CIS761 Cha 10

Since the dot-com bubble burst of 2001, e-commerce revenues:
– have essentially stagnated.
– show signs of stabilizing.
– have returned to solid growth.
– have returned to exponential growth.
have returned to solid growth.
Varying a product’s price according to the supply situation of the seller is called ________ pricing.
– menu
– flexible
– dynamic
– asymmetric
dynamic
The act of engaging consumers in a dialog that dynamically adjusts the experience to the individual describes which dimension of e-commerce technology?
– ubiquity
– personalization/customization
– richness
– interactivity
interactivity
Tools that compare user behavior and interests to make purchasing recommendations to users are called ________ tools.
– clickstream tracking
– customer tracking
– collaborative filtering
– filtering
collaborative filtering
Podcasting allows subscribers to listen to live, streaming radio and other audio content.
– True
– False
False
In the United States, m-commerce
– has become widely adopted.
– is still in its infancy.
– represents a major fraction of total e-commerce transactions.
– is growing, due to the emergence of 2G networks
is still in its infancy.
Reducing the business process layers in a distribution channel is called
– disintermediation.
– BPR.
– market segmentation.
– network effects.
disintermediation.
In general, for digital goods, the marginal cost of producing another unit is about zero.
– True
– False
True
Amazon.com uses Web personalization as a major marketing tool.
– True
– False
True
The effort required to locate a suitable product is called
– price discrimination.
– search costs.
– menu costs.
– transparency costs.
search costs
Automobile manufacturing is an example of a vertical market.
– True
– False
True
Which of the following is NOT one of the unique features of e-commerce technology?
– information density
– transparency
– richness
– social technology
transparency
Retail consumer e-commerce is still growing at single-digit rates.
– True
– False
False
Web sites cannot currently provide customers with call center interaction.
– True
– False
False
The integration of video, audio, and text marketing messages into a single marketing message and consumer experience describes which dimension of e-commerce technology?
– ubiquity
– personalization/customization
– richness
– interactivity
richness
Companies rarely use Web pages to analyze customer information.
– True
– False
False
Which Internet business model is JR.com most closely aligned with?
– virtual storefront
– exchange
– transaction broker
– online marketplace
virtual storefront
EDI is
– the use of Internet technologies for electronic data transactions.
– the exchange between two organizations of standard transactions through a network.
– electronic data invoicing.
– electronic delivery infrastructure.
the exchange between two organizations of standard transactions through a network.
EDI standards that take advantage of network communications have yet to be fully implemented at the industry level.
– True
– False
False
Online marketplaces
– save users money and time by processing online sales dealings.
– provide a digital environment where buyers and sellers can establish prices for products.
– create revenue by providing digital content over the Web.
– sell physical products directly to consumers or individual businesses.
provide a digital environment where buyers and sellers can establish prices for products.
Disintermediation provides major benefits to the distributor.
– True
– False
False
A marketplace extended beyond traditional boundaries and removed from a temporal and geographic location is called a(n)
– exchange.
– marketspace.
– online marketplace.
– e-hub.
marketspace.
Which of the following Internet business models does Amazon.com use?
– information broker
– transaction broker
– online service provider
– virtual storefront
virtual storefront
Which Internet business model is Photobucket most closely aligned with?
– service provider
– content provider
– portal
– social network
service provider
What strategy was implemented by Stonyfield Farm in its use of blogs?
– low-cost leadership
– product differentiation
– focus on market niche
– strengthen customer and supplier intimacy
strengthen customer and supplier intimacy
An online syndicator aggregates content or applications from multiple sources, packaging them for distribution, and reselling them to third-party Web sites.
– True
– False
True
Compared to digital markets, traditional markets have
– lower search costs.
– stronger network effects.
– higher delayed gratification effects.
– higher transaction costs.
higher transaction costs.
Transaction brokers
– generate revenue from advertising or from directing buyers to sellers.
– save users money and time by processing online sales dealings.
– provide a digital environment where buyers and sellers can establish prices for products.
– sell physical products directly to consumers or individual businesses.
save users money and time by processing online sales dealings.
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
– False
True
Businesses retailing products and services directly via the Internet to individual consumers best describes
– B2B electronic commerce.
– C2C electronic commerce.
– M-commerce.
– B2C electronic commerce.
B2C electronic commerce.
In general, for digital goods, the marginal cost of producing another unit is about zero.
– True
– False
True
Compared to digital markets, traditional markets have
– lower search costs.
– stronger network effects.
– higher delayed gratification effects.
– higher transaction costs.
higher transaction costs.
Podcasting allows subscribers to listen to live, streaming radio and other audio content.
– True
– False
False
Online marketplaces
– save users money and time by processing online sales dealings.
– provide a digital environment where buyers and sellers can establish prices for products.
– create revenue by providing digital content over the Web.
– sell physical products directly to consumers or individual businesses.
provide a digital environment where buyers and sellers can establish prices for products.
Tools that record customer activities at Web sites and store them in a log for further analysis are called ________ tools.
– clickstream tracking
– customer tracking
– collaborative filtering
– filtering
clickstream tracking
What strategy was implemented by Stonyfield Farm in its use of blogs?
– low-cost leadership
– product differentiation
– focus on market niche
– strengthen customer and supplier intimacy
strengthen customer and supplier intimacy
Net marketplaces
– focus on continuous business process coordination between companies for supply chain management.
– are industry owned or operate as independent intermediaries between buyers and sellers.
– are geared towards short-term spot purchasing.
– are more relationship oriented than private industrial networks.
are industry owned or operate as independent intermediaries between buyers and sellers.
Amazon.com uses Web personalization as a major marketing tool.
– True
– False
True
The integration of video, audio, and text marketing messages into a single marketing message and consumer experience describes which dimension of e-commerce technology?
– ubiquity
– personalization/customization
– richness
– interactivity
richness
The Internet shrinks information asymmetry.
– True
– False
True
EDI is
– the use of Internet technologies for electronic data transactions.
– the exchange between two organizations of standard transactions through a network.
– electronic data invoicing.
– electronic delivery infrastructure.
the exchange between two organizations of standard transactions through a network.
Disintermediation provides major benefits to the distributor.
– True
– False
False
Which of the following is an ad that opens automatically and does not disappear until the user clicks on it?
– pop-up ad
– controlled ad
– portal ad
– banner ad
pop-up ad
An information broker provides product, pricing, and availability information to individuals and businesses and generates revenue from advertising or from directing buyers to sellers.
– True
– False
True
Which of the following is NOT one of the categories of services that are popular for m-commerce?
– location-based services
– financial services
– games and entertainment
– e-books
e-books
Which of the following is NOT a recent development in e-commerce?
– growth of wireless Internet connections
– online, interactive models for newspapers and other traditional media
– use of blogs as a commercial medium
– transformation of the music recording industry
transformation of the music recording industry
Compared to traditional goods, digital goods have
– greater pricing flexibility.
– lower marketing costs.
– higher production costs.
– higher inventory costs.
greater pricing flexibility.
Pure-play businesses
– are an example of business-to-business electronic commerce.
– do not sell a physical product.
– are extensions of traditional bricks-and-mortar businesses.
– did not have an earlier existing bricks-and-mortar business before they went to the Internet.
did not have an earlier existing bricks-and-mortar business before they went to the Internet.
Which of the following businesses utilizes the content provider Internet business model?
– Amazon.com
– eBay.com
– CNN.com
– Motocross.com
CNN.com
Digital goods are goods that are
– produced digitally.
– sold over digital networks.
– delivered digitally.
– used with digital equipment.
delivered digitally.
Since the dot-com bubble burst of 2001, e-commerce revenues:
– have essentially stagnated.
– show signs of stabilizing.
– have returned to solid growth.
– have returned to exponential growth.
have returned to solid growth.
Which of the following Internet business models does Amazon.com use?
– information broker
– transaction broker
– online service provider
– virtual storefront
virtual storefront
Varying a product’s price according to the supply situation of the seller is called ________ pricing.
– menu
– flexible
– dynamic
– asymmetric
dynamic
The organizational department responsible for handling customer service issues is the
– service center.
– customer support department.
– call center.
– sales department.
call center.
Consumers selling goods and services electronically to other consumers best describes:
– disintermediation.
– C2C electronic commerce.
– M-commerce.
– B2C electronic commerce.
C2C electronic commerce.
Reducing the business process layers in a distribution channel is called
– disintermediation.
– BPR.
– market segmentation.
– network effects.
disintermediation.
Why are companies interested in setting up MySpace profiles for their products?
– to bypass broadcast regulations for advertising to children
– to gather data on MySpace users linking to them
– to take advantage of free advertising
– to create personal relationships with consumers
to bypass broadcast regulations for advertising to children
Which of the following statements about m-commerce payments is NOT true?
– Use of mobile handsets as payment devices is already well established in Europe, Japan, and South Korea.
– The cell phone in the United States is not connected to a wide network of financial institutions.
– Japanese cell phones act like mobile wallets, containing a variety of payment mechanisms.
– The three kinds of mobile payments systems used in Japan are mobile credit cards, mobile debit cards, and digital wallets.
The three kinds of mobile payments systems used in Japan are mobile credit cards, mobile debit cards, and digital wallets.
Information ________ exists when one party in a transaction has more information that is important for the transaction than the other party.
– transparency
– asymmetry
– complexity
– imbalance
asymmetry
eBay is an example of
– a click-and-mortar business.
– C2C electronic commerce.
– B2C electronic commerce.
– an online exchange.
C2C electronic commerce.
E-commerce refers to the use of any networking technologies to transact business.
FALSE
Retail e-commerce has grown consistently at double-digit rates since 1995.
FALSE
The Internet shrinks information asymmetry.
TRUE
Information asymmetry exists when one party in a transaction has more information for the transaction than the other party.
TRUE
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.
TRUE
Disintermediation provides major benefits to the distributor.
FALSE
In general, for digital goods, the marginal cost of producing another unit is about zero.
TRUE
An example of the service provider business model is Netflix, an online video store and streaming media outlet.
FALSE
An example of the content provider business model is Salon.com, an online magazine.
TRUE
Podcasting allows subscribers to listen to live, streaming radio and other audio content.
FALSE
Intellectual property refers to all forms of human expression, both tangible and intangible.
FALSE
The goal of behavioral targeting is to increase the size of the audience to whom the advertiser can market a product.
FALSE
In the technique of product customization, merchants customize marketing messages to specific individuals by adjusting the message for the person’s name and interests.
FALSE
Amazon.com uses Web personalization as a major marketing tool.
TRUE
EDI standards that take advantage of network communications have yet to be fully implemented at the industry level.
FALSE
Net marketplaces may either support contractual purchasing based on long-term relationships with designated suppliers or short-term spot purchasing.
TRUE
Exchanges have become one of the most popular types of Net marketplace because they encourage competitive bidding that drives prices down.
FALSE
Automotive manufacturing is an example of a vertical market.
TRUE
In general, the cost of hardware, software, and telecommunications for building and operating a Web site has fallen by over 50 percent since 2000.
TRUE
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.
TRUE
1) E-commerce refers to the use of any networking technologies to transact business.
False
2) Consumer e-commerce is still growing at approximately 25% annually.
False
3) The Internet shrinks information asymmetry.
True
4) Eighty-five percent of online retailers now have m-commerce Web sites.
FALSE
5) 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
6) Disintermediation provides major benefits to the distributor.
False
7) In general, for digital goods, the marginal cost of producing another unit is about zero
True
8) Telecommunications hardware and software is typically the least costly portion of a Web site budget
true
9) An example of the content provider business model is Barnesandnoble.com, a retailer of printed books.
false
10) Amazon’s recommender system is an example of the network notification feature of social e-commerce.
False
11) Podcasting allows subscribers to listen to live, streaming radio and other audio content.
false
12) Intellectual property refers to all forms of human expression, both tangible and intangible.
false
13) Ninety-six percent of all U.S. households with Internet access use a broadband connection.
true
14) Behavioral targeting occurs at two levels: individual Web sites and through ISPs.
false
15) EDI standards that take advantage of network communications have yet to be fully implemented at the industry level.
false
16) Net marketplaces may either support contractual purchasing based on long-term relationships with designated suppliers or short-term spot purchasing
true
17) Exchanges have become one of the most popular types of Net marketplace because they encourage competitive bidding that drives prices down.
false
18) Automobile manufacturing is an example of a vertical market.
true
19) In general, the cost of hardware, software, and telecommunications for building and operating a Web site has fallen by over 50 percent since 2000.
true
20) 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.
false
21) Through what channel did e-commerce first evolve?
A) online advertising sales
B) Internet portals
C) online book sales
D) Internet service providers
A
22) Which of the following is not one of the current main areas of growth in mobile e-commerce?
A) sales of financial services
B) retail sales at the top mobile companies
C) sales of digital content
D) sales of apps
A
23) Which of the following is an example of a geosocial mobile service?
A) Kickstarter.com
B) Foursquare
C) Shopkick
D) Facebook
B
24) 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.
B
25) 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.
D
26) Which of the following is not a recent development in e-commerce?
A) Mobile e-commerce takes off.
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.
C
27) 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
B
28) Which feature of Internet technology has had the most effect in the Internet’s rapid spread across the globe?
A) ubiquity
B) global reach
C) universal standards
D) social technology
C
29) 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
D
30) 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
C
31) 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
A
32) The effort required to locate a suitable product is called
A) price discrimination.
B) search costs.
C) menu costs.
D) shopping costs.
B
33) Information density refers to the
A) richness—complexity and content—of 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.
C
34) 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.
D
35) 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
B
36) Varying a product’s price according to the supply situation of the seller is called ________ pricing.
A) menu
B) flexible
C) dynamic
D) asymmetric
C
37) Reducing the business process layers in a distribution channel is called
A) disintermediation.
B) BPR.
C) market segmentation.
D) network effects.
A
38) Digital goods are goods that are
A) produced digitally.
B) sold over digital networks.
C) delivered digitally.
D) used with digital equipment
C
39) Compared to digital markets, traditional markets have
A) lower search costs.
B) stronger network effects.
C) higher delayed gratification effects.
D) higher transaction costs.
D
40) Compared to traditional goods, digital goods have
A) greater pricing flexibility.
B) lower marketing costs.
C) higher production costs.
D) higher inventory costs.
A
41) 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.
A
42) eBay is an example of
A) C2C e-commerce.
B) B2B e-commerce.
C) B2C e-commerce.
D) M-commerce.
A
43) 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.
D
44) Consumers selling goods and services electronically to other consumers best describes
A) disintermediation.
B) C2C e-commerce.
C) M-commerce.
D) B2C e-commerce.
B
45) Which of the following businesses utilizes the content provider Internet business model?
A) Amazon.com
B) eBay.com
C) CNN.com
D) Motocross.com
C
46) Which of the following Internet business models does Amazon.com use?
A) content provider
B) portal
C) market creator
D) e-tailer
D
47) 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.
B
48) 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.
B
49) Which of the following best describes why small world theory is important to e-commerce?
A) The products bought online by one individual will influence purchases by others.
B) The greater the number of people using your product, the more valuable it becomes.
C) You do not need to attract a large consumer base to become profitable.
D) Global products create a global community.
A
50) 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.
D
51) 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
A
52) 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.
B
53) 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.
A
54) ________ describes the concept that a large group of people is better at making correct decisions than a single person.
A) The wisdom of crowds
B) Outsourcing
C) Crowdsourcing
D) Social graphing
A
55) 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.
D
56) 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.
B
57) Which of the following was the leading online advertising format in 2012?
A) display ads
B) e-mail
C) classifieds
D) search engine
D
58) 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 2012 were over $4 trillion.
B
59) 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.
B
60) The process of sourcing goods and materials, negotiating with suppliers, paying for goods, and making delivery arrangements is called
A) e-procurement.
B) SCM.
C) procurement.
D) sourcing.
C
61) 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
D
62) E-hubs are more ________ than private industrial networks.
A) transaction-oriented
B) collaborative
C) independent
D) supply-chain oriented
A
63) A mapping of a person’s significant online, personal relationships is called a social
A) Web.
B) graph.
C) community.
D) map.
B
64) 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.
A
65) Goods that are involved in the actual production process are referred to as
A) raw materials.
B) direct goods.
C) purchasing goods.
D) indirect goods.
B
66) Which of the following statements about m-commerce is not true?
A) In 2012, 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 annual revenues are approximately $30 billion.
D) In 2012, the top-grossing category of m-commerce was e-book sales.
D
67) You are building an e-commerce Web site that will sell e-books and are looking for a hosted solution. Which of the following functionalities is least important for your business goals?
A) site tracking system
B) inventory management
C) digital catalog
D) customer database
B
68) 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
D
69) Which of the following is the least costly way to build a Web site?
A) Outsource the Web site development to overseas vendors.
B) Use a hosted solution and pre-built templates.
C) Build your site yourself from scratch using existing software.
D) Use a site-building package.
B
70) You are advising an accounting firm that wants to establish its first Web site. Approximately how much of the Web site budget should you assign to purchasing software?
A) 10 percent
B) 25 percent
C) 50 percent
D) none, as no software will need to be purchased
A
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
A
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.
B