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

F

2) Retail consumer e-commerce is still growing at single-digit rates.

T

3) The Internet shrinks information asymmetry.

T

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

T

5) 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.

T

6) Disintermediation provides major benefits to the distributor.

F

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

T

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

T

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

F

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

F

11) An online syndicator aggregates content or applications from multiple sources, packaging them for distribution, and reselling them to third-party Web sites.

T

12) Web sites can gather bountiful detailed information about customer behavior and demographics.

T

13) Companies rarely use Web pages to analyze customer information.

F

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

T

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

F

16) Web sites cannot currently provide customers with call center interaction.

F

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

T

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

F

19) Automobile manufacturing is an example of a vertical market.

T

20) Accumulated balance digital payment systems allow consumers to make instant online payments to merchants and other individuals based on stored value in a digital account.

F

21) Through what channel did e-commerce first evolve? A. online advertising sales B. internet portals C. online book sales D. Internet service providers

A

22) 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.

C

23) 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.

A

24) 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.

D

25) 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.

B

26) Which development is helping expand B2B e-commerce opportunities? A. intranets B. HTTP C. .NET and Web services D. dropping of computing hardware prices

C

27) Which of the following is NOT a recent development in e-commerce? A. growth of wireless Internet connections B. online, interactive models for newspapers and other traditional media C. use of blogs as a commercial medium D. transformation of the music recording industry

D

28) 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.

B

29) Which of the following is NOT one of the unique features of e-commerce technology? A. information density B. transparency C. richness D. social technology

B

30) 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

D

31) 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

C

32) The effort required to locate a suitable product is called A. price discrimination. B. search costs. C. menu costs. D. transparency costs.

B

33) 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

A

33) 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

C

35) Selling the same goods to different targeted groups at different prices is called price ________. A. customization B. opacity C. gouging D. discrimination

D

36) 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

B

37) The cost to a merchant of changing the price of a product is called a ________ cost. A. pricing B. dynamic pricing C. menu D. switching

C

38) Varying a product's price according to the supply situation of the seller is called ________ pricing. A. menu B. flexible C. dynamic D. asymmetric

C

39) Compared to digital markets, traditional markets have A. lower search costs. B. stronger network effects. C. higher delayed gratification effects. D. higher transaction costs.

D

40) Reducing the business process layers in a distribution channel is called A. disintermediation. B. BPR. C. market segmentation. D. network effects.

A

41) Digital goods are goods that are A. produced digitally. B. sold over digital networks. C. delivered digitally. D. used with digital equipment.

C

42) Compared to traditional goods, digital goods have A. greater pricing flexibility. B. lower marketing costs. C. higher production costs. D. higher inventory costs.

A

43) Compared to traditional markets, digital markets have A. lower distributed delivery costs. B. higher marginal costs per unit. C. equivalent copying costs. D. similar inventory costs.

A

44) Which of the following Internet business models does Amazon.com use? A. information broker B. transaction broker C. online service provider D. virtual storefront

D

45) Which of the following businesses utilizes the content provider Internet business model? A. Amazon.com B. eBay.com C. CNN.com D. Motocross.com

C

46) Transaction brokers A. generate revenue from advertising or from directing buyers to sellers. B. save users money and time by processing online sales dealings. C. provide a digital environment where buyers and sellers can establish prices for products. D. sell physical products directly to consumers or individual businesses.

B

47) Online marketplaces A. save users money and time by processing online sales dealings. B. provide a digital environment where buyers and sellers can establish prices for products. C. create revenue by providing digital content over the Web. D. sell physical products directly to consumers or individual businesses.

B

48) Which of the following is an ad that opens automatically and does not disappear until the user clicks on it? A. pop-up ad B. controlled ad C. portal ad D. banner ad

A

49) Why are companies interested in setting up MySpace profiles for their products? A. to bypass broadcast regulations for advertising to children B. to gather data on MySpace users linking to them C. to take advantage of free advertising D. to create personal relationships with consumers

A

50) Which Internet business model is Photobucket most closely aligned with? A. service provider B. content provider C. portal D. social network

A

51) A "supersite" that provides a comprehensive entry point for a huge array of Internet resources and services is called a(n): A. portal. B. online syndicator. C. content provider. D. information broker.

A

52) Pure-play businesses A. are an example of business-to-business electronic commerce. B. do not sell a physical product. C. are extensions of traditional bricks-and-mortar businesses. D. did not have an earlier existing bricks-and-mortar business before they went to the Internet.

D

53) eBay is an example of A. a click-and-mortar business. B. C2C electronic commerce. C. B2C electronic commerce. D. an online exchange.

B

54) Businesses retailing products and services directly via the Internet to individual consumers best describes A. B2B electronic commerce. B. C2C electronic commerce. C. M-commerce. D. B2C electronic commerce.

D

55) Consumers selling goods and services electronically to other consumers best describes: A. disintermediation. B. C2C electronic commerce. C. M-commerce. D. B2C electronic commerce.

B

56) Which Internet business model is JR.com most closely aligned with? A. virtual storefront B. exchange C. transaction broker D. online marketplace

A

57) Tools that record customer activities at Web sites and store them in a log for further analysis are called ________ tools. A. clickstream tracking B. customer tracking C. collaborative filtering D. filtering

A

58) A blog is typically composed of a series of A. blogrolls. B. dated entries. C. trackbacks. D. twitters.

B

59) Tools that compare user behavior and interests to make purchasing recommendations to users are called ________ tools. A. clickstream tracking B. customer tracking C. collaborative filtering D. filtering

C

60) What strategy was implemented by Stonyfield Farm in its use of blogs? A. low-cost leadership product B. differentiation C. focus on market niche D. strengthen customer and supplier intimacy

D

61) The organizational department responsible for handling customer service issues is the A. service center. B. customer support department. C. call center. D. sales department.

C

62) EDI is A. the use of Internet technologies for electronic data transactions. B. the exchange between two organizations of standard transactions through a network. C. electronic data invoicing. D. electronic delivery infrastructure.

B

63) The process of sourcing goods and materials, negotiating with suppliers, paying for goods, and making delivery arrangements is called A. procurement. B. e-procurement. C. supply chain management. D. electronic commerce.

A

64) An extranet that links a large firm to its suppliers and other key business partners is called a(n) A. private industrial network. B. e-hub. C. marketspace. D. exchange.

A

65) E-hubs are more ________ than private industrial networks. A. transaction-oriented B. collaborative C. independent D. supply-chain oriented

A

66) Net marketplaces A. focus on continuous business process coordination between companies for supply chain management. B. are industry owned or operate as independent intermediaries between buyers and sellers. C. are geared towards short-term spot purchasing. D. are more relationship oriented than private industrial networks.

B

67) A third-party Net marketplace that connects many buyers and suppliers for spot purchasing is called a(n) A. exchange. B. vertical market. C. private exchange. D. e-hub.

A

68) Which of the following is NOT one of the categories of services that are popular for mcommerce? A. location-based services B. financial services C. games and entertainment D. e-books

D

69) In the United States, m-commerce A. has become widely adopted. B. is still in its infancy. C. represents a major fraction of total e-commerce transactions. D. is growing, due to the emergence of 2G networks

B

70) Which of the following statements about m-commerce payments is NOT true? A. Use of mobile handsets as payment devices is already well established in Europe, Japan, and South Korea. B. The cell phone in the United States is not connected to a wide network of financial institutions. C. Japanese cell phones act like mobile wallets, containing a variety of payment mechanisms. D. The three kinds of mobile payments systems used in Japan are mobile credit cards, mobile debit cards, and digital wallets.

D

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