CHP. 9

Question 1

Social media (SM)

Answer 1

The use of information technology to support the sharing of content among networks of users.

Question 2

Communities of practice

Answer 2

Groups of people related by a common interest. Also called communities.

Question 3

Communities

Answer 3

Groups of people related by a common interest. Also called communities.

Question 4

Social media information system (SMIS)

Answer 4

An information system that supports the sharing of content among networks of users.

Question 5

Social media providers

Answer 5

Companies that provide platforms that enable the creation of social networks. Facebook, Twitter, LinkedIn, and Google are all social media providers.

Question 6

Social networks

Answer 6

The social relationships among people with common interests.

Question 7

Users

Answer 7

Individuals and organizations that use social media sites to build social relationships.

Question 8

Viral hook

Answer 8

An inducement that causes someone to share an ad, link, file, picture, movie, or other resource with friends and associates over the Internet.

Question 9

Content data

Answer 9

In social media systems, data and responses to data that are contributed by users and SM sponsors.

Question 10

User-generated content (UGC)

Answer 10

Content on an organization’s social media presence contributed by nonemployee users.

Question 11

Connection data

Answer 11

In social media systems, data about relationships.

Question 12

Social CRM

Answer 12

CRM that includes social networking elements and gives the customer much more power and control in the customer/vendor relationship.

Question 13

Crowdsourcing

Answer 13

A process through which users can provide customer support to one another or even participate in the creation of product specifications, designs, and complete products.

Question 14

Business-to-consumer (B2C)

Answer 14

Ecommerce sales between a supplier and a retail customer (the consumer).

Question 15

Business-to-business (B2B)

Answer 15

Ecommerce sales between companies.

Question 16

Capital

Answer 16

Resources that are invested with the expectation of future gain.

Question 17

Human capital

Answer 17

The investment in human knowledge and skills with the expectation of future gain.

Question 18

Social capital

Answer 18

The investment in social relations with expectation of future returns in the marketplace.

Question 19

Value of social capital

Answer 19

Value of social network that is determined by the number of relationships in a social network, the strength of those relationships, and the resources controlled by those related.

Question 20

Influencer

Answer 20

An individual in a social network whose opinion can force a change in others’ behaviour and beliefs.

Question 21

Strength of a relationship

Answer 21

In social media, the likelihood that a person or other organization in a relationship will do something that will benefit the organization.

Question 22

Monetize

Answer 22

A social media company’s ability to make money from its application, service, or content.

Question 23

Pay-per-click

Answer 23

Revenue model in which advertisers display ads to potential customers for free and pay only when the customer clicks.

Question 24

Freemium

Answer 24

A revenue model offering a basic service for free and then charging a premium for upgrades or advanced features.

Question 25

Ad-blocking software

Answer 25

Software that filters out advertising content.

Question 26

Conversion rate

Answer 26

Measures the frequency with which someone who clicks on an ad makes a purchase, “likes” a site, or takes some other action desired by the advertiser.

Question 27

social media policy

Answer 27

A statement that delineates employees’ rights and responsibilities when generating social media content.

Question 28

Web 2.0

Answer 28

The term used to describe applications and platforms on the web.

Question 29

Ecommerce

Answer 29

The buying and selling of goods and services over public and private computer networks.

Question 30

Merchant companies

Answer 30

In ecommerce, companies that take title to the goods they sell. They buy goods and resell them.

Question 31

Nonmerchant companies

Answer 31

Ecommerce companies that arrange for the purchase and sale of goods without ever owning or taking title to those goods.

Question 32

Business-to-consumer (B2C)

Answer 32

Ecommerce sales between a supplier and a retail customer (the consumer).

Question 33

Web storefront

Answer 33

In ecommerce, a web-based application that enables customers to enter and manage their orders.

Question 34

Business-to-government (B2G)

Answer 34

Ecommerce sales between companies and governmental organizations.

Question 35

Ecommerce auctions

Answer 35

Applications that match buyers and sellers by using an ecommerce version of a standard auction. This ecommerce application enables the auction company to offer goods for sale and to support a competitive bidding process.

Question 36

Clearinghouses

Answer 36

Entities that provide goods and services at a stated price and arrange for the delivery of the goods, but never take title to the goods.

Question 37

Electronic exchanges

Answer 37

Sites that facilitate the matching of buyers and sellers; the business process is similar to that of a stock exchange. Sellers offer goods at a given price through the electronic exchange, and buyers make offers to purchase over the same exchange. Price matches result in transactions from which the exchange takes a commission.

Question 38

Disintermediation

Answer 38

Elimination of one or more middle layers in the supply chain.

Question 39

Price elasticity

Answer 39

A measure of the sensitivity in demand to changes in price. It is the ratio of the percentage change in quantity divided by the percentage change in price.

Question 40

Price conflict

Answer 40

Differences in the price of a good or service based on the way that it is obtained or delivered. For example, U.S. prices may be lower than Canadian prices even after adjusting for currency exchange rate, or online products may cost less than those sold in traditional stores. 286 See also Channel conflict and Showrooming.

Question 41

Logistic expense

Answer 41

The costs associated with the coordination or movement, transportation, and storage of goods or services, particularly if the supply chain involves multiple parties or remote locations.

Question 42

Customer service expense

Answer 42

The costs involved in supporting a customer’s purchase or use of a product or service.

Question 43

Showrooming

Answer 43

A customer visits a store to examine or gain information about a product but then purchases the product online.