Ch. 9 Pretest

(T/F) Naturebox is an example of a subscription-based retail revenue model

True

Which of the following is not an example of a transaction broker? -Stockbroker -Real estate agent -Accountant -Employment agency

An accountant

How many retailers generate approximately 90% of all retail e-commerce sales?

1000

In the United States, the service sector accounts for approximately ____% of the US GDP

80

All of the following terms are used to describe on demand service companies except -Mesh economy -Collaborative commerce -We-commerce -Omni-channel commerce

Omni Channel Commerce

_______ is categorized as an operating expense

Operating Margin

Service industry groups are categorized generally into two groups, those who provide transaction brokering and those that involve

Providing hands-on services

_______ is defined as gross profit, and found by dividing net sales and revenues

The cost of products being sold

All of the following were factors that precipitated the growth of MOTO except -The national toll-free call system -The growth of the cellular phone industry -Failing long distance telecommunications prices -The growth of the credit card industry

The growth of the cellular phone industry

Omni-channel merchants are also referred to as

Bricks and Clicks

All of the following are challenges faced by bricks and clicks firms except -Coordinating prices across channels -Handling returns of Web purchases at retail outlets -Building a credible Web site -Building a brand name

Building a brand name

Virtual merchandise face potentially large costs for all of the following except: -Building and maintaining a web site -Building and maintaining physical stores -Building an order fulfillment infrastructure -Developing a brand name

Building and maintaining physical stores

Which of the following occurs when retailers of products must compete on price and currency of inventory directly against the manufacturer? -Disintermediation -Localization -Channel Conflict -Hypermediation

Channel Conflict

The lower the _______ compared to the revenue, the higher the gross profit

Cost of sales

Which of the following is NOT a major trend in the online recruitment services industry? -Disintermediation -Millennials and GenX primarily use mobile devices to search for jobs -Social recruiting -Hiring by algorithm

Disintermediation

Which of the following is not one of the seven major segments of the retail industry? -Electronics and computers -Specialty stores -Gasoline and fuel -Food and beverage

Electronics and computers

(T/F) Consumers are primarily price-driven when shopping on the internet

False

(T/F) Online retailer constitutes about 20% of the total retail market today

False

(T/F) Online travel services is one of the few sectors in which extensive disintermediation has occurred

False

(T/F) Personal consumption of retail goods and services accounts of over 75% of total gross domestic product

False

Operating income or loss divided by net sales revenue is _______

Gross Margin

Which of the following is NOT one of the central challenges facing the online retail industry? -Lack of physical store presence -Inconvenience in returning goods -Consumer Concerns about the privacy of personal info -Delivery delays

Lack of physical store presence

The term supply-push refers to

Making products prior to orders being received based on estimated demand

What best explains why the service sector is a natural avenue for e-commerce

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

(T/F) Big Data plays an important role in predictive marketing

True

Which of the following is NOT an example of a virtual merchant? -Overstock -Wayfair -Rue La La -Dell

Dell

Which of the following is NOT one of the methods used by traditional retailers to develop omni-channel integration? -Online Web catalog -Online order, in store pickup -Online supply push -Online promotions for offline purchases

Online supply push

All of the following are true about MOTO except -Compared to general merchandisers, the transition to e-commerce has been easier for MOTO firms -The MOTO sector is also referred to as the specialty store sector -MOTO was the last technological revolution that preceded e-commerce -Distribution of catalogs is one of the MOTO retailer's biggest expenses

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

(T/F) Online retailing provides an example of the powerful role that intermediaries continue to play in retail trade

True

All of the following have launched trials of the Buy buttons except -Facebook -Twitter -Tumblr -Pinterest

Tumblr

What has the highest share of online retail sales?

Virtual merchants

Which of the following had the highest online sales revenue in 2014? -Macy's -Walmart -K-Mart -Target

Walmart

What has introduced a tool known as Consumer Alerts to inform readers when a review is likely to be fraud

Yelp

Which of the following is not a major trend in online retail for 2015-2016? -Online retail remains the fastest growing retail channel -Lunchtime purchases are the fastest growing time segment for online retail purchases -Online retailers place an increased emphasis on providing an improved "shopping experience" -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 categories generates the highest percentage of online retail revenue -Computers and electronics -Books/music/video -Apparel and accessories -Automobile and automobile parts and accessories

Apparel and Accessories