Deck 10: E-Commerce: Digital Markets,digital Goods

Question 1

Which of the following dimensions of e-commerce technology has the potential to raise the quality of information?

A)Information density
B)Richness
C)Customization
D)Interactivity
E)Global reach

Answer 1

A

Question 2

What is the primary benefit to consumers of disintermediation?

A)Faster service
B)Lower costs
C)Higher quality
D)Greater choices
E)None,because disintermediation primarily benefits manufacturers.

Answer 2

B

Question 3

All of the following are unique features of e-commerce technology,except:

A)personalization/customization.
B)interactivity.
C)transparency.
D)richness.
E)global reach.

Answer 3

C

Question 4

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.
E)net marketplace.

Question 5

Removing the business process layers in a distribution channel is called:

A)disintermediation.
B)BPR.
C)market segmentation.
D)network effects.
E)market transparency.

Question 6

Compared to digital markets,traditional markets have:

A)lower search costs.
B)stronger network effects.
C)higher delayed gratification effects.
D)reduced asymmetry.
E)higher transaction costs.

Question 7

What event marked the beginning of e-commerce?

A)The first product sold online.
B)The first domain name registered.
C)The first e-mail sent.
D)The first paid advertisements placed on a website.
E)The first product advertised online.

Question 8

All of the following are increased in traditional markets compared to digital markets except:

A)search costs.
B)menu costs.
C)switching costs.
D)network effects.
E)information asymmetry.

Question 9

All of the following are examples of "on demand" companies except:

A)Uber.
B)Airbnb.
C)Lyft.
D)Instacart.
E)Instagram.

Question 10

Selling the same goods to different targeted groups at different prices is called:

A)cost customization.
B)cost optimization.
C)price gouging.
D)cost personalization.
E)price discrimination.

Question 11

When did e-commerce begin?

A)1965
B)1983
C)1995
D)1999
E)2000

Question 12

The effort required to locate a suitable product is called:

A)price discrimination.
B)search costs.
C)menu costs.
D)shopping costs.
E)location costs.

Question 13

Compared to traditional goods,digital goods have:

A)lower costs of production.
B)higher marginal costs per unit.
C)equivalent copying costs.
D)similar inventory costs.
E)less disintermediation.

Question 14

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.
E)amount of physical storage space needed to store data about a specific entity,such as a product or consumer.

Question 15

Which of the following dimensions of e-commerce technology involves the integration of video,audio,and text marketing messages into a single marketing message and consumer experience?

A)Ubiquity
B)Personalization/customization
C)Richness
D)Interactivity
E)Social technology

Question 16

Compared to traditional goods,digital goods have:

A)greater pricing flexibility.
B)lower marketing costs.
C)higher production costs.
D)higher inventory costs.
E)lower menu costs.

Question 17

Which of the following dimensions of e-commerce technology involves engaging consumers in a dialog that dynamically adjusts the experience to the individual?

A)Ubiquity
B)Personalization/customization
C)Richness
D)Interactivity
E)Information density

Question 18

Varying a product's price according to the supply situation of the seller is called ________ pricing.

A)menu
B)flexible
C)dynamic
D)asymmetric
E)customized

Question 19

What standards are referred to when discussing universal standards as a unique feature of e-commerce?

A)Internet technology standards
B)Common spoken and written languages
C)Universal measuring standards
D)Universal advertising and media format standards
E)EDI standards

Question 20

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
E)competition

Question 21

Switching costs are the merchants' costs of changing prices.

Question 22

The Internet reduces information asymmetry.

Question 23

Which of the following Internet business models involves a merchant creating an online digital environment that enables people with like interests to share information?

A)Community provider
B)Service provider
C)Market creator
D)Transaction broker
E)Portal

Question 24

"Knowledge increases exponentially" is a phrase with which we are all familiar.How does this concept apply to the emergence of the digital firm? Support your contentions.

Question 25

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.

Question 26

Which of the following types of e-commerce involves businesses selling goods and services directly to individuals via the Internet?

A)B2C e-commerce
B)B2B e-commerce
C)C2C e-commerce
D)M-commerce
E)P2P e-commerce

Question 27

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.
E)provide online meeting places where people with similar interests can communicate.

Question 28

Information asymmetry exists when there is more information about one product than there is about a similar product.

Question 29

Price transparency refers to the ability of consumers to discover what merchants actually pay for products.

Question 30

Disintermediation provides major benefits to the distributor.

Question 31

Amazon.com is known primarily for its use of which of the following business models?

A)Content provider
B)Portal
C)Market creator
D)E-tailer
E)Transaction broker

Question 32

What is the most profound way in which e-commerce and the Internet have changed the relationship between companies and their customers? Support your answer.

Question 33

All of the following are examples of firms that use the community provider Internet business model except:

A)eBay.
B)Facebook.
C)Twitter.
D)Instagram.
E)Pinterest.

Question 34

What is dynamic pricing and how is it used in e-commerce?

Question 35

Traditional online marketing,such as display ads,still constitutes the majority of all online marketing.

Question 36

Craigslist is an example of:

A)C2C e-commerce.
B)B2B e-commerce.
C)B2C e-commerce.
D)M-commerce.
E)P2P-commerce.

Question 37

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

Question 38

What are digital goods,and how does the Internet impact the market for digital goods?

Question 39

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

Question 40

Retail consumer e-commerce is growing at double-digit rates.

Question 41

Which of the following best illustrates the advertising revenue model?

A)eBay receives a small fee from a seller if a seller is successful in selling an item.
B)Yelp receives a fee after steering a customer to a participating website where he or she makes a purchase.
C)Facebook provides a social network for free,but shows sponsored content in users' News Feeds.
D)Apple accepts micropayments for single music track downloads.
E)Netflix charges customers a monthly fee for access to its library of movies.

Question 42

List and describe the three main categories of e-commerce.Which do you think is ultimately the most valuable to the individual consumer? Support your answer.

Question 43

Web personalization is used primarily as a marketing tool.

Question 44

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

Question 45

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.
E)generate revenue from advertising or from directing buyers to sellers.

Question 46

MSN is an example of the portal business model.

Question 47

In the ________ revenue models,a firm offers some services for free but charges a subscription fee for premium services.

A)free/freemium
B)subscription
C)transaction fee
D)affiliate
E)sales

Question 48

What methods could a portal use to generate revenue? Which do you think might be most successful,and why?

Question 49

You are consulting for Lucky's,a chain of gas stations.What types of e-commerce opportunities,if any,are relevant to Lucky's? Could Lucky's make use of any Internet business models for this opportunity?

Question 50

Netflix uses which of the following revenue models?

A)Advertising
B)Transaction fee
C)Subscription
D)Freemium
E)Affiliate

Question 51

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)Yelp receives a fee after steering a customer to a participating website where he or she makes a purchase.
C)Pandora provides basic services for free,but charges a premium for advanced services.
D)Apple accepts micropayments for single music track downloads.
E)Netflix charges customers a monthly fee for access to its library of movies.

Question 52

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)Yelp receives a fee after steering a customer to a participating website where he or she makes a purchase.
C)Pandora provides basic services for free,but charges a premium for advanced services.
D)Apple accepts micropayments for single music track downloads.
E)Netflix charges customers a monthly fee for access to its library of movies.

Question 53

Uber uses a form of dynamic pricing.

Question 54

List and describe the top five methods of online marketing and advertising formats,in terms of 2015 revenue?

Question 55

Which of the following companies uses the service provider business model?

A)Expedia
B)ETrade
C)Facebook
D)Yahoo
E)Dropbox

Question 56

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)Yelp receives a fee after steering a customer to a participating Web site where he or she makes a purchase.
C)Pandora provides basic services for free,but charges a premium for advanced services.
D)Apple accepts micropayments for single music track downloads.
E)Netflix charges customers a monthly fee for access to its library of movies.

Question 57

Content providers use ________ systems to process large amounts of very small monetary transactions cost-effectively.

A)subscription
B)mobile payment
C)transaction fee
D)micropayment
E)affiliate revenue

Question 58

In the affiliate revenue model,firms derive revenue by selling information or services through partner e-commerce sites.

Question 59

List and describe at least five different Internet business models.Which of these models do you think would be the riskiest for a startup business today? Support your answer.

Question 60

eBay is an example of the market creator business model.

Question 61

________ attempts to leverage the fact that there is always some demand,however small,for a product.

A)Long tail marketing
B)Behavioral targeting
C)Crowdsourcing
D)Demand prediction software
E)Lead generation marketing

Question 62

What is the difference between personalization and customization,as applied to e-commerce technologies?

A)Customization is any type of adjustment made to a product by the user;personalization refers to a business changing a product or service for the user.
B)Personalization is any type of adjustment made to a product by the user;customization refers to a business changing a product or service for the user.
C)Customization refers to adjusting marketing messages for a consumer;personalization refers to adjusting a product or service based on a user's preferences.
D)Personalization refers to adjusting marketing messages for a consumer;customization refers to adjusting a product or service based on a user's preferences.
E)There is no difference.Both terms refer to changing a product or communication for the consumer.

Question 63

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.
E)crowdsourcing.

Question 64

Viral marketing is like traditional word-of-mouth marketing except that it is spread via online communities.

Question 65

Facebook's Like button is an example of which of the following?

A)Social sign-on
B)Collaborative shopping
C)Network notification
D)Social search
E)Newsfeed

Question 66

Which of the following marketing formats is sales oriented,rather than branding oriented or a mix?

A)Lead generation
B)Search engine
C)Rich media
D)Display ads
E)Video

Question 67

A secure website 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.
E)net marketplace.

Question 68

Which of the following is a marketing format that uses banner ads and pop-ups with interactive features?

A)Search engine ads
B)Video ads
C)Rich media ads
D)E-mail ads
E)Display ads

Question 69

The behavioral targeting of ads results in consumers responding ten times more frequently than when delivered ads randomly.

Question 70

Which of the following is the largest mobile advertising market?

A)Google
B)Yahoo
C)Facebook
D)Microsoft
E)Twitter

Question 71

Website tracking software can log the path a customer took through the website,the time spent on the site,and what geographic area,in general,the customer is from,all of which can help in customer analysis.It can also log the customer's operating system and which browser the customer is using.How could these last two data items be of interest to a company? Give examples.

Question 72

Which of the following best describes the digital social graph?

A)A person's direct and indirect relationships
B)All of a person's closest digital relationships
C)A mapping of all online social relationships
D)All of the online and offline relationships a person has
E)All of the relationships in an online community

Question 73

Rich media advertisements are a sales-oriented marketing format.

Question 74

Which of the following statements about EDI is not true?

A)Each major industry in the United States has EDI standards.
B)Today,EDI is only used for document automation.
C)Many organizations still use private networks for EDI.
D)EDI systems are increasingly web-enabled.
E)About 80 percent of online B2B e-commerce is still based on EDI.

Question 75

Describe the use of personalization and customization in e-commerce.What business value do these techniques have?

Question 76

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.
E)production.

Question 77

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)social shopping.
E)crowdsourcing.

Question 78

Advertising networks track a user's behavior at thousands of websites.

Question 79

Behavioral targeting occurs at two levels: individual websites and through ISPs.

Question 80

You have been hired as a marketing consultant by a law firm in Los Angeles that specializes in juvenile justice.What ways can you use the Internet as a marketing tool and to advertise the firm's services?