CIS 450 Chapter 9

All of the following statements about Amazon are true except:

Amazon failed to show a profit in 2015.

About 90% of Internet users in the United States are now online buyers.

False

Which of the following statements is not true?

Online travel services are one of the few sectors in which extensive disintermediation has occurred.

All of the following have launched trials of Buy buttons except:

tumblr.

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

virtual merchants

Approximately ________ retailers generate 90% of all retail e-commerce sales.

1,000

In 2016, approximately what percentage of Internet users over the age of 14 made a purchase at an online retail store?

77%

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

80

________ is an on-demand service company focused on lodging.

Airbnb

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

Dell

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

Disintermediation

Consumers are primarily price-driven when shopping on the Internet.

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.

False

Online retail constitutes about 20% of the total retail market today.

False

Personal consumption of retail goods and services accounts for over 75% of total gross domestic product.

False

The online mortgage industry has transformed the process of obtaining a mortgage.

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 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.

________ measures the percentage of sales revenue a firm retains after all expenses are deducted from gross revenues.

Net Margin

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 these job recruitment sites is not a job listing aggregator?

SimplyHired

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

Synergies

Which of the following is not a major trend in online retail for 2016-2017?

The number of online buyers begins to plateau.

Expedia owns all of the following except:

TripAdvisor.

Almost all recruiting professionals now use social networks in the recruiting process.

True

Big data plays an important role in predictive marketing.

True

In 2016, the number of online buyers was over 175 million.

True

More than 50% of the adult U.S. population use online banking.

True

Naturebox is an example of a subscription-based retail revenue model.

True

Online retailing provides an example of the powerful role that intermediaries continue to play in retail trade.

True

The existence of substitute products is a key industry strategic factor.

True

Which of the following had the highest online sales revenue in 2015?

Walmart

Which of the following has introduced a tool known as Consumer Alerts to inform readers when a review is likely to be fraudulent?

Yelp

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

account aggregation

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

airline reservations

Omni-channel merchants are also referred to as:

bricks-and-clicks companies.

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.

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

Service industry groups are categorized generally into two groups, those that provide transaction brokering and those that involve:

hands-on services.

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.

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

lack of physical store presence

Which of the following would not be considered a current asset?

long-term investments

The term supply-push refers to:

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

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

omni-channel merchants

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

power of customers.

Craigslist is a player in which of the following online services markets?

real estate services and career services

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

term life insurance

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

the cost of products being sold

All of the following were factors that precipitated the growth of MOTO except:

the growth of the cellular phone industry.

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

working capital

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

80

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

balance sheet

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

online supply-push

The major impact of Internet real estate sites is in influencing offline decisions.

True

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

an accountant

Which of the following categories generates the highest percentage of online retail revenue?

apparel and accessories

All of the following are challenges for catalog merchants except:

building sophisticated order entry and fulfillment systems.

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

cost of sales

All of the following are advantages of online retail except:

faster delivery of goods

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

one year.

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

the Internet has dramatically changed the insurance industry's value chain.