Final Exam - Chapter 1 - The Revolution Is Just Beginning

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1. Above all, e-commerce is a(n) ________- Answer: A technology

driven phenomenon.
2. A(n) ________ extends the marketplace marketspace
beyond traditional boundaries.
3. A(n) ________ occurs when everyone in a network effect
group receives value because all
participants use the
same tool or product.
4. B2G e-commerce is a form of which type B2B
of e-commerce?
5. Business-to-consumer B2C e-commerce expected to return to a growth rate of 10 percent a year after the recession.
is:
6. Define the terms e-business and e- E-business refers primarily to digitally enabled transactions within a firm, involving
commerce and explain the difference. information systems under the control of the firm. E-business does not include
What is the key factor in commercial transactions
determining if a transaction is in which an exchange of value across organizational boundaries takes place. E-
"commerce"? commerce, on the other
hand, is a revenue generating operation. The key factor in determining if a transaction is
commerce therefore is "exchange of value." In order to be e-commerce, a transaction
must include the direct production of revenue.
7. E-commerce can be defined as: the use of the Internet and the Web to transact business.
8. E-commerce during the early years of e- a technological success and a mixed business success.
commerce was:
9. E-commerce technologies have changed the larger the audience reached, the less rich the message.
the traditional tradeoff between the
richness and reach of a
marketing message. Prior to the
development of the Web:
10. An economist is most likely to be behavior
interested in a ________ approach to e-
commerce.
11. A firm that is first to market in a first mover
particular area and that moves quickly to
gather market share is
referred to as a(n) ________.
12. Has e- E-commerce has greatly changed the marketing of goods. Before, the marketing and sale of goods was a mass-
commerce marketing and sales force-driven process. Marketers viewed consumers as passive targets of advertising. The Internet
changed the and Web can deliver, to an audience of millions, rich marketing messages with text, video, and audio, in a way not
marketing of possible with traditional commerce technologies such as radio, television, or magazines. Merchants can target their
goods? If so, marketing messages to specific individuals. Much information about the consumer can be gathered from the Web site
how? the consumer visits. With the increase in information density, a great deal of information about the consumer's past
purchases and behavior can be stored and used by online merchants. The result is a level of personalization and
customization unthinkable with existing commerce technologies.
13. The richness.
integration
of video,
audio, and
text
marketing
messages
into a single
marketing
message
and
consuming
experience
is an
example of:
14. An Internet host
________ is
defined as
any IP
address that
returns a
domain
name in the
in-addr.arpa
domain.
15. ________ Law Metcalfe's
quantifies
the network
effect, by
stating that
the value of
a network
grows by
the
square of
the number
of
participants.
16. List and briefly explain the five main types of e- Business-to-Consumer (B2C) in online businesses reach consumers; Business-
commerce. For the most part, what is the metric to-Business (B2B), in which businesses
upon which the types of e-commerce are sell to other businesses; Consumer to Consumer (C2C), consumers
distinguished? can sell goods to each other; Peer-to-Peer (P2P), use of file sharing
technology,
eliminating a Web server; and mobile commerce or m-commerce the use of
wireless digital devices to enable Web transactions. The metric upon which
each of these types of e-commerce is
distinguished is the nature of the market relationship--who is selling to whom,
except m-commerce,
which is defined by the method of transacting.
17. The most popular service that runs on the Internet World Wide Web/Web
infrastructure is the ________.
18. The most significant technology that can reduce wireless Web technology.
barriers to Internet access is:
19. Net marketplaces include all of the following Answer: D private industrial networks.
except: e-distributors, exchanges, industry
consortia, private industrial networks.
20. Network externalities are related to which of the universal standards
following features of e-commerce technology?
21. One of the predictions for the future of e- overall revenues from e-commerce will grow by 10-12 percent a year from
commerce is that: 2010 through 2013.
22. ________ refers to any disparity in relevant market Information asymmetry
information among parties in a transaction.
23. ________ refers to the displacement of market Disintermediation
middlemen.
24. Tangible works of the mind such as music, books, intellectual property
and videos are called ________.
25. The targeting of marketing messages to specific personalization
individuals by adjusting the message to a person's
name, interests, and past purchases is called
________.
26. Unfair competitive advantages occur when: one competitor has an advantage others cannot purchase.
27. Was not a factor of the early years of e-commerce Answer: A an emphasis on exploiting traditional distribution channels.
being driven.
28. What is not an example of a Web 2.0 application? Answer: B Yahoo
29. What technologies easily crosses national Answer: D the Internet.
boundaries to a global audience:
30. What was not a vision of e-commerce expressed Answer: C persistence of information asymmetries
during the early years of e-commerce
31. What was not considered a precursor to e- Answer: A m-commerce.
commerce
32. Which business improvement is associated with the workgroup automation for example document sharing
technological development of local area
networks and client/server computing?
33. Which of the following are all unique features of e- universal standards, richness, information density, interactivity
commerce technology?
34. Which of the following is a characteristic of the strengthening of intermediaries
consolidation phase of e-commerce?
35. Which of the following is a characteristic of the re-invention proliferation of small online intermediaries renting the business
phase of e-commerce? processes of larger firms
36. Which of the following is not a characteristic of a perfect Answer: D the growth of regulatory activity both nationally and
competitive market? internationally.
37. Which of the following is not a limitation on the growth of B2C Answer: D the retrenchment and consolidation of e-commerce
e-commerce? into the hands of large established firms
38. Which of the following is not a major technology trend in e- Answer: C Computing and networking component prices
commerce? increase dramatically.
39. Which of the following is not true regarding e-commerce Answer: D The market middlemen disappeared.
today?
A) Economists' visions of a friction-free market have not been
realized.
B) Consumers are less price-sensitive than expected.
C) There remains considerable persistent price dispersion.
D) The market middlemen disappeared.
40. Which of the following is one of the three primary societal individual privacy
issues related to e-commerce?
41. Which of the following is required for commerce to occur? an exchange of value
42. Which of the following is the best definition of transaction the cost of participating in markets
costs?
43. Which of the following is the top-selling online retail category? mass merchant/department store
44. Which of the following qualities is least likely to decrease a richness
consumer's search costs?
45. Which of the following statements about the Web is not true? Answer: A It is the technology upon which the Internet is based.
46. Which of the following statements is not true? Answer: C Overall transaction costs have dropped dramatically.
A) Information asymmetries are continually being introduced by
merchants and marketers.
B) Intermediaries have not disappeared.
C) Overall transaction costs have dropped dramatically.
D) Brands remain very important in e-commerce.
47. Which of the following statements is not true? Answer: B Information systems researchers take a purely
A) No one academic perspective dominates research about e- technical approach to e-commerce.
commerce.
B) Information systems researchers take a purely technical
approach to e-commerce.
C) There are two primary approaches to e-commerce: behavioral
and technical.
D) Management scientists are interested in e-commerce as an
opportunity to study how business firms
can exploit the Internet to achieve more efficient business
operations.
48. Which of the following types of merchants has the highest share retail chain
of retail online sales?
49. Which type of e-commerce is distinguished by the type of Peer-to-Peer P2P
technology used in the transaction rather
than by the nature of the market relationship?