Question 1

Information ________ exists when one party in a transaction has more information that is important for the transaction than the other party.

Accepted Answer

A)  transparency
B)  asymmetry
C)  complexity
D)  discriminationE) A) and C)
F) None of the above

Question 2

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) B) and C)
F) B) and D)

Question 3

________ 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 auctionE) A) and B)
F) All of the above

Question 4

Which feature of Internet technology has had the most effect in the Internet's rapid spread across the globe?

Accepted Answer

A)  Ubiquity
B)  Global reach
C)  Universal standards
D)  Social technologyE) B) and C)
F) C) and D)

Question 5

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 6

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) A) and C)
F) B) and C)

Question 7

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

Accepted Answer

Internet business models include: e-tail...

Question 8

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.E) A) and B)
F) A) and C)

Question 9

A secure Web site that links a large firm to its suppliers and other key business partners is called a(n) :

Accepted Answer

A)  e-hub.
B)  marketspace.
C)  exchange.
D)  private industrial network.E) A) and D)
F) B) and C)

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

eBay is an example of:

Accepted Answer

A)  C2C e-commerce.
B)  B2B e-commerce.
C)  B2C e-commerce.
D)  M-commerce.E) B) and D)
F) All of the above

Question 12

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)  price discrimination.E) A) and B)
F) A) and C)

Question 13

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) None of the above
F) A) and D)

Question 14

Netflix's public announcement of a reward for a technology solution to its movie recommendation system is an example of:

Accepted Answer

A)  prediction markets.
B)  behavioral targeting.
C)  long-tail marketing.
D)  crowdsourcing.E) A) and D)
F) None of the above

Question 15

Reducing the business process layers in a distribution channel is called:

Accepted Answer

A)  disintermediation.
B)  BPR.
C)  market segmentation.
D)  network effects.E) A) and D)
F) None of the above

Question 16

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) A) and B)
F) C) and D)

Question 17

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.E) None of the above
F) A) and D)

Question 18

Which of the following Internet business models does Amazon.com use?

Accepted Answer

A)  Content provider
B)  Portal
C)  Market creator
D)  E-tailerE) B) and C)
F) A) and B)

Question 19

A third-party Net marketplace that connects many buyers and suppliers for spot purchasing is called a(n) :

Accepted Answer

A)  exchange.
B)  vertical market.
C)  private exchange.
D)  e-hub.E) C) and D)
F) None of the above

Question 20

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

Accepted Answer

A) True 
 B)False

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

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

Correct AnswerverifiedShow Answer

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

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

A secure Web site that links a large firm to its suppliers and other key business partners is called a(n) :

Correct AnswerverifiedShow Answer

Reducing the business process layers in a distribution channel is called:

Correct AnswerverifiedShow Answer

Netflix's public announcement of a reward for a technology solution to its movie recommendation system is an example of:

Correct AnswerverifiedShow Answer

Information ________ exists when one party in a transaction has more information that is important for the transaction than the other party.

Correct AnswerverifiedShow Answer

Compared to traditional goods, digital goods have:

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Which feature of Internet technology has had the most effect in the Internet's rapid spread across the globe?

Correct AnswerverifiedShow Answer

eBay is an example of:

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Market creators:

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A third-party Net marketplace that connects many buyers and suppliers for spot purchasing is called a(n) :

Correct AnswerverifiedShow Answer

Which of the following best illustrates the sales revenue model?

Correct AnswerverifiedShow Answer

Which of the following Internet business models does Amazon.com use?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The effort required to locate a suitable product is called:

Correct AnswerverifiedShow Answer

Which of the following best illustrates the affiliate revenue model?

Correct AnswerverifiedShow Answer

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Internet business models include: e-tail...
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Student answers will vary. A sample answ...
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