CIS Exam #1 Chapter #2

All of the following use an advertising revenue model except

Amazon

Which of the following is not an example of the bricks-and-clicks e-tailing business model?

Bluefly

Which of the following companies uses a transaction fee revenue model?

E Trade

________ create and sell access to digital markets.

E-procurement firms

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

False

The merchant receives a large percentage of the revenue from a Groupon.

False

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.

Market Creator

Which of the following is an example of the affiliate revenue model?

MyPoints

An example of a company using the content provider model is:

Rhapsody

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

True

Customers using Groupon's heavily discounted vouchers in nearby locations save time and money.

True

E-commerce has increased price competition in many markets.

True

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

True

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

True

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

True

________ and ________ are typically the most easily identifiable aspects of a company's business model

Value proposition; revenue model

Business Model

a set of planned activities designed to result in a profit in the marketplace

E-procurement firms

create and sell access to digital markets.

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

disruptive technologies

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

disruptors

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

false

Which of the following is not a primary activity in a firm value chain?

finance/accounting

Value Chain

is the set of activities performed in an industry or in a firm that transforms raw inputs into final products and services.

Which of the following is not a variation of the e-tailer business model?

market creator

Market Strategy

specifically details how you plan to find customers and to sell your product

Vertical Marketplace

supplies products and services of interest to particular industries.

The existence of many competitors in any one market segment may indicate:

the market is saturated

The basic value proposition of community providers is:

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

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

transaction broker

First movers are usually more successful than follower firms.

False

Low margin (unit net profit) businesses would/could benefit significantly by using Groupon.

False

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

sales

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

False

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

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)

angel investor

Which of the following is an unfair competitive advantage?

brand name

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

false

Examples of businesses that would be good candidates to benefit by using Groupon with high fixed-costs and low variable (per unit) include all BUT the following:

grocery stores

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

own the content being provided.

Portals primarily generate revenue in all of the following ways except:

sales of goods

Sustaining

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

Which of the following factors is not a significant influence on a company's competitive environment?

the availability of supportive organizational structures