Ch 10 Practice Questions

Compared to digital markets, traditional markets have: higher transaction costs. stronger network effects. greater transparency. higher delayed gratification effects. lower search costs

Disintermediation has which of the following effects? It has no impact. It reduces the cost of advertising. It increases costs of manufacturing. It lowers costs to the consumer. It reduces the ties between consumers and businesses.

eBay is an example of C2C e-commerce. B2C e-commerce. M-commerce. B2B e-commerce.

Which of the following best illustrates the affiliate revenue model? Apple accepts micropayments for single music track downloads. eBay receives a small fee from a seller if a seller is successful in selling an item. Photobucket provides basic services for free, but charges a premium for advanced services. Pandora provides free service with limited play and advertising. Yelp receives a fee after steering a customer to a participating website where he or she makes a purchase.

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

Exposing an individual to ads that are chosen and based on the online behavior of the individual is referred to as: behavioral targeting. long tail marketing. prediction marketing. online profiling. clickstream advertising.

In which of the following revenue models does a website charge a fee for access to some or all of its offerings on a continual, regular basis? Sales Transaction fee Subscription Affiliate Advertising

Which of the following Internet business models does Amazon.com use? e-tailer portal market creator content provider

Which of the following statements about exchanges is not true? Go2Paper is an example of an exchange. Exchanges are the most successful form of B2B commerce. Some exchanges provide vertical markets. Exchanges are independently owned third-party Net marketplaces. Some exchanges enable a spot market.

Varying a product's price according to the supply situation of the seller is called ________ pricing. dynamic flexible transparent menu asymmetric

Geoadvertising sends ads to users based on their: website behaviors. user addresses. shopping preferences. social media presence. GPS locations.

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

The effort required to locate a suitable product is called: menu costs. search costs. market entry costs. shopping costs. price discrimination.

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? interactivity customization information density richness

The Internet shrinks information asymmetry.

Which of the following is an example of the content provider Internet business model? iTunes Dropbox ETrade eBay Facebook

Disintermediation provides major benefits to the distributor.

Which of the following is the best description of ubiquity as it relates to e-commerce technology? E-commerce technology is available everywhere and anytime. E-commerce technology employs the same set of standards across the globe. E-commerce technology reduces information costs. E-commerce technology allows personalized messages to be delivered to individuals as well as to groups. E-commerce technology permits commercial transactions to cross cultural and national boundaries.

Which of the following Internet business models involves creating an online digital environment that enables people with like interests to share information? Market creator E-tailer Transaction broker Service provider Community provider

Netflix's public announcement of a reward for a technology solution to its movie recommendation system is an example of: behavioral targeting. crowdsourcing. long-tail marketing. prediction markets. social sign-on.