E-Commerce Chapter 2 Quiz

Which of the following is not an example of the bricks-and-clicks e-tailing business model?

• Target

• Walmart

• Bluefly

• Staples

Bluefly

(T/F) A company's strong linkages with its customers increase switching costs.

True

Which element of the business model refers to the presence of substitute products in the market?

• value proposition

• competitive environment

• market opportunity

• competitive advantage

Competitive environment

Stickiness is an important attribute for which of the following revenue models?

• affiliate revenue model

• transaction fee revenue model

• advertising revenue model

• subscription revenue model

advertising revenue model

(T/F) Slow followers are sometimes more successful than first movers.

True

Organizations that typically provide an array of services to startup companies along with a small amount of funding are referred to as:

• venture capital investors.

• crowdfunders.

• angel investors.

• incubators.

Incubators

Which of the following features of e-commerce technology changes industry structure by lowering barriers to entry but greatly expands the market at the same time?

• personalization

• global reach

• richness

• interactivity

Global reach

First movers often fail because:

• they lack complementary resources needed to sustain their advantages.

• they are operating in a perfect market.

• they fail to leverage their competitive assets.

• their competitive advantage is unfair.

they lack complementary resources needed to sustain their advantages.

Which of the following are Amazon's primary value propositions?

• selection and convenience

• management of product delivery

• reduction of price discovery cost

• personalization and customization

selection and convenience

A ________ marketplace supplies products and services of interest to particular industries.

• horizontal

• vertical

• differentiated

• perfect

Vertical

A perfect market is one in which:

• competition is at a minimum, as each niche market within an industry is served by the company with the greatest competitive advantage.

• one firm develops an advantage based on a factor of production that other firms cannot purchase.

• one participant in the market has more resources than the others.

• there are no competitive advantages or asymmetries because all firms have equal access to all the factors to production.

there are no competitive advantages or asymmetries because all firms have equal access to all the factors to production.

Portals primarily generate revenue in all of the following ways except:

• sales of goods.

• collecting transaction fees.

• charging advertisers for ad placement.

• charging subscription fees.

sales of goods.

Innovative entrepreneurs and their business firms that destroy existing business models are referred to as:

• venture capitalists.

• angel investors.

• disruptors.

• crowdfunders.

disruptors

Which of the following involves a company giving away a certain level of product or service without charge, but then charging a fee for premium levels of the product or service?

• subscription revenue model

• premium strategy

• advertising revenue model

• freemium strategy

freemium strategy

(T/F) In the subscription revenue model, a company primarily generates income from the display of ads.

False

All of the following can be considered a direct competitor of Priceline except:

• Travelocity.

• Expedia.

• Orbitz.

• ESPN.

ESPN

Which of the following is an unfair competitive advantage?

• superior technology

• lower product prices

• brand name

• access to global markets

brand name

________ and ________ are typically the most easily identifiable aspects of a company's business model.

• Revenue model; market opportunity

• Value proposition; revenue model

• Competitive advantage; competitive environment

• Market strategy; market opportunity

Value proposition; revenue model

In general, the key to becoming a successful content provider is to:

• provide online content for free.

• own the technology by which content is created, presented, and distributed.

• own the content being provided.

• provide other services as well as online content.

own the content being provided.

Which of the following does not use a subscription revenue model?

• Twitter

• Ancestry

• eHarmony

• Apple Music

Twitter