1) E-commerce refers to the use of any networking technologies to transact business.
FALSE
2) Retail consumer e-commerce is growing at single-digit rates.
FALSE
3) The Internet shrinks information asymmetry.
TRUE
4) Rich media advertisements are a sales-oriented FALSE
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.
TRUE
6) Disintermediation provides major benefits to the distributor.
FALSE
7) In general, for digital goods, the marginal cost of producing another unit is about zero.
TRUE
8) An example of the service provider business model is Flickr, a photo management and sharing Web site.
TRUE
9) An example of the content provider business model is Barnesandnoble.com, a retailer of printed books.
FALSE
10) Web personalization is used primarily as a major marketing tool.
TRUE
11) Podcasting allows subscribers to listen to live, streaming radio and other audio content.
FALSE
12) Intellectual property refers to all forms of human expression, both tangible and intangible.
FALSE
13) Ninety-six percent of all U.S. households with Internet access use a broadband connection.
TRUE
14) Behavioral targeting occurs at two levels: individual Web sites and through ISPs.
FALSE
15) EDI standards that take advantage of network communications have yet to be fully implemented at the industry level.
FALSE
16) Net marketplaces may either support contractual purchasing based on long-term relationships with designated suppliers, or short-term spot purchasing.
TRUE
17) Exchanges have become one of the most popular types of Net marketplace because they encourage competitive bidding that drives prices down.
FALSE
18) Automobile manufacturing is an example of a vertical market.
TRUE
19) Advertising networks track a user's behavior at thousands of Web sites.
TRUE
20) In the free/freemium revenue model, firms offer basic services for free and charge a fee for special features.
TRUE
21) Through what channel did e-commerce first evolve?
Online advertising sales
22) Based on your reading of the chapter, e-commerce is:
Still in a revolutionary phase.
23) A marketplace extended beyond traditional boundaries and removed from a temporal and geographic location is called a(n):
Marketspace
24) Which of the following is not a recent development in e-commerce?
The music recording industry is disrupted as music creation and distribution become decentralized.
25) How are the Internet and e-commerce causing severe disruption to the existing advertising business model?
Technology players such as Yahoo! seek to dominate online advertising and expand into offline ad brokerage.
26) The quality of ubiquity, as it relates to e-commerce, is illustrated by:
The availability of the Internet everywhere and anytime.
27) Which of the following is not one of the unique features of e-commerce technology?
Transparency
28) The act of engaging consumers in a dialog that dynamically adjusts the experience to the individual describes which dimension of e-commerce technology?
Interactivity
29) The integration of video, audio, and text marketing messages into a single marketing message and consumer experience describes which dimension of e-commerce technology?
Richness
30) 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?
Information density
31) The effort required to locate a suitable product is called:
Search costs.
32) Information density refers to the:
Total amount and quantity of information available to all market participants.
33) Selling the same goods to different targeted groups at different prices is called:
Price discrimination.
34) Information ________ exists when one party in a transaction has more information that is important for the transaction than the other party.
Asymmetry
35) Which feature of Internet technology has had the most effect in the Internet's rapid spread across the globe?
Universal standards
36) Varying a product's price according to the supply situation of the seller is called ________ pricing.
Dynamic
37) Reducing the business process layers in a distribution channel is called:
Disintermediation.
38) Digital goods are goods that are:
Delivered digitally.
39) Compared to digital markets, traditional markets have:
Higher transaction costs.
40) Compared to traditional goods, digital goods have:
Greater pricing flexibility.
41) Compared to traditional goods, digital goods incur:
Lower distribution costs.
42) Which of the following Internet business models does Amazon.com use?
E-tailer
43) eBay is an example of:
C2C e-commerce.
44) Selling products and services directly to individual consumers via the Internet best describes:
B2C e-commerce.
45) Consumers selling goods and services electronically to other consumers best describes:
C2C e-commerce.
46) Which of the following businesses utilize the content provider Internet business model?
CNN.com
47) Transaction brokers:
Save users money and time by processing online sales transactions.
48) In which of the following Internet business models does a merchant create an online digital environment that enables people with like interests to share information?
Community provider
49) Market creators:
Provide a digital environment where buyers and sellers can establish prices for products.
50) Which of the following best illustrates the sales revenue model?
Apple accepts micropayments for single music track downloads.
51) Which of the following best illustrates the affiliate revenue model?
Epinions receives a fee after steering a customer to a participating Web site where he or she makes a purchase.
52) Which of the following best illustrates the transaction fee revenue model?
eBay receives a small fee from a seller if a seller is successful in selling an item.
53) In which of the following revenue models does a Web site charge a fee for access to some or all of its offerings on a continual, regular basis?
Subscription
54) ________ describes the concept that a large group of people is better at making good decisions than a single person.
The wisdom of crowds
55) Netflix's public announcement of a reward for a technology solution to its movie recommendation system is an example of:
Crowdsourcing.
56) Exposing an individual to ads that are chosen and based on the recorded and analyzed online behavior of the individual is referred to as:
Behavioral targeting.
57) Which of the following best describes the digital social graph?
A mapping of all online social relationships
58) Which of the following statements about B2B commerce is not true?
B2B e-commerce represents approximately 10% of the overall B2B marketplace.
59) EDI is:
The exchange between two organizations of standard transactions through a network.
60) The process of sourcing goods and materials, negotiating with suppliers, paying for goods, and making delivery arrangements is called:
Procurement.
61) A secure Web site that links a large firm to its suppliers and other key business partners is called a(n):
Private industrial network.
62) E-hubs are more ________ than private industrial networks.
Transaction oriented
63) Net marketplaces:
Are industry owned or operate as independent intermediaries between buyers and sellers.
64) A third-party Net marketplace that connects many buyers and suppliers for spot purchasing is called a(n):
Exchange.
65) Goods that are involved in the actual production process are referred to as:
Direct goods.
66) Which of the following statements about m-commerce is not true?
In 2013, the main areas of growth are in online banking and location-based services.
67) Which of the following social commerce features allows social network sites to gather and distribute to others information about which products a user likes and dislikes?
Network notification
68) Which of the following is a marketing format that uses banner ads and pop-ups with interactive features?
Display ads
69) A new social mobile app you are developing allows users to find friends who are logged in and within a 10-mile radius. This would be categorized as a ________ service.
Geoinformational
70) Which of the following is not one of the platforms to be considered in building a Web site presence?
Facebook platform
71) Price transparency refers to the ability of consumers to discover what merchants actually pay for products.
FALSE
72) Switching costs are the merchants' costs of changing prices.
FALSE
73) Content providers use ________ systems to process large amounts of very small monetary transactions cost-effectively.
Micropayment
74) Viral marketing is like traditional word-of-mouth marketing except that it is spread via online communities.
TRUE
75) The Internet enables ________ marketing by leveraging the fact that there is always some demand, however small, for a product.
Long-tail
76) The behavioral targeting of ads results in consumers responding ten times more frequently than when delivered ads randomly.
TRUE
77) ________ is a peer-to-peer market in which participants bet on the outcomes of current events, business, or social trends.
A prediction market
78) Indirect goods are not involved firsthand in the production process.
TRUE
79) Which of the following is not one of the four main types of e-commerce presence?
Blogs
80) Geoadvertising sends ads to users based on their:
