Chapter 06: Social Networking, Mobile Commerce, and Online Auctions
1. The Internet reduces transaction costs in value chains and offers an efficient means of communication to anyone with
an Internet connection.
a.
True
b.
False
True
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2. Virtual communities began online after the Internet was in general use.
a.
True
b.
False
False
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3. In the second wave of electronic commerce, the Internet had become simply a tool that enabled communication among
virtual community members.
a.
True
b.
False
True
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4. The general idea behind many social networking sites is that people are invited to join by existing members who think
they would be valuable additions to the community.
a.
True
b.
False
True
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5. The 2008 U.S. elections saw the first major use of blogs as a political networking tool.
a.
True
Chapter 06: Social Networking, Mobile Commerce, and Online Auctions
b.
False
False
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6. In-person meetings arranged by people over social networking sites are called meetups.
a.
True
b.
False
7. One of the first social shopping sites was craigslist, an information resource for San Francisco area residents that was
created in 1995 by WELL member Craig Newmark.
a.
True
b.
False
8. Many colleges and universities now offer courses that use distance learning platforms such as Blackboard for student-
instructor interaction.
a.
True
b.
False
True
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9. Visitors spend a greater amount of time at portal sites than they do at most other types of Web sites, which is attractive
to advertisers.
a.
True
b.
False
True
10. Sites that monetize visitors by charging them are unconcerned about visitor backlash.
a.
True
b.
False
11. A growing number of large organizations have built internal Web sites that provide opportunities for online social
networking among their employees.
a.
True
b.
False
12. The introduction of larger mobile phones and tablet devices has made the use of Wireless Application Protocol (WAP)
mandatory.
a.
True
b.
False
False
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13. The Dutch auction is also called an ascending-price auction.
a.
True
b.
False
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14. In a double auction, buyers and sellers each submit combined price-quantity bids to an auctioneer.
a.
True
b.
False
15. In sealed-bid auctions, bidders share information with each other.
a.
True
b.
False
16. The most common third-party operating systems today are Apple iOS and BlackBerry 10.
a.
True
b.
False
False
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17. The most successful consumer auction Web site today is eBay.
a.
True
b.
False
18. The lock-in effect makes the task of creating alternative successful general consumer Web sites much easier.
a.
True
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Chapter 06: Social Networking, Mobile Commerce, and Online Auctions
b.
False
19. The types of products that work well for group shopping sites are branded products with well-established reputations.
a.
True
b.
False
20. In industries where there is a high degree of competition among suppliers, reverse auctions can be an efficient way to
conduct and manage the price bidding that would naturally occur in that market.
a.
True
b.
False
21. Phone manufacturers depended on third-party operating system software in the past but are now creating their own
operating systems.
a.
True
b.
False
False
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22. Sniping software observes auction progress until the last second or two of the auction clock.
a.
True
b.
False
True
1
23. Cricket Jr. was a mobile operating system software written by David Eccles in 1997.
a.
True
b.
False
False
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24. Because sniping software synchronizes its internal clock to the auction site clock and executes its bid with a
computer’s precision, the software almost always wins out over a human bidder.
a.
True
b.
False
True
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25. The act of placing a winning bid at the last second is called a lock-in.
a.
True
b.
False
26. _____ were computers that allowed users to connect using dial-up connections through telephone lines to read and
post messages in a common discussion forum.
a.
Microblogs
b.
Web chat rooms
c.
Social networks
d.
Bulletin board systems
d
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27. A(n) _____ is a gathering place for people and businesses that does not have a physical existence.
a.
meetup
b.
online community
c.
lock-in
d.
public space
b
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28. A(n) _____ allows individuals to create and publish a profile, create a list of other users with whom they share a
connection (or connections), control that list, and monitor similar lists made by other users.
a.
bulletin board system
b.
Usenet
c.
social networking site
d.
RSS feed
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29. The trend toward having readers help write their own news is called _____ journalism.
a.
participatory
b.
community
c.
social
d.
collaborative
30. The earliest written records of auctions are from _____.
a.
Huanbei
b.
Babylon
c.
Rome
d.
Athens
31. Compared to traditional advertising, an effective business use of social media tools is to _____.
a.
focus on the company’s interests
b.
engage customers
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Chapter 06: Social Networking, Mobile Commerce, and Online Auctions
c.
broadcast information
d.
promote products
32. _____ are the prices that potential buyers in an auction are willing to pay for an item.
a.
Bids
b.
Proposals
c.
Offers
d.
Reserves
33. The whole auction process is managed by a(n) _____.
a.
shill bidder
b.
auctioneer
c.
observer
d.
seller
34. People employed by a seller or an auctioneer to make bids on behalf of the seller are called _____.
a.
auction agents
b.
faux bidders
c.
shill bidders
d.
auction dealers
35. An English auction is sometimes called a(n) _____ because the bids are publicly announced.
a.
reverse auction
b.
double auction
c.
open auction
d.
sealed-bid auction
36. The _____ auction is a form of open auction in which bidding starts at a high price and drops until a bidder accepts the
price.
a.
English
b.
Dutch
c.
reverse
d.
sealed-bid
37. In _____ auctions, bidders submit their bids independently and are usually prohibited from sharing information with
each other.
a.
sealed-bid
b.
descending-price
c.
open-outcry
d.
seller-bid
38. Mobile phones that function as credit cards are called _____.
a.
mobile wallets
b.
e-caches
c.
universal cards
d.
bitcoins
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39. Second-price sealed-bid auctions are commonly called _____ auctions.
a.
open-outcry
b.
Vickrey
c.
double
d.
Dutch
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40. In a(n) _____ auction, buyers and sellers each submit combined price-quantity bids to an auctioneer.
a.
reverse
b.
Dutch
c.
English
d.
double
41. The most popular and fastest growing third-party mobile operating system is _____.
a.
BlackBerry 10
b.
Apple iOS
c.
Android
d.
Symbian
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42. The New York Stock Exchange conducts _____ auctions of stocks and bonds in which the auctioneer, called a
specialist, manages the market for a particular stock or bond issue.
a.
sealed-bid double
b.
open-outcry double
c.
descending-price
d.
ascending-price
43. The most common format used on eBay is a computerized version of the _____ auction.
a.
Dutch
b.
sealed-bid
c.
English
d.
double
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44. One of the first operating systems for Internet-capable phones was made by _____ for their phones and other portable
devices.
a.
Palm
b.
Linux Foundation
Chapter 06: Social Networking, Mobile Commerce, and Online Auctions
c.
BlackBerry
d.
Samsung
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45. A(n) _____ is an independent party that holds a buyer’s payment until the buyer receives the purchased item and is
satisfied that the item is what the seller represented it to be.
a.
snipe
b.
liquidation broker
c.
escrow service
d.
auctioneer
46. Existing auction sites, such as eBay, are inherently more valuable to customers than new auction sites. This basic
economic fact is called a(n) _____.
a.
deadlock effect
b.
lock-in effect
c.
smoke-and-mirrors effect
d.
anti-pattern effect
47. An auction where visitors describe items or services they want to buy, and a group of participating merchants reply
with offers to supply the item at a particular price is called a _____.
a.
second-price sealed bid
b.
seller-bid
c.
first-price sealed-bid
d.
reverse bid
48. Traditionally, large companies distribute excess inventory through _____.
a.
liquidation specialists
b.
liquidation brokers
c.
own Web auction sites
d.
third-party Web auction sites
49. Smaller businesses often sell their unusable and excess inventory to _____, which are firms that find buyers for these
items.
a.
inventory specialists
b.
liquidation brokers
c.
inventory removal services
d.
secondary marketers
50. Wary bidders in low-price auctions can check the_____ to protect themselves from being cheated.
a.
seller’s records
b.
liquidation brokers
c.
escrow services
d.
sniping software
51. Started at Duke University in 1979, _____ was a set of interconnected computers devoted to storing information on
specific topics.
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52. Modifying an Apple iPhone’s operating system is called _____ the phone.
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53. Intra-community interaction among members of a virtual community is called _____.
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Chapter 06: Social Networking, Mobile Commerce, and Online Auctions
54. Modifying an Android operating system is called _____ the phone.
55. Abstract communities based on the connections between opinions and contributions of community members are called
_____ social media.
56. _____ software is developed by a community of programmers who make the software available for download at no
cost.
57. One rough measure of _____—a Web site’s ability to keep visitors on the site and attract repeat visitors—is how long
each user spends at a Web site.
58. An early attempt to monetize social networking by charging visitors a fee for a specific service was the _____ site.
59. _____ refers to the conversion of existing regular site visitors seeking free information or services into fee-paying
subscribers or purchasers of services.
60. _____ is the practice of lending very small amounts of money to people who are starting or operating small
businesses, especially in developing countries.
61. _____ allows Web pages formatted in HTML to be displayed on devices with small screens.
62. All eBay auctions have a(n) _____, the amount by which one bid must exceed the previous bid.
63. _____ are amounts that bidders are willing to pay for an item.
64. A(n) _____ is the price at which an auction begins.
65. In English auctions, bidders risk becoming caught up in the excitement of competitive bidding and then bidding more
than their private valuations. This phenomenon is called the _____.
66. A(n) _____ auction is often better for the seller because the bidder with the highest private valuation will not let the
bid drop much below that valuation for fear of losing the item to another bidder.
67. Dutch auctions are also called _____ auctions.
68. Farmers’ cooperatives in the Netherlands use the _____ auction to sell perishable goods such as produce and flowers.
69. If multiple items are being auctioned in a(n) _____ sealed-bid auction, successive lower (next highest) bidders are
awarded the remaining items at the prices they bid.
70. The process of finding a lender who can provide funds for a business idea through social networking sites is referred
to as _____.
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71. _____ auctions, either sealed bid or open outcry, work well only for items of known quality, such as securities or
graded agricultural products, that are regularly traded in large quantities.
72. In a(n) _____ auction, multiple sellers submit price bids to an auctioneer who represents a single buyer.
73. In an eBay auction, a(n) _____ automatically increases a bid to the next highest increment needed to exceed any bid,
up to a bidder-specified maximum bid.
74. The site JustBeads.com is an example of a(n) _____ auction site that caters to buyers and sellers who are
Chapter 06: Social Networking, Mobile Commerce, and Online Auctions
geographically dispersed but share highly focused interests.
75. The act of placing a winning bid at the last second is called a(n) _____.
76. Describe the operation of a typical auction.
77. What is the difference between an English auction and a Dutch auction?
78. What is the main difference between eBay and a live English auction?
79. How does proxy bidding work on eBay?
80. List the supply chain characteristics that support reverse auctions.