E-Commerce Ch. 2

Which of the following is an example of the subscription revenue model? A) Ancestry.com B) eBay C) Amazon D) Twitter

A) Ancestry.com

All of the following are examples of Business-to-Business (B2B) business models except: A) e-distributors. B) e-procurement. C) private industrial networks. D) e-tailers.

D) e-tailers.

All of the following are assets of Twitter except: A) user attention. B) audience size. C) database of tweets. D) retail inventory.

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The element of a business model that is responsible for making the model work is: A) the management team. B) the organizational structure. C) the firm's key competitive advantage. D) the market strategy.

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Which of the following was the first to announce a cloud music service? A) Apple B) Google C) Amazon D) Microsoft

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Assume you are analyzing the market opportunity of a distance learning company, Learnmore.com, that creates education courses delivered over the Internet for the Fortune 1000 corporate market. Assume that the overall size of the distance learning market is $25 billion. The overall market can be broken down into three major market segments: Corporate, College, and Elementary/High School, each of which accounts for a third of the market. Within the Corporate market, there are two market niches: Fortune 1000, which accounts for 60% of the market, and all others, which together account for 40% of the market. What is Learnmore.com's realistic market opportunity, approximately? A) $5 billion B) $6.6 billion C) $165 billion D) $25 billion

A) $5 billion

Which of the following statements about Groupon is not true? A) Groupon has yet to show a profit. B) Groupon combines two major trends in e-commerce: localization and social networks. C) It is unclear if Groupon's business model is sustainable. D) Groupon believes it must scale up fast in a winner-take-all market.

A) Groupon has yet to show a profit.

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

A) advertising revenue model

Your solar-panel manufacturing firm has developed a unique and patented process for creating high-efficiency solar panels at a fraction of current costs. This will enable your firm to adopt a strategy of: A) cost competition. B) scope. C) scale. D) focus.

A) cost competition.

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

A) global reach

What is the primary revenue model for an e-distributor? A) sales B) transaction fee C) advertising D) subscription

A) sales

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.

A) sales analysis. ??

The basic value proposition of community providers is: A) they offer a fast, convenient one-stop site where users can focus on their most important concerns and interests. B) they offer consumers valuable, convenient, time-saving, and low cost alternatives to traditional service providers. C) they create a digital electronic environment for buyers and sellers to meet, agree on a price and transact. D) they increase customers' productivity by helping them get things done faster and more cheaply.

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

________ 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

B) Value proposition; revenue model

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

B) selection and convenience

The existence of a large number of competitors in any one market segment may indicate: A) an untapped market niche. B) the market is saturated. C) no one firm has differentiated itself within that market. D) a market that has already been tried without success.

B) the market is saturated.

Which of the following is not an example of the bricks-and-clicks e-tailing business model? A) Walmart.com B) JCPenney.com C) Dell.com D) Staples.com

C) Dell.com

________ create and sell access to digital electronic markets. A) E-distributors B) Portals C) E-procurement firms D) Market creators

C) E-procurement firms

Which of the following is not a community provider? A) LinkedIn B) Facebook C) Priceline D) Pinterest

C) Priceline

All of the following may lead to a competitive advantage except: A) less expensive suppliers. B) better employees. C) fewer products. D) superior products.

C) fewer products.

Exostar is an example of a(n): A) private industrial network. B) exchange. C) industry consortium. D) e-distributor.

C) industry consortium.

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

C) the availability of supportive organizational structures

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

C) value web

All of the following use an advertising revenue model except: A) Facebook. B) Yahoo. C) Google. D) Amazon.

D) Amazon.

Which of the following was not able to successfully implement a freemium business model? A) Pandora B) MailChimp C) Evernote D) Ning

D) Ning

A strategy designed to compete within a narrow market or product segment is called a ________ strategy. A) scope B) differentiation C) cost D) focus

D) focus

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

B) competitive environment

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

C) market creator

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

D) subscription

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

D) value proposition