Question 1

Menu costs are the merchants' costs of changing prices.

Accepted Answer

A) True 
 B)False  True

Question 2

Yahoo is an example of the portal business model.

Accepted Answer

A) True 
 B)False

Question 3

Behavioral targeting occurs at individual websites and within apps.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following best illustrates the transaction fee 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.F) A) and E)
G) C) and E)

Question 5

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.F) All of the above
G) A) and B)

Question 6

List and describe the top four methods of online marketing and advertising formats,in terms of estimated 2018 revenue.

Accepted Answer

The top five methods of online advertisi...

Question 7

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.

Accepted Answer

A) True 
 B)False

Question 8

Selling the same goods to different targeted groups at different prices is called:

Accepted Answer

A)  cost customization.
B)  cost optimization.
C)  price gouging.
D)  cost personalization.
E)  price discrimination.F) All of the above
G) B) and D)

Question 9

As described in the opening case,what is YouTube's revenue model?

Accepted Answer

A)  Advertising
B)  Transaction fee
C)  Subscription
D)  Freemium
E)  AffiliateF) A) and B)
G) C) and E)

Question 10

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.F) A) and E)
G) A) and C)

Question 11

What standards are referred to when discussing universal standards as a unique feature of e-commerce?

Accepted Answer

A)  Internet technology standards
B)  Common spoken and written languages
C)  Universal measuring standards
D)  Universal advertising and media format standards
E)  EDI standardsF) None of the above
G) A) and D)

Question 12

Website tracking software can log the path a customer took through the website,the time spent on the site,and what geographic area,in general,the customer is from,all of which can help in customer analysis.It can also log the customer's operating system and which browser the customer is using.How could these last two data items be of interest to a company? Give examples.

Accepted Answer

Student answers will vary,but should include an understanding that customer OS and browser interact technologically with a website and might be relevant in data analysis.An example is: Customer OSs and browsers could help a company determine what technical functionalities could be used in the site.For example,if it found out that a significant percentage of its users are using mobile browsers,they might want to make sure that the website is easily used by various mobile devices.Secondly,this data might be relevant in data mining or other analysis.For example,a retail clothing company might find that a significant portion of their most valued customers use an Apple operating system,and from other data analysis know that Apple users are more likely to purchase cashmere sweaters.Then the company may want to place a greater emphasis on selling the cashmere sweaters.

Question 13

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 14

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

Accepted Answer

Student answers will vary.A sample answe...

Question 15

Which of the following best describes the digital social graph?

Accepted Answer

A)  A person's direct and indirect relationships
B)  All of a person's closest digital relationships
C)  A collection of millions of personal social graphs
D)  All of the online and offline relationships a person has
E)  All of the relationships in an online communityF) A) and D)
G) B) and E)

Question 16

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 17

The Internet increases information asymmetry.

Accepted Answer

A) True 
 B)False  False

Question 18

Changing the prices of products based on the level of demand characteristics of the customer is called ________ pricing.

Accepted Answer

A)  menu
B)  dynamic
C)  flexible
D)  asymmetric
E)  customizedF) B) and C)
G) A) and C)

Question 19

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 answe...

Question 20

Viral marketing is like traditional word-of-mouth marketing except that it is spread via online communities.

Accepted Answer

A) True 
 B)False

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

Menu costs are the merchants' costs of changing prices.

Correct Answer
verified
True

Yahoo is an example of the portal business model.

Correct Answer
verified

Behavioral targeting occurs at individual websites and within apps.

Correct Answer
verified

Which of the following best illustrates the transaction fee revenue model?

Correct Answer
verified

Transaction brokers:

Correct Answer
verified

List and describe the top four methods of online marketing and advertising formats,in terms of estimated 2018 revenue.

Correct Answer
verified
The top five methods of online advertisi...
View Answer

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.

Correct Answer
verified

Selling the same goods to different targeted groups at different prices is called:

Correct Answer
verified

As described in the opening case,what is YouTube's revenue model?

Correct Answer
verified

The effort required to locate a suitable product is called:

Correct Answer
verified

What standards are referred to when discussing universal standards as a unique feature of e-commerce?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified
Student answers will vary.A sample answe...
View Answer

Which of the following best describes the digital social graph?

Correct Answer
verified

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

Correct Answer
verified

The Internet increases information asymmetry.

Correct Answer
verified
False

Changing the prices of products based on the level of demand characteristics of the customer is called ________ pricing.

Correct Answer
verified

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 Answer
verified
Student answers will vary.A sample answe...
View Answer

Viral marketing is like traditional word-of-mouth marketing except that it is spread via online communities.

Correct Answer
verified

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

Menu costs are the merchants' costs of changing prices.

Correct AnswerverifiedTrue

Yahoo is an example of the portal business model.

Correct AnswerverifiedShow Answer

Behavioral targeting occurs at individual websites and within apps.

Correct AnswerverifiedShow Answer

Which of the following best illustrates the transaction fee revenue model?

Correct AnswerverifiedShow Answer

Transaction brokers:

Correct AnswerverifiedShow Answer

List and describe the top four methods of online marketing and advertising formats,in terms of estimated 2018 revenue.

Correct AnswerverifiedThe top five methods of online advertisi...View AnswerShow Answer

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.

Correct AnswerverifiedShow Answer

Selling the same goods to different targeted groups at different prices is called:

Correct AnswerverifiedShow Answer

As described in the opening case,what is YouTube's revenue model?

Correct AnswerverifiedShow Answer

The effort required to locate a suitable product is called:

Correct AnswerverifiedShow Answer

What standards are referred to when discussing universal standards as a unique feature of e-commerce?

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

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

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

Which of the following best describes the digital social graph?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The Internet increases information asymmetry.

Correct AnswerverifiedFalse

Changing the prices of products based on the level of demand characteristics of the customer is called ________ pricing.

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 answe...View AnswerShow Answer

Viral marketing is like traditional word-of-mouth marketing except that it is spread via online communities.

Correct AnswerverifiedShow Answer

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The top five methods of online advertisi...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Student answers will vary.A sample answe...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
False

Correct Answer
verified

Correct Answer
verified
Student answers will vary.A sample answe...
View Answer

Correct Answer
verified