CSIS 1010- Chapter 2 Quiz

In 2017, the overall retail market in the United States was estimated to be about: A. $50 billion. B. $5 trillion. C. $500 billion. D. $50 trillion.

B. $5 trillion

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

C. E*Trade

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

D. Amazon

TRUE OR FALSE The Jumpstart Our Business Startups (JOBS) Act, and issuance of enabling regulations by the Securities and Exchange Commission, allows a start-up company to use crowdfunding to solicit investors to invest in small and early-stage start-ups.

True

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

True

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

True

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

A. Blue Nile

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

A. Content provider

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

A. Financial model

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

A. Value proposition; revenue model

All of the following are business models employed in the online music industry except: A. Subscription. B. Cloud streaming. C. Peer-to-peer streaming. D. Download-and-own.

C. Peer-to-peer streaming

Which of the following are Amazon's primary value propositions? A. Personalization and customization B. Reduction of price discovery cost C. Selection and convenience D. anagement of product delivery

C. Selection and convenience

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. B. One firm develops an advantage based on a factor of production that other firms cannot purchase. C. There are no competitive advantages or asymmetries because all firms have equal access to all the factors to production. D. 0ne participant in the market has more resources than the others.

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

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

D. Enable individual customization of the product by consumers.

All of the following may lead to a competitive advantage except: A. Less expensive suppliers. B. Superior products. C. Better employees. D. Fewer products.

D. Fewer products

Which of the following is not a primary activity in a firm value chain? A. Outbound logistics B. Operations C. After-sales service D. Finance/accounting

D. Finance/accounting

All of the following are examples of business-to-business (B2B) business models except: A. Exchanges. B. E-procurement. C. E-distributors. D. Portals.

D. Portals

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

D. Rhapsody

TRUE OR FALSE SaaS and PaaS providers can typically provide services at lower costs through scale economies.

True

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

B. Competitive environment

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

B. ESPN

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

B. Leverage

A firm's ________ describes how a firm will produce a superior return on invested capital. A. Competitive advantage B. Revenue model C. Market strategy D. Value proposition

B. Revenue model

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

B. Scribd

Stickiness is an important attribute for which of the following revenue models? A. Transaction fee revenue model B. Subscription revenue model C. Affiliate revenue model D. Advertising revenue model

D. Advertising revenue model

Which of the following is an unfair competitive advantage? A. Superior technology B. Access to global markets C. Lower product prices D. Brand name

D. Brand name

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. Portal C. Market creator D. E-tailer

C. Market creator

A wealthy individual who invests personal funds in a start-up in exchange for an equity share in the business is referred to as a(n): A. Incubator. B. Venture capital investor. C. Crowdfunder. D. Angel investor.

D. Angel investor

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

B. Sales of goods

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

B. The market is saturated

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. A. Business strategy B. Value web C. Value system D. Value chain

B. Value web

Which of the following may offer its customers value chain management software? A. Exchanges B. E-distributors C. E-procurement companies D. Community providers

C. E-procurement companies

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. Freemium strategy D. Subscription revenue model

C. Freemium strategy

The Seam is an example of a(n): A. Exchange. B. Private industrial network. C. Industry consortium. D. E-distributor.

C. Industry consortium

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

D. The availability of supportive organizational structures

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

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