E-commerce Chapter 2 T/F

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

TRUE

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

TRUE

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

TRUE

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

TRUE

15) Social technologies change industry structure by shifting programming and editorial decisions to consumers.

TRUE

2) The terms revenue model and financial model can be used interchangeably.

TRUE

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

TRUE

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

TRUE

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

TRUE

10) Scale economies are efficiencies that result from flattening the hierarchy of an organization.

FALSE

11) Service providers primarily use the advertising revenue model.

FALSE

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

FALSE

7) Visitors to specialized niche portals tend to spend less money than the average visitor to a horizontal portal.

FALSE

8) Barriers to entry into the e-tail marketplace are high.

FALSE

9) The JOBS Act allows a start-up company to use crowdfunding to raise up to $10 million within a one-year period.

FALSE