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

Question 1

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

Answer 1

C

Question 2

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

Answer 2

B

Question 3

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.

Answer 3

E

Question 4

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

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

Question 5

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

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

Question 6

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.

Question 7

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 8

In digital markets:

A)search costs increase.
B)menu costs decline.
C)switching costs decline.
D)network costs decline.
E)information asymmetry increases.

Question 9

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 10

When did e-commerce begin?

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

Question 11

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 12

Compared to traditional markets,digital markets have:

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

Question 13

Changing the prices of products based on the level of demand characteristics of the customer is called ________ pricing.

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

Question 14

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 15

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

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

Question 16

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 17

Compared to traditional goods,digital goods have:

A)low marginal costs of production.
B)higher delivery costs.
C)lower initial production costs.
D)higher inventory costs.
E)higher marginal costs.

Question 18

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

Question 19

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 20

Compared to digital goods,traditional goods have:

A)lower inventory costs.
B)lower marginal costs per unit.
C)lower copying costs.
D)more variable pricing.
E)higher costs of distribution.

Question 21

Craigslist is an example of:

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

Question 22

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 23

Behavioral targeting refers to targeting ad messages to a person's clickstream behavior.

Question 24

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

Question 25

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

Question 26

The Internet increases information asymmetry.

Question 27

Disintermediation does not benefit the consumer.

Question 28

"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 29

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

Question 30

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 31

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

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

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 specific 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 34

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

Question 35

Traditional online marketing,such as display ads,have been replaced by video ads.

Question 36

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

Question 37

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 38

E-commerce refers to the use of the Internet and the web to transact business.

Question 39

Menu costs are the merchants' costs of changing prices.

Question 40

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

Question 41

eBay is an example of the market creator business model.

Question 42

In the affiliate revenue model,firms derive revenue by referring consumers to other firms selling online.

Question 43

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

Question 44

As described in the opening case,what is YouTube's revenue model?

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

Question 45

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 46

Yahoo is an example of the portal business model.

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

Question 48

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 49

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 50

As described in the chapter case,Uber uses the ________ revenue model.

A)service provider
B)market creator
C)community provider
D)portal
E)transaction broker

Question 51

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 52

YouTube does not use dynamic pricing.

Question 53

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 54

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

Question 55

As described in the opening case,what is the primary business model employed by YouTube?

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

Question 56

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 57

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 58

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 59

Which of the following companies uses the subscription revenue model?

A)Expedia
B)ETrade
C)Facebook
D)Netflix
E)Google Search

Question 60

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 61

An environment where consumers can share their shopping experiences with one another by viewing products,chatting,or texting about brands,products,and services is an example of:

A)network notification.
B)web personal marketing.
C)collaborative shopping.
D)social search.
E)social sign-on.

Question 62

Exposing an individual to ads that are chosen based on the choices of their friends is an example of:

A)clickstream advertising.
B)behavioral targeting.
C)online profiling.
D)social marketing.
E)crowdsourcing.

Question 63

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 collection of millions of personal social graphs
D)All of the online and offline relationships a person has
E)All of the relationships in an online community

Question 64

Which of the following statements about Net marketplaces is not true?

A)Some Net marketplaces sell direct goods.
B)Some Net marketplaces serve vertical markets.
C)Some Net marketplaces sell indirect goods.
D)Some Net marketplaces support contractual purchases based on long-term relationships.
E)Some Net marketplaces are owned by a single firm and used to link solely to the firm's suppliers and key business partners.

Question 65

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)distribution
E)production.

Question 66

Search engine marketing is the largest form of web marketing.

Question 67

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 68

________ involves placing ads in social network newsfeeds or within traditional editorial content,such as a newspaper article.

A)Behavioral targeting
B)Crowdsourcing
C)Native advertising
D)Demand prediction software
E)Lead generation marketing

Question 69

Rich media advertisements are used to sell products and services online.

Question 70

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

Question 71

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 72

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 73

Behavioral targeting occurs at individual websites and within apps.

Question 74

List and describe the top four methods of online marketing and advertising formats,in terms of estimated 2018 revenue.

Question 75

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?

Question 76

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 77

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 78

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

Question 79

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 80

Ikea asked for the help of its customers in designing new furniture.This is an example of:

A)prediction markets.
B)behavioral targeting.
C)long-tail marketing.
D)social shopping.
E)crowdsourcing.