Deck 10: 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

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

Answer 2

A

Question 3

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

Answer 3

False

Question 4

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 5

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

Question 6

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

Question 7

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 8

According to the Internet Complaint Center (IC3), Internet auto-auction fraud is the most commonly reported offense, generating over 25 percent of all complaints.

Question 9

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

Question 10

In a Dutch-Internet auction, the highest price wins.

Question 11

Which social network functionality allows users to create Web pages that describe themselves?

A)friends network
B)profiles
C)storage
D)membership management tools

Question 12

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

Question 13

Closed bidding permits price discrimination without offending buyers.

Question 14

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

Question 15

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 16

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

Question 17

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

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

Question 18

Consumers in auctions are driven solely by value maximization.

Question 19

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

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

Question 20

One of the first online virtual communities was:

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

Question 21

Which of the following statements about auctions is not true?

A)Auctions create market efficiency.
B)Auctions eliminate inter-market price differences.
C)The Internet has increased the liquidity of traditional auctions.
D)Auctions make it more difficult for merchants to engage in price discrimination.

Question 22

Which of the following statements about social networks is not true?

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 23

When sellers agree informally or formally to set floor prices below which they will not sell on auction items, it is known as:

A)discriminatory pricing.
B)price matching.
C)bid rigging.
D)uniform pricing.

Question 24

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 25

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

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

Question 26

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 27

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 28

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 29

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 30

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 31

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 32

All of the following are solutions to the problem of auction fraud except:

A)seller rating systems.
B)watch lists.
C)proxy bidding.
D)fixed pricing.

Question 33

Which of the following is an example of a specialized auction site?

A)eBay
B)uBid
C)BidZ
D)eBid

Question 34

Which of the following statements about auctions is not true?

A)The market leader in C2C auctions is Craigslist.
B)Auctions constituted a significant part of B2B e-commerce in 2012.
C)Over a third of procurement officers use auctions to procure goods.
D)In B2C auctions, established merchants offer items for sale using dynamic pricing techniques.

Question 35

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 36

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 37

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 38

In 2011, the total worth of goods sold on eBay was approximately:

A)$68 million.
B)$680 billion.
C)$6.8 billion.
D)$68 billion.

Question 39

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 40

________ 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 41

________ 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 42

In 2012, advertisers spent about ________ to advertise on Facebook.

A)$21 million
B)$210 million
C)$2.1 billion
D)$21 billion

Question 43

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 44

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 45

Which of the following is a social network that focuses on stock investors?

A)LinkedIn
B)Sermo
C)Social Picks
D)DailyStrength

Question 46

Portals compete with one another on:

A)search engine speed and results.
B)reach and unique visitors.
C)unique visitors and search engine speed.
D)reach and depth.

Question 47

A(n)________ social network is created by commercial, government, or nonprofit organizations for a variety of purposes.

Question 48

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 49

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

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

Question 50

Which of the following statements illustrates the network effects to which portals are subject?

A)Specialized vertical market portals attract only 2-10 percent 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 51

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 52

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

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

Question 53

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

A)Facebook
B)Flickr
C)Instagram
D)Polyvore

Question 54

In 2012, Facebook visitors spent about ________ hours a month on Facebook.

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

Question 55

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

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

Question 56

Facebook was the leader in U.S. ad spending revenues on social networks in 2012. What company received the second most amount of ad spending revenue?

A)MySpace
B)LinkedIn
C)Pinterest
D)Twitter

Question 57

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 58

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 59

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 60

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 61

________ 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 62

________ 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.

Question 63

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

Question 64

________ is defined as the percentage of the Web audience that visits a site within a particular time period, usually a month.

Question 65

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

Question 66

What are the benefits to both the market-makers and consumers in an auction?

Question 67

Describe the major types of Internet portals and explain the portal business model.

Question 68

What are the different types of social networks?

Question 69

Define the term auction and explain the four major Internet auction types discussed in the chapter and how they function.

Question 70

Discuss the impact social networks have had on how businesses operate, communicate, and serve their customers.

Question 71

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

Question 72

In March 2011, AOL acquired ________, a critical acquisition in its shift to developing and distributing premium content.

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

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

Question 75

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