How Are the Internet and E-Commerce Causing Severe Disruption to the Existing

question 82

Multiple Choice

How are the Internet and e-commerce causing severe disruption to the existing advertising business model?

• A) Ties between customer and businesses are being rethought.
• B) Technology players such as Yahoo! seek to dominate online advertising and expand into offline ad brokerage.
• C) New methods of advertising, such as blog advertising, are emerging.
• D) The market entry costs for online advertising services are extremely low.

Understand the relationship between price, revenue, and market conditions.

Recognize the importance of distribution and supply chain management in achieving competitive advantage.

Explain the dependence of service demand on time and place.

Understand the role of mass communication in the AIDA model and marketing strategies.

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Definitions:

Intersection

An operation in set theory whereby only the elements that are common to all sets are included in the outcome.

Marginal Probability

The probability of a single event occurring without consideration of any other events.

Mutually Exclusive

Two events that cannot occur at the same time, indicating no overlap in possible outcomes.

Independent

The condition where the occurrence or outcome of one event does not affect the occurrence or outcome of another event.