Question 1

________ is a peer-to-peer market in which participants bet on the outcomes of current events, business, or social trends.

Accepted Answer

A)   Crowdsourcing
B)   A net marketplace
C)   A prediction market
D)   A futures auction
E)   A private exchange

Question 2

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.
E)   Netflix charges customers a monthly fee for access to its library of movies.

Question 3

Switching costs are the merchants' costs of changing prices.

Accepted Answer

A) True 
 B)False

Question 4

You have been hired as a marketing consultant by a law firm in Los Angeles that specializes in juvenile justice. What ways can you use the Internet as a marketing tool and to advertise the firm's services?

Accepted Answer

Student answers will vary. A sample answ...

Question 5

Compared to traditional goods, digital goods incur

Accepted Answer

A)   lower distribution costs.
B)   higher marginal costs per unit.
C)   equivalent copying costs.
D)   similar inventory costs.
E)   less disintermediation.

Question 6

The behavioral targeting of ads results in consumers responding ten times more frequently than when delivered ads randomly.

Accepted Answer

A) True 
 B)False

Question 7

Reducing the business process layers in a distribution channel is called

Accepted Answer

A)   disintermediation.
B)   BPR.
C)   market segmentation.
D)   network effects.
E)   market transparency.

Question 8

Indirect goods are not involved firsthand in the production process.

Accepted Answer

A) True 
 B)False

Question 9

The process of sourcing goods and materials, negotiating with suppliers, paying for goods, and making delivery arrangements is called

Accepted Answer

A)   e-procurement.
B)   SCM.
C)   procurement.
D)   sourcing.
E)   production.

Question 10

Which of the following marketing formats is sales oriented, rather than branding oriented or a mix?

Accepted Answer

A)   lead generation
B)   search engine
C)   rich media
D)   display ads
E)   video

Question 11

________ refers to businesses selling goods and services electronically to individuals.

Accepted Answer

A)   B2C e-commerce
B)   Social e-commerce
C)   C2C e-commerce
D)   Disintermediation
E)   M-commerce

Question 12

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 13

eBay is an example of

Accepted Answer

A)   C2C e-commerce.
B)   B2B e-commerce.
C)   B2C e-commerce.
D)   M-commerce.
E)   P2P-commerce.

Question 14

All of the following are activities related to establishing a Web presence except for

Accepted Answer

A)   search.
B)   affiliates.
C)   apps.
D)   newsletters.
E)   display.

Question 15

Which of the following is not one of four types of presence to be considered when building an E-commerce presence?

Accepted Answer

A)   offline media
B)   Web sites
C)   social media
D)   corporate
E)   e-mail

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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 18

Based on your reading of the chapter, e-commerce is

Accepted Answer

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.
E)   declining as users lose interest.

Question 19

Transaction brokers

Accepted Answer

A)   generate revenue from advertising or from directing buyers to sellers.
B)   save users money and time by processing online sales transactions.
C)   provide a digital environment where buyers and sellers can establish prices for products.
D)   sell physical products directly to consumers or individual businesses.
E)   provide online meeting places where people with similar interests can communicate.

Question 20

A marketplace extended beyond traditional boundaries and removed from a temporal and geographic location is called a(n)

Accepted Answer

A)   exchange.
B)   marketspace.
C)   online marketplace.
D)   e-hub.
E)   net marketplace.

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

Which of the following is not one of four types of presence to be considered when building an E-commerce presence?

Correct AnswerverifiedShow Answer

The behavioral targeting of ads results in consumers responding ten times more frequently than when delivered ads randomly.

Correct AnswerverifiedShow Answer

Compared to traditional goods, digital goods incur

Correct AnswerverifiedShow Answer

________ refers to businesses selling goods and services electronically to individuals.

Correct AnswerverifiedShow Answer

Transaction brokers

Correct AnswerverifiedShow Answer

________ is a peer-to-peer market in which participants bet on the outcomes of current events, business, or social trends.

Correct AnswerverifiedShow Answer

You have been hired as a marketing consultant by a law firm in Los Angeles that specializes in juvenile justice. What ways can you use the Internet as a marketing tool and to advertise the firm's services?

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

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

Correct AnswerverifiedShow Answer

Based on your reading of the chapter, e-commerce is

Correct AnswerverifiedShow Answer

All of the following are activities related to establishing a Web presence except for

Correct AnswerverifiedShow Answer

A marketplace extended beyond traditional boundaries and removed from a temporal and geographic location is called a(n)

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following best illustrates the sales revenue model?

Correct AnswerverifiedShow Answer

Indirect goods are not involved firsthand in the production process.

Correct AnswerverifiedShow Answer

Switching costs are the merchants' costs of changing prices.

Correct AnswerverifiedShow Answer

Reducing the business process layers in a distribution channel is called

Correct AnswerverifiedShow Answer

Which of the following marketing formats is sales oriented, rather than branding oriented or a mix?

Correct AnswerverifiedShow Answer

eBay is an example of

Correct AnswerverifiedShow Answer

The process of sourcing goods and materials, negotiating with suppliers, paying for goods, and making delivery arrangements is called

Correct AnswerverifiedShow Answer

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Student answers will vary. A sample answ...
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