Chapter 2 CB

The overall retail market in the United States in 2012 was estimated at about:

3.7 trillion

The overall retail market in the US in 2013 was:

3.9 trillion

All of the following use an advertising revenue model except:

Amazon

Which of the following was the first to announce a cloud music service?

Amazon

Which of the following is an example of the subscription revenue model?

Ancestry.com

Which element of the business model examines who else occupies the firm's intended marketspace?

Competitive environment

Which of the following is not an example of the bricks-and-clicks e-tailing business model?

Dell.com

Which company utilizes a transaction fee revenue model?

E trade

Which of the following companies utilizes a transaction fee revenue model?

E*trade

If you wished to leverage the ubiquitous nature of the Web to differentiate your product, you would:

Enable individual customization of the product by customers

Differentiation refers to situations in which there is little difference between products and the only basis of choosing a product is price

False

Most first movers have the complementary resources needed to sustain their advantage

False

Scale economies are efficiencies that result from flattening the hierarchy of an organization:

False

Service providers primarily use the advertising revenue model

False

The JOBS Act allows a start-up company to use crowd funding to raise up to $10 million within a one-year period

False

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?

Global reach

Which of the following statements about Groupon is not true?

Groupon has yet to show a profit

Which of the following is an example of the affiliate revenue model?

MyPoints

Which was not able to successfully implement a freemium business model?

Ning

An example of a company using the content provider model is:

Rhapsody.com

Which of the following are Amazon's primary value propositions

Selection and convenience

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

True

A value proposition defines how a company's products or service fulfills the needs of a customer

True

All firms need an organization to efficiently implement their business plans and strategies

True

An asymmetry exists whenever one participant in a market has more resources than other participants

True

Barriers to entry into the e-tail marketplace are low:

True

In order to be considered successful, a firm must produce returns greater than alternative investments

True

In order to be considered successful, a firm must produce returns greater than alternative investments:

True

Interactivity that enables product customization alters industry structure by reducing the threat of substitutes

True

Interfirm rivalry is one area of the business environment where e-commerce technologies have had an impact on most industries:

True

Social technologies change industry structure by shifting programming and editorial decisions to customers

True

The Internet's universal standards decrease the cost of industry and firm operations

True

The terms revenue model and financial model can be used internchangeably

True

Which element of the business model addresses the question of why a customer should buy from the firm?

Value proposition

BLANK and BLANK are typically the most identifiable aspects of a company's business model:

Value proposition; revenue model

Which type of investor typically becomes interested in a start-up company after it has begun generating revenue?

Venture capital investors

A strategy designed to compete within a narrow market or product segment is called

a focus strategy

Amazon does not use an

advertising revenue model

Stickiness is an important attribute for which revenue model?

advertising revenue model

Your solar panel manufacturing firm has developed a unique and patented process for creating high-efficiency solar panels at a fraction of current costs. This will enable your firm to adopt a strategy of:

cost competition

Grainger.com is an example of which of the following business models?

e-distributor

BLANK create and sell access to digital electronic markets:

e-procurement firms

The business model of e-distributors is quite similar to that of:

e-tailers

Which of the following is not a variation of the e-tailer business model?

market creator

A business document that specifically details how you plan on selling your product and find new customers is called a:

market strategy

In general, the key to becoming a successful content provider is to:

own the content being provided

All of the following are business models employed by the industry except:

peer-to-peer streaming

A firm's BLANK describes how a firm will produce a superior return on invested capital

revenue model

What is the primary revenue model for an e-distributor?

sales

Horizontal or general portals primarily generate in all of the following ways except:

sales of goods

Horizontal or general portals primarily generate revenue in all of the following way except:

sales of goods

Which of the following factors is not a significant influence on a company's competitive environment?

the availability of supportive organizational structures

The element of a business model that is responsible for making the model work is:

the management team

The existence of a large number of competitors in any one market segment may indicate

the market is saturated

The basic value proposition of community providers is:

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

Expedia is an example of a:

transaction broker

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

true

A BLANK coordinates a firm's suppliers, distributors, and delivery firms with its own production needs using an Internet-based supply chain management system.

Value web

Which is not considered a portal?

WSJ.com

Which of the following is not considered a portal?

WSJ.com

Which of the following would be an indirect competitor of American Airlines?

Zipcar

Visitors to specialized niche vortals tend to spend less money than the average visitor to a horizontal portal

False

The existence of a large number of competitors in any one market segment may indicate:

the market is saturated