E-Commerce

Exam 1

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

A) Market strategy; market opportunity
B) Value proposition; revenue model
C) Value proposition; competitive environment
D) Revenue model; market strategy

B

All of the following are using a subscription revenue model for music except:

A) Spotify.
B) Scribd.
C) Rhapsody.
D) Pandora.

B

Which element of the business model addresses what a firm provides that other firms do not and cannot?

A) revenue model
B) competitive advantage
C) market strategy
D) value proposition

D

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

A) value proposition
B) competitive environment
C) competitive advantage
D) market strategy

B

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

A) personalization and customization
B) selection and convenience
C) reduction of price discovery cost
D) management of product delivery

B

A firm's \________ describes how a firm will produce a superior return on invested capital.

A) value proposition
B) revenue model
C) market strategy
D) competitive advantage

B

Which of the following is an example of the subscription revenue model?

A) eHarmony
B) eBay
C) E*Trade
D) Twitter

A

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

A) advertising revenue model
B) subscription revenue model
C) transaction fee revenue model
D) sales revenue model

A

Which of the following companies uses a transaction fee revenue model?

A) Yahoo
B) E*Trade
C) Twitter
D) Sears

B

Which of the following is an example of the affiliate revenue model?

A) Scribd
B) eBay
C) L.L. Bean
D) MyPoints

D

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

A) advertising revenue model
B) subscription revenue model
C) freemium strategy
D) transaction fee revenue model

C

Which of the following factors is not a significant influence on a company's competitive environment?

A) how many competitors are active
B) what the market share of each competitor is
C) the availability of supportive organizational structures
D) how competitors price their products

C

Which of the following would be considered an indirect competitor of Priceline?

A) Travelocity
B) Expedia
C) Orbitz
D) TripAdvisor

B

The existence of a large number of competitors in any one market segment may indicate:

A) an untapped market niche.
B) the market is saturated.
C) no one firm has differentiated itself within that market.
D) a market that has already been tried without success.

B

All of the following can be considered a direct or indirect competitor of Amazon except:

A) eBay.
B) Apple's iTunes Store.
C) Walmart.
D) Starbucks.

D

A perfect market is one in which:

A) there are no competitive advantages or asymmetries because all firms have equal access to all the factors to production.
B) one firm develops an advantage based on a factor of production that other firms cannot purchase.
C) one participant in the market has more resources than the others.
D) competition is at a minimum, as each niche market within an industry is served by the company with the greatest competitive advantage.

A

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

A) angel investors.
B) crowdfunders.
C) incubators.
D) venture capital investors.

C

A \________ specifically details how you plan to find customers and to sell your product.

A) sales analysis
B) business plan
C) competitive strategy
D) market strategy

D

Which of the following is not a community provider?

A) LinkedIn
B) Facebook
C) Priceline
D) Pinterest

C

Which of the following is not a variation of the e-tailer business model?

A) bricks-and-clicks
B) virtual merchant
C) market creator
D) manufacturer-direct

C

An example of a company using the content provider model is:

A) Priceline.
B) Rhapsody.
C) Dell.
D) eBay.

B

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

A) Walmart
B) Sears
C) Bluefly
D) Staples

C

The overall retail market in the United States in 2015 was estimated at about:

A) $48 trillion.
B) $4.8 trillion.
C) $480 billion.
D) $48 billion.

B

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

A) own the content being provided.
B) own the technology by which content is created, presented, and distributed.
C) provide online content for free.
D) provide other services as well as online content.

A

Which of the following was not able to successfully implement a freemium business model?

A) Pandora
B) Dropbox
C) LinkedIn
D) Ning

D

All of the following may lead to a competitive advantage except:

A) less expensive suppliers.
B) better employees.
C) fewer products.
D) superior products.

C

Which of the following is an unfair competitive advantage?

A) brand name
B) access to global markets
C) lower product prices
D) superior technology

A

Which of the following gives a business model the most credibility with outside investors?

A) the firm's management team
B) the firm's value proposition
C) the firm's market opportunity
D) the firm's market strategy

A

Which of the following statements about Foursquare is not true?

A) Foursquare combines a social network business model with location-based technology.
B) Foursquare began operating without a revenue model.
C) Foursquare's business model faces significant intellectual property concerns.
D) Foursquare has been able to command a high valuation from venture capital investors despite unimpressive revenue and profits.

C

Which type of investor typically becomes interested in a start-up company after it has begun generating revenue?

A) incubators
B) angel investors
C) crowdfunders
D) venture capital investors

D

Which of the following is another name for a revenue model?

A) business model
B) business strategy
C) financial model
D) financial statements

C

All of the following use a social network marketing strategy except:

A) Twitter.
B) YouTube.
C) Pinterest.
D) Amazon.

D

The use by a company of its competitive advantage to achieve more advantage in surrounding markets is known as \________.

A) market strategy
B) differentiation
C) leverage
D) focus

C

A wealthy individual who invests personal funds in a start-up in exchange for an equity stock in the business is referred to as a(n) \________.

A) incubator
B) angel investor
C) venture capital investor
D) crowdfunder

B

Which of the following is not a key element of an elevator pitch?

A) exit strategy
B) growth metrics
C) legal structure
D) market opportunity

C

The business model of e-tailers is quite similar to that of:

A) e-distributors.
B) transaction brokers.
C) exchanges.
D) service providers.

A

All of the following use an advertising revenue model except:

A) Twitter.
B) Yahoo.
C) Google.
D) Amazon.

D

Which of the following is not considered a portal?

A) Yahoo
B) MSN
C) Amazon
D) AOL

C

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

A) charging advertisers for ad placement.
B) collecting transaction fees.
C) sales of goods.
D) charging subscription fees.

C

The basic value proposition of community providers is:

A) they offer a fast, convenient one-stop site where users can focus on their most important concerns and interests.
B) they offer consumers valuable, convenient, time-saving, and low cost alternatives to traditional service providers.
C) they create a digital electronic environment for buyers and sellers to meet, agree on a price, and transact.
D) they increase customers' productivity by helping them get things done faster and more cheaply.

A

eBay uses all of the following business models except:

A) B2C market creator.
B) C2C market creator.
C) content provider.
D) e-commerce infrastructure provider.

C

All of the following are business models employed in the online music industry except:

A) subscription.
B) peer-to-peer streaming.
C) download-and-own.
D) cloud streaming.

B

The financial services, travel services, and job placement services industries typically use the \________ business model.

A) community provider
B) transaction broker
C) market creator
D) e-tailer

B

In the \________ business model, a Web-based business builds a digital environment in which buyers and sellers can meet, display products, search for products, and establish prices.

A) market creator
B) community provider
C) e-tailer
D) portal

A

All of the following are examples of business-to-business (B2B) business models except:

A) e-distributors.
B) e-procurement.
C) exchanges.
D) e-tailers.

D

What is the primary revenue model for an e-distributor?

A) sales
B) transaction fee
C) advertising
D) subscription

A

\________ create and sell access to digital markets.

A) E-distributors
B) Portals
C) E-procurement firms
D) Market creators

C

Which of the following may offer its customers value chain management software?

A) e-distributors
B) e-procurement companies
C) exchanges
D) community providers

B

Over the past decade, the number of exchanges has:

A) greatly increased.
B) diminished sharply.
C) stayed about the same.
D) increased slowly but steadily.

B

SupplyOn is an example of a(n):

A) private industrial network.
B) exchange.
C) industry consortium.
D) e-distributor.

C

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

A) perfect
B) differentiated
C) horizontal
D) vertical

D

Which business strategy involves implementing a new, more efficient set of business processes that other firms cannot yet obtain?

A) strategy of cost competition
B) scope strategy
C) customer intimacy strategy
D) focus/market niche strategy

A

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?

A) global reach
B) richness
C) interactivity
D) personalization

A

Which of the following is not a primary activity in a firm value chain?

A) outbound logistics
B) finance/accounting
C) operations
D) after-sales service

B

A \________ is a networked business ecosystem that coordinates a firm's suppliers, distributors, and delivery firms with its own production needs using an Internet-based supply chain management system.

A) value chain
B) value system
C) value web
D) business strategy

C

If you wished to leverage the ubiquitous nature of the Web to differentiate your product, you would:

A) enable individual customization of the product by consumers.
B) implement a strategy of commoditization.
C) adopt a strategy of cost competition.
D) develop a scope strategy to compete within a narrower market segment.

A

A strategy designed to compete within a narrow market or product segment is called a \________ strategy.

A) scope
B) differentiation
C) cost
D) focus

D

Innovative entrepreneurs and their business firms that destroy existing business models are referred to as \________.

A) crowdfunders
B) venture capitalists
C) disruptors
D) angel investors

C

2) E-commerce can be defined as:
A) the use of the Internet, the Web, and mobile apps to transact business.
B) the use of any Internet technologies in a firm's daily activities.
C) the digital enablement of transactions and processes within an organization.
D) any digitally enabled transactions among individuals and organizations.

A

3) \________ is an example of e-business.
A) Amazon's inventory control system
B) The Amazon.com website
C) An Amazon mobile app
D) Amazon's Pinterest page

A

4) Which of the following terms is synonymous with e-commerce?
A) e-business
B) digital commerce
C) the Internet
D) the Web

B

5) Which of the following is not true about the use of apps?
A) The average U.S. consumer spends over three hours a day using apps.
B) Users still spend less time using apps than they do using desktops or mobile websites.
C) Apps are easier to control and monetize than websites.
D) Around 280 million people worldwide launch a smartphone app more than 60 times a day

B

6) Which of the following statements about e-commerce in the United States in 2016 is not true?
A) Social e-commerce generates more revenue than mobile e-commerce.
B) Over 210 million U.S. consumers use mobile apps.
C) On-demand service firms are fueling the growth of local e-commerce.
D) Growth rates for retail e-commerce are higher in Europe than in the United States.

A

7) In 2016, almost \________ of Americans who access the Internet use a mobile device at least some of the time.
A) 63%
B) 73%
C) 83%
D) 93%

D

8) Which of the following is not a major business trend in e-commerce in 2016-2017?
A) Mobile e-commerce continues to grow.
B) Small businesses and entrepreneurs are hampered by the rising cost of market entry caused by increased presence of industry giants.
C) On-demand service companies garner multi-billion dollar valuations.
D) Mobile advertising continues to grow at astronomical rates.

B

9) Which of the following is not a major technology trend in e-commerce in 2016-2017?
A) Mobile messaging services become popular with smartphone users.
B) Firms are turning to business analytics to make sense out of big data.
C) The mobile computing and communications platform creates an alternative platform for online transactions, marketing, advertising, and media viewing.
D) Computing and networking component prices increase dramatically.

D

10) All of the following are major social trends in e-commerce in 2016-2017 except for:
A) concerns about the flood of temporary, low paying jobs without benefits being generated by on-demand service companies.
B) the continuing conflict over copyright management and control.
C) the refusal of online retailers to accept taxation of Internet sales. Online retails ARE accepting the taxation of internet sales
D) the growth of government surveillance of Internet communications.

C

11) Which of the following is not a major business trend in e-commerce in 2016-2017?
A) the growth of a mobile app ecosystem
B) the weakening revenues of B2B e-commerce
C) the emergence of social e-commerce
D) the growth of the on-demand service firms

B

12) Which of the following statements about the Web is not true?
A) The Web is the technology upon which the Internet is based.
B) The Web was the original "killer app."
C) The Web provides access to pages written in HyperText Markup Language.
D) The Web is both a communications infrastructure and an information storage system

A

13) In 2016, there were more than \________ Internet hosts.
A) 1 million
B) 10 million
C) 100 million
D) 1 billion

D

14) Which of the following was the original "killer app" that made the Internet commercially interesting and extraordinarily popular?
A) e-commerce
B) The Web
C) social networks
D) mobile apps

B

21) Which of the following is not a unique feature of e-commerce technology?
A) interactivity
B) social technology
C) information asymmetry
D) richness

C

22) Which of the following features of e-commerce technology enables merchants to market and sell "complex" goods and services to consumers via marketing messages that can integrate video, audio, and text?
A) richness
B) ubiquity
C) information density
D) personalization

A

23) Which of the following features of e-commerce technology allows users to participate in the creation of online content?
A) ubiquity
B) global reach
C) information density
D) social technology

D

24) Which of the following is the best definition of transaction cost?
A) the expense of changing national or regional prices
B) the cost of participating in a market
C) the cost of finding suitable products in the market
D) the cost merchants pay to bring their goods to market

B

25) In 2016, the world's online population was estimated to be around:
A) 330 million.
B) 3.3 billion.
C) 33 billion.
D) 330 billion.

B

26) Which of the following features of e-commerce technology is related to the concept of network externalities?
A) richness
B) interactivity
C) universal standards
D) information density

C

27) Which of the following statements is true about the traditional tradeoff between the richness and reach of a marketing message prior to the development of the Web?
A) Marketing messages had little richness.
B) The smaller the audience reached, the less rich the message.
C) The larger the audience reached, the less rich the message.
D) Richness was unrelated to reach.

C

28) Interactivity in the context of e-commerce provides which of the following functionalities?
A) the ability to physically touch and manipulate a product
B) complexity and content of a message
C) the ability of consumers to create and distribute content
D) the enabling of two-way communication between consumer and merchant

D

29) The costs incurred by merchants changing product prices (such as the costs of reentering prices into computer systems) are referred to as:
A) subscription costs.
B) fixed costs.
C) menu costs.
D) variable costs.

C

30) Which of the following refers to any disparity in relevant market information among parties in a transaction?
A) information asymmetry
B) unfair competitive advantage
C) imperfect competition
D) dynamic pricing

A

31) Which of the following is a physical place you visit to conduct business?
A) marketspace
B) marketplace
C) social network
D) the Internet

B

32) The total number of users or customers an e-commerce business can obtain is called:
A) ubiquity.
B) interactivity.
C) reach.
D) information density.

C

33) Which of the following refers to the complexity and content of a message?
A) richness
B) reach
C) information density
D) interactivity

A

34) E-commerce is available just about everywhere and anytime. This is known as \________.
A) richness
B) information density
C) ubiquity
D) reach

C

43) Which type of e-commerce is distinguished by the type of technology used in the transaction rather than by the nature of the market relationship?
A) consumer-to-consumer (C2C)
B) social e-commerce
C) mobile e-commerce
D) business-to-business (B2B)

C

44) Which of the following is an example of social e-commerce?
A) Amazon
B) eBay
C) Wikipedia
D) Facebook

D

45) Business-to-consumer (B2C) e-commerce in the United States:
A) has grown at double-digit rates between 2010 and 2016
B) has less revenue than C2C e-commerce.
C) now constitutes over 50% of the overall U.S. retail market.
D) is growing more slowly as it confronts its own fundamental limitations.

A

46) Which of the following is an example of an on-demand service company?
A) YouTube
B) Airbnb
C) Tumblr
D) Facebook.

B

47) Which of the following is an example of B2B e-commerce?
A) Airbnb
B) Facebook
C) Groupon
D) Go2Paper

D

48) Which of the following is an example of C2C e-commerce?
A) Amazon
B) Groupon
C) Craigslist
D) Go2Paper

C

49) All of the following are examples of social networks except:
A) Instagram.
B) Twitter.
C) Y Combinator.
D) Pinterest.

C

50) The size of the B2B market in 2017 was estimated at:
A) $670 million.
B) $6.7 billion.
C) $670 billion.
D) $6.7 trillion.

D

53) Which of the following describes the basic web policy of large firms during the Invention period?
A) Integrate social networks and the mobile platform with website marketing.
B) Emphasize the necessity of the Web to generate profits.
C) Use the Web to sell complex goods and services online.
D) Maintain a basic, static website depicting the firm's brand.

D

54) All of the following are considered a precursor to e-commerce except:
A) the development of the smartphone.
B) Baxter Healthcare's PC-based remote order entry system.
C) the French Minitel.
D) the development of Electronic Data Interchange (EDI) standards.

A

55) Which of the following was the first large-scale digitally enabled transaction system in the B2C arena?
A) Telex
B) the Baxter Healthcare system
C) the French Minitel
D) EDI

C

56) In which year was e-commerce said to have begun? 1995-2000: invention period
A) 1983
B) 1985
C) 1995
D) 2001

C

57) Which of the following is a characteristic of e-commerce during the Invention period?
A) mobile technology
B) earnings and profit emphasis
C) disintermediation
D) extensive government surveillance

C

58) All of the following are examples of Web 2.0 sites and applications except:
A) photo-sharing sites.
B) blogs.
C) wikis.
D) auction sites.

D

59) Which of the following is not a characteristic of a perfect competitive market?
A) Price, cost, and quality information are equally distributed.
B) A nearly infinite set of suppliers compete against one another.
C) Customers have access to all relevant information worldwide.
D) It is highly regulated.

D