CIS Lesson 02 Quiz 1 e-Commerce Business Models

In 2012 - what percent markup was Gillette able to charge for razor blades?

167%

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

B. eHarmony

All of the following may lead to a competitive advantage except: D. less expensive suppliers. B. fewer products. C. superior products. A. better employees.

B. fewer products.

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

C. Blue Nile

What kind of marketplace supplies products and services of interest to particular industries?

vertical

What percent market share for razor blades did Gillette hold in 2012 and used its near-monopoly power to great advantage?

72%

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

A. Amazon.

All of the following use a social network marketing strategy except: D. Pinterest. B. Amazon. C. YouTube. A. Twitter.

B. Amazon.

Which element of the business model refers to the presence of substitute products in the market? A. market opportunity C. competitive advantage B. competitive environment D. value proposition

B. competitive environment

eBay uses all of the following business models except: A. e-commerce infrastructure provider. C. B2C market creator. D. C2C market creator. B. content provider.

B. content provider.

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

C. E*Trade

Over the past decade, the number of exchanges has: B. increased slowly but steadily. A. stayed about the same. C. diminished sharply. D. greatly increased.

C. diminished sharply.

Which of the following is not considered a portal? C. Yahoo B. AOL A. MSN D. Amazon

D. Amazon

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

D. brand name

Which type of investor typically becomes interested in a start-up company after it has begun generating revenue? B. incubators A. crowdfunders D. venture capital investors C. angel investors

D. venture capital investors

A ________ marketplace supplies products and services of interest to particular industries. B. horizontal A. perfect C. differentiated D. vertical

D. vertical

First movers are usually more successful than follower firms.

False

A wealthy individual who invests personal funds in a start-up in exchange for an equity stock in the business is referred to as a(n) what?

angel investor

The set of planned activities designed to result in a profit in the marketplace is typically referred to as a what?

business model

A company that sells products and services that are very similar and in the same market segment is referred to as what?

direct competitor

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

own the content being provided

Which of the following is another name for a revenue model? A. business strategy C. business model B. financial model D. financial statements

B. financial model

Which of the following is not a primary activity in a firm value chain? D. operations B. outbound logistics C. finance/accounting A. after-sales service

C. finance/accounting

The set of activities performed in an industry or in a firm that transforms raw inputs into final products and services is referred to as what?

value chain

Scale economies are efficiencies that result from increasing the size of the business.

true

Fast forward to 2017 and Dollar Shave Club is ranked as which of the largest shaving brand in the U.S. market?

2nd

The typical/usual discount on a GroupOn coupon is which of the following:

50-90%

On-demand service companies are characterized by the free sharing of resources between the company and consumers.

false

Social technologies change industry structure by weakening powerful sales channels and shifts bargaining power to consumers.

false

The Internet's universal standards can change industry structure by decreasing barriers to entry and increasing competition within an industry.

true

Traditional retailers are facing increasing pressure to learn now to sell directly to the consumers as opposed to traditional bricks-and-mortar shopping outlets.

true

Dollar Shave Club uses member feedback to make decisions regarding its product line.Describe one such instance that allowed or caused a re-do/do-over/re-launch of a product or service.

Dollar Shave Club uses member feedback to make decisions regarding its product line as seen with its exfoliating cloth. When the product was first released, the company received "lukewarm reviews" from its customers and decided to redesign the product from scratch and refund everyone who bought the initial version.

The DollarShaveClub razor blades were initially made/manufactured (and still are) WHERE?

South Korea

What will Unilever/Dollar Shave Club have to do so as to go global?

The company first rose to prominence due to their understanding of the American male. In order to expand globally, the company will have to learn to tailor their message to each country where cultures and grooming standards are different.

New technologies that are at the core of a change in the way business is done are referred to as what kind of technologies?

disruptive

Organizations that typically provide an array of services to start-up companies along with a small amount of funding are referred to as:

incubators

________ is defined by company using its competitive advantage to gain in surrounding markets.

leverage

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

true

Merchants/businesses could use GroupOn to help introduce new customers to their products or services.

true

Modern entrepreneurs are on the hunt for markets where customers perceive unfairness or inefficiency, but can't do much about it.

true

Most GroupOn deals/coupons are only valid for several days and have a limited quantity.

true

Which of the following is not an example of the bricks-and-clicks e-tailing business model? D. Sears B. Staples A. Walmart C. Bluefly

C. Bluefly

The financial services, travel services, and job placement services industries typically use the ________ business model.

transaction broker

The financial services, travel services, and job placement services industries typically use what business model?

transaction broker

A company's strong linkages with its customers increase switching costs.

true

Businesses that use Groupon may be/could be significantly impacted by being overwhelmed by all the customers taking advantage of the great Groupon deal.

true

Customers that purchase a Groupon certificate spur-of-the-moment may actually never use the Groupon deal before it expires.

true

E-commerce has increased price competition in many markets.

true

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

A. E-procurement firms

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? C. personalization A. global reach B. interactivity D. richness

A. global reach

A ________ specifically details how you plan to find customers and to sell your product. B. sales analysis D. competitive strategy C. business plan A. market strategy

A. market strategy

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

B. e-distributor

All of the following are business models employed in the online music industry except: B. peer-to-peer streaming. A. download-and-own. C. cloud streaming. D. subscription.

B. peer-to-peer streaming.

All of the following are examples of business-to-business (B2B) business models except: B. portals. D. e-distributors. C. exchanges. A. e-procurement.

B. portals.

The existence of many competitors in any one market segment may indicate: B. the market is saturated. C. a market that has already been tried without success. D. an untapped market niche. A. no one firm has differentiated itself within that market.

B. the market is saturated.

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

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

Which of the following may offer its customers value chain management software? D. exchanges C. e-procurement companies A. community providers B. e-distributors

C. e-procurement companies

Which of the following is not a primary activity in a firm value chain? B. outbound logistics D. operations A. after-sales service C. finance/accounting

C. finance/accounting

A firm's ________ describes how a firm will produce a superior return on invested capital. A. competitive advantage D. market strategy C. revenue model B. value proposition

C. revenue model

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

C. the firm's management team

A ________ is a networked business ecosystem that coordinates a firm's suppliers, distributors, and delivery firms with its own production needs using an Internet-based supply chain management system. B. value chain C. value web D. value system A. business strategy

C. value web

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

D. Rhapsody.

________ and ________ are typically the most easily identifiable aspects of a company's business model. C. Market strategy; market opportunity D. Value proposition; revenue model B. Competitive advantage; competitive environment A. Revenue model; market opportunity

D. Value proposition; revenue model

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? B. advertising revenue model A. subscription revenue model C. transaction fee revenue model D. freemium strategy

D. freemium strategy

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

D. market creator

Innovative entrepreneurs and their business firms that destroy existing business models are referred to as a what?

disruptor

A value proposition defines how a company's product or service will generate revenue for the firm.

false

In the subscription revenue model, a company generates income from the placement of ads.

false

Merchants/businesses that use GroupOn can pretty much GUARANTEE that those initial customers to return again without a Groupon or incentive to do so.

false

What kind of business model is a Web-based business builds a digital environment in which buyers and sellers can meet, display products, search for products, and establish prices.

market creator

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

sales

What do we call technologies that enable the incremental improvement of products and services?

sustaining

________ technologies are technologies that enable the incremental improvement of products and services.

sustaining

Portals primarily generate revenue in all of the following ways except: C. charging advertisers for ad placement. D. sales of goods. B. charging subscription fees. A. collecting transaction fees.

D. sales of goods.

A ________ refers to a competitive strategy in which firms attempt to achieve lower business process costs. C. focus/market niche strategy B. scope strategy A. customer intimacy strategy D. strategy of cost competition

D. strategy of cost competition

Which of the following factors is not a significant influence on a company's competitive environment? B. how many competitors are active D. the availability of supportive organizational structures A. what the market share of each competitor is C. how competitors price their products

D. the availability of supportive organizational structures

A perfect market is one in which: A. competition is at a minimum, as each niche market within an industry is served by the company with the greatest competitive advantage. C. one firm develops an advantage based on a factor of production that other firms cannot purchase. D. there are no competitive advantages or asymmetries because all firms have equal access to all the factors to production. B. one participant in the market has more resources than the others.

D. there are no competitive advantages or asymmetries because all firms have equal access to all the factors to production.

Which element of the business model addresses what a firm provides that other firms do not and cannot? B. competitive advantage D. value proposition A. competitive environment C. market strategy

D. value proposition

Which of the following uses a subscription-based sales revenue model? A. MyPoints D. Yahoo C. eBay B. Dollar Shave Club

B. Dollar Shave Club

Which of the following are Amazon's primary value propositions? D. personalization and customization B. management of product delivery C. reduction of price discovery cost A. selection and convenience

A. selection and convenience

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

B. ESPN.

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

B. MyPoints

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

B. Scribd

The basic value proposition of community providers is: B. they offer a fast, convenient one-stop site where users can focus on their most important concerns and interests. A. they create a digital electronic environment for buyers and sellers to meet, agree on a price, and transact. C. they offer consumers valuable, convenient, time-saving, and low-cost alternatives to traditional service providers. D. they increase customers' productivity by helping them get things done faster and more cheaply.

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