EC S7 / S12

Question 1

Define Virtual Community.

Answer 1

Also called webcommunity or online community.

Gathering place for people and businesses that does not have a physical existence.

Question 2

What is a social networking site?

Answer 2

A website that allows individuals:

1. Create a publicn profile
2. create a list of users they share a connection
3. control that list
4. monitor similar lists made by other users.

Question 3

What are Blogs (Web Logs)?

Answer 3

Blogs are websites that contain:

Commentary on current events or specific issues written by individuals.

Question 4

What are social networking web sites for shoppers?

Answer 4

A website where buyers and sellers are together in a social network facility, which is also called social shopping.

Question 5

Virtual learning networks define!

Answer 5

A distance learning platform, including social network activities.

Question 6

What are Web Portals?

Answer 6

Are sites as Yahoo!, AOL, MSN, GMX etc.

Sites combine services such as search engines, directories, free e-mail, news stories etc.

Question 7

Please define the term auction.

Answer 7

In an auction seller offers items, but does not establish a price.

The potential buyer (bidder) offers a bid with a price willing to pay to buy the item.

Question 8

Explain english Auction

Answer 8

Also called “ascending price aution”.

Open auction, because they are public announced.

The bids goes higher and higher until no higher bid is reached.

Question 9

What is an dutch auction?

Answer 9

Also called descending bid auction.

Item starts with a high price and drops until a bidder accept the price.

Question 10

Explain First-price sealed bid auction (Vickrey auction).

Answer 10

Secret bidding process, the highest bidder pays the amount of the highest bid.

Question 11

What is second price sealed bid auction (Vickrey auction)?

Answer 11

Secret bidding process

The highest bidder pays the amount of the second highest bid.

Question 12

Double auction (open-outcry).

Answer 12

1. Buyers and sellers declare combined price-quantity bids.
2. Auctioneers matches sellers offers (lowest to highest) with buyer offers (higher to lowest).
3. Buyers and sellers can modify bids based on knowledge gained from other bids.

Question 13

Double auction (sealed bid)???

Answer 13

Difference between Double auction (open outcry) - Sealed bid is the fact that buyers and sellers cannot modify their bids.

Question 14

Reverse auction (seller-bid)???

Answer 14

1. Multiple sellers submit price bids to an auctioneer that represents a single buyer.
2. The bids are for a given amount of a specific item that the buyer wants to purchase.
3. Prices go down as the bidding continues until no seller is willing to bid lower.

Question 15

General consumer auctions?

Answer 15

Ebay is a general consumer auction, where private consumer sells to consumer or businesses.

Question 16

Explain briefly the lock in effect.

Answer 16

1. People get mostly “locked in” to the first mover on a market. Yahoo auctions in Japan.
2. It is a new entrants barrier.
3. Markets become more efficient as numbers of buyers and sellers increases.

Question 17

What are special consumer auctions?

Answer 17

1. Identify special interest markets. (EGUN)
2. Create specialized web auction targets for them
3. No need for competition with ebay.

Question 18

What are auctions escrow services?

Answer 18

1. A service where buyer can avoid fraud on ebay.
2. Independent party holds the item until the buyer checks and agrees with the item.
   3.

Question 19

What are the advantages of social networking websites? List 4!

Answer 19

1. Networking it self
2. Ability to advertise
3. Exchange of ideas, medias etc.
4. Owner gets some revenue.