Tutorial Week 2

E-Marketplaces: Structure, Mechanisms, Economics, and Impacts

Multiple Choice Questions

1.

Fundamentally, the success of the pure-play jewelry e-tailer Blue Nile was due to the companys use of Internet technologies to: a. . c. d. go pu lic pro!ide "uality ratings eliminate intermediaries offer lower prices than competitors

#.

$raditional and electronic mar%ets ha!e three main functions, which include each of the following &'(&)$: a. transforming raw materials into finished products. . matching buyers and sellers. c. facilitating the e*change of information, goods, ser!ices, and payments associated with mar%et transactions. d. providing an institutional infrastructure, such as a legal and regulatory framework that enables the efficient functioning of the market.

+.

Digital products have different cost curves than those of regular products because:

a. . c. d. -.

in digiti,ation, most of the costs are !aria le and fi*ed costs are low. in digiti,ation, most of the costs are fi*ed, and !aria le costs are !ery low. in digiti,ation, most of the costs are fi*ed, ut !aria le costs are high. in digiti,ation, all of the costs are !aria le.

$he portion of an e-sellers usiness processes through which customers interact, including the sellers portal, electronic catalogs, a shopping cart, a search engine, and a payment gateway is referred to as the ............. of the usiness. a. front end . ac% end c. infrastructure d. intermediary

/.

0ll the acti!ities that are related to order aggregation and fulfillment, in!entory management, purchasing from suppliers, accounting and finance, insurance, payment processing, pac%aging, and deli!ery are done in what is termed the....... of the usiness. a. front end . ac% end c. infrastructure d. intermediary

Tutorial Week 2

E-Marketplaces: Structure, Mechanisms, Economics, and Impacts

1.

$he major .......... e-mar%etplaces are storefronts and Internet malls. a. . c. d. B#B (#B B#B#( B2C

2.

0n electronic storefront includes se!eral mechanisms that are necessary for conducting the sale. $he most common mechanisms include each of the following &'(&)$: a. . c. d. an electronic catalog3 a search engine a supply chain a payment gateway

4.

............... are online mar%ets owned and operated y a single company and may e either sell-side or uy-side. a. . c. d. )ri!ate e-mar%etplaces (ommercial portals &-malls B#B mar%etplaces

5.

A n! """"""""""""" is a single point of access through a #eb browser to help users find relevant and accurate business information and reduce information overload.

a. intermediary . search engine c. information portal d. rowser 16. Finding rele!ant and accurate information is often time-consuming and re"uires access to multiple systems causing organi,ations to lose a lot of producti!e employee time. 7ne solution to this pro lem is the use of: a. portals. . intermediaries. c. rowsers. d. intranets.

Tutorial Week 2

E-Marketplaces: Structure, Mechanisms, Economics, and Impacts

11.

0 type of ro%er that helps consumers compare different stores is a: a. . c. d. !irtual mall. search agent. shopping facilitator. metamediary.

1#.

8uman or electronic intermediaries attempt to address each of the following limitations of direct interaction &'(&)$: a. . c. d. search costs. lac% of pri!acy for those wanting to remain anonymous. contract ris%. product distri ution.

1+.

$he elimination of !arious types of agents that mediate etween uyers and sellers, such as tra!el and insurance agents, is referred to as: a. . c. d. remediation disintermediation e-distri ution automation

1-.

A mode is purchasing where prices are negotiated or discounted is """""""""""""""" , which refers to nonfi$ed prices, such as those in auctions or stock markets.

a. . c. d. 1/.

dynamic pricing commodity pricing pre-shopping negotiation

0lthough used occasionally in B#( commerce, customized catalogs are especially useful in B#B e-commerce for each of the following reasons &'(&)$: a. e-catalogs can show only the items that the employees in a specific organi,ation are allowed to purchase. . Intranets, in particular, can deli!er customi,ed catalogs to different usiness customers. c. e-catalogs can show the uyer%s &D number for the item, model, or '() number rather than the seller%s &D numbers. d. *+catalogs can be customi,ed to show the same item to different customers at different prices, reflecting discounts or purchase+contract agreements.

Tutorial Week 2

E-Marketplaces: Structure, Mechanisms, Economics, and Impacts

11.

$o e successful and useful, large e-catalogs need a9n: ................... a. . c. d. search engine directory data mining technology enhanced !iewing capa ility

12.

0 ............ has capa ilities that can e used to perform routine tas%s that re"uire intelligence such as pro!iding customers with assistance ased on their mo!ements on a ;e site. a. . c. d. search engine intelligent engine software agent software engine

14.

)opular search engines include all of the following &'(&)$: a. . c. d. <oogle =>N 0lta?ista @ycos

15.

09n: ............ is an order-processing technology that allows customers to accumulate items they wish to uy while they continue to shop. a. . c. d. intelligent agent e-fulfillment agent electronic shopping cart merchant ser!er

#6.

$he most common and traditional form of auctions in which one seller entertains ids from many uyers is referred to as: a. . c. d. forward auctions re!erse auctions. dou le auction. e-auctions.

Tutorial Week 2

E-Marketplaces: Structure, Mechanisms, Economics, and Impacts

#1.

0n auction in which there is one uyer and many potential sellers3 or in which a uyer places an item for id on an AFB system and the lowest id wins is referred to as all of the following &'(&)$: a. re!erse auctions. . forward auctions. c. idding system. d. tendering system.

##.

;hat is a enefit of e-auctions to sellersC a. . c. d. (on!enience since the idding can occur anywhere and any time. 8igh stic%iness to the ;e site. 0nonymity. $he optimal price is determined y the mar%et.

#+.

7rgani,ations are em racing mo ili,ed computing technologies for se!eral reasons &'(&)$: a. . c. d. It impro!es the producti!ity of wor%ers in the field. ;ireless telecom support for mo ility is growing "uic%ly. ;ireless security pro lems ha!e een sol!ed with encryption. $he prices of note oo% computers, wireless handhelds, and smart phones continue to fall and their capa ilities continue to increase.

#-.

&( competition is !ery intense ecause online transactions ena le each of the following &'(&)$: a. For uyer, e-mar%ets reduce the cost of searching for product information3 e.g., sellers, models, prices, fre"uently to ,ero. . 8igher prices ecause of a greater num er of potential uyers. c. >etting up a ;e site is relati!ely easy and ine*pensi!e, and doing so reduces the need for a sales force and ric%-and-mortar stores. d. )roduct or ser!ice differentiation and personali,ation.

#/.

;hich of the following statements a out differentiation and personali,ation is not correctC a. )roducts must e differentiated for perfect competition. . (onsumers li%e differentiation and personali,ation and are fre"uently willing to pay more for them. c. Differentiation reduces the su stituta ility etween products, enefiting sellers who use this strategy. d. )rice cutting in differentiated mar%ets does not impact mar%et share !ery much:

Tutorial Week 2

E-Marketplaces: Structure, Mechanisms, Economics, and Impacts

"

#1.

It can e said that competition etween companies is eing replaced y competition etween ........... . a. . c. d. industries digital products and ser!ices differentiated products and ser!ices networ%s

#2.

$he Internet has influenced industry structures in each of the following ways &'(&)$: a. 0 flood of new entrants has come into many industries ecause of reduced arriers to entry. . Increases differences among competitors whose offerings are %ept proprietary. c. $here has een a shift in argaining and uyer power to end users. d. Industries are more efficient o!erall.

#4.

Impacts of e-mar%etplaces on B#( direct mar%eting include all of the following &'(&)$: a. $he e*istence of e-mar%etplaces has increased the promotion of products and ser!ices through direct mar%eting. . $he administrati!e wor% related to physical deli!ery, especially across international orders, can e reduced significantly, cutting the cycle time y more than 56 percent. c. Brand images for new companies ha!e ecome more difficult to esta lish. d. &( ena les customi,ation of products and ser!ices, which is changing mar%eting and sales acti!ities oth in B#( and in B#B.

#5.

7ne of the major enefits of e-mar%ets is the impro!ement in supply chains with the creation of a9n: ...................... a. . c. d.
hub+based chain customi,ed chain support chain logistics chain

+6.

"""""""""""""" provides customers with e$actly what they want, when and where they want it. *ffective communication between the supply chain and the factory floor is needed to make it happen

a. . c. d.

?irtual manufacturing Demand-dri!en manufacturing Build-to-order manufacturing Aeal-time manufacturing