Deck 11: Social Networks, Auctions, and Portals

Question 1

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.

Answer 1

A

Question 2

Social network participation is one of the most common usages of the Internet.

Answer 2

True

Question 3

Auction fraud accounts for the highest percentage of total Internet fraud reported to the Internet Crime Complaint Center.

Answer 3

False

Question 4

In C2C auctions, a business owns or controls assets and uses dynamic pricing to establish the price.

Question 5

Priceline's auctions are seller-biased.

Question 6

In a Dutch Internet auction, the highest price wins.

Question 7

Revenue per customer decreases as the audience focus of a portal moves from general audience to a more focused and targeted audience.

Question 8

Which of the following was a primary feature of early online communities?

A)chat
B)network discovery
C)widgets
D)message boards

Question 9

Sponsored community sites are network sites created by government, non-profit, or for-profit organizations.

Question 10

Auction prices are always lower than prices in fixed priced markets.

Question 11

Most of today's well-known portals began as search engines.

Question 12

Keeping bid increments low increases the number of bidders and the frequency of their bids.

Question 13

The value of portals to advertisers and content owners is primarily a function of the size of the audience the portal reaches and the length of time visitors stay on the site.

Question 14

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

Question 15

Consumers in auctions are driven solely by value maximization.

Question 16

The average user spends more time on Google+ than on Facebook.

Question 17

One of the first online virtual communities was:

A)The Well.
B)Myspace.
C)AOL.
D)Salon.com.

Question 18

Closed bidding permits price discrimination without offending buyers.

Question 19

iVillage.com is an example of a(n):

A)interest-based social network.
B)affinity community.
C)sponsored community.
D)practice network.

Question 20

Portals are among the most frequently visited types of sites on the Web.

Question 21

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.

Question 22

In 2013, Facebook visitors spent about ________ hours a month on Facebook.

A)1)5 hours
B)3 hours
C)7 hours
D)15 hours

Question 23

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

Question 24

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.

Question 25

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

Question 26

BlackPlanet is an example of a(an)________ social network.

A)practice-based
B)interest-based
C)affinity-based
D)general

Question 27

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

Question 28

Which of the following is the market leader in C2C auctions?

A)Amazon
B)eBay
C)Yahoo
D)Craigslist

Question 29

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.

Question 30

________ pricing adjusts prices based on the location of the consumer.

A)Personalization
B)Utilization
C)Trigger
D)Fixed

Question 31

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

Question 32

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

Question 33

Adjusting the annual cost of automobile insurance based on mileage driven is an example of ________ pricing.

A)personalization
B)trigger
C)utilization
D)fixed

Question 34

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.

Question 35

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.

Question 36

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

Question 37

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.

Question 38

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.

Question 39

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.

Question 40

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%

Question 41

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.

Question 42

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.

Question 43

Which of the following is a common problem in sealed bid markets?

A)bid rigging
B)discriminatory pricing
C)persistent bidding
D)seller nonperformance

Question 44

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.

Question 45

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

Question 46

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

Question 47

Which of the following is the original social photo-sharing site?

A)Vevo
B)Flickr
C)Instagram
D)Tumblr

Question 48

The stock market is an example of a(n):

A)English auction.
B)Group buying auction.
C)Dutch auction.
D)double auction.

Question 49

Elance.com is an example of a(n):

A)demand aggregator.
B)auction aggregator.
C)auction solution provider.
D)professional service auction.

Question 50

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

Question 51

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

Question 52

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.

Question 53

Priceline.com is an example of a(n):

A)English auction.
B)Dutch auction.
C)group buying auction.
D)name your own price auction.

Question 54

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

Question 55

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

Question 56

________ 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

Question 57

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.

Question 58

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.

Question 59

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

Question 60

All of the following types of auctions involve single units except:

A)English auction.
B)Dutch Internet.
C)Japanese auction.
D)Vickrey auction.

Question 61

The term ________ refers to the advantages conferred the larger an auction site becomes in terms of visitors and products for sale.

Question 62

________ is defined in the text as the average of prices for that product or service in a variety of dynamic and fixed-price markets around the world.

Question 63

________ pricing first appeared in the nineteenth century with the development of mass national markets and retail stores that could sell to a national audience.

Question 64

E-mailing buyers to warn them away from a seller is a type of auction fraud known as ________.

Question 65

________ refers to the use of secondary user IDs or bidders who have no actual intention to buy to artificially raise the price of an item.

Question 66

A(n)________ offer members focused discussion groups, help, information, and knowledge related to an area of shared practice.

Question 67

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.

Question 68

Howard Rheingold, one of The Well's early participants, coined the term ________ to refer to "cultural aggregations that emerge when enough people bump into each other often enough in cyberspace."

Question 69

If an auction uses a(n)________, there will be multiple winners and they all will pay the same price.

Question 70

A(n)________ facilitates group buying of products at dynamically adjusted discount prices based on high-volume purchases.

Question 71

The world's leading portal/search engine site, in terms of unique visitors, is:

A)Yahoo.
B)MSN/Bing.
C)AOL.
D)Google.

Question 72

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.

Question 73

________ are markets in which prices are variable and based on the competition among participants who are buying or selling the products.

Question 74

________ refers to the feeling that one has paid too high a price for an item won at auction.

Question 75

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

Question 76

A ________ permits the consumer to monitor specific auctions of interest, requiring the consumer to pay close attention only in the last few minutes of bidding.

Question 77

________ help employees navigate to the firm's human resource and corporate content such as corporate news and announcements.

Question 78

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

Question 79

The time spent watching and reviewing auction bids is a part of ________ costs.

Question 80

________ portals, such as Yahoo, attempt to attract a very large audience and then retain the audience on-site by providing in-depth vertical content channels.