track downloads.
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D
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Which of the following best illustrates the transaction fee revenue model? A) EBay receives a small fee from a seller if a seller is successful in selling an item. B) Epinions receives a fee after steering a customer to a participating Web site where he or she makes a purchase. C) Flickr provides basic services for free, but charges a premium for advanced services. D) Apple accepts micropayments for single music track downloads.
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A
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In which of the following revenue models does a Web site charge a fee for access to some or all of its offerings on a continual, regular basis? A) subscription B) free/freemium C) transaction fee D) sales
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A
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Which of the following best illustrates the affiliate revenue model? A) EBay receives a small fee from a seller if a seller is successful in selling an item. B) Epinions receives a fee after steering a customer to a participating Web site where he or she makes a purchase. C) Flickr provides basic services for free, but charges a premium for advanced services. D) Apple accepts micropayments for single music track downloads.
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B
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In a phenomenon called ________, some argue that large numbers of people can make better decisions about a wide range of topics or products than a single person or even a small committee of experts. A) the wisdom of crowds B) outsourcing C) crowdsourcing D) social networking
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A
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Netflix's public announcement of a reward for a technology solution to its movie recommendation system is an example of A) prediction markets. B) behavioral targeting. C) long-tail marketing. D) crowdsourcing.
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D
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Exposing an individual to ads that are chosen and based on the recorded and analyzed online behavior of the individual is referred to as A) clickstream advertising. B) behavioral targeting. C) online profiling. D) long-tail marketing.
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B
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Which of the following was the leading marketing format in 2010? A) display ads B) e-mail C) classifieds D) search engine
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D
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Which of the following statements about B2B commerce is not true? A) Eighty percent of online B2B e-commerce is still based on EDI. B) B2B e-commerce represents approximately three-quarters of the overall B2B marketplace. C) B2B e-commerce only includes commercial transactions between firms. D) B2B e-commerce revenues in 2009 were over $3 trillion.
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B
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Which of the following describes long-tail marketing? A) The unexpected growth of sales of a product long after its initial release. B) The yearly sales of one or two copies each of thousands of obscure films. C) The dwindling sales of a once-popular book. D) The continued successful sales of a product over years.
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B
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Which of the following statements about m-commerce is not true? A) In 2010, m-commerce represented less than 10 percent of all e-commerce. B) M-commerce is the fastest growing form of e-commerce. C) M-commerce applications are especially popular in Europe, Japan, and South Korea. D) In 2010, the top-grossing category of m-commerce was e-book sales.
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D
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The system functionalities of an e-commerce site are best described as the A) general capabilities wanted. B) information systems capabilities wanted. C) information elements needed. D) software and hardware required.
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B
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EDI is A) the use of Internet technologies for electronic data transactions. B) the exchange between two organizations of standard transactions through a network. C) electronic data invoicing. D) electronic delivery infrastructure.
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B
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The process of sourcing goods and materials, negotiating with suppliers, paying for goods, and making delivery arrangements is called A) procurement. B) e-procurement. C) SCM. D) sourcing.
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A
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An extranet that links a large firm to its suppliers and other key business partners is called a(n) A) e-hub. B) marketspace. C) exchange. D) private industrial network.
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D
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E-hubs are more ________ than private industrial networks. A) transaction-oriented B) collaborative C) independent D) supply-chain oriented
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A
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Net marketplaces A) focus on continuous business process coordination between companies for supply chain management. B) are industry owned or operate as independent intermediaries between buyers and sellers. C) are geared towards short-term spot purchasing. D) are more relationship oriented than private industrial networks.
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B
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A third-party Net marketplace that connects many buyers and suppliers for spot purchasing is called a(n) A) exchange. B) vertical market. C) private exchange. D) e-hub.
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A
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Which of the following is not one of the categories of services that are popular for m-commerce? A) location-based services B) financial services C) games and entertainment D) retail shopping
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D
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In the United States, m-commerce A) has become widely adopted. B) is still in its infancy. C) now represents a major fraction of total e-commerce transactions. D) is growing slowly.
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B
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You are planning the requirements for a site tracking and reporting system for your company Web site. Which of the following information requirements would not be essential for this function? A) number of unique visitors B) pages visited C) products purchased D) secure credit card clearing
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D
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________ refers to the ability of consumers to discover what merchants actually pay for products.
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Cost transparency
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An online arena in which participants bet on specific outcomes of popular events, such as elections or designs for a new product, is called a(n) ________.
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prediction market
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Content providers use ________ systems to process large amounts of very small monetary transactions cost-effectively.
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micropayment
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Online ________ marketing is like traditional word-of-mouth marketing except that it is spread via online communities.
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viral
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The Internet enables ________ marketing by leveraging the fact that there is always some demand, however small, for a product.
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long-tail
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The costs that a consumer spends in making a purchase, such as traveling to a store, are called ________ costs.
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transaction
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A(n) ________ is another term for a private industrial network.
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private exchange
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________ goods, such as office supplies, are those not involved firsthand in the production process.
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Indirect
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Before building an e-commerce site, business objectives and system functionalities must be translated into a set of precise information ________.
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requirements
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In Web server ________, a firm purchases or leases a Web server but locates the server in a vendor's physical facility.
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co-location
