E-Commerce: Chapter 9

In ________, all of a customer's financial (and even nonfinancial) data are pulled together into a single, personalized website.

account aggregation

What is the largest sector of the online travel services market in terms of revenue?

airline reservations.

Apart from Amazon, the top online retail firms in terms of online sales are all primarily ________ firms.

omni-channel.

Craigslist is most involved in which of the following online services market(s)?

real estate services and career services.

All of the following statements about the online insurance industry are true except:

the Internet has lowered search costs, increased price comparison, and decreased prices to consumers for forms of insurance.

Which of the following is not categorized as an operating expense?

the cost of products being sold.

In the United States, the service sector accounts for approximately ________% of the United States GDP.

80

In 2020, it was estimated that about what percentage of Internet users over the age of 14 would make a purchase at an online retail store?

80%

(T/F) The term fintech applies only to tech companies that are seeking use technology to unbundle traditional institutional financial services industries and instead deliver targeted solutions.

False

All of the following are advantages of online retail except:

faster delivery of goods.

Which of the following statements is not true?

The online travel services sector is one of the few in which extensive disintermediation has occurred.

(T/F) Online retailing provides an example of the powerful role that intermediaries continue to play in retail trade.

True

(T/F) Service industries (i.e., finance & travel) typically are very knowledge- and information-intense.

True

(T/F) The Covid-19 pandemic has severely impacted the online travel industry.

True

(T/F) The existence of substitute products is a key industry strategic factor.

True

Which of the following occurs when retailers of products must compete on price and currency of inventory directly against the manufacturer?

channel conflict.

All of the following were parts of the vision during the early days of e-commerce except the belief that:

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

Which of the following is not one of the methods used by traditional retailers to develop omni-channel integration?

online supply-push.

Approximately ________% of the United States labor force is involved in providing services.

80

Which of the following is an on-demand service company focused on lodging?

Airbnb

All of the following statements about Amazon are true except:

Amazon purchased Jet.com, one of its discount competitors, to give it a more robust network for delivering goods.

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

Dell

Booking Holdings owns all of the following except:

Expedia.

(T/F) Consumers are primarily price-driven when shopping on the Internet.

False

(T/F) 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

(T/F) Online retail constitutes about 20% of the total retail market today.

False

Which of the following statements about online banking is not true?

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

Which of the following statements is not true about the automobile, and automobile parts and accessories, online retail category?

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.

Which of the following is not true about on-demand service firms?

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

Which of the following is a subscription-based retailer using predictive marketing and big data?

Stitch Fix

Which of the following is not a major trend in online retail for 2020-2021?

The COVID-19 pandemic is expected to create a decrease in e-commerce retail purchases.

Which of the following enabled MOTO firms to make an easier transition to e-commerce?

The fact that they already had efficient customer order fulfillment processes.

(T/F) Big data plays an important role in predictive marketing.

True

(T/F) In 2020, almost 75% of the adult U.S. population was expected to use online banking.

True

(T/F) In 2020, the number of online buyers in the United States was around 205 million.

True

(T/F) On-demand service companies collect a fee from both sellers and buyers who use the platform.

True

All of the following have introduced social commerce functionality, such as buy buttons, shoppable ads, and marketplaces, except:

Tumblr.

Which of the following is not a digitally native vertical brand (D2C)?

Wayfair

Which of the following provides a financial snapshot of a company's assets and liabilities (debts) on a given date?

balance sheet.

Omni-channel merchants are also referred to as:

bricks-and-clicks companies.

The lower the ________ compared to revenue, the higher the gross profit.

cost of sales.

Gross margin is defined as gross profit:

divided by net sales revenues.

What is another name for pro forma earnings?

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

All of the following services require extensive personalization except:

financial services.

Which of the following is not one of the central challenges facing the online retail industry?

lack of physical store presence.

The term supply-push refers to:

making products prior to orders being received based on estimated demand.

Which of the following measures the percentage of sales revenue a firm can retain after all expenses are deducted from gross revenues?

net margin.

Current liabilities are debts of the firm that will be due within:

one year.

All of the following are strategic factors that pertain specifically to a firm and its related businesses except:

power of customers.

Within the major service industry groups, companies can be categorized generally into those that provide transaction brokering and those that involve which of the following?

providing hands-on services.

Which of the following is not a key industry strategic factor?

synergies

The Internet has resulted in lower search costs, increased price comparison, and lower prices to consumers for which insurance product line?

term life insurance.

All of the following statements about the MOTO sector are true except:

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

Which of the following has the highest share of online retail sales?

virtual merchants.

For a quick check of a firm's short-term financial health, examine its:

working capital.

________ provides notices called Consumer Alerts to inform readers when a review is likely to be fraudulent.

Yelp

All of the following are challenges for catalog merchants except:

building sophisticated order entry and fulfillment systems.

Which of the following is not a major trend in the online recruitment services industry?

disintermediation.

Operating margin is defined as:

operating income or loss divided by net sales revenues.

(T/F) The online mortgage industry has transformed the process of obtaining a mortgage.

False

Which of the following is not an example of a transaction broker?

an accountant.

All of the following are challenges faced by bricks-and-clicks firms except:

building a brand name.

Virtual merchants face potentially large costs for all of the following except:

building and maintaining physical stores.

Which of the following is not one of the seven major segments of the retail industry?

electronics and computers

Which of the following is not considered a current asset?

long-term investments.

The online retail sector of the retail industry is most similar to the ________ sector.

mail order/telephone order (MOTO).

All of the following are terms used to describe on-demand service companies except:

omni-channel commerce.

Which of the following has the second-highest share of online retail sales?

omni-channel merchants.

All of the following statements about the online real estate services market are true except:

the Internet and e-commerce have created a revolution in the real estate value chain.

(T/F) The social network LinkedIn has become major player in the online recruitment market.

True

All of the following are examples of the challenges that traditional manufacturers experience when using the Internet to sell directly to the consumer except:

high-cost structures.

(T/F) Personal consumption of retail goods and services accounts for over 80% of total gross domestic product (GDP).

False