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E-Business Strategy
Paul Phillips, University of Surrey, UK

Virtual Marketplace

Self-Test Questions



1

According to Internet Industry Almanac, by the end of 2005 the number of worldwide Internet users will:
A)Quadruple to 2bn
B)Triple to 1.15bn
C)Double to 1.12bn
D)None of the above
2

The information, communication, distribution and transaction (ICDT) model provides a model for segmenting the virtual marketspace into four distinct areas namely:
A)Virtual intensity space, Virtual communication space, Virtual distribution space and Virtual transformation space
B)Virtual information space, Virtual communication space, Virtual distribution space and Virtual transaction space
C)Virtual information space, Virtual communication space, Virtual dimensional space and Virtual transaction space
D)None of the above
3

According to Gronross, Helnonen, Isoniemi and Lindholm, (2000) regardless of whether the organizational offering is a service or a good, buying in a virtual marketspace should be characterized as:
A)Service consumption, splitting into two dimensions, process quality and outcome quality
B)Service consumption, splitting into two dimensions, brand quality and outcome quality
C)Service consumption, splitting into two dimensions, input quality and brand quality
D)None of the above
4

A virtual organization is primarily characterized as:
A)Being a network of independent processes with a partial mission overlap
B)Being a network of independent, geographical dispersed activities with a partial mission overlap
C)Being a network of independent, geographical dispersed individuals
D)None of the above
5

Venkatraman and Henderson (1998) treat virtualness as a strategic characteristic applicable to:
A)Every organizations
B)Some organizations
C)Only service sector organizations
D)None of the above
6

According to Jansen, Steenbakkers and Jaggers (1999) there are two reasons for the emergence of virtual organizations, these being:
A)Increased need for speed and innovation
B)Geographical dispersion and greater efficiency
C)Increased need for flexibility and the need for greater efficiency
D)None of the above
7

Bultje and van Wiljk (1998) identified four sub-concepts of virtual and make the following distinctions:
A)Unreal, looking real; immaterial, supported by information and communication technology; potentially present and existing but changing
B)Real, looking unreal; material, supported by information and communication technology; present and existing but static
C)Unreal, looking real; material, supported by information and communication technology; potentially present and existing but static
D)None of the above
8

Which of the following statements is one of the reasons why some organizations prefer to focus on virtuality, rather than being formalized?
A)Organizations need to transact within traditional organizational boundaries
B)The cost of a formal structure may be too high
C)Formal alliances may not prove insuperable
D)None of the above
9

Why is trust so important in a virtual environment?
A)There are more people involved in a virtual environment
B)Trust acts a substitute for the traditional mechanisms of control and coordination
C)Face-to-face encounters are more important in a virtual environment
D)None of the above
10

The term virtual team can be described as a:
A)Temporary, culturally diverse, geographically dispersed, electronically communicating work group
B)Permanent, culturally diverse, geographically dispersed, electronically communicating work group
C)Permanent, culturally diverse and geographically dispersed group of individuals
D)None of the above
11

According to Luo (2002), which of the following is a trust-building mechanism?
A)Technology-based
B)Institutional-based
C)Virtual-based
D)None of the above
12

Which of the following is a managerial implication of characteristic-based trust?
A)Trust and brand loyalty is enhanced through e-community
B)Trust provides a useful infrastructure
C)Provision of free gifts and extra advise will enhance trust
D)None of the above