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66 Cards in this Set
- Front
- Back
Psychological Profile |
Describes an individual's set of needs, drives, motivations, perceptions and learned behavior |
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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?
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Dollar 19 |
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Web Bug |
A tiny graphics file embedded in an e-mail or Web page |
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One prediction ofeconomists’ visions of “friction-free” commerce has come true: the considerablylower prices of products sold on the Web and decreasing price dispersion
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False |
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Unfair competitive advantages occur when |
One competitor has an advantage that others cannot procure |
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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.
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False |
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What uses software installed at the ISP level to track all user clickstream behavior? |
Deep packet inspection |
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The existence of a large number of competitors in any one market segment may indicate |
The market is saturated |
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Consumer surplus is the difference between |
WTP and price |
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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?
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Dollar 8 |
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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
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Either cost competition or something else, notfocus or scale
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Small ticket items outnumbered large ticket item sales during the early days of e-commerce for all of the following reasons except |
Margins were low |
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Bundling is the process ofcreating multiple versions of a good and selling essentially the same productto different market segments at different prices.
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False |
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All of the following are attributes of personalized marketing except |
Use of mass media |
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What is Hadoop? |
An open-source technology for storing and processing enormous amounts of digital data |
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Has the internet increased or decreased the impact of brands? |
Increased |
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What is the definition of marginal cost? |
The cost of producing an additional unit of the product |
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Which of the following would be considered an indirect competitor of American Airlines? |
Herz.com |
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Do online shoppers tend to browse available products or search for specific products they determined in advance? |
Search for specific products |
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Are E-tailors a business to business model? |
No |
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Which element of the business model examines who else occupies the firm's intended marketspace? |
Competitive Environment |
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Registering a domain name similar or identical to trademarks of others to divert traffic to their own sites is an example of |
Cybersquatting |
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Which of the following types of online market segmentation involves using age, ethnicity, religion, etc. |
Demographic |
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One reason that Long-Tail marketing is viable in e-commerce is because |
Low consumer search costs and recommendation systems |
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Web 2.0 describes a set of applications and technologies that encourage and rely on user and consumer-generated interactivity and content |
True |
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Firm Value Web |
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 |
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Web 2.0 |
A set of applications/technologies that allows users to create, edit and distribute content as well as participate in virtual lives/communities |
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Commoditization |
A situation where there are no differences among products or services and the only basis for choosing a product is price |
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Gilder's Law |
Bandwidth grows at least three times faster than computer power |
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Marketspace |
A marketplace that expands from traditional boundaries and removed from a temporal geographic location |
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Feature Set |
Core Product Actual Product Augmented Product |
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Core Product |
The core benefit that the customer receives from the product |
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Actual Product |
The set of characteristics that define the product |
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Augmented Product |
A product with additional benefits (ex: warranty) |
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Moore's Law |
The number of transistors we can fit on a chip will double every 18 months (later changed to 2 years |
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Global Reach |
Technology that reaches across national boundaries around the Earth |
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Richness |
The complexity and content of a message |
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Copyright |
Protects original forms of expression from being copied for a minimum of 70 years |
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Patent |
Grants owners an exclusive monopoly on their invention for 20 years |
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Trademarks |
A mark used to identify and distinguish goods |
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Friction-Free Commerce |
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 |
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Affiliation |
When a website pays another website commission for customer referrals |
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Cybersquatting |
The act of registering a popular internet address (usually a company name) with the intent of selling it to its rightful owner |
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PII (Personally identifiable information) |
Any data that can be used to identify, locate or contact an individual |
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Network Effect |
Total value of a product, service, or technology grows as more and more people use it |
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Five potential limitations that may inhibit the future growth of e-commerce |
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 |
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Identify the eight unique features of e-commerce |
Ubiquity Global reach Universal standards Information richness Interactivity Information density Personalization/customization Social technology |
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Ubiquity |
Internet is available everywhere anytime Shop from home or work |
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Global reach |
Technology reaches around the world Convenient and cost effective |
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Universal standards |
One set of standards, most commonly internet standards Traditional ones vary |
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Information richness |
Video, audio and text messages are possible Merchants market messages with audio and video |
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Interactivity |
Technology works through user interaction Face to face interaction on a global scale |
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Information density |
Technology reduces information costs and increases quality Increases timeliness of information |
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Personalization/customization |
Allows personalized messages to be sent to individuals and or groups |
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Social technology |
User content generation and social networks Changes how people purchase products |
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What are brands? |
Brands are the set of expectations that consumers have when consuming or thinking about a product or service |
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What kinds of expectations do people have about brands? |
Quality, reliability, loyalty, reputation |
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Are brands rational? |
Yes because they reduce search and decision making costs of consumers and increase customer retention for businesses |
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Do brands last forever? |
Not necessarily and will change as entrepreneurs exploit new technology |
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Are brands viable on the web? |
Yes because people will pay for convenience, variety and differentiated products |
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Permission Marketing |
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 |
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Affiliate Marketing |
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 |
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Viral marketing |
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 |
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Privacy |
The moral right of individuals to be left alone, free from surveillance or interference from others |
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Information Privacy |
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 |
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Informed Consent |
Consent given with knowledge of all material facts needed to make a rational decision |