Quiz 2

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Which of the following uses a subscription revenue model for books? A. Rhapsody B. Pandora C. Scribd D. Spotify

C. Scribd

In the ________ business model, a web-based business builds a digital environment in which buyers and sellers can meet, display products, search for products, and establish prices. A. community provider B. e-tailer C. market creator D. Portal

C. market creator

Which of the following gives a business model the most credibility with outside investors? A. the firm's value proposition B. the firm's market strategy C. the firm's management team D. the firm's market opportunity

C. the firm's management team

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

A) E-procurement firms

Which of the following is not a community provider? A. LinkedIn B. Pinterest C. Facebook D. Blue Nile

D. Blue Nile

All of the following would be considered a direct competitor of Priceline except: A. Travelocity. B. Expedia. C. Orbitz. D. ESPN

D. ESPN

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

A) MyPoints

All of the following can be considered a direct or indirect competitor of Amazon except: A) Priceline. B) Walmart. C) Apple's iTunes Store. D) eBay.

A) Priceline.

If you wished to leverage the ubiquitous nature of the Web to differentiate your product, you would: A) enable individual customization of the product by consumers. B) implement a strategy of commoditization. C) adopt a strategy of cost competition. D) develop a scope strategy to compete within a narrower market segment.

A) enable individual customization of the product by consumers.

An example of a company using the content provider model is: A. Rhapsody. B. eBay. C. Dell. D. Priceline.

A. Rhapsody.

Stickiness is an important attribute for which of the following revenue models? A. advertising revenue model B. affiliate revenue model C. subscription revenue model D. transaction fee revenue model

A. advertising revenue model

Organizations that typically provide an array of services to start-up companies along with a small amount of funding are referred to as: A. incubators. B. crowdfunders. C. angel investors. D. venture capital investors.

A. incubators.

Which of the following is not a variation of the e-tailer business model? A. market creator B. bricks-and-clicks C. manufacturer-direct D. virtual merchant

A. market creator

In general, the key to becoming a successful content provider is to: A. own the content being provided. B. provide online content for free. C. provide other services as well as online content. D. own the technology by which content is created, presented, and distributed.

A. own the content being provided.

First movers often fail because: A. they lack complementary resources needed to sustain their advantages. B. their competitive advantage is unfair. C. they are operating in a perfect market. D. they fail to leverage their competitive assets.

A. they lack complementary resources needed to sustain their advantages.

________ is defined by company using its competitive advantage to gain in surrounding markets. A) Differentiation B) Leverage C) Focus D)Market strategy

B) Leverage

A strategy designed to compete within a narrow market or product segment is called a ________ strategy. A. scope B. focus C. differentiation D. commoditization

B. focus

Which of the following features of e-commerce technology changes industry structure by lowering barriers to entry but greatly expands the market at the same time? A. richness B. global reach C. interactivity D. personalization

B. global reach

Which of the following is an unfair competitive advantage? A) superior technology B) lower product prices C) access to global markets D) brand name

D) brand name

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) transaction fee revenue model C) subscription revenue model D) freemium strategy

D) freemium strategy


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