Chapter 10

Question 1

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

Answer 1

False

Question 2

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

Answer 2

False

Question 3

3. The internet shrinks information asymmetry

Answer 3

True

Question 4

4. Rich media advertisements are a sales-oriented marketing format

Answer 4

False

Question 5

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.

Answer 5

True

Question 6

6. Disintermediation provides major benefits to the distributor

Answer 6

False

Question 7

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

Answer 7

True

Question 8

8. An example of the service provider business model is Flickr, a photo management and sharing Web site

Answer 8

True

Question 9

9. An example of the content provider business model is Barnesandnoble.com, a retailer of printed books

Answer 9

False

Question 10

10. Web personalization is used primarily as a major marketing tool

Answer 10

True

Question 11

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

Answer 11

False

Question 12

12. Intellectual property refers to all forms of human expression, both tangible and intangible

Answer 12

False

Question 13

13. Ninety-six percent of all U.S. households with Internet access use a broadband connection

Answer 13

True

Question 14

14. Behavioral targeting occurs at two levels: individual Web sites and through ISPs

Answer 14

False

Question 15

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

Answer 15

False

Question 16

16. Net marketplaces may either support contractual purchasing based on long-term spot purchasing

Answer 16

True

Question 17

17. Exchanges have become one of the most popular types of Net marketplace because they encourage competitive bidding that drives prices down

Answer 17

False

Question 18

18. Automobile manufacturing is an example of a vertical market

Answer 18

True

Question 19

19. Advertising networks track a user’s behavior at thousands of Web sites

Answer 19

True

Question 20

20. In the free/freemium revenue model, firms offer basic services for free and charge a fee for special features

Answer 20

True

Question 21

21. Through what channel did e-commerce first evolve?

A) Online advertising sales
B) Internet Portals
C) Online book sales
D) Internet services providers

Answer 21

A) Online advertising sales

Question 22

22. 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

Answer 22

A) still in a revolutionary phase

Question 23

23. A market place extended beyond traditional boundaries and removed from a temporal and geographic location is called a(n):

A) exchange
B) market space
C) online marketplace
D) e-hub

Answer 23

B) market space

Question 24

24. Which of the following is not a recent development in e-commerce?

A) Wireless Internet connections grow rapidly
B) Social networking sites become a new platform for e-commerce
C) The music recording industry is disrupted as music creation and distribution become decentralized
D) Online entertainment business models surge

Answer 24

C) The music recording industry is disrupted as music creation and distribution become decentralized

Question 25

25. How are the Internet and e-commerce causing severe disruption to the existing advertising business model? A) Ties between customer and business are being rethought B) Technology players such as Yahoo! Seek to dominate online advertising and expand into offline ad brokerage C) New methods of advertising, such as blog advertising, are emerging D) The new market entry costs for online advertising services are extremely low

Answer 25

B) Technology players such as Yahoo! Seek to dominate online advertising and expand into offline ad brokerage

Question 26

26. 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) the spread of plentiful, cheap information C) the enabling of commerce worldwide D) the availability of the Internet everywhere and anytime

Answer 26

D) the availability of the Internet everywhere and anytime

Question 27

27. Which of the following is not one of the unique features or e-commerce technology: A) Information density B) Transparency C) Richness D) Social technology

Answer 27

B) Transparency

Question 28

28. 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

Answer 28

D) interactivity

Question 29

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? A) Ubiquity B) Personalization/customization C) Richness D) Interactivity

Answer 29

C) Richness

Question 30

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? A) Information density B) Richness C) Customization D) Interactivity

Answer 30

A) Information density