Deck 11: Social Networks, Auctions, and Portals

Question 1

Consumers in auctions are driven solely by value maximization.

Answer 1

False

Question 2

Priceline's auctions utilize dynamic pricing.

Answer 2

False

Question 3

Keeping bid increments high increases the number of bidders and the frequency of their bids.

Answer 3

False

Question 4

Which of the following was a primary feature of early online communities?

A) chat
B) network discovery
C) widgets
D) message boards

Question 5

Which of the following is a community of members who self-identify with a demographic or geographic category?

A) practice network
B) sponsored community
C) affinity community
D) interest-based social network

Question 6

iVillage is an example of a(n):

A) interest-based social network.
B) affinity community.
C) sponsored community.
D) practice network.

Question 7

The falling price of display ads have contributed to Yahoo's struggles over the last three years.

Question 8

In C2C auctions, a business owns or controls assets and uses dynamic pricing to establish the price.

Question 9

Sponsored community sites are network sites created by government, non-profit, or for-profit organizations.

Question 10

In a Dutch Internet auction, the highest price wins.

Question 11

Most of today's well-known portals began as search engines.

Question 12

Closed bidding offers the advantage of herd effects.

Question 13

The value of portals to advertisers and content owners is primarily a function of the size of the audience the portal reaches and the length of time visitors stay on the site.

Question 14

The average user spends more time on Google+ than on Facebook.

Question 15

Portals are among the most frequently visited types of sites on the Web.

Question 16

A Web site designed to give parents of home-schooled children a common discussion area would be classified as a(n):

A) interest-based social network.
B) affinity community.
C) practice network.
D) sponsored community.

Question 17

Auction prices are always lower than prices in fixed priced markets.

Question 18

One of the first online virtual communities was:

A) The Well.
B) Myspace.
C) AOL.
D) Salon.com.

Question 19

It costs money to bid in a penny auction.

Question 20

Social network participation is one of the most common usages of the Internet.

Question 21

Facebook purchased which of the following for $19 billion?

A) Slingshot
B) Snapchat
C) WhatsApp
D) Poke

Question 22

In the United States, Facebook visitors spend about ________ hours a month on Facebook.

A) 1.5 hours
B) 3 hours
C) 7 hours
D) 15 hours

Question 23

Which of the following is a leading social network in Brazil?

A) VK
B) Tuenti
C) Orkut
D) Qzone

Question 24

Which of the following is the second leading social network worldwide in terms of number of members?

A) Twitter
B) LinkedIn
C) Google+
D) Pinterest

Question 25

All of the following are benefits of auctions except:

A) more efficient price discovery.
B) lower transaction costs.
C) decreased price transparency.
D) increased market efficiency.

Question 26

Which social network functionality allows users to easily post messages to the entire community?

A) message board
B) chat
C) instant messaging
D) e-mail

Question 27

When did the first online communities form?

A) the 1970s
B) the 1980s
C) the 1990s
D) the 2000s

Question 28

Which of the following statements is not True?

A) In 2014, the top three search engines generated almost four times as much U.S. search and display advertising revenue than that generated by social network sites.
B) Among social networks, Twitter generates the highest amount of advertising revenue.
C) The most popular social network tool for large corporate businesses is LinkedIn.
D) The number of Fortune 500 business firms using Pinterest rose to over 35% in 2014.

Question 29

Which of the following types of auctions "shields the brand" of the seller?

A) English auction
B) Name Your Own Price auction
C) Dutch auction
D) penny auction

Question 30

Which of the following is not a risk or cost of Internet auctions?

A) delayed consumption costs
B) equipment costs
C) price transparency
D) trust risks

Question 31

Which of the following is the market leader in C2C auctions?

A) Amazon
B) eBay
C) Yahoo
D) Craigslist

Question 32

The fact that participating in an Internet auction means that you will need to purchase a computer, learn to use it, and pay for Internet access, is an example of ________ costs.

A) equipment
B) fulfillment
C) delayed consumption
D) monitoring

Question 33

The top four social network sites in the United States in terms of monthly unique visitors are:

A) Facebook, Twitter, Pinterest, and LinkedIn.
B) Facebook, Google+, Twitter and LinkedIn.
C) Facebook, Google+, Pinterest and Twitter.
D) Facebook, Twitter, Tumblr, and Pinterest.

Question 34

Facebook is an example of a(n):

A) interest-based social network.
B) affinity community/social network.
C) general community/social network.
D) practice network.

Question 35

Which of the following allows the consumer to enter a maximum price and the auction software automatically bids up the goods to that maximum price in small increments?

A) watch lists
B) proxy bidding
C) sealed bidding
D) price matching

Question 36

All of the following are solutions to the problem of high monitoring costs except:

A) seller rating systems.
B) watch lists.
C) proxy bidding.
D) fixed pricing.

Question 37

Around what percentage of Internet users in the United States use social networks on a regular basis?

A) 25 %
B) 33%
C) 50%
D) 67%

Question 38

BlackPlanet is an example of a(n) ________ social network.

A) practice-based
B) interest-based
C) affinity-based
D) general

Question 39

All of the following statements are True except:

A) in a B2C auction, consumers sell goods to other consumers.
B) auctions constituted a significant part of B2B e-commerce in 2014.
C) over a third of procurement officers use auctions to procure goods.
D) Sam's Club is an example of an online B2C auction

Question 40

Around how many Americans used social networks in 2014?

A) 125 million
B) 150 million
C) 175 million
D) 200 million

Question 41

AOL is focusing its strategy on all of the following except:

A) display advertising.
B) online video.
C) being an ISP.
D) being a niche content provider.

Question 42

________ is the tendency to gravitate toward, and bid for, auction listings with one or more existing bids.

A) Group buying
B) Winner's regret
C) Herd behavior
D) Bid rigging

Question 43

All of the following types of auctions involve single units except:

A) English auction.
B) Dutch Internet.
C) Name Your Own Price auction.
D) penny auction.

Question 44

Which of the following is not one of the top factors a business should consider when planning an Internet auction?

A) type of product
B) type of auction
C) location of auction
D) bid increments

Question 45

The profit a seller makes at auction is a function of all of the following except:

A) arrival rate.
B) auction length.
C) the number of units for auction.
D) bid increments.

Question 46

When sellers agree informally or formally to set floor prices below which they will not sell on auction items, this is known as:

A) discriminatory pricing.
B) price matching.
C) bid rigging.
D) the uniform pricing rule.

Question 47

Which of the following involves e-mailing another seller's bidders and offering the same product for less?

A) transaction interception
B) bid siphoning
C) shill bidding
D) persistent bidding

Question 48

Which of the following involves a concern that one will never know how much the ultimate winner might have paid, or the True value to the final winner?

A) herd behavior
B) winner's regret
C) seller's lament
D) loser's lament

Question 49

Threatening negative feedback in return for a benefit is an example of:

A) feedback extortion.
B) offensive shill feedback.
C) defensive shill feedback.
D) sending spam.

Question 50

Priceline is an example of a(n):

A) English auction.
B) Dutch auction.
C) penny auction.
D) Name Your Own Price auction.

Question 51

Which of the following is a social network designed to appeal to disgruntled Facebook users that has promised never to sell its users' information to third parties?

A) Myspace
B) Ello
C) Tagged
D) Polyvore

Question 52

Which of the following early leaders in social networking has been reinvented as a music-oriented social network?

A) Vevo
B) Myspace
C) Polyvore
D) Tumblr

Question 53

Which of the following is not one of the three defining characteristics of a portal?

A) commerce
B) content
C) auctions
D) navigation of the Web

Question 54

Which of the following statements about Instagram is not True?

A) Instagram is owned by Twitter.
B) Instagram is a photo-sharing app.
C) Facebook developed its Camera app to compete with Instagram
D) Instagram had over 200 million active users in 2014.

Question 55

A(n) ________, in which the highest bidder wins, is the most common form of auction.

A) Dutch Internet auction
B) Japanese auction
C) English auction
D) reverse auction

Question 56

Yahoo owns all of the following except:

A) Tumblr.
B) Flickr.
C) Aviate.
D) Instagram.

Question 57

Which of the following has the largest social network audience?

A) North America
B) Latin America
C) Europe
D) Asia-Pacific

Question 58

Which of the following types of auctions is perfect for sellers that have many identical items to sell?

A) English auctions
B) Name Your Own Price auctions
C) Dutch Internet auctions
D) group buying auctions

Question 59

What percentage of Facebook's users are 35 and over?

A) almost one-quarter
B) almost one-third
C) almost one-half
D) almost two-thirds

Question 60

Which of the following companies was an early investor in Facebook?

A) Google
B) Apple
C) Microsoft
D) LinkedIn

Question 61

________ are a way of allocating resources among independent agents.

Question 62

The time spent watching and reviewing auction bids is a part of ________ costs.

Question 63

Howard Rheingold, one of The Well's early participants, coined the term ________ to refer to "cultural aggregations that emerge when enough people bump into each other often enough in cyberspace."

Question 64

E-mailing buyers to warn them away from a seller is a type of auction fraud known as ________.

Question 65

________ help employees navigate to the firm's human resource and corporate content such as corporate news and announcements.

Question 66

The amount of time visitors spend on a site is a measure of ________.

Question 67

One of the benefits of auctions is ________: the fact that sellers can find willing buyers, and buyers can find sellers, located anywhere around the world.

Question 68

________ refers to the feeling that one has paid too high a price for an item won at auction.

Question 69

________ refers to the use of secondary user IDs or bidders who have no actual intention to buy to artificially raise the price of an item.

Question 70

A(n) ________ permits the consumer to monitor specific auctions of interest, requiring the consumer to pay close attention only in the last few minutes of bidding.

Question 71

Which of the following is not one of the typical portal revenue sources?

A) commissions on sales
B) subscription fees
C) tenancy deals
D) referral fees

Question 72

________ portals, such as Yahoo, attempt to attract a very large audience and then retain the audience on-site by providing in-depth vertical content channels.

Question 73

________ accounts for over 40% of eBay's revenues.

Question 74

Which of the following statements illustrates the network effects that portals are subject to?

A) Specialized vertical market portals attract only 2-10% of the audience, while a few large megaportals garner most of the market.
B) The value of the portal to advertisers and consumers increases geometrically as reach increases.
C) The greater the amount of content provided by a portal, the greater its value to the community.
D) The greater number of portals available, the greater the potential audience for each.

Question 75

The term ________ refers to the advantages conferred as an auction site becomes larger in terms of visitors and products for sale.

Question 76

MSN is an example of a:

A) general purpose portal.
B) vertical market portal based on affinity group.
C) vertical market portal based on focused content.
D) focused content search engine.

Question 77

A(n) ________ offer members focused discussion groups, help, information, and knowledge related to an area of shared practice.

Question 78

One partial solution to high monitoring costs is ________ pricing.

Question 79

The world's leading portal/search engine site, in terms of unique visitors, is:

A) Yahoo.
B) MSN/Bing.
C) AOL.
D) Google.

Question 80

Facebook was the leader in U.S. ad spending revenues on social networks in 2014. What company earned the second most amount of ad spending revenue?

A) MySpace
B) LinkedIn
C) Pinterest
D) Twitter