Deck 11: Social Networks, Auctions, and Portals

Question 1

When did the first online communities form?

A)the 1970s
B)the 1980s
C)the 1990s
D)the 2000s

Answer 1

B

Question 2

One of the first online virtual communities was:

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

Answer 2

A

Question 3

Which of the following early leaders in social networking has been reinvented as a music-oriented social network?

A)Vevo
B)Myspace
C)Polyvore
D)Tumblr

Answer 3

B

Question 4

Which social network functionality allows users to view a list of updates from friends as well as advertisements and notifications in chronological order?

A)message board
B)timeline
C)newsfeed
D)friends networks

Question 5

A Web site designed to give yachting enthusiasts a common discussion area would be classified as a(n):

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

Question 6

In 2015, Fortune 500 companies used ________ more than Facebook.

A)no other social networks
B)Twitter
C)Google+
D)Pinterest

Question 7

Pinterest visitors spend ________ a month on Facebook.

A)over an hour
B)about 15 minutes
C)6)5 minutes
D)approximately 2.5 hours

Question 8

The technology used by early online communities was limited to mostly:

A)instant messaging.
B)FTP.
C)e-mail.
D)bulletin boards.

Question 9

Instagram 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 10

NaturallyCurly is an example of a(n):

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

Question 11

Around what percentage of Internet users in the United States use social networks on a regular basis?

A)54%
B)67%
C)85%
D)94%

Question 12

In 2015, which age group has the fastest growing rate of Facebook usage?

A)12-34
B)35-44
C)45-64
D)64 and older

Question 13

Which of the following is a leading social network in Russia?

A)VK
B)Tuenti
C)Orkut
D)Qzone

Question 14

Which of the following is the second leading social network in the United States in terms of number of members?

A)Twitter
B)LinkedIn
C)Google+
D)Pinterest

Question 15

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 16

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

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

Question 17

Which of the following has the highest penetration of social network usage among the general population?

A)North America
B)Latin America
C)Europe
D)Asia-Pacific

Question 18

Facebook purchased which of the following for $22 billion?

A)Slingshot
B)Snapchat
C)WhatsApp
D)Poke

Question 19

Each of the following is one of the top six social network sites in the United States except:

A)Tumblr.
B)Snapchat.
C)Instagram.
D)Pinterest.

Question 20

An example of a practice network is:

A)Nike.
B)Instagram.
C)DebatePolitics.com.
D)Linux.org.

Question 21

Describe four shared characteristics of social networks.

Question 22

A community site created by a corporation is called a sponsored community site.

Question 23

If a large number of Internet users set Facebook as their primary destination on their Web browser, should Facebook be considered a portal?

Question 24

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 25

Facebook is the slowest growing of the most popular social networks.

Question 26

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 27

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

Question 28

Which of the following companies was an early investor in Facebook?

A)Google
B)Apple
C)Microsoft
D)LinkedIn

Question 29

Less than two-thirds of Internet users worldwide participate in social networks.

Question 30

________ of procurement officers use auctions to purchase goods.

A)80%
B)Less than a quarter
C)Over one third
D)25%

Question 31

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 32

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."

A)social networks
B)virtual communities
C)community portals
D)social forums

Question 33

Which of the following statements about Instagram is not true?

A)Instagram is owned by Twitter.
B)Instagram is a photo-sharing app.
C)Facebook developed its Camera app to compete with Instagram.
D)In terms of time spent per month by users, Instagram is second only to Facebook.

Question 34

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 35

Which of the following is the most successful of Facebook's apps?

A)Messenger
B)Home
C)Camera
D)Riff

Question 36

Describe the evolution of social networks from their earliest appearance.

Question 37

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

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

Question 38

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

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

Question 39

What business models do social networks use?

Question 40

The amount of time visitors spend on a site is a measure of ________.

A)reach
B)loyalty
C)conversation
D)engagement

Question 41

________ 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 42

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 43

Priceline is an example of a(n):

A)English auction.
B)Dutch auction.
C)penny auction.
D)Name Your Own Price auction.

Question 44

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

A)English auction.
B)Dutch Internet.
C)Name Your Own Price auction.
D)penny auction.

Question 45

Which of the following types of auctions is perfect for sellers that have many identical items to sell?

A)English auctions
B)Name Your Own Price auctions
C)Dutch Internet auctions
D)group buying auctions

Question 46

Which of the following allows the consumer to enter a maximum price and the auction software automatically places incremental bids up to that maximum price as their original bid is surpassed?

A)watch lists
B)proxy bidding
C)sealed bidding
D)price matching

Question 47

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 48

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

A)pricing
B)monitoring
C)delayed consumption
D)fulfillment

Question 49

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)distress pricing.

Question 50

The profit a seller makes at auction is a function of all of the following except:

A)initial pricing
B)auction length.
C)the number of units for auction.
D)watch lists.

Question 51

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

A)transaction interference
B)bid siphoning
C)bid rigging
D)shill bidding

Question 52

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 53

________ 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.

A)Bid manipulation
B)Shill feedback
C)Shill bidding
D)Bid rigging

Question 54

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

A)siphoning
B)herd behavior
C)network effects
D)channel expansion

Question 55

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

A)Seller's lament
B)Winner's lament
C)Loser's regret
D)Winner's regret

Question 56

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.

A)bidding fee auction
B)channel manager
C)watch list
D)rating system

Question 57

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 58

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 59

Which of the following types of auctions "shields the brand" of the seller?

A)English auction
B)Name Your Own Price auction
C)Dutch auction
D)penny auction

Question 60

One partial solution to high monitoring costs is ________ pricing.

A)fixed
B)dynamic
C)allocated
D)distress

Question 61

ESPN.com 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 portal.

Question 62

What are the benefits of Internet auctions to sellers, buyers, and market makers in an auction?

Question 63

Identify and describe the main types of portals.

Question 64

Open bidding offers the advantage of herd effects.

Question 65

Yahoo owns all of the following except:

A)Tumblr.
B)Flickr.
C)Aviate.
D)Instagram.

Question 66

Describe the four major Internet auction types discussed in the chapter and how they function.

Question 67

Auction prices are often higher than prices in fixed priced markets.

Question 68

AOL is focusing its strategy on all of the following except:

A)display advertising.
B)online video.
C)being an ISP.
D)being a niche content provider.

Question 69

Facebook was the leader in U.S. ad spending revenues on social networks in 2015. What company earned the second most amount of ad spending revenue?

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

Question 70

What are the costs and risks for buyers at an auction and how have auction sites sought to reduce these risks?

Question 71

Priceline's auctions utilize fixed pricing.

Question 72

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 73

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 74

It costs no money to bid in a penny auction.

Question 75

Keeping bid increments low both decreases the number of bidders and lowers the frequency of their bids.

Question 76

In a Dutch Internet auction, a single seller puts up a single item for bidding.

Question 77

In B2C auctions, consumers control assets and use dynamic pricing to establish the price.

Question 78

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 79

After Google, the next portal/search engine site with the most unique visitors is:

A)Yahoo.
B)Microsoft.
C)AOL.
D)Facebook.

Question 80

Consumers in auctions are not driven solely by value maximization.