BCIS4720 Chapter 9

faster delivery of goods.

All of the following are advantages of online retail except: 1. lower cost of distribution. 2. lower supply chain costs. 3. ability to change prices. 4. faster delivery of goods.

building a brand name.

All of the following are challenges faced by bricks-and-clicks firms except: 1. building a credible website. 2. building a brand name. 3. handling returns of online purchases at retail outlets. 4. coordinating prices across channels.

mail order/telephone order (MOTO)

The online retail sector of the retail industry is most similar to the ________ sector. 1. general merchandise 2. mail order/telephone order (MOTO) 3. consumer durables 4. specialty stores

making products prior to orders being received based on estimated demand.

The term supply-push refers to: 1. channel conflict. 2. making products prior to orders being received based on estimated demand. 3. multi-channel manufacturers who sell directly online to consumers. 4. waiting for orders to be received before building a product.

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

What is another name for pro forma earnings? 1. generally accepted accounting principles (GAAP) earnings 2. operating income 3. net margin 4. earnings before income taxes, depreciation, and amortization (EBITDA)

computers and electronics

Which of the following categories generated the highest percentage of online retail revenue in 2019? 1. apparel and accessories 2. books/music/video 3. automobile and automobile parts and accessories 4. computers and electronics

the fact that they already had efficient customer order fulfillment processes

Which of the following enabled MOTO firms to make an easier transition to e-commerce? 1. falling long distance telecommunications prices 2. the growth of the credit card industry 3. the fact that they already had efficient customer order fulfillment processes 4. the national toll-free call system

omni-channel merchants

Which of the following has the second-highest share of online retail sales? 1. manufacturer-direct 2. virtual merchants 3. catalog merchants 4. omni-channel merchants

Stitch Fix

Which of the following is a subscription-based retailer using predictive marketing and big data? 1. Lands' End 2. Macy's 3. Dell 4. Stitch Fix

Wayfair

Which of the following is not a digitally native vertical brand (D2C)? 1. Caspar 2. Everlane 3. Wayfair 4. Warby Parker

synergies

Which of the following is not a key industry strategic factor? 1. existence of substitute products 2. industry value chain 3. synergies 4. barriers to entry

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

Which of the following is not a major trend in online retail for 2020-2021? 1. The number of online buyers continues to increase. 2. The average annual purchase of online buyers continues to increase. 3. The Covid-19 pandemic is expected to create a decrease in e-commerce retail purchases. 4. Buying online has become a normal, mainstream, everyday experience.

Dell

Which of the following is not an example of a virtual merchant? 1. Dell 2. Newegg 3. Overstock 4. Wayfair

the cost of products being sold

Which of the following is not categorized as an operating expense? 1. administrative overhead 2. marketing costs 3. amortization of goodwill 4. the cost of products being sold

long-term investments

Which of the following is not considered a current asset? 1. long-term investments 2. cash 3. marketable securities 4. accounts receivable

lack of physical store presence

Which of the following is not one of the central challenges facing the online retail industry? 1. lack of physical store presence 2. consumer concerns about the privacy of personal information 3. delivery delays 4. inconvenience in returning goods

online supply-push

Which of the following is not one of the methods used by traditional retailers to develop omni-channel integration? 1. online order, in-store pickup 2. online supply-push 3. online catalog 4. online promotions for offline purchases

electronics and computers

Which of the following is not one of the seven major segments of the retail industry? 1. food and beverage 2. gasoline and fuel 3. specialty stores 4. electronics and computers

Most of the revenue in this category is generated from the sales of automobiles.

Which of the following statements is not true about the automobile, and automobile parts and accessories, online retail category? 1. Automobile manufacturers use the Internet to deliver branding advertising. 2. Most of the revenue in this category is generated from the sales of automobiles. 3. U.S. franchising law prohibits automobile manufacturers from selling cars directly to consumers. 4. Automobile retailing is dominated by dealership networks.

building sophisticated order entry and fulfillment systems.

All of the following are challenges for catalog merchants except: 1. high costs of printing and mailing. 2. building sophisticated order entry and fulfillment systems. 3. building a credible website. 4. the need to bring staff in or manage new technology.

high-cost structures.

All of the following are examples of the challenges that traditional manufacturers experience when using the Internet to sell directly to the consumer except: 1. channel conflict. 2. moving to a demand-pull model. 3. high-cost structures. 4. developing a fast-response online order and fulfillment system.

power of customers.

All of the following are strategic factors that pertain specifically to a firm and its related businesses except: 1. synergies. 2. power of customers. 3. core competencies. 4. technology.

Tumblr

All of the following have introduced social commerce functionality, such as buy buttons, shoppable ads, and marketplaces, except: 1. Pinterest. 2. Tumblr. 3. Instagram. 4. Facebook.

Amazon purchased Jet.com, one of its discount competitors, to give it a more robust network for delivering goods.

All of the following statements about Amazon are true except: 1. Amazon purchased Jet.com, one of its discount competitors, to give it a more robust network for delivering goods. 2. Amazon generates the bulk of its overall revenue by selling products. 3. eBay can be considered a competitor of Amazon's. 4. Amazon Web Services delivers more profits than Amazon's entire retail business

the MOTO sector is also referred to as the specialty store sector.

All of the following statements about the MOTO sector are true except: 1. MOTO was the last technological retailing revolution that preceded e-commerce. 2. improvements in telephone systems and the expansion of the credit card industry and associated technologies fueled the development of the MOTO sector. 3. the MOTO sector is also referred to as the specialty store sector. 4. compared to general merchandisers, the transition to e-commerce was easier for MOTO firms.

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

All of the following were parts of the vision during the early days of e-commerce except the belief that: 1. new, "first-mover" middlemen, with expertise in e-commerce, would force traditional intermediaries out of business. 2. the cost of acquiring customers would be much lower. 3. online consumers were rational and cost-driven. 4. entry costs to the online retail market would be much less than those needed to establish a physical storefront.

building and maintaining physical stores.

Virtual merchants face potentially large costs for all of the following except: 1. building and maintaining physical stores. 2. building and maintaining a website. 3. developing a brand name. 4. building an order fulfillment infrastructure.

virtual merchants

Which of the following has the highest share of online retail sales? 1. catalog merchants 2. omni-channel merchants 3. virtual merchants 4. manufacturer-direct

True

Big data plays an important role in predictive marketing. 1. True 2. False

False

Consumers are primarily price-driven when shopping on the Internet. 1. True 1. False

False

Contrary to predictions of analysts made during the early days of e-commerce, the Internet has led to both disintermediation and hypermediation on a widespread basis. 1. True 2. False

one year.

Current liabilities are debts of the firm that will be due within: 1. six months. 2. one year. 3. two years. 4. three months.

net margin

Which of the following measures the percentage of sales revenue a firm can retain after all expenses are deducted from gross revenues? 1. working capital 2. operating margin 3. gross profit 4. net margin

channel conflict

Which of the following occurs when retailers of products must compete on price and currency of inventory directly against the manufacturer? 1. localization 2. channel conflict 3. disintermediation 4. hypermediation

balance sheet

Which of the following provides a financial snapshot of a company's assets and liabilities (debts) on a given date? 1. gross margin 2. operating margin 3. balance sheet 4. working capital

working capital.

For a quick check of a firm's short-term financial health, examine its: 1. working capital. 2. cost of sales. 3. gross margin. 4. long-term debt.

divided by net sales revenues.

Gross margin is defined as gross profit: 1. divided by cost of sales. 2. divided by net sales revenues. 3. minus total operating expenses. 4. minus net income.

80%

In 2020, it was estimated that about what percentage of Internet users over the age of 14 would make a purchase at an online retail store? 1. 60% 2. 40% 3. 70% 4. 80%

True

In 2020, the number of online buyers in the United States was around 205 million. 1. True 2. False

bricks-and-clicks companies.

Omni-channel merchants are also referred to as: 1. virtual merchants. 2. manufacturer-direct firms. 3. catalog merchants. 4. bricks-and-clicks companies.

False

Online retail constitutes about 20% of the total retail market today. 1. True 2. False

True

Online retailing provides an example of the powerful role that intermediaries continue to play in retail trade. 1. True 2. False

operating income or loss divided by net sales revenues.

Operating margin is defined as: 1. net sales revenues divided by net income or loss. 2. operating income or loss divided by total operating expenses. 3. operating income or loss divided by net sales revenues. 4. net assets divided by net liabilities.

False

Personal consumption of retail goods and services accounts for over 80% of total gross domestic product (GDP). 1. True 2. False

True

The existence of substitute products is a key industry strategic factor. 1. True 2. False

cost of sales

The lower the ________ compared to revenue, the higher the gross profit. 1. gross margin 2. assets 3. cost of sales 4. operating expenses

omni-channel

Apart from Amazon, the top online retail firms in terms of online sales are all primarily ________ firms. 1. manufacturer-direct 2. omni-channel 3. catalog merchant 4. web-only