E-commerce Business Models and Concepts Questions and Approved Answers 100% Guarantee to Score A+

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1) A value proposition defines how a company's product or service fulfills the needs of a customer. Answer: TRUE Page Ref: 59 Difficulty: Easy AACSB: Application of knowledge 2) The term unfit f... itness refers to a situation in which employees of a firm have the wrong skills for the current environment. Answer: TRUE Page Ref: 97 Difficulty: Moderate AACSB: Application of knowledge 3) Firms that fail to produce returns greater than alternative investments typically go out of business. Answer: TRUE Page Ref: 60 Difficulty: Easy AACSB: Application of knowledge 4) An asymmetry exists whenever all participants in a market have equivalent resources. Answer: FALSE Page Ref: 66 Difficulty: Moderate AACSB: Application of knowledge 5) First movers are always more successful than follower firms. Answer: FALSE Page Ref: 66 Difficulty: Moderate AACSB: Application of knowledge 6) All firms need an organization to efficiently implement their business plans and strategies. Answer: TRUE Page Ref: 67 Difficulty: Easy AACSB: Application of knowledge 1 *You can buy complete chapters by: Www.TestbankU.com Contact Us: TestbankU@aol.com 7) SaaS and PaaS providers can typically provide services at lower costs through scale economies. Answer: TRUE Page Ref: 84 Difficulty: Moderate AACSB: Application of knowledge 8) Sharing economy companies are characterized by the free sharing of resources between the company and consumers. Answer: FALSE Page Ref: 81 Difficulty: Moderate AACSB: Application of knowledge 9) The JOBS Act and issuance of enabling regulations by the Securities and Exchange Commission allows a start-up company to use crowdfunding to solicit accredited investors to invest in small and early-stage start-ups. Answer: TRUE Page Ref: 69 Difficulty: Moderate AACSB: Application of knowledge 10) Scale economies are efficiencies that result from flattening the hierarchy of an organization. Answer: FALSE Page Ref: 84 Difficulty: Moderate AACSB: Application of knowledge 11) A company's strong linkages with its customers decrease switching costs. Answer: FALSE Page Ref: 95 Difficulty: Moderate AACSB: Application of knowledge 12) The Internet's universal standards can change industry structure by lowering barriers to entry and intensifying competition within an industry. Answer: TRUE Page Ref: 87 Difficulty: Difficult AACSB: Application of knowledge 13) Interactivity that enables product customization alters industry structure by reducing the threat of substitutes. Answer: TRUE Page Ref: 87 Difficulty: Difficult 2 *You can buy complete chapters by: Www.TestbankU.com Contact Us: TestbankU@aol.com AACSB: Application of knowledge 14) E-commerce has increased price competition in nearly all markets. Answer: TRUE Page Ref: 89 Difficulty: Difficult AACSB: Application of knowledge 15) Social technologies change industry structure by shifting programming and editorial decisions to consumers and creating substitute entertainment products. Answer: TRUE Page Ref: 87 Difficulty: Difficult AACSB: Information technology 16) ________ 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 Answer: B Page Ref: 58 Difficulty: Moderate AACSB: Application of knowledge 17) All of the following are using a subscription revenue model for e-books except: A) Amazon. B) Scribd. C) Barnes and Noble. D) Oyster. Answer: C Page Ref: 60 Difficulty: Moderate AACSB: Application of knowledge 18) Which element of the business model addresses the question of why a customer should buy from the firm? A) revenue model B) competitive advantage C) market strategy D) value proposition Answer: D Page Ref: 59 Difficulty: Moderate AACSB: Application of knowledge 3 *You can buy complete chapters by: Www.TestbankU.com Contact Us: TestbankU@aol.com 4 *You can buy complete chapters by: Www.TestbankU.com Contact Us: TestbankU@aol.com 19) Which element of the business model relates to the power of customers and suppliers with respect to a business? A) value proposition B) competitive environment C) competitive advantage D) market strategy Answer: B Page Ref: 65 Difficulty: Moderate AACSB: Application of knowledge 20) 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 Answer: B Page Ref: 60 Difficulty: Moderate AACSB: Analytical thinking 21) Your company has just implemented a new, more efficient set of business processes that other firms cannot yet obtain. This will enable your firm to adopt a strategy of: A) cost competition. B) scope. C) scale. D) focus. Answer: A Page Ref: 94 Difficulty: Moderate AACSB: Analytical thinking 22) 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 Answer: B Page Ref: 60 Difficulty: Moderate AACSB: Application of knowledge 5 *You can buy complete chapters by: Www.TestbankU.com Contact Us: TestbankU@aol.com 23) Which of the following is an example of the subscription revenue model? A) eHarmony B) eBay C) E*Trade D) Twitter Answer: A Page Ref: 61 Difficulty: Moderate AACSB: Application of knowledge 24) The ability to retain user attention and engagement is an important attribute for which revenue model? A) advertising revenue model B) subscription revenue model C) transaction fee revenue model D) sales revenue model Answer: A Page Ref: 60 Difficulty: Moderate AACSB: Application of knowledge 25) Which of the following companies utilizes a transaction fee revenue model? A) Yahoo B) E*Trade C) Twitter D) Sears Answer: B Page Ref: 61 Difficulty: Moderate AACSB: Application of knowledge 26) Which of the following is an example of the affiliate revenue model? A) Oyster B) eBay C) L.L. Bean D) MyPoints Answer: D Page Ref: 61 Difficulty: Moderate AACSB: Application of knowledge 6 *You can buy complete chapters by: Www.TestbankU.com Contact Us: TestbankU@aol.com 27) 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 Answer: C Page Ref: 60 Difficulty: Moderate AACSB: Analytical thinking 28) 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 Answer: C Page Ref: 65 Difficulty: Difficult AACSB: Application of knowledge 29) Which of the following would be considered an indirect competitor of Travelocity? A) Priceline B) Expedia C) Orbitz D) TripAdvisor Answer: B Page Ref: 65 Difficulty: Difficult AACSB: Analytical thinking [Show More]

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