[MIS] UNIT 7 REVIEW QUESTION

E-commerce refers to the use of any networking technologies to transact business.

• True
• False

In general, for digital goods, the marginal cost of producing another unit is about zero.

• True
• False

An example of the service provider business model is Netflix, an online video store and streaming media outlet.

• True
• False

The goal of behavioral targeting is to increase the size of the audience to whom the advertiser can market a product.

• True
• False

Information asymmetry exists when one party in a transaction has more information for the transaction than the other party.

• True
• False

Which of the following events signified the beginning of e-commerce?

• A) the first online advertisements
• B) the first telephone sales
• C) the first online retail store
• D) the first web site

Selling the same goods to different targeted groups at different prices is called

• A) cost customization.
• B) cost optimization.
• C) price gouging.
• D) price discrimination.

The lowered costs of information storage, processing, and communication, along with the improvement of data quality, has resulted in which unique quality of e-commerce?

• A) information density
• B) richness
• C) customization
• D) interactivity

Which of the following is not one of the unique features of e-commerce technology?

• A) information density
• B) transparency
• C) richness
• D) social technology

Compared to digital markets, traditional markets have

• A) lower search costs.
• B) stronger network effects.
• C) higher delayed gratification effects.
• D) higher transaction costs.