1. The costs incurred when a firm buys on the marketplace what it cannot make itself are referred to as (Points : 1)
| switching costs. transaction costs. procurement. agency costs.
| 2. Disintermediation (Points : 1)
results from the speed of the Internet. is defined as the elimination of layers in the distribution process. is a result of social networking. All of the above
| 3. The four major types of competitive strategy are: (Points : 1)
| low-cost leadership; substitute products and services; customers; and suppliers. low-cost leadership; product differentiation; focus on market niche; and customer and supplier intimacy. new market entrants; substitute products and services; customers; and suppliers. low-cost leadership; new market entrants; product differentiation; and focus on market niche.
| 4. Information asymmetry exists when (Points : 1)
the network is overloaded. sellers and buyers have the same information. one party in a transaction has more important information than the other. manufactures provide online data to customers.
| 5. When a firm provides a specialized product or service for a narrow target market better than competitors, they are using a (Points : 1)
| product differentiation strategy. market niche strategy. mass customization strategy. process efficiency strategy.
| 6. Internet technology (Points : 1)
makes it easy for rivals to compete on price alone. imposes a significant cost of entry, due to infrastructure requirements. increases the difference between competitors because of the wide availability of information. makes it easy to sustain operational advantages.
| 7. The Internet raises the bargaining power of customers by (Points : 1)
| creating new opportunities for building loyal customer bases. making more products available. making...
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