e-comm Chapter 9
3) Which of the following is not one of the seven major segments of the retail industry? A) electronics and computers B) specialty stores C) gasoline and fuel D) food and beverage
Answer: A
6) All of the following were parts of the vision during the early days of e-commerce except the belief that: A) new, "first-mover" middlemen, with expertise in e-commerce, would force traditional intermediaries out of business. B) online consumers were rational and cost-driven. C) entry costs to the online retail market would be much less than those needed to establish a physical storefront. D) the cost of acquiring customers would be much lower.
Answer: A
All of the following services require extensive personalization except: A) financial services. B) legal services. C) medical services. D) accounting services.
Answer: A
All of the following statements about Amazon are true except: A) in 2016, Amazon purchased Jet.com, one of its discount competitors. B) Amazon Web Services is now a major part of Amazon's business. C) eBay can be considered a competitor of Amazon's. D) the rising cost of shipping represents one of the biggest threats to Amazon's long-term profitability.
Answer: A
All of the following statements about the online insurance industry are true except: A) the Internet has lowered search costs, increased price comparison, and decreased prices to consumers for all forms of insurance. B) websites of almost all the major firms provide the ability to obtain an online quote. C) According to comScore, the online channel is consumers' preferred method for shopping for auto insurance policies. D) the industry has been very successful in attracting visitors searching for information.
Answer: A
Craigslist is a player in which of the following online services markets? A) real estate services and career services B) insurance services and brokerage services C) travel services D) online accounting services
Answer: A
For a quick check of a firm's short-term financial health, examine its: A) working capital. B) gross margin. C) long-term debt. D) cost of sales.
Answer: A
In ________, all of a customer's financial (and even nonfinancial) data are pulled together into a single, personalized website. A) account aggregation B) a financial portal C) integrated financial services D) EBPP systems
Answer: A
Operating margin is defined as: A) operating income or loss divided by net sales revenues. B) operating income or loss divided by total operating expenses. C) net sales revenues divided by net income or loss. D) net assets divided by net liabilities.
Answer: A
The Internet has resulted in lower search costs, increased price comparison, and lower prices to consumers for which insurance product line? A) term life insurance B) automobile insurance C) health insurance D) property and casualty insurance
Answer: A
The term supply-push refers to: A) making products prior to orders being received based on estimated demand. B) waiting for orders to be received before building a product. C) channel conflict. D) multi-channel manufacturers who sell directly online to consumers.
Answer: A
Which of the following has the second-highest share of online retail sales? A) omni-channel merchants B) virtual merchants C) catalog merchants D) manufacturer-direct
Answer: A
Which of the following is not a key industry strategic factor? A) synergies B) barriers to entry C) industry value chain D) existence of substitute products
Answer: A
Which of the following is not a major trend in the online recruitment services industry? A) disintermediation B) Millennials and GenX primarily use mobile devices to search for jobs C) social recruiting D) use of big data technologies in the hiring process
Answer: A
Which of the following is not be considered a current asset? A) long-term investments B) cash C) accounts receivable D) marketable securities
Answer: A
Which of the following is not categorized as an operating expense? A) the cost of products being sold B) marketing costs C) administrative overhead D) amortization of goodwill
Answer: A
Which of the following is not one of the central challenges facing the online retail industry? A) lack of physical store presence B) consumer concerns about the privacy of personal information C) inconvenience in returning goods D) delivery delays
Answer: A
Which of the following statements is not true about the automobile, and automobile parts and accessories, online retail category? A) Most of the revenue in this category is generated from the sales of automobiles. B) Automobile manufacturers use the Internet to deliver branding advertising. C) U.S. franchising law prohibits automobile manufacturers from selling cars directly to consumers. D) Automobile retailing is dominated by dealership networks.
Answer: A
________ has introduced a tool known as Consumer Alerts to inform readers when a review is likely to be fraudulent? A) Yelp B) TripAdvisor C) Angie's List D) TripExpert
Answer: A
4) All of the following statements about the MOTO sector are true except: A) compared to general merchandisers, the transition to e-commerce has been easier for MOTO firms. B) the MOTO sector is also referred to as the specialty store sector. C) MOTO was the last technological revolution that preceded e-commerce. D) distribution of catalogs is one of MOTO retailers' biggest expenses.
Answer: B
5) All of the following were factors that precipitated the growth of MOTO except: A) the national toll-free call system. B) the growth of the cellular phone industry. C) falling long distance telecommunications prices. D) the growth of the credit card industry.
Answer: B
9) Which of the following categories generates the highest percentage of online retail revenue? A) computers and electronics B) apparel and accessories C) books/music/video D) automobile and automobile parts and accessories
Answer: B
All of the following are examples of the challenges that traditional manufacturers experience when using the Internet to sell directly to the consumer except: A) moving to a demand-pull model. B) high cost structures. C) developing a fast-response online order and fulfillment system. D) channel conflict.
Answer: B
Gross margin is defined as gross profit: A) minus total operating expenses. B) divided by net sales revenues. C) divided by cost of sales. D) minus net income.
Answer: B
Omni-channel merchants are also referred to as: A) virtual merchants. B) bricks-and-clicks companies. C) catalog merchants. D) manufacturer-direct firms.
Answer: B
The lower the ________ compared to revenue, the higher the gross profit. A) assets B) cost of sales C) gross margin D) operating expenses
Answer: B
Virtual merchants face potentially large costs for all of the following except: A) building and maintaining a website. B) building and maintaining physical stores. C) building an order fulfillment infrastructure. D) developing a brand name.
Answer: B
Which of the following has the highest share of online retail sales? A) omni-channel merchants B) virtual merchants C) catalog merchants D) manufacturer-direct
Answer: B
Which of the following is not a digitally native vertical brand? A) Warby Parker B) Wayfair C) Everlane D) Caspar
Answer: B
Which of the following measures the percentage of sales revenue a firm can retain after all expenses are deducted from gross revenues? A) gross profit B) net margin C) operating margin D) working capital
Answer: B
Which of the following statements is not true? A) Price competition among online travel services is difficult as comparison shopping for better prices is easy. B) The online travel services sector is one of the few in which extensive disintermediation has occurred. C) The ability of travel products and services to be commoditized is a significant factor in the explosive growth of the online travel services industry. D) The online travel services industry has gone through a period of consolidation.
Answer: B
________ is a subscription-based retailer using predictive marketing and Big Data? A) Macy's B) Stitch Fix C) Dell D) Lands' End
Answer: B
2) The MOTO sector of the retail industry is most similar to the ________ sector. A) specialty stores B) general merchandise C) online retail sales D) consumer durables
Answer: C
8) In 2017, approximately what percentage of Internet users over the age of 14 made a purchase at an online retail store? A) 38% B) 58% C) 78% D) 98%
Answer: C
Current liabilities are debts of the firm that will be due within: A) three months. B) six months. C) one year. D) two years.
Answer: C
Expedia owns all of the following except: A) Travelocity. B) Orbitz. C) TripAdvisor. D) CheapTickets.
Answer: C
In 2016, ________ retailers generated approximately 85% of all online retail? A) 5 B) 50 C) 500 D) 5,000
Answer: C
In the United States, the service sector accounts for approximately ________ % of the United States GDP. A) 70 B) 75 C) 80 D) 85
Answer: C
What is another name for pro forma earnings? A) net margin B) operating income C) earnings before income taxes, depreciation, and amortization (EBITDA) D) generally accepted accounting principles (GAAP) earnings
Answer: C
Which of the following best explains why the service sector is a natural avenue for e-commerce? A) The service sector is less geographically reliant and more globally oriented. B) The service sector has historically been more technology-reliant. C) Much of the value in services is based on the collection, storage, and exchange of information. D) It is not; services are difficult to translate to e-commerce because they rely on face-to-face communication and barter.
Answer: C
Which of the following is an on-demand service company focused on lodging? A) Uber B) Lyft C) Airbnb D) Task Rabbit
Answer: C
Which of the following is not an example of a transaction broker? A) a stockbroker B) a real estate agent C) an accountant D) an employment agency
Answer: C
Which of the following is not one of the methods used by traditional retailers to develop omni-channel integration? A) online catalog B) online order, in-store pickup C) online supply-push D) online promotions for offline purchases
Answer: C
Which of the following occurs when retailers of products must compete on price and currency of inventory directly against the manufacturer? A) disintermediation B) localization C) channel conflict D) hypermediation
Answer: C
Which of the following provides a financial snapshot of a company's assets and liabilities (debts) on a given date? A) working capital B) operating margin C) balance sheet D) gross margin
Answer: C
1) Which of the following is not a major trend in online retail for 2017-2018? A) Buying online has become a normal, mainstream, everyday experience. B) The average annual purchase of online buyers continues to increase. C) Online retailers place an increased emphasis on providing an improved "shopping experience". D) The number of online buyers begins to plateau.
Answer: D
7) All of the following have introduced their own versions of Buy buttons except: A) Facebook. B) Pinterest. C) Instagram. D) Tumblr.
Answer: D
All of the following are advantages of online retail except: A) lower supply chain costs. B) lower cost of distribution. C) ability to change prices. D) faster delivery of goods.
Answer: D
All of the following are challenges faced by bricks-and-clicks firms except: A) coordinating prices across channels. B) handling returns of online purchases at retail outlets. C) building a credible website. D) building a brand name.
Answer: D
All of the following are challenges for catalog merchants except: A) high costs of printing and mailing. B) building a credible website. C) the need to bring staff in or manage new technology. D) building sophisticated order entry and fulfillment systems.
Answer: D
All of the following are strategic factors that pertain specifically to a firm and its related businesses except: A) core competencies. B) synergies. C) technology. D) power of customers.
Answer: D
All of the following are terms used to describe on-demand service companies except: A) mesh economy. B) collaborative commerce. C) we-commerce. D) omni-channel commerce.
Answer: D
All of the following statements about the online real estate services market are true except: A) most people use the Internet to search for a home, but still use the services of a real estate agent to complete the purchase. B) real estate differs from other types of online financial services because it is impossible to complete a property transaction online. C) the primary service offered by real estate sites is a listing of houses available. D) the Internet and e-commerce have created a revolution in the real estate value chain.
Answer: D
Approximately ________ % of the United States labor force is involved in providing services. A) 50 B) 60 C) 70 D) 80
Answer: D
Service industry groups are categorized generally into two groups, those that provide transaction brokering and those that involve: A) retailing goods. B) personalization. C) information brokering. D) providing hands-on services.
Answer: D
What is the largest sector of the online travel services market in terms of revenue? A) hotel reservations B) car reservations C) cruise/tour reservations D) airline reservations
Answer: D
Which of the following is not an example of a virtual merchant? A) Overstock B) Wayfair C) Rue La La D) Dell
Answer: D
Which of the following is not true about on-demand service firms? A) The growth of on-demand service firms is supported using online reputation systems based on peer review. B) It is not likely that on-demand service firms will totally escape government regulation. C) On-demand service firms facilitate access to resources. D) On-demand service firms are a totally new phenomenon without precedent in the history of e-commerce.
Answer: D
Which of the following statements about online banking is not true? A) Top mobile banking activities include checking balances and bank statements and viewing recent transactions. B) Online and mobile banking transactions provide significant costs savings for banks. C) Millennials are adopting mobile banking at a much higher rate than those who are older. D) More people use a tablet for mobile banking than a mobile phone.
Answer: D
Which of these job recruitment sites is not a job listing aggregator? A) Indeed B) SimplyHired C) Glassdoor D) CareerBuilder
Answer: D
Consumers are primarily price-driven when shopping on the Internet.
Answer: 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.
Answer: FALSE
Online retail constitutes about 20% of the total retail market today.
Answer: FALSE
Personal consumption of retail goods and services accounts for over 75% of total gross domestic product (GDP).
Answer: FALSE
The online mortgage industry has transformed the process of obtaining a mortgage.
Answer: FALSE
Almost all recruiting professionals now use social networks in the recruiting process.
Answer: TRUE
Big data plays an important role in predictive marketing.
Answer: TRUE
In 2017, about 80% of online buyers were expected to make a purchase using a mobile device.
Answer: TRUE
In 2017, almost 60% of the adult U.S. population was expected to use online banking.
Answer: TRUE
In 2017, the number of online buyers was over 180 million.
Answer: TRUE
Naturebox is an example of a subscription-based retail revenue model.
Answer: TRUE
On-demand service companies collect a fee from both sellers and buyers who use the platform.
Answer: TRUE
Online retailing provides an example of the powerful role that intermediaries continue to play in retail trade.
Answer: TRUE
The existence of substitute products is a key industry strategic factor.
Answer: TRUE
The major impact of Internet real estate sites is influencing offline decisions.
Answer: TRUE
