Digital Economy

Question 1

Examples of digital economies

Answer 1

SMS messages
Online advertising
Viral marketing
Social Media

Question 2

E-commerce

Answer 2

When buyers and sellers meet and trade in a virtual market place

Question 3

Micro marketing

Answer 3

Focusing on advertising on a small group consumers within a niche market

Question 4

Intermediary

Answer 4

Acting as the middle man

Question 5

Price comparison website

Answer 5

Easier for customers to compare prices there by forcing businesses to be more competitive due to the ease with which customers can access comparative information

Question 6

Viral marketing

Answer 6

Using social media to encourage the spread of promotional activities and increase brand awareness

Question 7

Social media

Answer 7

Using virtual communication to communicate with actual and potential customers

Question 8

Micro marketing

Answer 8

Focus advertising on a small group of consumers within a niche market
More cost effective
More personalised marketing

Question 9

Online distribution

Answer 9

The distribution of media content digitally