E-Commerce Chapter 9 Quiz

What is another name for pro forma earnings?

A) operating income

B) earnings before income taxes, depreciation, and amortization (EBITDA)

C) net margin

D) generally accepted accounting principles (GAAP) earnings

B) earnings before income taxes, depreciation, and amortization (EBITDA)

All of the following are terms used to describe on-demand service companies except:

A) collaborative commerce.

B) mesh economy.

C) omni-channel commerce.

D) we-commerce.

C) omni-channel commerce.

The online retail sector of the retail industry is most similar to the ________ sector.

A) specialty stores

B) mail order/telephone order (MOTO)

C) consumer durables

D) general merchandise

B) mail order/telephone order (MOTO)

All of the following are challenges faced by bricks-and-clicks firms except:

A) coordinating prices across channels.

B) building a credible website.

C) handling returns of online purchases at retail outlets.

D) building a brand name.

D) building a brand name.

Which of the following enabled MOTO firms to make an easier transition to e-commerce?

A) the growth of the credit card industry

B) falling long distance telecommunications prices

C) the fact that they already had efficient customer order fulfillment processes

D) the national toll-free call system

C) the fact that they already had efficient customer order fulfillment processes

Consumers are primarily price-driven when shopping on the Internet.

True

False

False

Virtual merchants face potentially large costs for all of the following except:

A) building an order fulfillment infrastructure.

B) building and maintaining physical stores.

C) building and maintaining a website.

D) developing a brand name.

B) building and maintaining physical stores.

What is the largest sector of the online travel services market in terms of revenue?

A) cruise/tour reservations

B) airline reservations

C) hotel reservations

D) car reservations

B) airline reservations

Apart from Amazon, the top online retail firms in terms of online sales are all primarily ________ firms.

A) omni-channel

B) web-only

C) manufacturer-direct

D) catalog merchant

A) omni-channel

In __ , all of a customer's financial (and even nonfinancial) data are pulled together into a single, personalized website.

A) EBPP systems

B) account aggregation

C) a financial portal

D) integrated financial services

B) account aggregation

All of the following were parts of the vision during the early days of e-commerce except the belief that:

A) online consumers were rational and cost-driven.

B) entry costs to the online retail market would be much less than those needed to establish a physical storefront.

C) new, "first-mover" middlemen, with expertise in e-commerce, would force traditional intermediaries out of business.

D) the cost of acquiring customers would be much lower.

C) new, "first-mover" middlemen, with expertise in e-commerce, would force traditional intermediaries out of business.

All of the following statements about the online real estate services market are true except:

A) the Internet and e-commerce have created a revolution in the real estate value chain.

B) the first step in the home buying process for nearly all ages of home buyers is to look online.

C) the primary service offered by real estate sites is a listing of houses available.

D) the major impact of Internet real estate sites has been in influencing offline decisions.

A) the Internet and e-commerce have created a revolution in the real estate value chain.

Which of the following is not a major trend in online retail for 2020-2021?

A) Buying online has become a normal, mainstream, everyday experience.

B) The Covid-19 pandemic is expected to create a decrease in e-commerce retail purchases.

C) The number of online buyers continues to increase.

D) The average annual purchase of online buyers continues to increase.

B) The Covid-19 pandemic is expected to create a decrease in e-commerce retail purchases.

Which of the following is not considered a current asset?

A) long-term investments

B) marketable securities

C) accounts receivable

D) cash

A) long-term investments

Which of the following best explains why the service sector is a natural avenue for e-commerce?

A) The service sector is less geographically reliant and more globally oriented.

B) The service sector requires "rich" marketing messages to reach new customers.

C) It is not; services are difficult to translate to e-commerce because they all rely on face-to-face communication and barter.

D) Much of the value in services is based on the collection, storage, and exchange of information.

D) Much of the value in services is based on the collection, storage, and exchange of information.

Which of the following occurs when retailers of products must compete on price and currency of inventory directly against the manufacturer?

A) hypermediation

B) localization

C) disintermediation

D) channel conflict

D) channel conflict

All of the following are advantages of online retail except:

A) ability to change prices.

B) faster delivery of goods.

C) lower cost of distribution.

D) lower supply chain costs.

B) faster delivery of goods.

The lower the ________ compared to revenue, the higher the gross profit.

A) gross margin

B) cost of sales

C) assets

D) operating expenses

B) cost of sales

Online retail constitutes about 20% of the total retail market today.

True

False

False

In the United States, the service sector accounts for approximately __ % of the United States GDP.

A) 70

B) 75

C) 80

D) 85

C) 80