As firms deliver products and services in the physical world as well as the virtual realm, they must understand the value creation process in each.
True
False
True
In the marketspace, companies use their databases and information systems only to improve physical processes.
True
False
False
The Internet could only impact specific stages of the value chain.
True
False
False
In the customization process, the customer may play a role in the pre-production (design) stage.
True
False
True
A company, such as Canadian Tire, can use permission marketing with e-flyers by simply purchasing e-mail addresses and sending the e-flyer to all those on the list.
True
False
False
The virtual value chain can be visualized as a sequence of value-adding activities: gathering, organizing, selecting synthesizing, and distributing information.
True
False
True
Both physical and virtual chains are linear processes.
True
False
False
From the sell-side of operations, the price reflects the buyer's perceived value of the product.
True
False
False
Auction sites get a commission from the buyer.
True
False
False
In general, online communities are diverse in interest and are broad focused. This makes them an unattractive marketing target.
True
False
False
Infomediaries are online intermediaries who aggregate content and make it easier for buyers to find information.
True
False
True
The concept of Value exchange is when consumers give personal information in exchange for something valuable.
True
False
True
It is not difficult to build customer loyalty online.
True
False
False
One of the big conundrums in Internet Marketing circles is how to "monetize the traffic".
True
False
True
Broker:
An independent agent wholesaler that brings buyers and sellers together and provides market information to either party.
Business model:
A description of how firms generate revenue and profits, and the methods of operation
Cost of customer acquisition:
The cost to the e-tailer to attract and maintain an online customer.
Infomediaries:
Online intermediaries who aggregate content and make it easier for buyers to find information on the Web.
Information goods:
The goods created in the virtual marketspace, e.g., goods customized by the consumer.
Marketspace:
An online store offering instantaneous information and service 24/7.
Permission marketing:
The sending of customized messages and e-mail flyers by marketers to consumers who have subscribed to this service.
Physical value chain:
The performance of a series of actions to improve efficiency and effectiveness of processes in each stage resulting in a final product or service, adding value at each step of the chain.
Prosumption:
The blurring of the gap between producers and consumers by the customer's ability to customize a product.
Value exchange:
The concept whereby consumers give personal information to a marketer in exchange for something valuable from the marketer.
Virtual value chain:
The performance of a series of actions to improve efficiency and effectiveness of processes in each stage resulting in a final product or service, using databases and information systems to create value at each step of the chain.
Vortals:
Vertical industry portals that specialize in a single industry or subject.
