CIS 450 - Ch. 9

Which of the following statements about online banking is not true? Millennials are adopting mobile banking at a much higher rate than those who are older. Top mobile banking activities include checking balances and bank statements and viewing recent transactions. Online and mobile banking transactions provide significant costs savings for banks. More people use a tablet for mobile banking than a mobile phone.

More people use a tablet for mobile banking than a mobile phone

Big data plays an important role in predictive marketing.

True

All of the following were parts of the vision during the early days of e-commerce except the belief that: online consumers were rational and cost-driven. new, "first-mover" middlemen, with expertise in e-commerce, would force traditional intermediaries out of business. the cost of acquiring customers would be much lower. entry costs to the online retail market would be much less than those needed to establish a physical storefront.

new, "first-mover" middlemen, with expertise in e-commerce, would force traditional intermediaries out of business

For a quick check of a firm's short-term financial health, examine its: gross margin. cost of sales. long-term debt. working capital.

working capital

Approximately ________ retailers generate 90% of all retail e-commerce sales. 100 10 1,000 10,000

1,000

The existence of substitute products is a key industry strategic factor.

True

Which of the following is not an example of a transaction broker? an employment agency an accountant a stockbroker a real estate agent

an accountant

Virtual merchants face potentially large costs for all of the following except: building and maintaining physical stores. developing a brand name. building an order fulfillment infrastructure. building and maintaining a website.

building and maintaining physical stores

Gross margin is defined as gross profit: minus net income. divided by cost of sales. divided by net sales revenues. minus total operating expenses.

divided by net sales revenues

Current liabilities are debts of the firm that will be due within: one year. six months. two years. three months.

one year

The Internet has resulted in lower search costs, increased price comparison, and lower prices to consumers for which insurance product line? health insurance property and casualty insurance automobile insurance term life insurance

term life insurance

All of the following were factors that precipitated the growth of MOTO except:

the growth of the cellular phone industry

In 2016, approximately what percentage of Internet users over the age of 14 made a purchase at an online retail store? 57% 37% 97% 77%

77%

In the United States, the service sector accounts for approximately ________% of the United States GDP. 75 80 85 70

80

In the United States, the service sector accounts for approximately ________% of the United States GDP. 75 85 70 80

80

Which of the following is a subscription-based retailer using predictive marketing and Big Data? Lands' End Birchbox Dell Macy's

Brichbox

Which of the following has the highest share of online retail sales? omni-channel merchants catalog merchants manufacturer-direct virtual merchants

Virtual merchants

Which of the following had the highest online sales revenue in 2015? Target Macy's Sears Walmart

Walmart

________ is an on-demand service company focused on lodging. Airbnb Task Rabbit Uber Lyft

Airbnb

All of the following statements about Amazon are true except: Amazon continues to generate revenue primarily by selling products. eBay can be considered a competitor of Amazon. Amazon Web Services is now a major part of Amazon's business. Amazon failed to show a profit in 2015.

Amazon failed to show a profit in 2015

Which of the following is not an example of a virtual merchant?

Dell

About 90% of Internet users in the United States are now online buyers.

False

Contrary to predictions of analysts made during the early days of e-commerce, the Internet has led to both disintermediation and hypermediation on a widespread basis.

False

Online retail constitutes about 20% of the total retail market today.

False

Personal consumption of retail goods and services accounts for over 75% of total gross domestic product.

False

The online mortgage industry has transformed the process of obtaining a mortgage.

False

Which of the following statements is not true about the automobile and automobile parts and accessories online retail category? Automobile manufacturers use the Internet to deliver branding advertising. Most of the revenue in this category is generated from the sales of automobiles. Automobile retailing is dominated by dealership networks. U.S. franchising law prohibits automobile manufacturers from selling cars directly to consumers.

Most of the revenue in this category is generated from the sales of automobiles

Which of the following best explains why the service sector is a natural avenue for e-commerce?

Much of the value in services is based on the collection, storage, and exchange of information

________ measures the percentage of sales revenue a firm retains after all expenses are deducted from gross revenues. Working capital Net margin Gross profit Operating margin

Net margin

Which of the following is not true about on-demand service firms? On-demand service firms facilitate access to resources. On-demand service firms are a totally new phenomenon without precedent in the history of e-commerce. It is not likely that on-demand service firms will totally escape government regulation. The growth of on-demand service firms is supported by the use of online reputation systems based on peer review.

On-demand service firms are a totally new phenomenon without precedent in the history of e-commerce

Which of these job recruitment sites is not a job listing aggregator? CareerBuilder SimplyHired Indeed Glassdoor

SimplyHired

Almost all recruiting professionals now use social networks in the recruiting process.

True

In 2016, the number of online buyers was over 175 million.

True

More than 50% of the adult U.S. population use online banking.

True

Naturebox is an example of a subscription-based retail revenue model.

True

On-demand service companies collect a fee from both sellers and buyers who use the platform.

True

Online retailing provides an example of the powerful role that intermediaries continue to play in retail trade.

True

The major impact of Internet real estate sites is in influencing offline decisions.

True

Which of the following has introduced a tool known as Consumer Alerts to inform readers when a review is likely to be fraudulent? TripExpert Angie's List TripAdvisor Yelp

Yelp

In ________, all of a customer's financial (and even nonfinancial) data are pulled together at a single personalized website. EBPP systems a financial portal account aggregation integrated financial services

account aggregation

Which of the following categories generates the highest percentage of online retail revenue? apparel and accessories computers and electronics books/music/video automobile and automobile parts and accessories

apparel and accessories

Which of the following provides a financial snapshot of a company's assets and liabilities (debts) on a given date? gross margin operating margin working capital balance sheet

balance sheet

All of the following are challenges for catalog merchants except: building sophisticated order entry and fulfillment systems. high costs of printing and mailing. the need to bring staff in or manage new technology. building a credible website.

building sophisticated order entry and fulfillment systems

The lower the ________ compared to revenue, the higher the gross profit. assets cost of sales gross margin operating expenses

cost of sales

What is another name for pro forma earnings? net margin operating income earnings before income taxes, depreciation, and amortization (EBITDA) generally accepted accounting principles (GAAP) earnings

earnings before income taxes, depreciation, and amortization (EBITDA)

All of the following services require extensive personalization except: legal services. medical services. accounting services. financial services.

financial services

All of the following services require extensive personalization except: medical services. accounting services. legal services. financial services.

financial services

Service industry groups are categorized generally into two groups, those that provide transaction brokering and those that involve:

hands-on service

All of the following are examples of the challenges that traditional manufacturers experience when using the Internet to sell directly to the consumer except: channel conflict. moving to a demand-pull model. high cost structures. developing a fast-response online order and fulfillment system.

high cost structures

All of the following are examples of the challenges that traditional manufacturers experience when using the Internet to sell directly to the consumer except: developing a fast-response online order and fulfillment system. channel conflict. moving to a demand-pull model. high cost structures.

high cost structures

The term supply-push refers to: channel conflict. waiting for orders to be received before building a product. multi-channel manufacturers who sell directly online to consumers. making products prior to orders being received based on estimated demand.

making products prior to orders being received based on estimated demand

Which of the following has the second-highest share of online retail sales? omni-channel merchants manufacturer-direct virtual merchants catalog merchants

omni-channel merchants

The MOTO sector of the retail industry is most like the ________ sector.

online retail sales

All of the following are strategic factors that pertain specifically to a firm and its related businesses except: synergies. power of customers. technology. core competencies.

power of customers

All of the following statements about the online insurance industry are true except: websites of almost all the major firms provide the ability to obtain an online quote. the Internet has dramatically changed the insurance industry's value chain. Internet usage has led to a decline in term life insurance prices industry-wide. the industry has been very successful in attracting visitors searching for information.

the Internet has dramatically changed the insurance industry's value chain

All of the following statements about the MOTO sector are true except: compared to general merchandisers, the transition to e-commerce has been easier for MOTO firms. distribution of catalogs is one of MOTO retailers' biggest expenses. the MOTO sector is also referred to as the specialty store sector. MOTO was the last technological revolution that preceded e-commerce.

the MOTO sector is also referred to as the specialty store sector

Which of the following is not categorized as an operating expense? the cost of products being sold administrative overhead amortization of goodwill marketing costs

the cost of products being sold

Which of the following is not a major trend in online retail for 2016-2017? Online retailers place an increased emphasis on providing an improved "shopping experience." The number of online buyers begins to plateau. The average annual purchase of online buyers continues to increase. Online retail remains the fastest growing retail channel.

the number of online buyers begins to plateau