Question 1

List and describe at least five different Internet business models. Which of these models do you think would be the riskiest for a startup business today? Support your answer.

Accepted Answer

Internet business models include: e-tail...

Question 2

Market creators:

Accepted Answer

A)   save users money and time by processing online sales transactions.
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.
E)   generate revenue from advertising or from directing buyers to sellers.

Question 3

Procurement involves all of the following except:

Accepted Answer

A)   negotiating with suppliers.
B)   paying for goods.
C)   making delivery arrangements.
D)   sourcing.
E)   production scheduling.

Question 4

Disintermediation provides major benefits to the consumer.

Accepted Answer

A) True 
 B)False

Question 5

Rich media advertisements are used to strengthen brands.

Accepted Answer

A) True 
 B)False

Question 6

List and describe the three main categories of e-commerce. Which do you think is ultimately the most valuable to the individual consumer? Support your answer.

Accepted Answer

Business-to-consumer, business-to-busine...

Question 7

Exposing an individual to ads that are chosen based on the choices of their friends is an example of:

Accepted Answer

A)   clickstream advertising.
B)   behavioral targeting.
C)   online profiling.
D)   social marketing.
E)   crowdsourcing.

Question 8

Information asymmetry exists when there is more information about one product than there is about a similar product.

Accepted Answer

A) True 
 B)False

Question 9

What percent of online retailers now have m-commerce websites?

Accepted Answer

A)   15 percent
B)   25 percent
C)   55 percent
D)   75 percent
E)   85 percent

Question 10

Which of the following best illustrates the advertising revenue model?

Accepted Answer

A)   eBay receives a small fee from a seller if a seller is successful in selling an item.
B)   Yelp receives a fee after steering a customer to a participating website where he or she makes a purchase.
C)   Facebook provides a social network for free, but shows sponsored content in users' News Feeds.
D)   Apple accepts micropayments for single music track downloads.
E)   Netflix charges customers a monthly fee for access to its library of movies.

Question 11

Web personalization refers to targeting ad messages to a person's clickstream behavior.

Accepted Answer

A) True 
 B)False

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.
E)   location costs.

Question 13

What is the difference between personalization and customization, as applied to e-commerce technologies?

Accepted Answer

A)   Customization is any type of adjustment made to a product by the user; personalization refers to a business changing a product or service for the user.
B)   Personalization is any type of adjustment made to a product by the user; customization refers to a business changing a product or service for the user.
C)   Customization refers to adjusting marketing messages for a consumer; personalization refers to adjusting a product or service based on a user's preferences.
D)   Personalization refers to adjusting marketing messages for a consumer; customization refers to adjusting a product or service based on a user's preferences.
E)   There is no difference. Both terms refer to changing a product or communication for the consumer.

Question 14

All of the following are unique features of e-commerce technology, except:

Accepted Answer

A)   personalization/customization.
B)   interactivity.
C)   transparency.
D)   richness.
E)   global reach.

Question 15

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 16

Content providers use ________ systems to process large amounts of very small monetary transactions cost-effectively.

Accepted Answer

A)   subscription
B)   mobile payment
C)   transaction fee
D)   micropayment
E)   affiliate revenue

Question 17

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)   Yelp receives a fee after steering a customer to a participating website where he or she makes a purchase.
C)   Pandora provides basic services for free, but charges a premium for advanced services.
D)   Apple accepts micropayments for single music track downloads.
E)   Netflix charges customers a monthly fee for access to its library of movies.

Question 18

As described in the chapter case, Uber uses the ________ revenue model.

Accepted Answer

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

Question 19

Ikea asked for the help of its customers in designing new furniture. This is an example of:

Accepted Answer

A)   prediction markets.
B)   behavioral targeting.
C)   long-tail marketing.
D)   social shopping.
E)   crowdsourcing.

Question 20

In digital markets:

Accepted Answer

A)   search costs increase.
B)   menu costs decline.
C)   switching costs decline.
D)   network costs decline.
E)   information asymmetry increases.

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

All of the following are unique features of e-commerce technology, except:

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

As described in the chapter case, Uber uses the ________ revenue model.

Correct AnswerverifiedShow Answer

Information asymmetry exists when there is more information about one product than there is about a similar product.

Correct AnswerverifiedShow Answer

What is the difference between personalization and customization, as applied to e-commerce technologies?

Correct AnswerverifiedShow Answer

Which of the following best illustrates the advertising revenue model?

Correct AnswerverifiedShow Answer

List and describe at least five different Internet business models. Which of these models do you think would be the riskiest for a startup business today? Support your answer.

Correct AnswerverifiedInternet business models include: e-tail...View AnswerShow Answer

In digital markets:

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Content providers use ________ systems to process large amounts of very small monetary transactions cost-effectively.

Correct AnswerverifiedShow Answer

Which of the following best illustrates the sales revenue model?

Correct AnswerverifiedShow Answer

Exposing an individual to ads that are chosen based on the choices of their friends is an example of:

Correct AnswerverifiedShow Answer

List and describe the three main categories of e-commerce. Which do you think is ultimately the most valuable to the individual consumer? Support your answer.

Correct AnswerverifiedBusiness-to-consumer, business-to-busine...View AnswerShow Answer

The effort required to locate a suitable product is called:

Correct AnswerverifiedShow Answer

Procurement involves all of the following except:

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Web personalization refers to targeting ad messages to a person's clickstream behavior.

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Disintermediation provides major benefits to the consumer.

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Market creators:

Correct AnswerverifiedShow Answer

Ikea asked for the help of its customers in designing new furniture. This is an example of:

Correct AnswerverifiedShow Answer

What percent of online retailers now have m-commerce websites?

Correct AnswerverifiedShow Answer

Rich media advertisements are used to strengthen brands.

Correct AnswerverifiedShow Answer

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Internet business models include: e-tail...
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Business-to-consumer, business-to-busine...
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