MISY 5350 E- Commerce Chapter 1/2
Which of the following statements is not true?
Economists take a purely technical approach to e-commerce.
________ is defined by a company using its competitive advantage to gain in surrounding markets
Leverage
An example of a company using the content provider model is: A) Priceline. B) Netflix C) Dell. D) eBay.
Netflix
All of the following can be considered examples of the market creator business model except:
Which of the following is does not use a subscription revenue model? A) Ancestry.com B) Apple Music C) eHarmony D) Twitter
All of the following primarily use an advertising revenue model except:
Walmart
All of the following are examples of business-to-business (B2B) business models except:
portals
A ________ refers to a competitive strategy in which firms attempt to achieve lower business process costs.
strategy of cost competition
All of the following can be considered a precursor to e-commerce except: A) the development of the smartphone. B) Baxter Healthcare's PC-based remote order entry system. C) the French Minitel. D) the development of Electronic Data Interchange standards.
A
All of the following statements about e-commerce in the US in 2020 are true except: A) Social e-commerce generates more revenue than mobile e-commerce. B) About 200 million U.S. consumers use mobile apps. C) On-demand service firms are fueling the growth of local e-commerce. D) Growth rates for retail e-commerce are higher in Europe than in the United States.
A
Business-to-consumer (B2C) e-commerce in the United States: A) has grown at double-digit rates between 2010 and 2020. B) has less revenue than C2C e-commerce. C) now constitutes over 50% of the overall U.S. retail market. D) is growing more slowly as it confronts its own fundamental limitations.
A
E-commerce can be defined as: A) the use of the Internet, the Web, and mobile apps to transact business. B) the use of any Internet technologies in a firm's daily activities. C) the digital enablement of transactions and processes within an organization. D) any digitally enabled transactions among individuals and organizations.
A
The early years of e-commerce were driven by all of the following factors except: A) an emphasis on exploiting traditional distribution channels. B) a huge infusion of venture capital funds. C) an emphasis on quickly achieving very high market visibility. D) visions of profiting from new technology.
A
Which of the following features of e-commerce technology enables merchants to market and sell "complex" goods and services to consumers via marketing messages that can integrate video, audio, and text? A) richness B) ubiquity C) information density D) personalization
A
Which of the following is an example of e-business? A) Amazon's inventory control system B) the Amazon.com Web site C) an Amazon mobile app D) Amazon's Pinterest page
A
Which of the following refers to any disparity in relevant market information among parties in a transaction? A) information asymmetry B) unfair competitive advantage C) imperfect competition D) dynamic pricing
A
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) market creator
Which of the following is not considered a portal? A) Yahoo B) MSN C) Amazon D) AOL
Amazon
Which of the following uses a subscription revenue model for books?
Amazon Kindle Unlimited
A perfect market is one in which: A) there are no competitive advantages or asymmetries because all firms have equal access to all the factors to production. B) one firm develops an advantage based on a factor of production that other firms cannot purchase. C) one participant in the market has more resources than the others. D) competition is at a minimum, as each niche market within an industry is served by the company with the greatest competitive advantage.
Answer: A
If you wished to leverage the ubiquitous nature of the Web to differentiate your product, you would: A) enable individual customization of the product by consumers. B) implement a strategy of commoditization. C) adopt a strategy of cost competition. D) develop a scope strategy to compete within a narrower market segment.
Answer: A
In general, the key to becoming a successful content provider is to: A) own the content being provided. B) own the technology by which content is created, presented, and distributed. C) provide online content for free. D) provide other services as well as online content.
Answer: A
Stickiness is an important attribute for which revenue model? A) advertising revenue model B) subscription revenue model C) transaction fee revenue model D) sales revenue model
Answer: A
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? A) global reach B) richness C) interactivity D) personalization
Answer: A
Which of the following gives a business model the most credibility with outside investors? A) the firm's management team B) the firm's value proposition C) the firm's market opportunity D) the firm's market strategy
Answer: A
Which of the following is an unfair competitive advantage? A) brand name B) access to global markets C) lower product prices D) superior technology
Answer: A
A firm's ________ describes how a firm will produce a superior return on invested capital. A) value proposition B) revenue model C) market strategy D) competitive advantage
Answer: B
All of the following are business models employed by the music industry except: A) subscription. B) peer-to-peer streaming. C) download-and-own. D) cloud streaming.
Answer: B
Which element of the business model examines who else occupies the firm's intended marketspace? A) value proposition B) competitive environment C) competitive advantage D) market strategy
Answer: B
Which of the following are Amazon's primary value propositions? A) personalization and customization B) selection and convenience C) reduction of price discovery cost D) management of product delivery
Answer: B
Which of the following companies utilizes a transaction fee revenue model? A) WSJ.com B) E*Trade C) Twitter D) Sears.com
Answer: B
Which of the following is not a primary activity in a firm value chain? A) inbound logistics B) finance/accounting C) operations D) sales and marketing
Answer: B
________ and ________ are typically the most easily identifiable aspects of a company's business model. A) Market strategy, market opportunity B) Value proposition, revenue model C) Value proposition, competitive environment D) Revenue model, market strategy
Answer: B
A ________ coordinates a firm's suppliers, distributors, and delivery firms with its own production needs using an Internet-based supply chain management system. A) value chain B) value system C) value web D) business strategy
Answer: C
All of the following are key elements of a business model except: A) competitive environment. B) organizational development. C) information technology strategy. D) market strategy.
Answer: C
All of the following may lead to a competitive advantage except: A) less expensive suppliers. B) better employees. C) fewer products. D) superior products.
Answer: C
Grainger.com is an example of which of the following business models? A) B2B service provider B) exchange C) e-distributor D) industry consortia
Answer: C
Organizations that provide not only funding but also an array of services to start-up companies are referred to as: A) angel investors. B) crowdfunders. C) incubators. D) venture capital investors.
Answer: C
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) the availability of supportive organizational structures D) how competitors price their products
Answer: C
Which of the following is not a variation of the e-tailer business model? A) bricks-and-clicks B) virtual merchant C) market creator D) manufacturer-direct
Answer: C
Which of the following is not an example of the bricks-and-clicks e-tailing business model? A) Walmart.com B) Target C) Blue Fly D) Staples.com
Answer: C
________ create and sell access to digital electronic markets Ariba Supplier Network is an example of this. A) E-distributors B) Portals C) E-procurement firms D) Market creators
Answer: C
eBay uses all of the following business models except: A) B2C market creator. B) C2C market creator. C) content provider. D) e-commerce infrastructure provider.
Answer: C
portals primarily generate revenue in all of the following ways except: A) charging advertisers for ad placement. B) collecting transaction fees. C) sales of goods. D) charging subscription fees.
Answer: C
58) Your startup firm has developed Web-based note-taking software that allows participants to create and share virtual notes attached to existing Web pages. You anticipate marketing your online application to Web development and design companies. Which of the following revenue models is the most appropriate for your new company? A) advertising B) transaction fee C) affiliate D) subscription
Answer: D
65) A strategy designed to compete within a narrow market or product segment is called a ________ strategy. A) scope B) differentiation C) cost D) focus
Answer: D
A business document that specifically details how you plan on selling your product and find new customers is called a: A) sales analysis. B) business plan. C) competitive strategy. D) market strategy.
Answer: D
Which element of the business model addresses the question of why a customer should buy from the firm? A) revenue model B) competitive advantage C) market strategy D) value proposition
Answer: D
Which of the following is an example of the affiliate revenue model? A) Yahoo B) eBay C) Gap.com D) MyPoints
Answer: D
Which type of investor typically becomes interested in a start-up company after it has begun generating revenue? A) incubators B) angel investors C) crowdfunders D) venture capital investors
Answer: D
An example of subscription based sales revenue model
Dollar Shave club
Which of the following has not been the subject of concern about its increasing market dominance in 2020-2021? A) Amazon B) Netflix C) Google D) Facebook
B
Which of the following is a physical place you visit in order to transact? A) marketspace B) marketplace C) social network D) the Internet
B
Which of the following is an example of an e-commerce first mover that failed? A) Etsy B) eToys C) eBay D) E*Trade
B
Which of the following is not an element of friction-free commerce? A) Information is equally distributed. B) Transaction costs are high. C) Prices can be dynamically adjusted to reflect actual demand. D) Unfair competitive advantages are eliminated.
B
Which of the following is not true about the use of apps? A) The average U.S. consumer spends over two hours a day using apps. B) Users still spend less time using apps than they do using desktops or mobile Web sites. C) Apps are easier to control and monetize than Web sites. D) Around 280 million people worldwide launch a smartphone app more than 60 times a day.
B
Which of the following is not true about the use of apps? A) Users spend nearly 90% of their smartphone app minutes using their top five apps. B) Users still spend more time using mobile browsers than they do using mobile apps. C) Apps are easier to control and monetize than websites. D) Users typically use about 20 different apps per month.
B
Which of the following is the best definition of transaction cost? A) the expense of changing national or regional prices B) the cost of participating in a market C) the cost of finding suitable products in the market D) the cost merchants pay to bring their goods to market
B
Which of the following refers to the displacement of market middlemen and the creation of a new direct relationship between producers and consumers? A) network effect B) disintermediation C) friction-free commerce D) first mover advantage
B
Which of the following terms can be considered synonymous with the term e-commerce? A) e-business B) digital commerce C) the Internet D) the Web
B
Which of the following was the original "killer app" that made the Internet commercially interesting and extraordinarily popular? A) e- commerce B) the Web C) social network D) mobile apps
B
Which of the following is not a community provider? A) LinkedIn B) Facebook C) Blue Nile D) Pinterest
Blue Nile
All of the following are examples of social networks except: A) Instagram. B) Twitter. C) Y Combinator. D) Pinterest.
C
E-commerce is available just about everywhere and anytime. This is known as ________. A) richness B) information density C) ubiquity D) reach
C
In which year can e-commerce be said to have begun? A) 1983 B) 1985 C) 1995 D) 2001
C
The costs incurred by merchants in having to change product prices (such as the costs of reentering prices into computer systems) are referred to as which of the following? A) subscription costs B) fixed costs C) menu costs D) variable costs
C
The total number of users or customers an e-commerce business can obtain is a measure of which of the following? A) ubiquity B) interactivity C) reach D) information density
C
Which of the following features of e-commerce technology is related to the concept of network externalities? A) richness B) interactivity C) universal standards D) information density
C
Which of the following is a characteristic of e-commerce during the Invention period? A) mobile technology B) earnings and profit emphasis C) disintermediation D) extensive government surveillance
C
Which of the following is a characteristic of the Consolidation phase of e-commerce? A) predominance of pure online strategies B) emphasis on revenue growth versus profits C) brand extension and strengthening becomes more important than creating new brands D) shift to a technology-driven approach
C
Which of the following is not a unique feature of e-commerce technology? A) interactivity B) social technology C) information asymmetry D) richness
C
Which of the following statements about the mobile platform is not true? A) Retail m-commerce purchases were expected to reach about $315 billion in 2020. B) A) In 2020, about 93% of Internet users in the United States used a mobile device to access the internet at least some of the time. C) Over 235 million individuals in the United States used tablet computer apps in 2020. D) Adult mobile U.S. Internet users spend an average of three-and-a-half hours per day within apps in 2020.
C
Which of the following statements is not true? A) Information asymmetries are continually being introduced by merchants and marketers. B) Intermediaries have not disappeared. C) Overall transaction costs have dropped dramatically. D) Brands remain very important in e-commerce.
C
Which of the following statements is true about the traditional tradeoff between the richness and reach of a marketing message prior to the development of the Web? A) Marketing messages had little richness. B) The smaller the audience reached, the less rich the message. C) The larger the audience reached, the less rich the message. D) Richness was unrelated to reach.
C
Which of the following was the first truly large-scale digitally enabled transaction system in the B2C arena? A) Telex B) the Baxter Healthcare system C) the French Minitel D) EDI
C
Which type of e-commerce is distinguished by the type of technology used in the transaction rather than by the nature of the market relationship? A) consumer-to-consumer (C2C) B) social e-commerce C) mobile e-commerce D) business-to-business (B2B)
C
All of the following were visions of e-commerce expressed during the early years of e-commerce except: A) a nearly perfect information marketspace. B) friction-free commerce. C) disintermediation. D) fast follower advantage.
D
Interactivity in the context of e-commerce provides which of the following functionalities? A) the ability to physically touch and manipulate a product B) complexity and content of a message C) the ability of consumers to create and distribute content D) the enabling of two-way communication between consumer and merchant
D
Which business application is associated with the technological development of local area networks and client/server computing? A) transaction automation (e.g., payroll) B) desktop automation (e.g., word processing) C) industrial system automation (e.g., supply chain management) D) workgroup automation (e.g., document sharing)
D
Which of the following describes the basic Web policy of large firms during the Invention period? A) Integrate social networks and the mobile platform with Web site marketing. B) Emphasize the necessity for the Web to generate profits. C) Use the Web to sell complex goods and services online. D) Maintain a basic, static Web site depicting the firm's brand.
D
Which of the following features of e-commerce technology allows users to participate in the creation of online content? A) ubiquity B) global reach C) information density D) social technology
D
Which of the following is a characteristic of the Reinvention phase of e-commerce? A) massive proliferation of dot-com start-ups B) widespread adoption of broadband networks C) rapid growth of search engine advertising D) expansion of e-commerce to include services as well as goods
D
Which of the following is an example of B2B e-commerce? A) Airbnb B) Facebook C) Groupon D) Go2Paper
D
Which of the following is an example of social e-commerce? A) Amazon B) eBay C) Wikipedia D) Facebook
D
Which of the following is not a characteristic of a perfect competitive market? A) Price, cost, and quality information are equally distributed. B) A nearly infinite set of suppliers compete against one another. C) Customers have access to all relevant information worldwide. D) It is highly regulated.
D
Which of the following is not a major technology trend in e-commerce in 2020-2021? A) Cloud computing enables content stored on Internet-based servers to be accessed by consumer devices such as smartphones. B) Firms are turning to business analytics to make sense out of Big Data. C) Smart speakers provide an additional platform for e-commerce. D) Growth of the Internet of Things slows down.
D
Which of the following is not true regarding e-commerce today? A) Economists' visions of a friction-free market have not been realized. B) Consumers are less price-sensitive than expected. C) There remains considerable persistent price dispersion. D) The market middlemen disappeared.
D
Which of the following is one of the three primary societal issues related to e-commerce? A) liability B) anonymity C) equity D) intellectual property
D
Which of the following refers to the practice of researching a product online before purchasing it at a physical store? A) zooming B) grazing C) showrooming D) webrooming
D
ll of the following are examples of Web 2.0 sites and applications except: A) photo-sharing sites. B) blogs. C) wikis. D) auction sites.
D
Which of the following is not an example of an on-demand service company? A) YouTube B) Airbnb C) Tumblr D) Facebook
D. Facebook
Innovative entrepreneurs and their business firms that destroy existing business models are referred to as:
disruptors
Which of the following types of crowdfunding involves people making contributions to others with no expectation of any return?
donor-based crowdfunding
Another name for revenue model
financial model
Which of the following involves a company giving away a certain level of product or service without charge, but then charging a fee for premium levels of the product or service?
freemium strategy
B2B e-commerce websites tend to serve
horizontal markets
Which of the following is not a key element of an elevator pitch?
legal structure
Which element of the business model addresses what a firm provides that other firms do not and cannot?
value proposition
