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Chapter 10 – True/False

E-commerce refers to the use of any networking technologies to transact business.
FALSE
Retail e-commerce has grown consistently at double-digit rates since 1995.
FALSE
The Internet shrinks information asymmetry.
TRUE
Information asymmetry exists when one party in a transaction has more information for the transaction than the other party.
TRUE
All previous mass media in modern history, including the printing press, used a broadcast model where content is created in a central location by experts.
TRUE
Disintermediation provides major benefits to the distributor.
FALSE
In general, for digital goods, the marginal cost of producing another unit is about zero.
TRUE
An example of the service provider business model is Netflix, an online video store and streaming media outlet.
FALSE
An example of the content provider business model is Salon.com, an online magazine.
TRUE
Podcasting allows subscribers to listen to live, streaming radio and other audio content.
FALSE
Intellectual property refers to all forms of human expression, both tangible and intangible.
FALSE
The goal of behavioral targeting is to increase the size of the audience to whom the advertiser can market a product.
FALSE
In the technique of product customization, merchants customize marketing messages to specific individuals by adjusting the message for the person’s name and interests.
FALSE
Amazon.com uses Web personalization as a major marketing tool.
TRUE
EDI standards that take advantage of network communications have yet to be fully implemented at the industry level.
FALSE
Net marketplaces may either support contractual purchasing based on long-term relationships with designated suppliers or short-term spot purchasing.
TRUE
Exchanges have become one of the most popular types of Net marketplace because they encourage competitive bidding that drives prices down.
FALSE
Automotive manufacturing is an example of a vertical market.
TRUE
In general, the cost of hardware, software, and telecommunications for building and operating a Web site has fallen by over 50 percent since 2000.
TRUE
Because of outsourcing and increased automation, the costs of system maintenance and content creation have fallen and typically make up less than a quarter of Web site budgets.
TRUE

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