Deck 6: Social Networking, Mobile Commerce, and Online Auctions

Question 1

Many colleges and universities now offer courses that use distance learning platforms such as Blackboard for student-instructor interaction.

Answer 1

True

Question 2

Dutch auctions move large numbers of commodity items relatively slowly.

Answer 2

False

Question 3

The Dutch auction is also called an ascending-price auction.

Answer 3

False

Question 4

The lock-in effect makes the task of creating successful general consumer Web sites much easier.

Question 5

The most successful consumer auction Web site today is eBay.

Question 6

In industries where there is a high degree of competition among suppliers, reverse auctions can be an efficient way to conduct and manage the price bidding that would naturally occur in that market.

Question 7

The types of products that work well for group shopping sites are branded products with well-established reputations.

Question 8

The 2008 U.S.elections saw the first major use of blogs as a political networking tool.

Question 9

In a double auction, buyers and sellers each submit combined price-quantity bids to an auctioneer.

Question 10

The general idea behind all of the social networking sites is that people are invited to join by existing members who think they would be valuable additions to the community.

Question 11

Most of the early Web community businesses are open and thriving today.

Question 12

Social networking sites are used in the political realm to discuss issues, plan strategies, and even arrange in-person meetings called mashups.

Question 13

One of the first social shopping sites was craigslist, an information resource for San Francisco area residents that was created in 1995 by WELL member Craig Newmark.

Question 14

Virtual communities began online after the Internet was in general use.

Question 15

The Internet reduces transaction costs in value chains and offers an efficient means of communication to anyone with an Internet connection.

Question 16

A growing number of large organizations have built internal Web sites that provide opportunities for social interaction among their employees.

Question 17

Analysts believe that a more appropriate term for the electronic commerce that occurs in general consumer auctions is consumer-to-consumer.

Question 18

In sealed-bid auctions, bidders submit their bids independently and the bidders typically share information with each other.

Question 19

Visitors spend a greater amount of time at portal sites than they do at most other types of Web sites, which is attractive to advertisers.

Question 20

Sites conducting monetizing campaigns are unconcerned about visitor backlash.

Question 21

The first auctioning software, named Cricket Jr., was written by David Eccles in 1997.

Question 22

____ are the prices that potential buyers in an auction are willing to pay for an item.

A)Bids
B)Proposals
C)Inquiries
D)Reserves

Question 23

In ____ auctions, bidders submit their bids independently and are usually prohibited from sharing information with each other.

A)sealed-bid
B)closed-bid
C)open-outcry
D)secure-bid

Question 24

An English auction is sometimes called a(n)____ because the bids are publicly announced.

A)reverse auction
B)double auction
C)open auction
D)semi-open auction

Question 25

The ____ auction is a form of open auction in which bidding starts at a high price and drops until a bidder accepts the price.

A)English
B)Dutch
C)French
D)Spanish

Question 26

The earliest written records of auctions are from Babylon and date from ____ B.C.

A)100
B)500
C)2000
D)4000

Question 27

Sniping software observes auction progress until the last second or two of the auction clock.

Question 28

A(n)____ site is a Web site that allows individuals to create and publish a profile, create a list of other users with whom they share a connection (or connections), control that list, and monitor similar lists made by other users.

A)social commerce
B)electronic commerce
C)social networking
D)social medium

Question 29

In some auctions, ____, employed by the seller or the auctioneer, can make bids on behalf of the seller.

A)auction agents
B)faux bidders
C)shill bidders
D)auction dealers

Question 30

Because sniping software synchronizes its internal clock to the auction site clock and executes its bid with a computer's precision, the software almost always wins out over a human bidder.

Question 31

Second-price sealed-bid auctions are commonly called ____ auctions.

A)open outcry
B)Vickrey
C)double
D)Victory

Question 32

When selling high-value items through an online auction, sellers can use an escrow service to protect their interests.

Question 33

The act of placing a winning bid at the last second is called a lock-in.

Question 34

The 18th century saw the birth of two British auction houses, ____ in 1744 and Christie's in 1766.

A)William's
B)Sotheby's
C)Vickrey's
D)Tiffany

Question 35

The trend toward having readers help write the online newspaper is called ____ journalism.

A)participatory
B)peer
C)social
D)collective

Question 36

The whole auction process is managed by a(n)____.

A)shill bidder
B)auctioneer
C)observer
D)developer

Question 37

____ were computers that allowed users to connect through modems (using dial-up connections through telephone lines)to read and post messages in a common area.

A)Electronic social systems
B)Bulletin chat systems
C)IRC systems
D)Bulletin board systems

Question 38

In a(n)____ auction, buyers and sellers each submit combined price-quantity bids to an auctioneer.

A)sealed-bid
B)Dutch
C)English
D)double

Question 39

A(n)____ is a gathering place for people and businesses that does not have a physical existence.

A)meetup
B)online community
C)lock-in community
D)escrow service

Question 40

In a first-price sealed-bid auction, the ____ bidder wins.

A)highest
B)second highest
C)second lowest
D)lowest

Question 41

The New York Stock Exchange conducts ____ auctions of stocks and bonds in which the auctioneer, called a specialist, manages the market for a particular stock or bond issue.

A)sealed-bid double
B)first-price sealed
C)open-cry double
D)second-price sealed-bid

Question 42

Companies, called ____ take an item and create an online auction for that item, handle the transaction, and remit the balance of the proceeds after deducting a fee.

A)auction consignment services
B)liquidation brokers
C)sniping brokers
D)escrow services

Question 43

A ____ is the amount by which one bid must exceed the previous bid.

A)minimum bid increment
B)deposit bid
C)reserve bid
D)maximum bid increment

Question 44

The Chicago Board of Trade conducts ____ auctions of commodity futures and stock options.

A)first-price sealed-bid
B)sealed-bid double
C)open-outcry double
D)second-price sealed-bid

Question 45

Smaller businesses often sell their unusable and excess inventory to ____, which are firms that find buyers for these items.

A)inventory specialists
B)liquidation brokers
C)inventory removal services
D)secondary marketers

Question 46

Existing auction sites, such as eBay, are inherently more valuable to customers than new auction sites.This is called a(n)____.

A)opt-in effect
B)lock-in effect
C)lock-out effect
D)opt-out effect

Question 47

Because social networking sites ask their members to provide demographic information about themselves, the potential for ____________________ marketing on these types of sites is very high.

Question 48

Large companies sometimes have ____ who find buyers for unusable inventory items.

A)liquidation specialists
B)inventory specialists
C)accountants
D)auditors

Question 49

Many people think of Priceline.com as a ____ auction site.

A)double
B)shill bid
C)sealed-bid
D)seller-bid

Question 50

Started at Duke University in 1979, ____________________ was a set of interconnected computers devoted to storing information on specific topics.

Question 51

____________________-wave advertising fees are based less on up-front site sponsorship payments and more on the generation of revenues from continuing relationships with people who use the social networking sites.

Question 52

The social networking site ____________________ was based on the idea that no more than six persons separated anyone in the world from any other person.

Question 53

The most common format used on eBay is a computerized version of the ____ auction.

A)Dutch
B)sealed-bid
C)English
D)Vickrey

Question 54

In an auction, a third-party ____ service can be used to hold the buyer's payment until he or she receives and is satisfied with the purchased item.

A)insurance
B)risk management
C)escrow
D)guarantee

Question 55

One rough measure of ____________________ is how long each user spends at a Web site.

Question 56

In 1999, Geocities was purchased by ____________________ for $5 billion.

Question 57

Web sites that create communities based on the connections between ideas and that are more abstract are called ____________________ virtual communities.

Question 58

____________________ refers to the conversion of existing regular site visitors seeking free information or services into fee-paying subscribers or purchasers of services.

Question 59

By the late 1990s, virtual communities were selling ____________________ to generate revenue.

Question 60

Usenet ____________________ were message posting areas in which interested persons (primarily from the education and research communities)could discuss various topics.

Question 61

Dutch auctions are also called ____________________ auctions.

Question 62

Describe the operation of a typical auction.

Question 63

____________________ valuations are amounts that bidders are willing to pay for an item.

Question 64

If multiple items are being auctioned in a(n)____________________ sealed-bid auction, successive lower (next highest)bidders are awarded the remaining items at the price they bid.

Question 65

William Vickrey won the 1996 Nobel Prize in Economics for his studies of the properties of ____________________ sealed-bid auctions.

Question 66

How does proxy bidding work on eBay?

Question 67

In 2004, Google used a(n)____________________ auction to sell its stock to investors in its initial public offering.

Question 68

In an eBay ____________________, the bidder specifies a maximum bid and as new bidders enter the auction, the eBay site software continually enters higher bids for all bidders who placed such bids.

Question 69

____________________ auctions, either sealed-bid or open-outcry, work well only for items of known quality, such as securities or graded agricultural products, that are regularly traded in large quantities.

Question 70

A(n)____________________ auction is often better for the seller because the bidder with the highest private valuation will not let the bid drop much below that valuation for fear of losing the item to another bidder.

Question 71

____________________ allows Web pages formatted in HTML to be displayed on devices with small screens.

Question 72

A(n)____________________ site can charge both buyers and sellers to participate, and it can sell advertising on its pages.

Question 73

What is the main difference between eBay and a live English auction?

Question 74

What is the difference between an English auction and a Dutch auction?

Question 75

In English auctions, bidders risk becoming caught up in the excitement of competitive bidding and then bidding more than their private valuations.This phenomenon is called the ____________________.

Question 76

The site JustBeads.com is an example of a(n)____________________ auction site that caters to buyers and sellers who are geographically dispersed but share highly focused interests.

Question 77

List the supply chain characteristics that support reverse auctions.

Question 78

The act of placing a winning bid at the last second is called a(n)____________________.

Question 79

In a(n)____________________ auction, multiple sellers submit price bids to an auctioneer who represents a single buyer.

Question 80

In some cases, an English auction has a(n)____________________ bid, or reserve price.