MIS Test 3 (Chapter 9)

Question 1

What is business-to-consumer e-commerce?

Answer 1

Involves selling products and services to individual shoppers

Question 2

What is business-to-business e-commerce?

Answer 2

Involves selling products and services among businesses

Question 3

What is consumer-to-consumer e-commerce?

Answer 3

Involves consumers selling directly to consumers

Question 4

What is information asymmetry?

Answer 4

situation where the relative bargaining power of two parties in a transaction is determined by one party in the transaction possessing more information essential to the transaction than the other party.

Question 5

What are transaction costs?

Answer 5

the costs involved in buying or selling a product; this includes costs associated with searching for a product

Question 6

What are menu costs?

Answer 6

the costs involved in changing prices

Question 7

What is price discrimination?

Answer 7

the practice of selling goods or services at different prices to different buyers, even though sales costs are the same for all the transactions.

Question 8

What is dynamic pricing?

Answer 8

varying the price of the product depending on the demand characteristics

Question 9

What is Disintermediation?

Answer 9

the removal of organizations or business process layers responsible for certain intermediary steps in a value chain

Question 10

What is a digital good?

Answer 10

Goods that can be delivered over a digital network (music, video, software, newspapers, etc.)

Question 11

What is e-commerce marketing?

Answer 11

Internet provides marketers with new ways of identifying and communicating with customers.

Question 12

What is long tail marketing?

Answer 12

ability to reach a large audience inexpensively.

Question 13

What is behavioral targeting?

Answer 13

tracking the online behavior of individuals at one or thousands of Web sites in order to better understand interests and intentions.

Question 14

What are advertising networks?

Answer 14

• Connect online marketers with publishers by displaying ads to consumers based on detailed customer information
• Ads are selected based on clickstream behavior, demographics, prior searches, memberships, location, interests, etc.

Question 15

What is search engine marketing?

Answer 15

One of fastest growing and most effective forms of online marketing communications (46.5% of online ad spending in 2012)

Question 16

What are display ads?

Answer 16

Banners, pop-ups and pop-unders

Question 17

What is rich media / video ads?

Answer 17

Employ Flash, Java, streaming audio and/or video

Question 18

What is email marketing?

Answer 18

E-mail sent directly to interested consumers who expressed an interest in receiving messages from the advertiser (an “opt-in” audience of consumers)

Question 19

What is social network advertising?

Answer 19

Advertising via Facebook, Twitter, YouTube, etc.

Question 20

What is electronic data interchange (EDI)?

Answer 20

Uses a private network to automate the exchange of documents such as purchase orders, invoices, and shipping notices.

Question 21

What is procurement?

Answer 21

Businesses can now use Internet to locate low-cost suppliers, search online catalogs of supplier products, negotiate with suppliers, place orders, and so on

Question 22

What is the private industrial network (private exchange)?

Answer 22

Web-enabled networks linking systems of multiple firms in an industry for the coordination of transorganizational business processes.

Question 23

What are net marketplaces?

Answer 23

Digital marketplaces based on Internet technology linking many buyers to many sellers

Question 24

What is negotiation?

Answer 24

Selling to another business may require you to haggle over prices, delivery and product specifications.

Question 25

What is integration?

Answer 25

Selling to another business may require you to integrate your system with theirs