Wake up!

1. E-commerce and e-business systems blur together at the business firm boundary, where internal business systems link up with suppliers or customers.

• True

• False

2. The key factor in determining if a transaction is commerce is the "exchange of value” (e.g., money) across organizational or individual boundaries in return for products and services.

• True

• False

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

• A) interactivity

• B) social technology

• C) information asymmetry

• D) richness

4. Which of the following features of e-commerce technology enables merchants to market and sell "complex" goods and services to consumers via marketing messages that can integrate video, audio, and text?

• A) richness

• B) ubiquity

• C) information density

• D) personalization

5. Which of the following features of e-commerce technology allows users to participate in the creation of online content?

• A) ubiquity

• B) global reach

• C) information density

• D) social technology

6. Which of the following features of e-commerce technology is related to the concept of network externalities?

• A) richness

• B) interactivity

• C) universal standards

• D) information density

7. Which of the following statements is true about 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 was unrelated to reach.

8. Interactivity in the context of e-commerce provides which of the following functionalities?

• A) the ability to physically touch and manipulate a product

• B) 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

9. The costs incurred by merchants in having to change product prices (such as the costs of reentering prices into computer systems) are referred to as which of the following?

• A) subscription costs

• B) fixed costs

• C) menu costs

• D) variable costs

10. Which of the following refers to any disparity in relevant market information among parties in a transaction?

• A) information asymmetry

• B) unfair competitive advantage

• C) imperfect competition

• D) dynamic pricing