E-Marketplaces: Mechanisms, Tools and Impacts of E-Commerce

Multiple Choice Questions

1) The cost curves of digital products differ from the cost curves of physical products because in digitization ____________.

a. most costs are variable and fixed costs are low
b. most costs are fixed and variable costs are very low
c. most costs are fixed, but variable costs are high
d. all costs are variable

2) Because of their cost curve, digital products profits will ____________.

a. remain constant regardless of volume, once the variable costs are paid
b. decrease as volume increases, once labor costs are paid
c. increase very rapidly as volume increases, once the fixed costs are paid
d. increase rapidly as volume increases, once the fixed costs are paid

3) The major _____________ e-marketplaces are storefronts and Internet malls.

a. B2B
b. C2B
c. B2B2C
d. B2C

4) Insurance companies and hotels sell services through storefronts called ____________.

a. RSS
b. browsers
c. portals
d. wikis

5) Human or electronic intermediaries attempt to reduce each of the following limitations of direct interaction except:

a. search costs.
b. lack of privacy.
c. contract risk.
d. product distribution.

6) Customized catalogs are especially useful in B2B e-commerce for each of the following reasons except:

a. E-catalogs can be designed to show only the items that the employees in a specific organization are allowed to purchase.
b. Intranets, in particular, can deliver customized catalogs to different business customers.
c. E-catalogs can show the buyer's ID number for the item, model, or SKU number rather than the seller's ID numbers.
d. E-catalogs can be customized to show the same item to different customers at different prices, reflecting discounts or purchase-contract agreements.

7) The major challenge faced by ________ is the need to index documents from a variety of sources such as file systems, intranets, document management systems, e-mail and databases and then present a consolidated list of relevance-ranked documents.

a. mobile portals
b. intelligent engines
c. enterprise searches
d. knowledge portals

8) Which of the following is a Web 2.0 application?

a. Auctions
b. Blogs
c. Shopping carts
d. E-catalogs

9) Which is not one of the seven principles for building effective blogs?

a. Set up the blog so that each post gets its own permanent URL.
b. Blog frequently and create at least half a dozen posts every weekday.
c. Focus on a broad topic to appeal to a large audience.
d. Make friends with other bloggers, online and off.

10) The elimination of various types of agents that mediate between buyers and sellers, such as travel and insurance agents, is referred to as _____________.

a. automation
b. disintermediation
c. remediation
d. e-distribution

Critical Analysis / Case Study Problems

The Critical Analysis questions are designed to help you gain a deeper understanding of the subject matter, develop an increased ability to apply what you have learned and integrate this knowledge into a greater understanding and appreciation for your field of study. Completion of the following questions will help you outline your answers and organize your thoughts within an appropriate framework. These practice questions will not be graded, but you should apply the same analytical skills and writing proficiencies that you will need for the unit essays. We suggest writing your answers on another piece of paper and comparing your results to the suggested answers at the end of this chapter to help you identify any areas you need to review.

1. Evaluate how customized catalogs are created and used.

2. Relay the benefits of electronic auctions over traditional (off-line) auctions.

3. Chart the major benefits of auctions to buyers, sellers, and auctioneers.