Digital Commerce Chapter 2

Which of the following is an unfair competitive advantage?

Brand Name

Which element of the business model refers to the presence of substitute products in the market?

Competitive Environment

Which of the following is not a community provider?

Priceline

Over the past decade, the number of exchanges has:

diminished sharply

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

sales

The financial services, travel services, and job placement services industries typically use the ________ business model.

Transaction Broker

Firms that fail to produce returns greater than alternative investments typically go out of business.

True

First movers are often not as successful as follower firms.

True

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?

global reach

Organizations that typically provide an array of services to start-up companies along with a small amount of funding are referred to as:

Incubators

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

Market Strategy

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

Netflix

All of the following can be considered a direct or indirect competitor of Amazon except:

Starbucks

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

Own the content being provided.

A firm's ________ describes how a firm will produce a superior return on invested capital.

Revenue Model

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

Sales of goods

A ________ marketplace supplies products and services of interest to particular industries.

vertical

All of the following use a social network marketing strategy except:

Amazon

All of the following use an advertising revenue model except:

Amazon

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 companies uses a transaction fee revenue model?

E*Trade

________ create and sell access to digital markets.

E-procurement firms

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

False

All of the following may lead to a competitive advantage except:

Fewer Products

The existence of a large number of competitors in any one market segment may indicate:

The market is saturated

A value proposition defines how a company's product or service fulfills the needs of a customer.

True

Which element of the business model addresses what a firm provides that other firms do not and cannot?

Value Proposition

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

Value Proposition, Revenue Model

Which type of investor typically becomes interested in a start-up company after it has begun generating revenue?

Venture Capital Investors

All of the following are examples of business-to-business (B2B) business models except:

e-tailers

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

eHarmony

Which of the following involves a company giving away a certain level of product or services without charge, but then charging a fee for premium levels of the product or service?

Fremium Strategy

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

MyPoints