Mis 447 Exam 1

Front 1

Psychological Profile

Back 1

Describes an individual's set of needs, drives, motivations, perceptions and learned behavior

Front 2

Two versions of yoursoftware product have the following WTPs respectively: Customer 1: Base version dollar 6, enhanced version dollar 8.Customer 2: Base Version Dollar 7, Enhanced Version Dollar 13. What is themaximum revenue from versioning, assuming the market is comprised of twocustomers and each customer needs one version only?

Back 2

Dollar 19

Front 3

Web Bug

Back 3

A tiny graphics file embedded in an e-mail or Web page

Front 4

One prediction ofeconomists’ visions of “friction-free” commerce has come true: the considerablylower prices of products sold on the Web and decreasing price dispersion

Back 4

False

Front 5

Unfair competitive advantages occur when

Back 5

One competitor has an advantage that others cannot procure

Front 6

Two versions of yoursoftware product have the following WTPs respectively: Customer 1: Base VersionDollar 2, Enhanced Version Dollar 8. Customer 2: Base version dollar 7,enhanced version dollar 13. Assuming the market is comprised of these twocustomers, should you offer both versions? Each customer needs one versiononly.

Back 6

False

Front 7

What uses software installed at the ISP level to track all user clickstream behavior?

Back 7

Deep packet inspection

Front 8

The existence of a large number of competitors in any one market segment may indicate

Back 8

The market is saturated

Front 9

Consumer surplus is the difference between

Back 9

WTP and price

Front 10

Two independent productshave the following WTPs respectively: Customer 1: Dollar 2 and Dollar 6.Customer 2: Dollar 5 and Dollar 10. Only a bundle is going to be offered. Whatis the optimal price of the bundle assuming WTPs are additive, zero cost, andthe market is comprised of two customers?

Back 10

Dollar 8

Front 11

Your solar panelmanufacturing firm has developed a unique and patented process for creatinghigh-efficiency solar panels at a fraction of current costs. This will enableyour firm to adopt a strategy of

Back 11

Either cost competition or something else, notfocus or scale

Front 12

Small ticket items outnumbered large ticket item sales during the early days of e-commerce for all of the following reasons except

Back 12

Margins were low

Front 13

Bundling is the process ofcreating multiple versions of a good and selling essentially the same productto different market segments at different prices.

Back 13

False

Front 14

All of the following are attributes of personalized marketing except

Back 14

Use of mass media

Front 15

What is Hadoop?

Back 15

An open-source technology for storing and processing enormous amounts of digital data

Front 16

Has the internet increased or decreased the impact of brands?

Back 16

Increased

Front 17

What is the definition of marginal cost?

Back 17

The cost of producing an additional unit of the product

Front 18

Which of the following would be considered an indirect competitor of American Airlines?

Back 18

Herz.com

Front 19

Do online shoppers tend to browse available products or search for specific products they determined in advance?

Back 19

Search for specific products

Front 20

Are E-tailors a business to business model?

Back 20

No

Front 21

Which element of the business model examines who else occupies the firm's intended marketspace?

Back 21

Competitive Environment

Front 22

Registering a domain name similar or identical to trademarks of others to divert traffic to their own sites is an example of

Back 22

Cybersquatting

Front 23

Which of the following types of online market segmentation involves using age, ethnicity, religion, etc.

Back 23

Demographic

Front 24

One reason that Long-Tail marketing is viable in e-commerce is because

Back 24

Low consumer search costs and recommendation systems

Front 25

Web 2.0 describes a set of applications and technologies that encourage and rely on user and consumer-generated interactivity and content

Back 25

True

Front 26

Firm Value Web

Back 26

Networked business ecosystem. Uses Internet technology to coordinate the value chains of business partners. Coordinates a firm's suppliers with its own production needs using an internet based supply chain management system

Front 27

Web 2.0

Back 27

A set of applications/technologies that allows users to create, edit and distribute content as well as participate in virtual lives/communities

Front 28

Commoditization

Back 28

A situation where there are no differences among products or services and the only basis for choosing a product is price

Front 29

Gilder's Law

Back 29

Bandwidth grows at least three times faster than computer power

Front 30

Marketspace

Back 30

A marketplace that expands from traditional boundaries and removed from a temporal geographic location

Front 31

Feature Set

Back 31

Core Product

Actual Product

Augmented Product

Front 32

Core Product

Back 32

The core benefit that the customer receives from the product

Front 33

Actual Product

Back 33

The set of characteristics that define the product

Front 34

Augmented Product

Back 34

A product with additional benefits (ex: warranty)

Front 35

Moore's Law

Back 35

The number of transistors we can fit on a chip will double every 18 months (later changed to 2 years

Front 36

Global Reach

Back 36

Technology that reaches across national boundaries around the Earth

Front 37

Richness

Back 37

The complexity and content of a message

Front 38

Copyright

Back 38

Protects original forms of expression from being copied for a minimum of 70 years

Front 39

Patent

Back 39

Grants owners an exclusive monopoly on their invention for 20 years

Front 40

Trademarks

Back 40

A mark used to identify and distinguish goods

Front 41

Friction-Free Commerce

Back 41

A vision of commerce where information is equally distributed, transaction costs are low, prices can be adjusted to meet demand, and unfair competitive advantages are eliminated

Front 42

Affiliation

Back 42

When a website pays another website commission for customer referrals

Front 43

Cybersquatting

Back 43

The act of registering a popular internet address (usually a company name) with the intent of selling it to its rightful owner

Front 44

PII (Personally identifiable information)

Back 44

Any data that can be used to identify, locate or contact an individual

Front 45

Network Effect

Back 45

Total value of a product, service, or technology grows as more and more people use it

Front 46

Five potential limitations that may inhibit the future growth of e-commerce

Back 46

Expensive technology

Sophisticated skill set

Persistent cultural attraction of physical markets

Persistent global inequality limiting access

Saturation and ceiling effects (wont change as fast)

Most limitations will recede in importance over the next decade, but social/cultural and ceiling effects will receded less quickly

Front 47

Identify the eight unique features of e-commerce

Back 47

Ubiquity

Global reach

Universal standards

Information richness

Interactivity

Information density

Personalization/customization

Social technology

Front 48

Ubiquity

Back 48

Internet is available everywhere anytime

Shop from home or work

Front 49

Global reach

Back 49

Technology reaches around the world

Convenient and cost effective

Front 50

Universal standards

Back 50

One set of standards, most commonly internet standards

Traditional ones vary

Front 51

Information richness

Back 51

Video, audio and text messages are possible

Merchants market messages with audio and video

Front 52

Interactivity

Back 52

Technology works through user interaction

Face to face interaction on a global scale

Front 53

Information density

Back 53

Technology reduces information costs and increases quality

Increases timeliness of information

Front 54

Personalization/customization

Back 54

Allows personalized messages to be sent to individuals and or groups

Front 55

Social technology

Back 55

User content generation and social networks

Changes how people purchase products

Front 56

What are brands?

Back 56

Brands are the set of expectations that consumers have when consuming or thinking about a product or service

Front 57

What kinds of expectations do people have about brands?

Back 57

Quality, reliability, loyalty, reputation

Front 58

Are brands rational?

Back 58

Yes because they reduce search and decision making costs of consumers and increase customer retention for businesses

Front 59

Do brands last forever?

Back 59

Not necessarily and will change as entrepreneurs exploit new technology

Front 60

Are brands viable on the web?

Back 60

Yes because people will pay for convenience, variety and differentiated products

Front 61

Permission Marketing

Back 61

When companies obtain permission from consumers before they send them promotional ads

Attempts to establish a customer relationship up front by letting them opt in

Front 62

Affiliate Marketing

Back 62

When a website agrees to pay another website a commission for customer referrals

Best to have the link open in a new tab or window so you don't lose customers

Front 63

Viral marketing

Back 63

The process of getting customers to pass along a company's marketing message to friends/family

Through email forwarding, blogs, review sites, social networks, coupon incentives

Front 64

Privacy

Back 64

The moral right of individuals to be left alone, free from surveillance or interference from others

Front 65

Information Privacy

Back 65

Claims that certain information should not be collected by the government or businesses, and that people should have the right to control the use of their personal information

Front 66

Informed Consent

Back 66

Consent given with knowledge of all material facts needed to make a rational decision