MIS Chapter 10 Quiz

Which of the following statements about EDI is not true?
Today, EDI is only used for document automation.
Viral marketing is like traditional word-of-mouth marketing except that it is spread via online communities.
True
Information ________ exists when one party in a transaction has more information that is important for the transaction than the other party.
asymmetry
Selling the same goods to different targeted groups at different prices is called:
price discrimination.
Compared to digital markets, traditional markets have:
higher transaction costs.
A secure website that links a large firm to its suppliers and other key business partners is called a(n):
private industrial network.
All of the following are increased in traditional markets compared to digital markets except:
network effects.
All of the following are unique features of e-commerce technology, except:
transparency.
In the ________ revenue models, a firm offers some services for free but charges a subscription fee for premium services.
free/freemium
All of the following are examples of “on demand” companies except:
Instagram.
Exposing an individual to ads that are chosen and based on the recorded and analyzed online behavior of the individual is referred to as:
behavioral targeting.
Procurement involves all of the following except:
production scheduling.
Which of the following best illustrates the sales revenue model?
Apple accepts micropayments for single music track downloads.
The Internet reduces information asymmetry.
True
Compared to traditional goods, digital goods have:
greater pricing flexibility.
Market creators:
provide a digital environment where buyers and sellers can establish prices for products.
Uber uses a form of dynamic pricing.
True
Information density refers to the:
total amount and quantity of information available to all market participants
Behavioral targeting occurs at two levels: individual websites and through ISPs.
False
Craigslist is an example of:
C2C e-commerce.
Amazon.com is known primarily for its use of which of the following business models?
E-tailer
Which of the following is not one of four types of presence to be considered when building an e-commerce presence?
Corporate
Which of the following best illustrates the advertising revenue model?
Facebook provides a social network for free, but shows sponsored content in users’ News Feeds.
Netflix uses which of the following revenue models?
Subscription
Content providers use ________ systems to process large amounts of very small monetary transactions cost-effectively.
micropayment
The effort required to locate a suitable product is called:
search costs.
What event marked the beginning of e-commerce?
The first paid advertisements placed on a website.
Indirect goods are not involved firsthand in the production process.
True
Web personalization is used primarily as a marketing tool.
True
Geoadvertising sends ads to users based on their:
GPS locations.
Facebook’s Like button is an example of which of the following?
Network notification
Which of the following best illustrates the affiliate revenue model?
Yelp receives a fee after steering a customer to a participating Web site where he or she makes a purchase.
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.
True
EDI standards that take advantage of network communications have yet to be fully implemented at the industry level.
False
What is the difference between personalization and customization, as applied to e-commerce technologies?
Personalization refers to adjusting marketing messages for a consumer; customization refers to adjusting a product or service based on a user’s preferences.