Amazon's Use of the Internet as a Platform to Sell

question 41

Multiple Choice

Amazon's use of the Internet as a platform to sell books more efficiently than traditional bookstores illustrates a use of information services for

• A) low-cost leadership.
• B) marketing effectiveness.
• C) focusing on market niche.
• D) strengthening supplier intimacy.

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Definitions:

Call Option

An economic agreement granting the purchaser the option to acquire an asset at a predetermined price during a designated timeframe, without being compelled to do so.

Market Price

The existing cost at which an asset or service is being offered for buying or selling in the market.

American Put Option

An option contract giving the holder the right to sell an asset at a specified price at any time before the expiration date.

Expiration Date

The specific date on which an options or futures contract becomes void and the holder must settle their position by either selling or exercising the contract.