Public exchanges are many-to-many marketplaces that are open to all interested s

ellers and buyers and usually run by third parties.{T}

One major characteristic of all exchanges is that they are electronic tradingcom
munity meeting places for a single seller and many buyers, and possibly for othe
r business partners.{F}
In electronic exchanges and traditional open-air marketplace, buyers and sellers
can interact and negotiate prices and quantities.{T}
Dynamic pricing refers to the rapid movement of prices over time and possibly ac
ross customers as a result of supply and demand matching, as in auctions.{T}
MSN or Yahoo! are types of exchanges that generate revenue through membership fe
es.{F}
Thomas Register is basically a directory for buyers using search engines because
it does not offer any opportunity for trade or transactions on its site.{F}
Alibaba China is Chinas largest online marketplace for both domestic and interna
tional trade among businesspeople and a trusted community of members who regular
ly meet, chat, search for products, and do business online.{F}
To increase their financial viability, third-party exchanges try to partner with
large sellers or buyers, financial institutions that provide payment schemes, o
r logistics companies to cut costs or increase market liquidity.{T}
Market liquidity refers to the degree to which a product or service can be bough
t or sold in a marketplace without significantly affecting its price.{T}
Agentrics is the worlds largest B2C exchange for retailers, such as Sears and Be
st Buy, whose objective is to simplify and automate supply chain processes.{F}
Two major models of thirdparty exchanges are supplier aggregation and buyer aggr
egation.{T}
For all types of e-marketplaces, the most important key to the success of any th
ird-party exchange is the critical mass of buyers and sellers.{T}
A consortium trading exchange [CTE] or consortia is most appropriate for fragmen
ted markets with large numbers of both buyers and sellers.{F}
The Global Transportation Network [GTN] provides participating carriers and cust
omers with significant cost savings because it frees individual carriers from th
e huge capital costs of advanced technologies.{T}
Purchasing-oriented [procurement] consortia have not yet been a successful or po
pular B2B consortium model.{F}
Because of their large number of buyers and sellers, B2B exchanges and other e-m
arketplaces do not face anti-trust or other competition laws.{F}
A B2B consortium has the potential to reduce prices of individual products, thus
enabling and encouraging consortium members to buy more.{T}
Dynamic trading is trading that occurs in situations in which prices are determi
ned by supply and demand, therefore changing continuously.{T}
The strategy of providing comprehensive, quality e-service for business partners
is called customer relationship management [CRM].{F}
Because of the complexity in building large e-marketplaces and exchanges, it is
usually performed by a major B2B software company, such as Ariba or IBM, and a m
anagement consulting company, such as PricewaterhouseCoopers, usually participat
es.{T}
Companycentered networks may be a waste of money because they are used by only o
ne
buyer [buyers industrial network] or by only one seller [sellers industrial netw
ork], and they may not be open to all.{T}
Most exchanges have the same logon procedures, same sets of rules for fulfillin
g orders, and similar business models for charging for their services.{F}
Public exchanges have difficulty attracting buyers and sellers because of the tr
ansaction fees, reluctance to share information, and the availability of too man
y exchanges.{T}
In B2B exchanges, software agents can facilitate management of multiple trading
partners and their transactions across multiple virtual industry exchanges.{T}
Good management and effective operations and rules are critical to the success o
f B2B exchanges because good governance provides the rules for the exchange, min
imizes conflicts, supports decision making, and tries to induce the necessary li
quidity.{T}