Chapter 9

Which of the following is an on-demand service company focused on lodging? A) Uber B) Lyft C) Airbnb D) Task Rabbit

Airbnb

How many retailers generate approximately 90% of all retail e-commerce sales? A) 10 B) 100 C) 1,000 D) 10,000

1,000

In 2015, approximately what percentage of Internet users over the age of 14 made a purchase at an online retail store? A) 35% B) 55% C) 75% D) 95%

75%

Approximately ________ % of the United States labor force is involved in providing services. A) 50 B) 60 C) 70 D) 80

80

In the United States, the service sector accounts for approximately ________ % of the United States GDP. A) 70 B) 75 C) 80 D) 85

80

Which of these job recruitment sites is not a job listing aggregator? A) Indeed B) SimplyHired C) Glassdoor D) CareerBuilder

SimplyHired

Almost all recruiting professionals now use social networks in the recruiting process.

TRUE

Big Data plays an important role in predictive marketing.

TRUE

In 2015, the number of online buyers was over 170 million.

TRUE

More than 50% of the adult U.S. population use online banking

TRUE

Naturebox is an example of a subscription-based retail revenue model.

TRUE

On-demand service companies collect a fee from both sellers and buyers who use the platform

TRUE

Which of the following is a subscription-based retailer using predictive marketing and Big Data? A) Macy's B) Birchbox C) Dell D) Lands' End

Birchbox

The lower the ________ compared to revenue, the higher the gross profit. A) assets B) cost of sales C) gross margin D) operating expenses

Cost of sales

Which of the following is not an example of a virtual merchant? A) Overstock B) Wayfair C) Rue La La D) Dell

Dell

About 90% of Internet users in the United States are now online buyers

FALSE

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

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.

FALSE

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

FALSE

Personal consumption of retail goods and services accounts for over 75% of total gross domestic product.

FALSE

The online mortgage industry has transformed the process of obtaining a mortgage.

FALSE

Which of the following is not a major trend in online retail for 2015-2016? A) Online retail remains the fastest growing retail channel. B) Lunchtime purchases are the fastest growing time segment for online retail purchases. C) Online retailers place an increased emphasis on providing an improved "shopping experience". D) Virtual merchants using a subscription-based revenue model emerge.

Lunchtime purchases are the fastest growing time segment for online retail purchases.

Which of the following statements about online banking is not true? A) Top mobile banking activities include checking balances and bank statements and viewing recent transactions. B) Online and mobile banking transactions provide significant costs savings for banks. C) Millennials are adopting mobile banking at a much higher rate than those who are older. D) More people use a tablet for mobile banking than a mobile phone.

More people use a tablet for mobile banking than a mobile phone.

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

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

Which of the following is not a major trend in the online recruitment services industry? A) disintermediation B) millennials and GenX primarily use mobile devices to search for jobs C) social recruiting D) hiring by algorithm

disintermediation

Which of the following is not one of the central challenges facing the online retail industry? A) lack of physical store presence B) consumer concerns about the privacy of personal information C) inconvenience in returning goods D) delivery delays

lack of physical store presence

Which of the following would not be considered a current asset? A) long-term investments B) cash C) accounts receivable D) marketable securities

long-term investments

49) The term supply-push refers to: A) making products prior to orders being received based on estimated demand. B) waiting for orders to be received before building a product. C) channel conflict. D) multi-channel manufacturers who sell directly online to consumers

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

All of the following are terms used to describe on-demand service companies except: A) mesh economy. B) collaborative commerce. C) we-commerce. D) omni-channel commerce

omni-channel commerce

Which of the following is not one of the methods used by traditional retailers to develop omni-channel integration? A) online Web catalog B) online order, in-store pickup C) online supply-push D) online promotions for offline purchases

online supply-push

All of the following are strategic factors that pertain specifically to a firm and its related businesses except: A) core competencies. B) synergies. C) technology. D) power of customers.

power of customers

All of the following statements about the online real estate services market are true except: A) most people use the Internet to search for a home, but still use the services of a real estate agent to complete the purchase. B) real estate differs from other types of online financial services because it is impossible to complete a property transaction online. C) the primary service offered by real estate sites is a listing of houses available. D) the Internet and e-commerce have created significant disintermediation in the real estate marketplace.

the Internet and e-commerce have created significant disintermediation in the real estate marketplace.

Which of the following is not categorized as an operating expense? A) the cost of products being sold B) marketing costs C) administrative overhead D) amortization of goodwill

the cost of products being sold

All of the following were factors that precipitated the growth of MOTO except: A) the national toll-free call system. B) the growth of the cellular phone industry. C) falling long distance telecommunications prices. D) the growth of the credit card industry.

the growth of the cellular phone industry.

Which of the following has the highest share of online retail sales? A) omni-channel merchants B) virtual merchants C) catalog merchants D) manufacturer-direct

virtual merchants

For a quick check of a firm's short-term financial health, examine its: A) working capital. B) gross margin. C) long-term debt. D) cost of sales.

working capital.

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 has historically been more technology-reliant. C) Much of the value in services is based on the collection, storage, and exchange of information. D) It is not; services are difficult to translate to e-commerce because they rely on face-to-face communication and barter.

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

The existence of substitute products is a key industry strategic factor

TRUE

The major impact of Internet real estate sites is in influencing offline decisions.

TRUE

Expedia owns all of the following except: A) Travelocity. B) Orbitz. C) TripAdvisor. D) CheapTickets.

TripAdvisor

All of the following have launched trials of Buy buttons except: A) Facebook. B) Pinterest. C) Twitter. D) Tumblr.

Tumblr

Which of the following had the highest online sales revenue in 2014? A) Macy's B) Walmart C) Sears D) Target

Walmart

What is the largest sector of the online travel services market in terms of revenue? A) hotel reservations B) car reservations C) cruise/tour reservations D) airline reservations

airline reservations

39) Which of the following provides a financial snapshot of a company's assets and liabilities (debts) on a given date? A) working capital B) operating margin C) balance sheet D) gross margin

balance sheet

Omni-channel merchants are also referred to as: A) virtual merchants. B) bricks-and-clicks companies. C) catalog merchants. D) manufacturer-direct firms

bricks-and-clicks companies.

All of the following are challenges faced by bricks-and-clicks firms except: A) coordinating prices across channels. B) handling returns of Web purchases at retail outlets. C) building a credible Web site. D) building a brand name.

building a brand name.

Which of the following occurs when retailers of products must compete on price and currency of inventory directly against the manufacturer? A) disintermediation B) localization C) channel conflict D) hypermediation

channel conflict

Gross margin is defined as gross profit: A) minus total operating expenses. B) divided by net sales revenues. C) divided by cost of sales. D) minus net income.

divided by net sales revenues.

All of the following services require extensive personalization except: A) financial services. B) legal services. C) medical services. D) accounting services.

financial services

Which of the following measures the percentage of sales revenue a firm is able to retain after all expenses are deducted from gross revenues? A) gross profit B) net margin C) operating margin D) working capital

net margin

Which of the following has the second-highest share of online retail sales? A) omni-channel merchants B) virtual merchants C) catalog merchants D) manufacturer-direct

omni-channel merchants

Service industry groups are categorized generally into two groups, those that provide transaction brokering and those that involve: A) retailing goods. B) personalization. C) information brokering. D) providing hands-on services.

providing hands-on services

Craigslist is a player in which of the following online services markets? A) real estate services and career services B) insurance services and brokerage services C) travel services D) online accounting services

real estate services and career services

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

TRUE

Which of the following has introduced a tool known as Consumer Alerts to inform readers when a review is likely to be fraudulent? A) Yelp B) TripAdvisor C) Angie's List D) TripExpert

Yelp

All of the following statements about Amazon are true except: A) Amazon showed a profit in 2014. B) Amazon Web Services is now a major part of Amazon's business. C) eBay can be considered a competitor of Amazon's. D) Amazon continues to generate revenue primarily by selling products

Amazon showed a profit in 2014.

Which of the following is not true about on-demand service firms? A) The growth of on-demand service firms is supported by the use of online reputation systems based on peer review. B) It is not likely that on-demand service firms will totally escape government regulation. C) On-demand service firms facilitate access to resources. D) On-demand service firms are a totally new phenomenon without precedent in the history of e-commerce.

On-demand service firms are a totally new phenomenon without precedent in the history of e-commerce.

The MOTO sector of the retail industry is most similar to the ________ sector. A) specialty stores B) general merchandise C) online retail sales D) consumer durables

Online retail sales

Which of the following statements is not true? A) Price competition among online travel services is difficult as comparison shopping for better prices is easy. B) Online travel services is one of the few sectors in which extensive disintermediation has occurred. C) The ability of travel products and services to be commoditized is a significant factor in the explosive growth of the online travel services industry. D) The online travel services industry has gone through a period of consolidation.

Online travel services is one of the few sectors in which extensive disintermediation has occurred.

Operating margin is defined as: A) operating income or loss divided by net sales revenues. B) operating income or loss divided by total operating expenses. C) net sales revenues divided by net income or loss. D) net assets divided by net liabilities.

Operating income or loss divided by net sales revenues

In ________, all of a customer's financial (and even nonfinancial) data are pulled together at a single personalized Web site. A) account aggregation B) a financial portal C) integrated financial services D) EBPP systems

account aggregation

Which of the following is not an example of a transaction broker? A) a stockbroker B) a real estate agent C) an accountant D) an employment agency

an accountant

Which of the following categories generates the highest percentage of online retail revenue? A) computers and electronics B) apparel and accessories. C) books/music/video D) automobile and automobile parts and accessories

apparel and accessories.

Virtual merchants face potentially large costs for all of the following except: A) building and maintaining a Web site. B) building and maintaining physical stores. C) building an order fulfillment infrastructure. D) developing a brand name

building and maintaining physical stores.

All of the following are challenges for catalog merchants except: A) high costs of printing and mailing. B) building a credible Web site. C) the need to bring staff in or manage new technology. D) building sophisticated order entry and fulfillment systems

building sophisticated order entry and fulfillment systems.

What is another name for pro forma earnings? A) net margin B) operating income C) earnings before income taxes, depreciation, and amortization (EBITDA) D) generally accepted accounting principles (GAAP) earnings

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

Which of the following is not one of the seven major segments of the retail industry? A) electronics and computers B) specialty stores C) gasoline and fuel D) food and beverage

electronics and computers

All of the following are advantages of online retail except: A) lower supply chain costs. B) lower cost of distribution. C) ability to change prices. D) faster delivery of goods.

faster delivery of goods.

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

high cost structures.

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

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

Current liabilities are debts of the firm that will be due within: A) three months. B) six months. C) one year. D) two years.

one year

Which of the following is not a key industry strategic factor? A) synergies B) barriers to entry C) industry value chain D) existence of substitute products

synergies

The Internet has resulted in lower search costs, increased price comparison, and lower prices to consumers for which insurance product line? A) term life insurance B) automobile insurance C) health insurance D) property and casualty insurance

term life insurance

All of the following statements about the online insurance industry are true except: A) the Internet has dramatically changed the insurance industry's value chain. B) Web sites of almost all the major firms provide the ability to obtain an online quote. C) Internet usage has led to a decline in term life insurance prices industry-wide. D) the industry has been very successful in attracting visitors searching for information.

the Internet has dramatically changed the insurance industry's value chain.

All of the following statements about the MOTO sector are true except: A) compared to general merchandisers, the transition to e-commerce has been easier for MOTO firms. B) the MOTO sector is also referred to as the specialty store sector. C) MOTO was the last technological revolution that preceded e-commerce. D) distribution of catalogs is one of MOTO retailers' biggest expenses.

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