IS chap 11

16) One of the first online virtual communities was:
A) The Well.
B) Myspace.
C) AOL.
D) Salon.com.
A) The Well.
17) Which of the following was a primary feature of early online communities?
A) chat
B) network discovery
C) widgets
D) message boards
D) message boards
18) Which of the following is a community of members who self-identify with a demographic or geographic category?
A) practice network
B) sponsored community
C) affinity community
D) interest-based social network
C) affinity community
19) iVillage.com is an example of a(n):
A) interest-based social network.
B) affinity community.
C) sponsored community.
D) practice network.
B) affinity community.
20) A Web site designed to give parents of home-schooled children a common discussion area would be classified as a(n):
A) interest-based social network.
B) affinity community.
C) practice network.
D) sponsored community.
A) interest-based social network.
21) Facebook is an example of a(n):
A) interest-based social network.
B) affinity community/social network.
C) general community/social network.
D) practice network.
C) general community/social network.
22) Which social network functionality allows users to easily post messages to the entire community?
A) message board
B) chat
C) instant messaging
D) e-mail
A) message board
23) Around what percentage of Internet users in the United States use social networks on a regular basis?
A) 25 %
B) 33%
C) 50%
D) 67%
D) 67%
24) ________ pricing adjusts prices based on the location of the consumer.
A) Personalization
B) Utilization
C) Trigger
D) Fixed
C) Trigger
25) All of the following statements about social networks are true except:
A) Yahoo visitors spend more than twice as much time on Yahoo as Facebook visitors spend on Facebook.
B) much more is spent on advertising on portals than on social networks.
C) Facebook’s share of the total social market is declining.
D) the response to display ads on Facebook is lower than on portal sites.
A) Yahoo visitors spend more than twice as much time on Yahoo as Facebook visitors spend on Facebook.
26) Which of the following types of dynamic pricing adjusts prices based on the merchant’s estimate of how much the customer truly values the product?
A) personalization
B) trigger
C) utilization
D) fixed
A) personalization
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
C) utilization
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.
D) $75 billion.
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.
A) in auctions, prices may be variable or fixed.
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
C) 7 hours
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.
C) decreased price transparency.
32) Which of the following is the market leader in C2C auctions?
A) Amazon
B) eBay
C) Yahoo
D) Craigslist
B) eBay
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
C) price transparency
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
A) equipment
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.
A) seller rating systems.
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
D) dynamic
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
B) proxy bidding
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.
C) buyer-biased.
39) BlackPlanet is an example of a(an) ________ social network.
A) practice-based
B) interest-based
C) affinity-based
D) general
C) affinity-based
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.
B) seller-biased.
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
A) bid rigging
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.
B) price matching.
43) The stock market is an example of a(n):
A) English auction.
B) Group buying auction.
C) Dutch auction.
D) double auction.
D) double auction.
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
A) English auctions
45) Which of the following is the original social photo-sharing site?
A) Vevo
B) Flickr
C) Instagram
D) Tumblr
B) Flickr
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.
A) double auction.
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.
A) English auction.
48) All of the following types of auctions involve single units except:
A) English auction.
B) Dutch Internet.
C) Japanese auction.
D) Vickrey auction.
B) Dutch Internet.
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
C) double auction
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
C) English auction
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.
D) name your own price auction.
52) Elance.com is an example of a(n):
A) demand aggregator.
B) auction aggregator.
C) auction solution provider.
D) professional service auction.
D) professional service auction.
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
C) location of auction
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.
D) bid increments.
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
C) Herd behavior
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
C) seller’s lament
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.
D) network effects.
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
B) bid siphoning
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.
A) feedback extortion.
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
C) auctions
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.
B) The value of the portal to advertisers and consumers increases geometrically as reach increases.
62) The world’s leading portal/search engine site, in terms of unique visitors, is:
A) Yahoo.
B) MSN/Bing.
C) AOL.
D) Google.
D) Google.
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.
A) general purpose portal.
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
D) Twitter
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
D) referral fees