139A: Quiz 2
9.73) Which of the following 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
A) Yelp
9.53) 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
A) omni-channel merchants
10.47) In 2015, e-book sales constituted ________% of all consumer book sales. A) 11 B) 23 C) 32 D) 52
B) 23
10.4) Music streaming is growing at ________ a year. A) 10% B) 30% C) 50% D) 70%
B) 30%
10.67) Which of the following statements about e-sports is not true? A) Colleges are beginning to offer scholarships for players on their new video game teams. B) E-sports is growing at approximately 25% a year. C) E-sports will approach Hollywood in terms of global revenues by 2020. D) E-sports currently generates approximately $600 million globally.
B) E-sports is growing at approximately 25% a year.
12.81) Which of the following is not a typical barrier to the implementation of a private industrial network? A) It requires participating firms to share sensitive data. B) It requires the large network owners to give up some of its independence. C) It requires a significant investment of time and money. D) It requires a change of mindset and behavior of employees.
B) It requires the large network owners to give up some of its independence.
9.78) Which of these job recruitment sites is not a job listing aggregator? A) Indeed B) SimplyHired C) Glassdoor D) CareerBuilder
B) SimplyHired
9.9) 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
B) apparel and accessories.
12.3) Which of the following was the first step in the development of B2B e-commerce? A) Electronic Data Interchange (EDI) B) automated order entry systems C) computerized inventory databases D) digital invoices
B) automated order entry systems
9.45) Virtual merchants face potentially large costs for all of the following except: A) building and maintaining a Web site. B) building and maintaining physical stores. C) building an order fulfillment infrastructure. D) developing a brand name.
B) building and maintaining physical stores.
9.50) 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.
B) high cost structures.
12.12) All of the following are potential benefits of B2B e-commerce except: A) increased production flexibility. B) increased product cycle time. C) increased opportunities to collaborate with suppliers and distributors. D) increased visibility and real-time information sharing among all participants in the supply chain network.
B) increased product cycle time.
10.48) Which of the following was sued by the Justice Department for violating antitrust laws in connection with e-books? A) Amazon B) Google C) Apple D) Barnes & Noble
C) Apple
11.60) ________ refers to the use of secondary user IDs or bidders who have no actual intention to buy to artificially raise the price of an item. A) Bid manipulation B) Shill feedback C) Shill bidding D) Bid rigging
C) Shill bidding
12.47) EDI document structures are defined by: A) a single international standards body. B) individual suppliers and buyers. C) industry committees. D) each purchaser.
C) industry committees.
9.59) Approximately ________ % of the United States labor force is involved in providing services. A) 50 B) 60 C) 70 D) 80
D) 80
9.82) Which of the following is not true about on-demand service firms? A) The growth of on-demand service firms is supported by the use of 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.
D) On-demand service firms are a totally new phenomenon without precedent in the history of e-commerce.
10.55) Which of the following is not one of the three business models employed by newspapers between 1995 and 2015? A) The Print-centric model B) The Integrated Print/Web C) The Digital First model D) The Convergence model
D) The Convergence model
9.74) 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
D) airline reservations
12.68) An ________ serves businesses that primarily buy direct goods on a contract purchasing basis. A) e-distributor B) e-procurement company C) exchange D) industry consortium
D) industry consortium
9.29) 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.
D) power of customers.
10.32) Which of the following newspaper audience platforms has the higher percentage of readers? A) print/mobile B) Web only C) Web/mobile D) print
D) print
11.80) Which of the following is not one of the typical portal revenue sources? A) commissions on sales B) subscription fees C) tenancy deals D) referral fees
D) referral fees
ECES.8) Which of these reasons may be a less important basis for lock-in with e-commerce? A) Product-specific training B) Information and databases C) Loyalty programs D) Specialized suppliers E) Search costs
E) Search costs
12.5) Automated order entry systems: A) show goods from a single seller. B) increased the costs of inventory replenishment. C) are typically owned by the purchasing firm. D) no longer play an important role in B2B commerce.
A) show goods from a single seller.
9.33) 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.
A) operating income or loss divided by net sales revenues.
9.37) 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.
A) working capital.
9.64) In ________, all of a customer's financial (and even nonfinancial) data are pulled together at a single personalized Web site. A) account aggregation B) a financial portal C) integrated financial services D) EBPP systems
A) account aggregation
10.81) Which of the following statements is not true about OTT? A) To use OTT services, consumers must purchase a bundle of channels. B) OTT entertainment services are a threat to cable television. C) OTT refers to the fact that the entertainment service rides "on top" of other network services such as cable TV and telephone service. D) OTT entertainment services enable binge watching.
A) To use OTT services, consumers must purchase a bundle of channels.
9.79) 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) hiring by algorithm
A) disintermediation
12.64) An ________ primarily serves businesses that buy indirect goods on a spot purchasing basis. A) e-distributor B) e-procurement company C) exchange D) industry consortium
A) e-distributor
9.61) All of the following services require extensive personalization except: A) financial services. B) legal services. C) medical services. D) accounting services.
A) financial services.
11.54) One partial solution to high monitoring costs is ________ pricing. A) fixed B) dynamic C) allocated D) distress
A) fixed
9.76) Expedia owns all of the following except: A) Travelocity. B) Orbitz. C) TripAdvisor. D) CheapTickets.
C) TripAdvisor.
10.54) Which of the following start-up digital news sites is owned by AOL? A) Vox B) Vice C) Reddit D) Huffington Post
D) Huffington Post
10.58) What percentage of people read newspapers only on a mobile device? A) 5% B) 6% C) 7% D) 11%
A) 5%
9.46) All of the following statements about Amazon are true except: A) Amazon showed a profit in 2014. B) Amazon Web Services is now a major part of Amazon's business. C) eBay can be considered a competitor of Amazon's. D) Amazon continues to generate revenue primarily by selling products.
A) Amazon showed a profit in 2014.
10.74) In 2015, which of the following forms of online entertainment produced the least amount of revenue? A) Internet radio B) online music C) games D) motion TV and movies
A) Internet radio
11.18) Which of the following has the highest penetration of social network usage among the general population? A) North America B) Latin America C) Europe D) Asia-Pacific
A) North America
10.44) Who was the first major fiction writer to create an e-book-only volume of a new work? A) Hugh Howey B) Stephen King C) Dan Brown D) Amanda Hocking
B) Stephen King
11.76) Which of the following statements illustrates the network effects that portals are subject to? A) Specialized vertical market portals attract only 2-10% of the audience, while a few large megaportals garner most of the market. B) The value of the portal to advertisers and consumers increases geometrically as reach increases. C) The greater the amount of content provided by a portal, the greater its value to the community. D) The greater number of portals available, the greater the potential audience for each.
B) The value of the portal to advertisers and consumers increases geometrically as reach increases.
9.30) The lower the ________ compared to revenue, the higher the gross profit. A) assets B) cost of sales C) gross margin D) operating expenses
B) cost of sales
9.31) 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.
B) divided by net sales revenues.
9.38) Which of the following measures the percentage of sales revenue a firm is able to retain after all expenses are deducted from gross revenues? A) gross profit B) net margin C) operating margin D) working capital
B) net margin
10.37) Approximately ________ of the Internet population in the United States reads magazines online. A) one-quarter B) one-third C) one-half D) three-quarters
B) one-third
11.43) When sellers agree informally or formally to set floor prices below which they will not sell on auction items, this is known as: A) discriminatory pricing. B) price matching. C) bid rigging. D) distress pricing.
B) price matching.
10.51) Which of the following statements about the wholesale and agency models for selling books is not true? A) In the wholesale model, the retailer decides at what price to sell a book to the consumer. B) Amazon surprised traditional publishers by selling e-books for below their wholesale cost. C) Amazon supports the agency model. D) A result of the agency model was that Amazon's prices on e-books rose.
C) Amazon supports the agency model.
ECES.18) Which one of the following intermediary roles becomes less important in electronic commerce as compared to traditional methods? A) Economizing on search costs for consumers B) Being long-term players with reputations C) Being physically closer (than the producer is) to the final buyer D) Matching buyers and sellers E) Economizing on costs of completing and implementing transactions
C) Being physically closer (than the producer is) to the final buyer
ECES.15) Which of the following is not a reason for organizing and conducting transactions within firms rather than through markets A) Providing incentives to act efficiently B) Benefiting from complementarity of productive assets C) Outsourcing some tasks or functions D) Protecting proprietary knowledge E) Economies of scope in coordinating provision of different services
C) Outsourcing some tasks or functions
9.60) 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
C) an accountant
11.36) All of the following are benefits of auctions except: A) more efficient price discovery. B) lower transaction costs. C) decreased price transparency. D) increased market efficiency.
C) decreased price transparency.
10.80) Hollywood's practice of staggering the distribution of movies in different channels, such as box office and DVDs, is referred to as: A) price discrimination. B) content convergence. C) the release window. D) digital rights management.
C) the release window.
ECES.13) Free online content may be motivated by: A) A desire to get consumers' attention B) Non commercial shared interests or self-promotion C) The benefits to firms of allowing consumers to sample offerings D) All of the above E) Only a) and c)
D) All of the above
9.42) Which of the following is not an example of a virtual merchant? A) Overstock B) Wayfair C) Rue La La D) Dell
D) Dell
10.39) Which of the following is not one of the top three players in e-book publishing? A) Barnes & Noble B) Apple C) Amazon D) Google
D) Google
10.77) Which of the following statements about mobile gaming is not true? A) Mobile games will generate an estimated $2 billion in 2015. B) Mobile games have proven difficult to monetize. C) Mobile games appeal to a younger demographic than console games. D) Mobile games are expensive to develop.
D) Mobile games are expensive to develop.
ECES.6) Network effects: A) refer to a situation where the value of the network to any individual member depends on the total number of members of the network B) can raise individual switching costs C) are potentially important in e-commerce D) all of the above E) only a) and c)
D) all of the above
9.48) All of the following are challenges for catalog merchants except: A) high costs of printing and mailing. B) building a credible Web site. C) the need to bring staff in or manage new technology. D) building sophisticated order entry and fulfillment systems.
D) building sophisticated order entry and fulfillment systems.
11.49) The profit a seller makes at auction is a function of all of the following except: A) initial pricing B) auction length. C) the number of units for auction. D) watch lists.
D) watch lists.
ECES.12) Price dispersion for identical products, even when differences in delivery terms or other observable service features are allowed for, can persist on the Internet because A) Retailers can differ in terms of the degree of trust in them that buyers have B) Retailers can collude more easily when selling online C) Brand loyalty and familiarity create switching costs for buyers D) All of the above E) Only a) and c)
E) Only a) and c)
12.59) Which of the following primarily serve horizontal markets? A) e-distributors and exchanges B) e-distributors and e-procurement Net marketplaces C) e-procurement Net marketplaces and industry consortia D) exchanges and industry consortia
B) e-distributors and e-procurement Net marketplaces
12.60) Which of the following primarily deal with indirect goods? A) e-distributors and industry consortia B) e-distributors and e-procurement Net marketplaces C) exchanges and industry consortia D) exchanges and e-procurement Net marketplaces
B) e-distributors and e-procurement Net marketplaces
12.69) The Seam is an example of an ________. A) exchange B) industry consortium C) e-procurement Net marketplace D) e-distributor
B) industry consortium
10.78) Which of the following is not one of the five types of digital gamers? A) casual gamers B) local gamers C) social gamers D) console gamers
B) local gamers
10.52) Zinio is an example of which of the following? A) interactive book developer B) magazine aggregator C) e-reader platform D) vanity press
B) magazine aggregator
12.37) All of the following are current major trends in B2B e-commerce, except: A) Move to implement highly centralized supply chains to reduce risk. B) Growing emphasis on use of business analytics software (business intelligence) to understand very large data sets. C) Firms place a growing emphasis on rapid-response and adaptive supply chain rather than lowest-cost supply chains. D) Risks of far-flung global networks lead to an increase in regional manufacturing and supply chains.
A) Move to implement highly centralized supply chains to reduce risk.
10.69) Which of the following statements about the movie industry is not true? A) Over 300 million Americans were expected to watch movies online in 2015. B) Online movie distribution is not dominated by a single distributor. C) Of the digital formats, the most revenue is generated by subscription streaming. D) DVD sales make up the largest share of movie revenues.
A) Over 300 million Americans were expected to watch movies online in 2015.
12.6) Which of the following statements about EDI systems is true? A) They typically serve vertical markets. B) They are seller-side solutions. C) They evolved from private trading exchanges. D) They still play an important role in B2C commerce
A) They typically serve vertical markets.
9.49) 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.
A) making products prior to orders being received based on estimated demand.
11.40) All of the following are solutions to the problem of high monitoring costs except: A) seller rating systems. B) watch lists. C) proxy bidding. D) fixed pricing.
A) seller rating systems.
9.65) 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
A) term life insurance
9.66) All of the following statements about the online insurance industry are true except: A) the Internet has dramatically changed the insurance industry's value chain. B) Web sites of almost all the major firms provide the ability to obtain an online quote. C) Internet usage has led to a decline in term life insurance prices industry-wide. D) the industry has been very successful in attracting visitors searching for information.
A) the Internet has dramatically changed the insurance industry's value chain.
9.32) 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
A) the cost of products being sold
12.16) A(n) ________ market is one that provides expertise and products for a specific industry, such as automobiles. A) vertical B) horizontal C) indirect D) buyer-biased
A) vertical
11.16) Healthboards is an example of a(n) ________ social network. A) practice-based B) interest-based C) affinity-based D) general
C) affinity-based
9.34) 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
C) earnings before income taxes, depreciation, and amortization (EBITDA)
12.30) An ________ primarily serves businesses that primarily buy direct goods on a spot purchasing basis. A) e-distributor B) e-procurement company C) exchange D) industry consortium
C) exchange
10.45) In 2015, Amazon's e-book and media store contained around how many book titles? A) more than 50,000 B) more than 100,000 C) more than 1 million D) more than 5 million
C) more than 1 million
11.55) The term ________ refers to the advantages conferred as an auction site becomes larger in terms of visitors and products for sale. A) siphoning B) herd behavior C) network effects D) channel expansion
C) network effects
10.35) Which of the following was the most troubled segment of the publishing industry in 2015? A) books B) magazines C) newspapers D) periodicals
C) newspapers
9.75) 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) Online travel services is one of the few sectors 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.
B) Online travel services is one of the few sectors in which extensive disintermediation has occurred.
9.4) 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.
B) the MOTO sector is also referred to as the specialty store sector.
9.5) 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.
B) the growth of the cellular phone industry.
9.52) 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
B) virtual merchants
12.9) Which of the following is the fastest growing form of B2B e-commerce? A) e-distributors B) exchanges C) private industrial networks D) industry consortiums
C) private industrial networks
10.49) Over the past five years, book publishing revenues have: A) decreased slightly. B) increased steadily. C) remained stable. D) decreased sharply.
C) remained stable.
9.6) 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) Web 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.
A) new, "first-mover" middlemen, with expertise in e-commerce, would force traditional intermediaries out of business.
12.61) Which of the following primarily deal with direct goods? A) e-distributors and independent exchanges B) exchanges and e-procurement Net marketplaces C) exchanges and industry consortia D) e-procurement Net marketplaces and industry consortia
C) exchanges and industry consortia
9.2) 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
C) online retail sales
11.38) Which of the following is not a risk or cost of Internet auctions? A) delayed consumption costs B) equipment costs C) price transparency D) trust risks
C) price transparency
12.62) Which of the following primarily involve long-term sourcing? A) e-distributors and exchanges B) e-distributors and industry consortia C) e-procurement Net marketplaces and exchanges D) e-procurement Net marketplaces and industry consortia
D) e-procurement Net marketplaces and industry consortia
9.58) 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.
D) providing hands-on services.