Deck 10: E-Commerce: Digital Markets and Digital Goods

Question 1

Social networking is so appealing that it has inspired a new type of e-commerce experience called m-commerce.

Answer 1

False

Question 2

Pure-play business models are based purely on the Internet.

Answer 2

True

Question 3

Price transparency refers to the ability of consumers to discover the actual costs merchants pay for products.

Answer 3

False

Question 4

The universal technical standards of the Internet and e-commerce greatly increase market entry costs-the cost merchants must pay simply to bring their goods to market.

Question 5

From a consumer point of view,ubiquity reduces transaction costs-the costs of participating in a market.

Question 6

In dynamic pricing,the price of a product varies depending on the demand characteristics of the customer or the supply situation of the seller.

Question 7

In the second wave of e-commerce,nine new industries are facing a similar transformation scenario: advertising,telephones,movies,television,jewellery,real estate,hotels,bill payments,and software.

Question 8

E-commerce is ubiquitous,meaning that is it available just about everywhere,at all times.

Question 9

The first wave of e-commerce transformed the business world of books,music,and air travel.

Question 10

Information richness refers to the complexity and cost of a message.

Question 11

The Internet and the Web vastly decrease information density-the total amount and quality of information available to all market participants,consumers,and merchants alike.

Question 12

Digital goods are goods that can be delivered over a digital network.

Question 13

E-commerce technologies permit personalization.

Question 14

Cost transparency refers to the ability of consumers to discover the actual costs merchants pay for products.

Question 15

Marketspace is a marketplace extended beyond traditional boundaries and removed from a temporal and geographic location.

Question 16

Price discrimination is selling the same goods,or nearly the same goods,to different targeted groups at similar prices.

Question 17

Newspapers and magazines are losing readers to the Internet and losing advertisers.

Question 18

The technology also permits customization is changing the delivered product or service based on a user's preferences or prior behaviour.

Question 19

Banner ads automatically open up when a user accesses a specific Web site,and the user must click the ad to make it disappear.

Question 20

Social networking is the practice of expanding the number of one's business or social contacts by making connections through individuals.

Question 21

Consumer-to-consumer (C2C)electronic commerce involves consumers selling directly to consumers.For example,eBay,the giant Web auction site,enables individuals to sell their goods to other consumers by auctioning the merchandise to the highest bidder.

Question 22

Business-to-Business (B2B)electronic commerce involves retailing products and services to individual shoppers.

Question 23

A banner ad opens a new window automatically and does not disappear until the user clicks on it.

Question 24

Information asymmetry exists when one party in a transaction has more information for the transaction than the other party.

Question 25

Some Net marketplaces support contractual purchasing based on long-term relationships with designated suppliers.

Question 26

Disintermediation provides major benefits to the distributor.

Question 27

Business-to-business (B2B)electronic commerce involves sales of goods and services among businesses.ChemConnect's Web site for buying and selling natural gas liquids,refined and intermediate fuels,chemicals,and plastics is an example of B2B e-commerce.

Question 28

Many existing retail firms,such as Canadian Tire,Office Depot,The Bay,and the National Post have developed Web sites as extensions of their traditional bricks-and-mortar businesses,these businesses represent a hybrid clicks-and-mortar business model.

Question 29

EDI standards that take advantage of network communications have yet to be fully implemented at the industry level.

Question 30

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

Question 31

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

Question 32

Web sites can gather bountiful detailed information about customer behaviour and demographics.

Question 33

The Internet shrinks information asymmetry.

Question 34

Amazon.com uses Web personalization as a major marketing tool.

Question 35

Record label companies are gaining sales to Internet piracy,and record stores are doing brisk business.

Question 36

Clickstream tracking tools collect data on customer activities at Web sites and store them in a log.The tools record the site that users visited prior to coming to a particular Web site and where these users go when they leave that site.

Question 37

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

Question 38

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 39

Companies rarely use Web pages to analyze customer information.

Question 40

An information broker provides product,pricing,and availability information to individuals and businesses and generates revenue from advertising or from directing buyers to sellers.

Question 41

The marketspace includes,potentially,billions of consumers and millions of businesses worldwide.This best describes ________.

A)social technology
B)interactivity
C)ubiquity
D)global reach

Question 42

Mobile e-commerce is the slowest-growing type of B2C e-commerce,but it represented only a small part of all e-commerce in 2010.

Question 43

Internet/Web technology is available everywhere: at work,at home,and elsewhere via mobile devices,anytime.This best describes ________.

A)social technology
B)interactivity
C)ubiquity
D)global reach

Question 44

If you have some experience with computers,you might decide to build the site yourself.

Question 45

Consumers are engaged in a dialogue that dynamically adjusts the experience to the individual and makes the consumer a co-participant in the process of delivering goods to the market.This best describes ________.

A)social technology
B)interactivity
C)ubiquity
D)global reach

Question 46

Myspace is the leader in social networking;it has waged a constant struggle to develop viable methods of generating revenue.

Question 47

The Web sites of large firms with high levels of interactivity and linkage to corporate systems cost several thousand dollars a year to create and operate.

Question 48

Banks and credit card companies are rolling out services that let customers manage their accounts from their legacy devices.

Question 49

Exchanges proliferated during the early years of e-commerce,but many have failed,in part because they encouraged competitive bidding that drove prices down.

Question 50

Building a successful e-commerce site requires a keen understanding of business,technology,and social issues,as well as a systematic approach.

Question 51

Information ________ refers to the complexity and content of a message.

A) richness
B)interactivity
C)ubiquity
D)global reach

Question 52

Simple Web sites cannot be developed and hosted with a first-year cost of $5000 or less.

Question 53

Most businesses choose to outsource hosting and pay a company to host their Web site,which means that the hosting company is responsible for ensuring the site is "live," or accessible,24 hours a day.

Question 54

Unless you are fairly skilled,you should use a pre-built template to create the Web site.

Question 55

The technology allows personalized messages to be delivered to individuals as well as groups.This best describes ________.

A)social technology
B)personalization/customization
C)ubiquity
D)global reach

Question 56

With a self-host agreement,your firm purchases or leases a Web server (and has total control over its operation)but locates the server in a vendor's physical facility.

Question 57

Automobile manufacturing is an example of a vertical market.

Question 58

Babydads.com is an e-commerce business that creates revenue by providing digital content,such as digital news,music,photos,and video,over the Web.The customer pays to access the content.Revenue is also generated by selling advertising space.Which business model best describes the way this business participates in e-commerce?

A)service provider
B)content provider
C)online marketplace
D)social network

Question 59

New Internet social and business models enable user content creation and distribution,and support social networks.This best describes ________.

A)social technology
B)interactivity
C)ubiquity
D)global reach

Question 60

In 2010,shoppers ordered about $2.1 billion in physical goods from Web sites via desktops (over $1 billion of that at Amazon alone).

Question 61

Hockey fans gather at the site nhl-cards.com.Here collectors and fans are able to buy and sell hockey cards with each other.What major electronic commerce category best describes this scenario?

A)consumer-to-consumer (C2C)electronic commerce
B)business-to-government (B2G)electronic commerce
C)business-to-business (B2B)electronic commerce
D)business-to-consumer (B2C)electronic commerce

Question 62

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?

A)information density
B)richness
C)customization
D)interactivity

Question 63

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.

Question 64

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)imbalance

Question 65

How is the Internet and e-commerce causing severe disruption to the existing advertising business model?

A)Ties between customer and businesses are being rethought.
B)Technology players such as Yahoo! seek to dominate online advertising.
C)New methods of advertising,such as blog advertising,are emerging.
D)The market entry costs for online advertising services are extremely low.

Question 66

TextbooksRus.com is an e-commerce business that creates revenue by selling technical manuals and books online.Their customers are people from technical fields who shop there because of the specialization of TextbooksRus.Which business model best describes the way this business participates in e-commerce?

A)playpure
B)bricks and clicks
C)clicks-and-mortar
D)pureplay

Question 67

Bigideas.com is an e-commerce business that creates revenue by providing Web 2.0 applications such as photo sharing,video sharing,and user-generated content as services.They use a subscription revenue model.Which business model best describes the way this business participates in e-commerce?

A)service provider
B)content provider
C)online marketplace
D)social network

Question 68

Based on your reading of the chapter,e-commerce is

A)still in a revolutionary phase.
B)widely accepted by consumers,although technology is still quickly changing.
C)not yet fully accepted by consumers,although much of its driving technology is firmly in place.
D)well entrenched as a form of modern commerce.

Question 69

Selling the same goods to different targeted groups at different prices is called price ________.

A)customization
B)opacity
C)gouging
D)discrimination

Question 70

Doug's Sports is a retail sports store.They have a 6000 sq.ft.store located in Lethbridge.They also market their goods through their Web site and distribute products around Canada.Which business model best describes the way this business participates in e-commerce?

A)playpure
B)bricks and clicks
C)clicks-and-mortar
D)pureplay

Question 71

www.jobs-r-us.net is an e-commerce business that creates revenue by providing an online meeting place where people with similar interests can communicate and find useful information about employment.They create revenue through advertising.Which business model best describes the way this business participates in e-commerce?

A)service provider
B)content provider
C)online marketplace
D)social network

Question 72

AuctionsRus.ca is an e-commerce business that creates revenue by providing a digital environment where buyers and sellers can meet,search for products,display products,and establish prices for those products.Customers can complete the transaction on the site and AuctionsRus take a small percentage of the selling price.Which business model best describes the way this business participates in e-commerce?

A)service provider
B)content provider
C)online marketplace
D)social network

Question 73

The integration of video,audio,and text marketing messages into a single marketing message and consumer experience describes which dimension of e-commerce technology?

A)ubiquity
B)personalization/customization
C)richness
D)interactivity

Question 74

The effort required to locate a suitable product is called

A)price discrimination.
B)search costs.
C)menu costs.
D)transparency costs.

Question 75

The act of engaging consumers in a dialog that dynamically adjusts the experience to the individual describes which dimension of e-commerce technology?

A)ubiquity
B)personalization/customization
C)richness
D)interactivity

Question 76

The quality of ubiquity,as it relates to e-commerce,is illustrated by

A)the same set of standards being used across the globe.
B)plentiful,cheap information.
C)the enabling of commerce worldwide.
D)the availability of Internet technology everywhere and anytime.

Question 77

Since the dot-com bubble burst of 2001,e-commerce revenues:

A)have essentially stagnated.
B)show signs of stabilizing.
C)have returned to solid growth.
D)have returned to exponential growth.

Question 78

TextbooksRus.com is an e-commerce business that creates revenue by selling technical manuals and books online.Their customers are people from technical fields who shop there because of the specialization of TextnooksRus.What major electronic commerce category best describes this scenario?

A)consumer-to-consumer (C2C)electronic commerce
B)business-to-government (B2G)electronic commerce
C)business-to-business (B2B)electronic commerce
D)business-to-consumer (B2C)electronic commerce

Question 79

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.

Question 80

Jay's Diamonds Inc.distributes diamonds around the world by using the Internet and a very neatly designed Web site.They refer to themselves as the jewellers' jeweller.Their customers buy diamonds in bulk and then sell the diamonds to local customers one at a time.What major electronic commerce category best describes this scenario?

A)consumer-to-consumer (C2C)electronic commerce
B)business-to-government (B2G)electronic commerce
C)business-to-business (B2B)electronic commerce
D)business-to-consumer (B2C)electronic commerce