Ch 4 5

Question 1

What is Advertisement Support Revenue model?

Answer 1

The revenue model in which the firm offers a product/service for free but sells access to its audience to interested advertisers

Question 2

What is Affiliate Revenue Model?

Answer 2

A revenue model in which revenue is generated from a third party based on customer traffic to the firm’s website

Question 3

What is B2B?

Answer 3

Transactions in which two or more business entities take part

Question 4

What is B2C?

Answer 4

Transactions that involve a for-profit organization on one side as a seller and an end consumer on the other as a buyer. Includes online retailers such as amazon. Firm offers values to consumer without selling any physical goods

Question 5

What is blog?

Answer 5

Online journal published on the web by an individual

Question 6

What is Brick and Mortar?

Answer 6

Firms that have physical locations such as stores

Question 7

What is bricks and clicks?

Answer 7

Firms that have a hybrid operation: both physical (store) and online (website)…barnes & noble

Question 8

What is Business model?

Answer 8

The firm’s concept of: what product/services it offers, based on what value propositions, and how it will achieve a dominate position.

Question 9

What is C2B?

Answer 9

Transactions that involve a for-profit organization on one side as a buyer and an end consumer on the other as a seller, Elance

Question 10

What is C2C?

Answer 10

Transactions that enable individual consumers to interact and exchange directly, Ebay

Question 11

What is Channel conflict?

Answer 11

It’s exemplified by Compaq which faced significant resistance from electronics store chains carrying its devices when it created it direct-sale website

Question 12

What is Disintermediation?

Answer 12

It is exemplified by many travel agents that found it difficult to stay in business after airlines started selling directly to customers and eliminated travel agent commissions

Question 13

What is electronic data exchange (EDI)?

Answer 13

It enabled computer-to-computer exchange of structured data by two or more organizations that agreed on message standards.

Question 14

What is emergent structure?

Answer 14

Technology that makes it easier for users to interact with and customize online applications, such as creating a folksonomy, think tags on pictures on Flikr

Question 15

What is Evangelist Effect?

Answer 15

It’s the dynamic and the incentive that current members of the network have to “spread the word” and convince others to join it

Question 16

What is Exchanges?

Answer 16

Firms that bring buyers and sellers together in the market place

Question 17

What is freemium revenue model?

Answer 17

A revenue model in which a firm gives away its product and services for free but then offers premium services for a fee ‘free premium’

Question 18

What is infomediary?

Answer 18

Firms that provide specialized information on behalf of product and service providers by linking to online retailers and receiving compensation for referrals as well as advertisement

Question 19

What is Internet?

Answer 19

The worldwide publicly accessible system of interconnected computer networks that transmit data by packet switching, network of networks, it’s the infrasturce upon which services- such as email, the web ,instant messaging etc. are delivered

Question 20

What is Long-tail Strategy?

Answer 20

When customers interests are highly varied, this strategy focuses on selling “specialty” (not very popular) products to a large number of customers rather then selling very popular products to a relatively small number of customers. Ex. Amazon- books, music, CD’s

Question 21

What is Market Efficiency?

Answer 21

It is exemplified by travel meta-search infomediaries, such as skyscanner, which eliminated significant costs of searching for products/services to customers

Question 22

What is Mash up?

Answer 22

Stringing together available digital resources into a novel web application that delivers new functionalities

Question 23

What is Micro blogs?

Answer 23

Unidirectional short bursts of communication to a self selected audience of followers

Question 24

What is Minitel?

Answer 24

Introduced by France Telcom about 30 years ago as a tool to check telephone directories, ordering flowers, purchasing train/airline tickets, etc.

Question 25

What is Network Effects?

Answer 25

Positive and negative feedback play a crucial role in physical and virtual networks because of the value of a network to its members is a function of the number of nodes in the same network. New nodes add value by joining and creating a larger network

Question 26

What is Pay for service revenue Model?

Answer 26

The revenue model in which the firm offers a product.service and charges based on usage.

Question 27

What is Positive Feedback?

Answer 27

Adoption of a new technology product or service typically follows the pattern represented by the S-curve. Self-reinforcing mechanism by which the strong get stronger and the weak get weaker. Well-known for the economic phenomenon at the heart, for example economies of scale. In industries with strong economies of scale, say automobile manufacturing there is a significant advantage stemming from size. Virtuous cycle, benefiting the larger firm and a vicious cycle penalizing the smaller one

Question 28

What is pure play?

Answer 28

Firms that have no stores and provide their services entirely on the internet

Question 29

What is Reintermediation?

Answer 29

It is exemplified by Orbitz, a website that acts as a new for of intermediary between customers and airline companies, think brokers

Question 30

What is Revenue Model?

Answer 30

How a firm plans to make money

Question 31

What is RSS?

Answer 31

A technology that enables the creation of short summaries of content which a link to the full-fledged version

Question 32

What is subscription revenue model?

Answer 32

The revenue model in which the firm offers a product/service and charges based on access regardless of the amount of usage

Question 33

What is Tags?

Answer 33

Short descriptors associated with an object to categorize the increasing amount of available content

Question 34

What is Tipping Point & tippy Markets?

Answer 34

a market that is subject to strong positive feedback, It goes in favor of the firm that is able to reach critical mass and dominate it. Winner take all tendencies. The point of no return in which losers and winners are defined. Not all markets do this and winner take all is the exception rather than the rule

Question 35

What is two sided networks?

Answer 35

networks that have two types of members, each creating value for each other

Question 36

What is wiki?

Answer 36

A technology that enables the coauthoring and editing of Web content

Question 37

What is Web?

Answer 37

services available on the internet, electronic mail is the most popular

Question 38

What is eGovernment?

Answer 38

transactions involving legislative and administrative institutions, for example electronic filing of tax return

Question 39

What are the 5 Revenue models

Answer 39

pay for service, subscription, advertisement support, affliate, Freemium

Question 40

What are the 5 Business models

Answer 40

Online retailing, Infomediaries, Content Providers, Online communities and exchanges

Question 41

What are the advantages of user-generated content for content providers

Answer 41

considered more honest and less prone to marketing influence or manipulation. Also, it has a limited cost of production since the community typically volunteers its input

Question 42

What is an online community

Answer 42

a group of people brought together by a common interest

Question 43

Why do virtual communities work

Answer 43

they alleviate the constraints of physical distance

Question 44

What are Exchanges

Answer 44

organizations that create a marketplace for buyers and sellers to come together and transact…ebay