E-Commerce Chapter 11 MCQ

27) Adjusting the annual cost of automobile insurance based on mileage driven is an example of ________ pricing.
A) personalization
B) trigger
C) utilization
D) fixed
Answer: C
28) In 2012, the total worth of goods sold on eBay was approximately:
A) $75 million.
B) $750 billion.
C) $7.5 billion.
D) $75 billion.
Answer: D
29) All of the following statements are true except:
A) in auctions, prices may be variable or fixed.
B) auctions constituted a significant part of B2B e-commerce in 2013.
C) over a third of procurement officers use auctions to procure goods.
D) online retail sites are adding auctions to their sites.
Answer: A
30) In 2013, Facebook visitors spent about ________ hours a month on Facebook.
A) 1.5 hours
B) 3 hours
C) 7 hours
D) 15 hours
Answer: C
31) All of the following are benefits of auctions except:
A) more efficient price discovery.
B) lower transaction costs.
C) decreased price transparency.
D) increased market efficiency.
Answer: C
32) Which of the following is the market leader in C2C auctions?
A) Amazon
B) eBay
C) Yahoo
D) Craigslist
Answer: B
33) Which of the following is not a risk or cost of Internet auctions?
A) delayed consumption costs
B) equipment costs
C) price transparency
D) trust risks
Answer: C
34) The fact that participating in an Internet auction means that you will need to purchase a computer, learn to use it, and pay for Internet access, is an example of ________ costs.
A) equipment
B) fulfillment
C) delayed consumption
D) monitoring
Answer: A
35) All of the following are solutions to the problem of high monitoring costs except:
A) seller rating systems.
B) watch lists.
C) proxy bidding.
D) fixed pricing.
Answer: A
36) In ________ pricing, customers change their offers to buy based on both their perceptions of the seller’s desire to sell and their own need for the product.
A) trigger
B) personalization
C) utilization
D) dynamic
Answer: D
37) Which of the following allows the consumer to enter a maximum price and the auction software automatically bids up the goods to that maximum price in small increments?
A) watch lists
B) proxy bidding
C) sealed bidding
D) price matching
Answer: B
38) A market that has many sellers and one or few buyers is likely to be:
A) market neutral.
B) seller-biased.
C) buyer-biased.
D) both seller- and buyer-biased.
Answer: C
39) BlackPlanet is an example of a(an) ________ social network.
A) practice-based
B) interest-based
C) affinity-based
D) general
Answer: C
40) When there are few sellers but many buyers, a market will typically be:
A) neutral (dominated by negotiation).
B) seller-biased.
C) buyer-biased.
D) neutral, in the manner of a stock exchange.
Answer: B
41) Which of the following is a common problem in sealed bid markets?
A) bid rigging
B) discriminatory pricing
C) persistent bidding
D) seller nonperformance
Answer: A
42) When sellers agree informally or formally to set floor prices below which they will not sell on auction items, this is known as:
A) discriminatory pricing.
B) price matching.
C) bid rigging.
D) the uniform pricing rule.
Answer: B
43) The stock market is an example of a(n):
A) English auction.
B) Group buying auction.
C) Dutch auction.
D) double auction.
Answer: D
44) Which of the following types of auctions tends to be best for sellers?
A) English auctions
B) Name Your Own Price auctions
C) Dutch Internet auctions
D) Group buying auctions
Answer: A
45) Which of the following is the original social photo-sharing site?
A) Vevo
B) Flickr
C) Instagram
D) Tumblr
Answer: B
46) All of the following types of auctions have a seller bias except:
A) double auction.
B) Dutch-traditional.
C) Yankee auction-Internet.
D) Dutch Internet.
Answer: A
47) All of the following types of auctions have a buyer bias except:
A) English auction.
B) sealed bid market.
C) name your own price auction.
D) group buying.
Answer: A
48) All of the following types of auctions involve single units except:
A) English auction.
B) Dutch Internet.
C) Japanese auction.
D) Vickrey auction.
Answer: B
49) Which of the following types of auctions offers a neutral marketplace, without buyer or seller bias?
A) sealed bid market
B) English auction
C) double auction
D) name your own price auction
Answer: C
50) A(n) ________, in which the highest bidder wins, is the most common form of auction.
A) Dutch Internet auction
B) Japanese auction
C) English auction
D) reverse auction
Answer: C
51) Priceline.com is an example of a(n):
A) English auction.
B) Dutch auction.
C) group buying auction.
D) name your own price auction.
Answer: D
52) Elance.com is an example of a(n):
A) demand aggregator.
B) auction aggregator.
C) auction solution provider.
D) professional service auction.
Answer: D
53) Which of the following is not one of the top factors a business should consider when planning an Internet auction?
A) type of product
B) type of auction
C) location of auction
D) bid increments
Answer: C
54) The profit a seller makes at auction is a function of all of the following except:
A) arrival rate.
B) auction length.
C) the number of units for auction.
D) bid increments.
Answer: D
55) ________ is the tendency to gravitate toward, and bid for, auction listings with one or more existing bids.
A) Group buying
B) Winner’s regret
C) Herd behavior
D) Bid rigging
Answer: C
56) Which of the following involves a concern that one will never know how much the ultimate winner might have paid, or the true value to the final winner?
A) herd behavior
B) winner’s regret
C) seller’s lament
D) loser’s lament
Answer: C
57) All of the following are situations in which markets fail to produce socially desirable outcomes except:
A) information asymmetry.
B) monopoly power.
C) externalities.
D) network effects.
Answer: D
58) Which of the following involves e-mailing another seller’s bidders and offering the same product for less?
A) transaction interception
B) bid siphoning
C) shill bidding
D) persistent bidding
Answer: B
59) Threatening negative feedback in return for a benefit is an example of:
A) feedback extortion.
B) offensive shill feedback.
C) defensive shill feedback.
D) sending spam.
Answer: A
60) Which of the following is not one of the three defining characteristics of a portal?
A) commerce
B) content
C) auctions
D) navigation of the Web
Answer: C
61) Which of the following statements illustrates the network effects that portals are subject to?
A) Specialized vertical market portals attract only 2-10% of the audience, while a few large megaportals garner most of the market.
B) The value of the portal to advertisers and consumers increases geometrically as reach increases.
C) The greater the amount of content provided by a portal, the greater its value to the community.
D) The greater number of portals available, the greater the potential audience for each.
Answer: B
62) The world’s leading portal/search engine site, in terms of unique visitors, is:
A) Yahoo.
B) MSN/Bing.
D) Google.
Answer: D
63) MSN is an example of a:
A) general purpose portal.
B) vertical market portal based on affinity group.
C) vertical market portal based on focused content.
D) focused content search engine.
Answer: A
64) Facebook was the leader in U.S. ad spending revenues on social networks in 2013. What company received the second most amount of ad spending revenue?
A) MySpace
B) LinkedIn
C) Pinterest
D) Twitter
Answer: D
65) Which of the following is not one of the typical portal revenue sources?
A) commissions on sales
B) subscription fees
C) tenancy deals
D) referral fees
Answer: D