Deck 1: The Revolution Is Just Beginning

Question 1

Twitter now has more than 1 billion active users worldwide.

Answer 1

False

Question 2

E-commerce as we know it today would not exist without the Internet.

Answer 2

True

Question 3

Which of the following is the best definition of transaction cost?

A)the cost of changing prices
B)the cost of participating in a market
C)the cost of finding suitable products
D)the cost merchants pay to bring their goods to market

Answer 3

B

Question 4

E-commerce can be defined as:

A)the use of the Internet and the Web to transact business.
B)the use of any Internet technologies in a firm's daily activities.
C)the digital enablement of transactions and processes within an organization.
D)any digitally enabled transactions among individuals and organizations.

Question 5

Which of the following is not a major business trend in e-commerce in 2012-2013?

A)Retail e-commerce continues double-digit growth.
B)Small businesses and entrepreneurs are hampered by the rising cost of market entry caused by increased presence of industry giants.
C)Facebook grows to more than 1 billion users.
D)Social and mobile advertising begins to challenge search engine marketing.

Question 6

In 2011, a new Internet investment bubble focused primarily on social networks emerged.

Question 7

Social e-commerce is currently the largest type of e-commerce.

Question 8

Which of the following is not a major technology trend in e-commerce in 2012-2013?

A)Cloud computing enables the creation of "big data."
B)Apps create a new platform for online marketing and commerce.
C)The mobile computing platform begins to rival the PC platform.
D)Real-time advertising becomes a reality with gains in computing power and speeds.

Question 9

The Reinvention period of e-commerce is as much a sociological phenomenon as it is a technological or business phenomenon.

Question 10

The integration of video, audio, and text marketing messages into a single marketing message and consuming experience is an example of:

A)richness.
B)ubiquity.
C)information density.
D)personalization.

Question 11

Which of the following qualities is least likely to decrease a consumer's search costs?

A)ubiquity
B)global reach
C)information density
D)richness

Question 12

Customization involves changing a delivered product or service based upon a consumer's preferences or past purchasing behavior.

Question 13

The fact that e-commerce is conducted on the basis of universal standards decreases market entry costs for merchants.

Question 14

The emergence of entrepreneurial social and local firms is one of the hallmarks of the Consolidation period of e-commerce.

Question 15

Ubiquity increases cognitive energy outlays.

Question 16

Retail e-commerce is continuing double-digit growth in 2012-2013.

Question 17

Web 2.0 describes a set of applications and technologies that encourage and rely on user- and consumer-generated interactivity and content.

Question 18

Which of the following is not one of the current major social trends in e-commerce in 2012-2013?

A)Spam declines as a significant problem.
B)Controversy over content regulation and controls continues.
C)E-books gain wide acceptance.
D)Internet security continues to decline.

Question 19

Which of the following is not a unique feature of e-commerce technology?

A)interactivity
B)social technology
C)global broadcasting
D)richness

Question 20

Pinterest is one of the "stickiest" sites on the Web.

Question 21

Which of the following is not a characteristic of a perfect competitive market?

A)Price, cost, and quality information are equally distributed.
B)A nearly infinite set of suppliers compete against one another.
C)Customers have access to all relevant information worldwide.
D)It is highly regulated.

Question 22

The early years of e-commerce were driven by all of the following factors except:

A)an emphasis on exploiting traditional distribution channels.
B)a huge infusion of venture capital funds.
C)an emphasis on quickly achieving a very high market visibility.
D)visions of profiting from new technology.

Question 23

E-commerce can be said to have begun in:

A)1983.
B)1985.
C)1995.
D)2001.

Question 24

Network externalities are related to which of the following features of e-commerce technology?

A)richness
B)interactivity
C)universal standards
D)information density

Question 25

All of the following are major business trends in e-commerce in 2012-2013 except for:

A)the growth of a new app-based online economy.
B)the expansion of the localization of e-commerce.
C)the emergence of a new social e-commerce platform.
D)the eclipse of search engine marketing by the mobile advertising platform.

Question 26

The early years of e-commerce are considered:

A)the most promising time in history for the successful implementation of first mover advantages.
B)an economist's dream come true, where for a brief time consumers had access to all relevant market information and transaction costs plummeted.
C)a stunning technological success as the Internet and the Web increased from a few thousand to billions of e-commerce transactions per year.
D)a dramatic business success as 85% of dot-coms formed since 1995 became flourishing businesses.

Question 27

Which of the following describes the basic Web policy of large firms during the period of invention?

A)integrate social networking and mobile platform with Web site marketing
B)use Web to connect with suppliers
C)include additional channels to market products
D)maintain a basic, static Web site

Question 28

Which of the following statements about the Web is not true?

A)It is the technology upon which the Internet is based.
B)It was developed in the early 1990s.
C)It provides access to pages written in HTML.
D)It provides access to Web pages that incorporate graphics, sound, and multimedia.

Question 29

How many years has it taken the Internet to achieve a share of greater than 50% of U.S. households?

A)10
B)17
C)38
D)60

Question 30

Which of the following is a mobile photo-sharing application available for Androids and iPhones?

A)WordPress
B)Tumblr
C)Wikipedia
D)Instagram

Question 31

Interactivity in the context of e-commerce can be described as:

A)the ability to physically touch and manipulate a product.
B)the complexity and content of a message.
C)the ability of consumers to create and distribute content.
D)the enabling of two-way communication between consumer and merchant.

Question 32

Around what percentage of Internet users in the United States access the Internet through mobile devices?

A)30
B)50
C)70
D)90

Question 33

In 2012, there were an estimated ________ Internet hosts.

A)8 million
B)88 million
C)888 million
D)8)88 billion

Question 34

The size of the global B2B market in the United States in 2012 was around:

A)$400 million.
B)$4 billion.
C)$400 billion.
D)$4 trillion.

Question 35

Unfair competitive advantages occur when:

A)one competitor has an advantage others cannot purchase.
B)market middlemen are displaced.
C)information is equally distributed and transaction costs are low.
D)firms are able to gather monopoly profits.

Question 36

Which of the following is not an example of a social network?

A)Wikipedia
B)Twitter
C)Pinterest
D)Facebook

Question 37

Which of the following best describes the early years of e-commerce?

A)They were a technological success but a mixed business success.
B)They were a technological success but a business failure.
C)They were a technological failure but a business success.
D)They were a mixed technological and business success.

Question 38

All of the following were visions of e-commerce expressed during the early years of e-commerce except:

A)a nearly perfect competitive market.
B)friction-free commerce.
C)disintermediation.
D)fast follower advantage.

Question 39

E-commerce technologies have changed the traditional tradeoff between the richness and reach of a marketing message. Prior to the development of the Web:

A)marketing messages had little richness.
B)the smaller the audience reached, the less rich the message.
C)the larger the audience reached, the less rich the message.
D)richness equaled reach.

Question 40

Which type of e-commerce is distinguished by the type of technology used in the transaction rather than by the nature of the market relationship?

A)Consumer-to-consumer (C2C)
B)Social e-commerce
C)Mobile e-commerce
D)Business-to-business (B2

Question 41

In 2012, around ________ adult Americans used the Internet.

A)1)93 million
B)19.3 million
C)193 million
D)1)93 billion

Question 42

Which of the following is a characteristic of e-commerce during the Invention period?

A)mobile technology
B)earnings and profits emphasis
C)distintermediation
D)extensive government surveillance

Question 43

Craigslist is an example of which of the following types of e-commerce?

A)B2B
B)C2C
C)B2C
D)M-commerce

Question 44

Which of the following is the world's largest online consumer generated video-posting site?

A)Pinterest
B)YouTube
C)Twitter
D)Facebook

Question 45

Which of the following statements is not true?

A)No one academic perspective dominates research about e-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.

Question 46

All of the following are issues facing Pinterest except:

A)copyright infringement.
B)inability to attract users.
C)competition.
D)spam.

Question 47

Which of the following is a combination of blog platform and social network?

A)Instagram
B)Tumblr
C)Wikipedia
D)Foursquare

Question 48

When was the Internet created?

A)the 1950s
B)the 1960s
C)the 1970s
D)the 1980s?

Question 49

Above all, e-commerce is a ________ phenomenon.

A)technology-driven
B)finance-driven
C)sociological
D)government-driven

Question 50

Which of the following is one of the three primary societal issues related to e-commerce?

A)liability
B)anonymity
C)equity
D)individual privacy

Question 51

Which of the following is a characteristic of the Consolidation phase of e-commerce?

A)predominance of pure online strategies
B)emphasis on revenue growth versus profits
C)first mover advantages
D)shift to a business-driven approach

Question 52

Which of the following is not yet a public company?

A)Zynga
B)LinkedIn
C)Groupon
D)Twitter

Question 53

A(n)________ extends the marketplace beyond traditional boundaries.

Question 54

In 2012, roughly ________ million people in the United States accessed the Internet via mobile devices.

A)30
B)65
C)80
D)120

Question 55

All of the following are characteristics of Web 2.0 sites and applications except:

A)they are inherently highly interactive.
B)they rely on mobile access to the Web.
C)they tend to attract large audiences.
D)they present marketers with extraordinary opportunities for targeted marketing and advertising.

Question 56

The total number of users or customers an e-commerce business can obtain is a measure of its ________.

Question 57

Which of the following statements is not true?

A)In 2012, apps accounted for a small but growing amount of e-commerce revenues.
B)The amount of data the average American consumes each day is decreasing.
C)E-books today account for about half of all book sales.
D)Computing and networking component prices are continuing to fall dramatically.

Question 58

________ refers to any disparity in relevant market information among parties in a transaction.

Question 59

Which of the following is an example of local e-commerce?

A)Amazon
B)Groupon
C)Facebook
D)eBay

Question 60

Which of the following is a characteristic of the Reinvention phase of e-commerce?

A)massive proliferation of dot-com start-ups
B)widespread adoption of broadband networks
C)rapid growth of search engine advertising
D)widespread adoption of consumer mobile devices

Question 61

Identify the eight unique features of e-commerce technology and explain how these features set e-commerce apart from more traditional ways of conducting commercial transactions.

Question 62

Internet/Web technology is available just about everywhere and anytime. This is known as ________.

Question 63

Identify a Web 2.0 application or site, describing the qualities that make it a Web 2.0 application or site. Does the site you selected have any business value? What is it?

Question 64

The targeting of marketing messages to specific individuals by adjusting the message to a person's name, interests, and past purchases is called ________.

Question 65

List and briefly explain the main types of e-commerce.

Question 66

The first evolutionary phase of e-commerce, from 1995 to 2000, characterized as technology-driven and ungoverned, was a period of ________.

Question 67

________ refers to the complexity and content of a message.

Question 68

A(n)________ occurs when everyone in a group receives value because all participants use the same tool or product.

Question 69

The most popular service that runs on the Internet infrastructure is the ________.

Question 70

A firm that is first to market in a particular area and that moves quickly to gather market share is referred to as a(n)________.

Question 71

________ refers to the displacement of market middlemen.

Question 72

An economist is most likely to be interested in a(n)________, rather than technical, approach to studying e-commerce.

Question 73

Has e-commerce changed the marketing of goods? If so, how?

Question 74

What is a first mover? Why was being a first mover considered to be important during the early years of e-commerce?

Question 75

In ________ commerce, information is equally distributed, transaction costs are low, prices can be dynamically adjusted to reflect actual demand, intermediaries decline, and unfair competitive advantages are eliminated.