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

Document Content and Description Below

1) A value proposition defines how a company's product or service fulfills the needs of a customer. Answer: TRUE 2) The term unfit fitness refers to a situation in which employees of a firm have th... e wrong skills for the current environment. Answer: TRUE 3) Firms that fail to produce returns greater than alternative investments typically go out of business. Answer: TRUE 4) An asymmetry exists whenever all participants in a market have equivalent resources. Answer: FALSE 5) First movers are always more successful than follower firms. Answer: FALSE 6) All firms need an organization to efficiently implement their business plans and strategies. Answer: TRUE 7) SaaS and PaaS providers can typically provide services at lower costs through scale economies. Answer: TRUE 8) Sharing economy companies are characterized by the free sharing of resources between the company and consumers. Answer: FALSE 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 10) Scale economies are efficiencies that result from flattening the hierarchy of an organization. Answer: FALSE 11) A company's strong linkages with its customers decrease switching costs. Answer: FALSE 12) The Internet's universal standards can change industry structure by lowering barriers to entry and intensifying competition within an industry. Answer: TRUE 1 13) Interactivity that enables product customization alters industry structure by reducing the threat of substitutes. Answer: TRUE 14) E-commerce has increased price competition in nearly all markets. Answer: TRUE 15) Social technologies change industry structure by shifting programming and editorial decisions to consumers and creating substitute entertainment products. Answer: TRUE 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 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 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 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 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 2 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 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 23) Which of the following is an example of the subscription revenue model? A) eHarmony B) eBay C) E*Trade D) Twitter Answer: A 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 25) Which of the following companies utilizes a transaction fee revenue model? A) Yahoo B) E*Trade C) Twitter D) Sears Answer: B 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 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 3 D) transaction fee revenue model Answer: C 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 29) Which of the following would be considered an indirect competitor of Travelocity? A) Priceline B) Expedia C) Orbitz D) TripAdvisor Answer: B 30) 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. Answer: B 31) 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. Answer: D 32) 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. Answer: A 33) The business model of e-tailers is quite similar to that of: A) e-distributors. B) transaction brokers. C) exchanges. D) service providers. Answer: A 4 34) All of the following use an advertising revenue model except: A) Twitter. B) Yahoo. C) Google. D) Amazon. Answer: D 35) 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. Answer: C 36) Which of the following is not considered a portal? A) Yahoo B) MSN C) Amazon D) AOL Answer: C 37) 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. Answer: C 38) 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 Answer: D 39) Which of the following is not a community provider? A) LinkedIn B) Facebook C) Priceline D) Pinterest Answer: C 40) 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 Answer: C 5 41) An example of a company using the content provider model is: A) Priceline. B) Rhapsody. C) Dell. D) eBay. Answer: B 42) 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 Answer: C 43) The overall retail market in the United States in 2017 was estimated at about: A) $47 trillion. B) $4.7 trillion. C) $490 billion. D) $47 billion. Answer: B 44) 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. Answer: A 45) Which of the following was not able to successfully implement a freemium business model? A) Pandora B) Dropbox C) LinkedIn D) Ning Answer: D 46) All of the following may lead to a competitive advantage except: A) less expensive suppliers. B) better employees. C) fewer products. D) superior products. Answer: C 6 47) 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. Answer: A [Show More]

Last updated: 2 years ago

Preview 1 out of 15 pages