Question 1

The system functionalities of an e-commerce site are best described as the

Accepted Answer

A)   general capabilities wanted.
B)   information systems capabilities wanted.
C)   information elements needed.
D)   software and hardware required.

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Which of the following best illustrates the affiliate revenue model?

Accepted Answer

A)   EBay receives a small fee from a seller if a seller is successful in selling an item.
B)   Epinions receives a fee after steering a customer to a participating Web site where he or she makes a purchase.
C)   Flickr provides basic services for free, but charges a premium for advanced services.
D)   Apple accepts micropayments for single music track downloads.

Question 4

Your company provides online tax preparation software. Users can download forms and read tips online without paying, but a fee is charged for using the advanced tax form management services. This is an example of which type of revenue model?

Accepted Answer

A)   subscription
B)   affiliate
C)   transaction fee
D)   free/freemium

Question 5

Compared to traditional markets, digital markets have

Accepted Answer

A)   lower distributed delivery costs.
B)   higher marginal costs per unit.
C)   equivalent copying costs.
D)   similar inventory costs.

Question 6

Varying a product's price according to the supply situation of the seller is called ________ pricing.

Accepted Answer

A)   menu
B)   flexible
C)   dynamic
D)   asymmetric

Question 7

The goal of behavioral targeting is to increase the size of the audience to whom the advertiser can market a product.

Accepted Answer

A) True 
 B)False

Question 8

Net marketplaces may either support contractual purchasing based on long-term relationships with designated suppliers or short-term spot purchasing.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Which of the following events signified the beginning of e-commerce?

Accepted Answer

A)   the first online advertisements
B)   the first telephone sales
C)   the first online retail store
D)   the first web site

Question 11

Compared to traditional goods, digital goods have

Accepted Answer

A)   greater pricing flexibility.
B)   lower marketing costs.
C)   higher production costs.
D)   higher inventory costs.

Question 12

The effort required to locate a suitable product is called

Accepted Answer

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

Question 13

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 or buy and sell goods?

Accepted Answer

A)   community provider
B)   service provider
C)   market creator
D)   transaction broker

Question 14

Which of the following best illustrates the sales revenue model?

Accepted Answer

A)   EBay receives a small fee from a seller if a seller is successful in selling an item.
B)   Epinions receives a fee after steering a customer to a participating Web site where he or she makes a purchase.
C)   Flickr provides basic services for free, but charges a premium for advanced services.
D)   Apple accepts micropayments for single music track downloads.

Question 15

What methods could a portal use to generate revenue? Which do you think might be most successful, and why?

Accepted Answer

Advertising, subscriptions, selling coll...

Question 16

An online arena in which participants bet on specific outcomes of popular events, such as elections or designs for a new product, is called a(n) ________.

Accepted Answer

The answer of An online arena in which participants bet...

Question 17

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

Accepted Answer

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

Question 18

You are consulting for Lucky's, a chain of gas stations. What types of e-commerce opportunities, if any, are relevant to Lucky's? Could Lucky's make use of any Internet business models for this opportunity?

Accepted Answer

Student answers will vary. A sample answ...

Question 19

Because of outsourcing and increased automation, the costs of system maintenance and content creation have fallen and typically make up less than a quarter of Web site budgets.

Accepted Answer

A) True 
 B)False

Question 20

"Knowledge increases exponentially" is a phrase with which we are all familiar. How does this concept apply to electronic business and the emergence of the digital firm? Support your contentions.

Accepted Answer

Student answers will vary. A sample answ...

Exam 10: E-Commerce: Digital Markets, Digital Goods

Varying a product's price according to the supply situation of the seller is called ________ pricing.

Correct AnswerverifiedShow Answer

Because of outsourcing and increased automation, the costs of system maintenance and content creation have fallen and typically make up less than a quarter of Web site budgets.

Correct AnswerverifiedShow Answer

Compared to traditional goods, digital goods have

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Net marketplaces may either support contractual purchasing based on long-term relationships with designated suppliers or short-term spot purchasing.

Correct AnswerverifiedShow Answer

The goal of behavioral targeting is to increase the size of the audience to whom the advertiser can market a product.

Correct AnswerverifiedShow Answer

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 or buy and sell goods?

Correct AnswerverifiedShow Answer

You are consulting for Lucky's, a chain of gas stations. What types of e-commerce opportunities, if any, are relevant to Lucky's? Could Lucky's make use of any Internet business models for this opportunity?

Correct AnswerverifiedStudent answers will vary. A sample answ...View AnswerShow Answer

The system functionalities of an e-commerce site are best described as the

Correct AnswerverifiedShow Answer

"Knowledge increases exponentially" is a phrase with which we are all familiar. How does this concept apply to electronic business and the emergence of the digital firm? Support your contentions.

Correct AnswerverifiedStudent answers will vary. A sample answ...View AnswerShow Answer

Which of the following best illustrates the sales revenue model?

Correct AnswerverifiedShow Answer

Your company provides online tax preparation software. Users can download forms and read tips online without paying, but a fee is charged for using the advanced tax form management services. This is an example of which type of revenue model?

Correct AnswerverifiedShow Answer

The effort required to locate a suitable product is called

Correct AnswerverifiedShow Answer

Which of the following events signified the beginning of e-commerce?

Correct AnswerverifiedShow Answer

Compared to traditional markets, digital markets have

Correct AnswerverifiedShow Answer

An online arena in which participants bet on specific outcomes of popular events, such as elections or designs for a new product, is called a(n) ________.

Correct AnswerverifiedShow Answer

Which of the following best illustrates the affiliate revenue model?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What methods could a portal use to generate revenue? Which do you think might be most successful, and why?

Correct AnswerverifiedAdvertising, subscriptions, selling coll...View AnswerShow Answer

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Student answers will vary. A sample answ...
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Student answers will vary. A sample answ...
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Advertising, subscriptions, selling coll...
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