Ecommerce chapter 2

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1. 1) ________ and ________ are typically the most easily B 9. 9) Which of the following companies use a transaction B
identifiable aspects of a company's business model. fee revenue model?
A) Market strategy; market opportunity A) Yahoo
B) Value proposition; revenue model B) E*Trade
C) Competitive advantage; competitive environment C) Twitter
D) Revenue model; market opportunity D) Birchbox
2. 2) All of the following use a subscription revenue model B 10. 10) Which of the following is an example of the affiliate D
for music except: revenue model?
A) Spotify. A) Scribd
B) eHarmony. - online dating service B) eBay
C) Rhapsody.- currently called Napster- digital music C) L.L. Bean
service D) MyPoints
D) Pandora.
11. 11) Which of the following involves a company giving C
3. 3) Which element of the business model addresses what D away a certain level of product or services without
a firm provides that other firms cannot? charge, but then charging a fee for premium levels of
A) competitive environment the product or service?
B) competitive advantage A) advertising revenue model
C) market strategy B) subscription revenue model
D) value proposition C) freemium strategy
D) transaction fee revenue model
4. 4) Which element of the business model refers to the B
presence of substitute products in the market? 12. 12) Which of the following is not a significant influence C
A) value proposition on a company's competitive environment?
B) competitive environment A) how many competitors are active
C) competitive advantage B) the market share of each competitor
D) market opportunity C) the availability of supportive organizational
structures
5. 5) Which of the following represent Amazon's primary B
D) how competitors price their products
value proposition(s)?
A) personalization and customization 13. 13) All of the following would be considered a direct D
B) selection and convenience competitor of Priceline except:
C) reduction of price discovery cost A) Travelocity.
D) management of product delivery B) Expedia.
C) Orbitz.
6. 6) A firm's ________ describes how a firm will produce a B
D) ESPN.
return on invested capital.
A) value proposition 14. 14) The existence of many competitors in any one B
B) revenue model market segment may indicate:
C) market strategy A) an untapped market niche.
D) competitive advantage B) the market is saturated.
C) no one firm has differentiated itself within that
7. 7) Which of the following is an example of the A
market.
subscription revenue model?
D) a market that has already been tried without
A) Scribd
success.
B) eBay
C) E*Trade 15. 15) All of the following can be considered a direct or D
D) Twitter indirect competitor of Amazon except:
A) eBay.
8. 8) Stickiness is an important attribute for which of the A
B) Apple's iTunes Store.
following revenue models?
C) Walmart.
A) advertising revenue model
D) Priceline.
B) subscription revenue model
C) transaction fee revenue model
D) affiliate revenue model
16. 16) A perfect market is one in which: A 23. 23) Which of the following statements about D
A) there are no competitive advantages or Foursquare is not true?
asymmetries because all firms have equal access to all A) Foursquare combines a social network business
the factors to production. model with location-based technology.
B) one firm develops an advantage based on a factor B) Foursquare has struggled to find profitability.
of production that other firms cannot purchase. C) Foursquare's business model raises significant
C) one participant in the market has more resources privacy concerns.
than the others. D) In 2016, Foursquare decided to refocus its effort on
D) competition is at a minimum, as each niche market developing a subscription-based revenue model.
within an industry is served by the company with the
24. 24) Which type of investor typically becomes D
greatest competitive advantage.
interested in a start-up company after it has begun
17. 17) Organizations that typically provide an array of C generating revenue?
services to start-up companies along with a small A) incubators
amount of funding are referred to as: B) angel investors
A) angel investors C) crowdfunders
B) crowdfunders D) venture capital investors
C) incubators
25. 25) Which of the following is another name for a C
D) venture capital investors
revenue model?
18. 18) A ________ specifically details how you plan to find D A) business model
customers and sell your product. B) business strategy
A) sales analysis C) financial model
B) business plan D) financial statements
C) competitive strategy
26. 26) All of the following use a social network marketing D
D) market strategy
strategy except:
19. 19) Which of the following was not able to successfully D A) Twitter.
implement a freemium business model? B) YouTube.
A) Pandora C) Pinterest.
B) Dropbox D) Amazon.
C) LinkedIn
27. 27) The use of a company's competitive advantage to C
D) Baremetrics
penetrate surrounding markets is known as ________.
20. 20) All of the following may lead to a competitive C A) market strategy
advantage except: B) differentiation
A) less expensive suppliers. C) leverage
B) better employees. D) focus
C) fewer products.
28. 28) A wealthy individual who invests personal funds in B
D) superior products.
a start-up in exchange for an equity share in the
21. 21) Which of the following is an unfair competitive A business is referred to as a(n) ________.
advantage? A) incubator
A) brand name B) angel investor
B) access to global markets C) venture capital investor
C) lower product prices D) crowdfunder
D) superior technology
29. 29) Which of the following is not a key element of an C
22. 22) Which of the following gives a business model the A elevator pitch?
most credibility with outside investors? A) exit strategy
A) the firm's management team B) growth metrics
B) the firm's value proposition C) legal structure
C) the firm's market opportunity D) market opportunity
D) the firm's market strategy
30. 40) Which of the following is not a community C 38. 48) Which of the following is not considered a portal? C
provider? A) Yahoo
A) LinkedIn B) MSN
B) Facebook C) Amazon
C) Blue Nile D) AOL
D) Pinterest
39. 49) Portals primarily generate revenue in all of the C
31. 41) Which of the following is not a variation of the e- C following ways except:
tailer business model? A) charging advertisers for ad placement.
A) bricks-and-clicks B) collecting transaction fees.
B) virtual merchant C) sales of goods.
C) market creator- D) charging subscription fees.
D) manufacturer-direct
40. 50) The basic value proposition of community providers A
32. 42) An example of a company using the content B is:
provider model is: A) they offer a fast, convenient one-stop site where
A) Priceline. users can focus on their most important concerns and
B) Rhapsody. interests.
C) Dell. B) they offer consumers valuable, convenient, time-
D) eBay. saving, and low cost alternatives to traditional service
providers.
33. 43) Which of the following is not an example of the C
C) they create a digital electronic environment for
bricks-and-clicks e-tailing business model?
buyers and sellers to meet, agree on a price, and
A) Walmart
transact.
B) Sears
D) they increase customers' productivity by helping
C) Bluefly
them get things done faster and with less expense.
D) Staples
41. 51) eBay uses all of the following business models C
34. 44) The overall retail market in the United States in B
except:
2016 was estimated at about:
A) B2C market creator.
A) $48 trillion.
B) C2C market creator.
B) $4.8 trillion.
C) content provider.
C) $480 billion.
D) e-commerce infrastructure provider.
D) $48 billion.
42. 52) All of the following are business models employed B
35. 45) In general, the key to becoming a successful A
in the online music industry except:
content provider is to:
A) subscription.
A) own the content being provided.
B) peer-to-peer streaming.
B) own the technology by which content is created,
C) download-and-own.
presented, and distributed.
D) cloud streaming.
C) provide online content for free.
D) provide other services as well as online content. 43. 53) The financial services, travel services, and job B
placement services industries typically use the ________
36. 46) The business model of e-tailers is similar to that of: A
business model.
A) e-distributors.
A) community provider
B) transaction brokers.
B) transaction broker
C) exchanges.
C) market creator
D) service providers.
D) e-tailer
37. 47) All of the following use an advertising revenue D
44. 54) In the ________ business model, a web-based A
model except:
business builds a digital environment in which buyers
A) Twitter.
and sellers can meet, display products, search for
B) Yahoo.
products, and establish prices.
C) Google.
A) market creator
D) Amazon.
B) community provider
C) e-tailer
D) portal
45. 57) All of the following are examples of business-to- D 53. 67) Which business strategy involves implementing a A
business (B2B) business models except: new, more efficient set of business processes that
A) e-distributors other firms cannot yet obtain?
B) e-procurement. A) strategy of cost competition
C) exchanges. B) scope strategy
D) portals. C) customer intimacy strategy
D) focus/market niche strategy
46. 58) What is the primary revenue model for an e- A
distributor? 54. 68) Which of the following features of e-commerce A
A) sales technology changes industry structure by lowering
B) transaction fee barriers to entry but greatly expands the market at the
C) advertising same time?
D) subscription A) global reach
B) richness
47. 59) Amazon is an example of which of the following C
C) interactivity
business models?
D) personalization
A) B2B service provider
B) exchange 55. 69) Which of the following is not a primary activity in a B
C) e-distributor firm value chain?
D) industry consortia A) outbound logistics
B) finance/accounting
48. 60) ________ create and sell access to digital markets. C
C) operations
A) E-distributors
D) after-sales service
B) Portals
C) E-procurement firms 56. 70) A ________ is a networked business ecosystem that C
D) Market creators coordinates a firm's suppliers, distributors, and delivery
firms with its own production needs using an Internet-
49. 61) Which of the following may offer its customers B
based supply chain management system.
value chain management software?
A) value chain
A) e-distributors
B) value system
B) e-procurement companies
C) value web
C) exchanges
D) business strategy
D) community providers
57. 71) If you wished to leverage the ubiquitous nature of A
50. 62) Over the past decade, the number of exchanges B
the Web to differentiate your product, you would:
has:
A) enable individual customization of the product by
A) greatly increased.
consumers.
B) diminished sharply.
B) implement a strategy of commoditization.
C) stayed about the same.
C) adopt a strategy of cost competition.
D) increased slowly but steadily.
D) develop a scope strategy to compete within a
51. 63) TheSeam is an example of a(n): is an American C narrower market segment
software company that designs and operates platforms
58. 72) A strategy designed to compete within a narrow D
for commodities trading, particularly in cotton
market or product segment is called a ________ strategy.
A) private industrial network.
A) scope
B) exchange.
B) differentiation
C) industry consortium.
C) commoditization
D) e-distributor.
D) focus
52. 64) A ________ marketplace supplies products and D
59. 73) ________ technologies are technologies that enable A
services of interest to particular industries.
the incremental improvement of products and services.
A) perfect
A) Sustaining
B) differentiated
B) Differentiating
C) horizontal
C) Disruptive
D) vertical
D) Commodity
60. 74) Innovative entrepreneurs and their business firms that destroy existing business models are referred to as ________. C
A) crowdfunders
B) venture capitalists
C) disruptors
D) angel investors