Chapter 2 vocab e-commerce

e-tailer

-Bricks and clicks are e-tailers. -Consumers that are time starved are great prospects for e-tailers. -Barriers to entry for e-tailing are low. -But hard to stay alive. -There are four variations, virtual merchant, bricks-and-clicks, catalog merchant, and manufacturer direct.

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) advertising revenue model

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) brand name

Which of the following is an example of the subscription revenue model? A) eHarmony B) eBay C) E*Trade D) Twitter

A) eHarmony

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) own the content being provided.

What is the primary revenue model for an e-distributor? A) sales B) transaction fee C) advertising D) subscription

A) sales

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) they offer a fast, convenient one-stop site where users can focus on their most important concerns and interests.

Which of the following companies uses a transaction fee revenue model? A) Yahoo B) E*Trade C) Twitter D) Sears

B) E*Trade

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) Value proposition; revenue model

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) competitive environment

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) diminished sharply.

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) e-procurement companies

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) revenue model

5) 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) selection and convenience

________ create and sell access to digital markets. A) E-distributors B) Portals C) E-procurement firms D) Market creators

C) E-procurement firms

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) content provider.

W.W. Grainger is an example of which of the following business models? A) B2B service provider B) exchange C) e-distributor D) industry consortia

C) e-distributor

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) fewer products.

SupplyOn is an example of a(n): A) private industrial network. B) exchange. C) industry consortium. D) e-distributor.

C) industry consortium.

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) leverage

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) sales of goods.

community provider

Creates an online environment where people with similar interest can transact, share interest, photos, and videos, with like minded people; and receive interest-related information

All of the following use an advertising revenue model except: A) Twitter. B) Yahoo. C) Google. D) Amazon.

D) Amazon.

Which of the following is an example of the affiliate revenue model? A) Scribd B) eBay C) L.L. Bean D) MyPoints

D) MyPoints

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) e-tailers.

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) market strategy

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) value proposition

e-commerce firms can raise capital

Differentiation -Uniqueness Commoditization -Price Customer intimacy -Strong ties Scope strategy -compete with global markets Focus/market niche -narrow market Strategy of cost -lower cost and service competition

Private Industrial Networks

Digital network designed to coordinate the flow of communications among firms engaged in business together -Also known as a private trading exchange (PTX) -Constitutes about 75% of a B2B expenditures -Designed to coordinate the flow of commination between firms engaged in business together.

content provider

Distribute information content, such as digital news, music, photos, videos, and artwork

exchanges

Independently owned vertical digital marketplace for direct inputs; Where suppliers and commercial purchase can conduct transactions; where hundreds of suppliers meet a smaller number of very large commercial purchasers -typically vertically integrated companies

Industry consortium

Industry-owned vertical digital market open to select suppliers Serve specific industries

portal

Offers users powerful search tools as well as an integrated pakcage of content and services all in one place

transaction broker

Site that process transactions for consumers that are normally handled in person, by phone, or by mail

revenue model

how a company plans to make money from its operations, major e-commerce revenue models include the advertising model, subscribition, transaction, sales, and affiliate

value proposition

how a company product or service fulfills the needs of customers. typical e-commerce value propositions include personalization, customization, convenience, and reduction of product search and price delivery costs.

E-procurement

single firms create digital for thousands of sellers and buyers

e-distrubtor

supplies products directly to individual business

Competitive environment

the direct and indirect competitors doing business in the same marketspace including how many there are and how profitable they are

market strategy

the plan a company develops that outlines how it will enter a market and attract customers

A value proposition defines how a company's product or service fulfills the needs of a customer. true or false

true

The primary value proposition for a transaction broker is the saving of time and money. true or false

true

Competitive advantage

when a firm produce a superior product or bring a similar product to market at a lower price.