CSIS Chapter 9
In 2016, ________ retailers generated approximately 85% of all online retail? -5,000 -500 -50 -5
-500
Virtual merchants face potentially large costs for all of the following except: -building an order fulfillment infrastructure. -building and maintaining physical stores. -building and maintaining a website. -developing a brand name.
-building and maintaining physical stores.
The term supply-push refers to: -waiting for orders to be received before building a product. -making products prior to orders being received based on estimated demand. -multi-channel manufacturers who sell directly online to consumers. -channel conflict.
-making products prior to orders being received based on estimated demand.
All of the following were factors that precipitated the growth of MOTO except: -the growth of the credit card industry. -falling long distance telecommunications prices. -the national toll-free call system. -the growth of the cellular phone industry.
-the growth of the cellular phone industry.
Which of the following has the highest share of online retail sales? -virtual merchants -catalog merchants -omni-channel merchants -manufacturer-direct
-virtual merchants
The lower the ________ compared to revenue, the higher the gross profit. -assets -gross margin -cost of sales -operating expenses
-cost of sales
Which of the following is not a major trend in the online recruitment services industry? -social recruiting -disintermediation -Millennials and GenX primarily use mobile devices to search for jobs -use of big data technologies in the hiring process
-disintermediation
Which of the following is not one of the methods used by traditional retailers to develop omni-channel integration? -online order, in-store pickup -online supply-push -online promotions for offline purchases -online catalog
-online supply-push
Online retail constitutes about 20% of the total retail market today. -True -False
-False
What is the largest sector of the online travel services market in terms of revenue? -hotel reservations -airline reservations -car reservations -cruise/tour reservations
-airline reservations
Which of the following is not an example of a transaction broker? -a stockbroker -an employment agency -an accountant -a real estate agent
-an accountant
Which of the following categories generates the highest percentage of online retail revenue? -apparel and accessories -computers and electronics -books/music/video -automobile and automobile parts and accessories
-apparel and accessories
All of the following are advantages of online retail except: -lower cost of distribution. -faster delivery of goods. -lower supply chain costs. -ability to change prices.
-faster delivery of goods.
All of the following are terms used to describe on-demand service companies except: -omni-channel commerce. -we-commerce. -mesh economy. -collaborative commerce.
-omni-channel commerce.
In 2017, the number of online buyers was over 180 million. -True -False
-True
Craigslist is a player in which of the following online services markets? -real estate services and career services -online accounting services -travel services -insurance services and brokerage services
-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? -health insurance -automobile insurance -property and casualty insurance -term life insurance
-term life insurance
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. -True -False
-False
In the United States, the service sector accounts for approximately ________ % of the United States GDP. -80 -70 -75 -85
-80
________ is a subscription-based retailer using predictive marketing and Big Data? -Stitch Fix -Dell -Lands' End -Macy's
-Stitch Fix
Expedia owns all of the following except: -TripAdvisor. -CheapTickets. -Orbitz. -Travelocity.
-TripAdvisor.
For a quick check of a firm's short-term financial health, examine its: -gross margin. -cost of sales. -long-term debt. -working capital.
-working capital.
Which of the following is not an example of a virtual merchant? -Dell -Rue La La -Overstock -Wayfair
-Dell
Consumers are primarily price-driven when shopping on the Internet. -True -False
-False
Personal consumption of retail goods and services accounts for over 75% of total gross domestic product (GDP). -True -False
-False
Which of the following is not a digitally native vertical brand? -Caspar -Everlane -Warby Parker -Wayfair
-Wayfair
Which of the following is not one of the central challenges facing the online retail industry? -inconvenience in returning goods -delivery delays -consumer concerns about the privacy of personal information -lack of physical store presence
-lack of physical store presence
Which of the following has the second-highest share of online retail sales? -catalog merchants -manufacturer-direct -omni-channel merchants -virtual merchants
-omni-channel merchants
Service industry groups are categorized generally into two groups, those that provide transaction brokering and those that involve: -information brokering. -retailing goods. -personalization. -providing hands-on services.
-providing hands-on services.
Which of the following is not be considered a current asset? -accounts receivable -cash -long-term investments -marketable securities
-long-term investments
Which of the following is not categorized as an operating expense? -marketing costs -the cost of products being sold -administrative overhead -amortization of goodwill
-the cost of products being sold
The online mortgage industry has transformed the process of obtaining a mortgage. -True -False
-False
Which of the following is not a major trend in online retail for 2017-2018? -Online retailers place an increased emphasis on providing an improved "shopping experience". -Buying online has become a normal, mainstream, everyday experience. -The number of online buyers begins to plateau. -The average annual purchase of online buyers continues to increase.
-The number of online buyers begins to plateau.
In 2017, approximately what percentage of Internet users over the age of 14 made a purchase at an online retail store? -98% -78% -58% -38%
-78%
In 2017, about 80% of online buyers were expected to make a purchase using a mobile device. -True -False
-True
In 2017, almost 60% of the adult U.S. population was expected to use online banking. -True -False
-True
Naturebox is an example of a subscription-based retail revenue model. -True -False
-True
On-demand service companies collect a fee from both sellers and buyers who use the platform. -True -False
-True
Online retailing provides an example of the powerful role that intermediaries continue to play in retail trade. -True -False
-True
The existence of substitute products is a key industry strategic factor. -True -False
-True
Current liabilities are debts of the firm that will be due within: -six months. -three months. -two years. -one year.
-one year.
Which of the following provides a financial snapshot of a company's assets and liabilities (debts) on a given date? -balance sheet -operating margin -working capital -gross margin
-balance sheet
All of the following statements about the online real estate services market are true except: -real estate differs from other types of online financial services because it is impossible to complete a property transaction online. -the Internet and e-commerce have created a revolution in the real estate value chain. -the primary service offered by real estate sites is a listing of houses available. -most people use the Internet to search for a home, but still use the services of a real estate agent to complete the purchase.
-the Internet and e-commerce have created a revolution in the real estate value chain.
All of the following statements about the MOTO sector are true except: -MOTO was the last technological revolution that preceded e-commerce. -the MOTO sector is also referred to as the specialty store sector. -distribution of catalogs is one of MOTO retailers' biggest expenses. -compared to general merchandisers, the transition to e-commerce has been easier for MOTO firms.
-the MOTO sector is also referred to as the specialty store sector.
Approximately ________ % of the United States labor force is involved in providing services. -80 -50 -60 -70
-80
All of the following have introduced their own versions of Buy buttons except: -Pinterest. -Facebook. -Instagram. -Tumblr.
-Tumblr.
Which of the following measures the percentage of sales revenue a firm can retain after all expenses are deducted from gross revenues? -operating margin -gross profit -net margin -working capital
-net margin
Which of the following is an on-demand service company focused on lodging? -Lyft -Airbnb -Uber -Task Rabbit
-Airbnb
Which of these job recruitment sites is not a job listing aggregator? -SimplyHired -Glassdoor -Indeed -CareerBuilder
-CareerBuilder
Which of the following statements about online banking is not true? -Online and mobile banking transactions provide significant costs savings for banks. -Top mobile banking activities include checking balances and bank statements and viewing recent transactions. -More people use a tablet for mobile banking than a mobile phone. -Millennials are adopting mobile banking at a much higher rate than those who are older.
-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? -U.S. franchising law prohibits automobile manufacturers from selling cars directly to consumers. -Automobile manufacturers use the Internet to deliver branding advertising. -Most of the revenue in this category is generated from the sales of automobiles. -Automobile retailing is dominated by dealership networks.
-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. -It is not; services are difficult to translate to e-commerce because they rely on face-to-face communication and barter. -The service sector is less geographically reliant and more globally oriented. -The service sector has historically been more technology-reliant.
-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? -The growth of on-demand service firms is supported using online reputation systems based on peer review. -On-demand service firms are a totally new phenomenon without precedent in the history of e-commerce. -On-demand service firms facilitate access to resources. -It is not likely that on-demand service firms will totally escape government regulation.
-On-demand service firms are a totally new phenomenon without precedent in the history of e-commerce.
Which of the following statements is not true? -The online travel services industry has gone through a period of consolidation. -The ability of travel products and services to be commoditized is a significant factor in the explosive growth of the online travel services industry. -Price competition among online travel services is difficult as comparison shopping for better prices is easy. -The online travel services sector is one of the few in which extensive disintermediation has occurred.
-The online travel services sector is one of the few in which extensive disintermediation has occurred.
Almost all recruiting professionals now use social networks in the recruiting process. -True -False
-True
Big data plays an important role in predictive marketing. -True -False
-True
The major impact of Internet real estate sites is influencing offline decisions. -True -False
-True
________ has introduced a tool known as Consumer Alerts to inform readers when a review is likely to be fraudulent? -TripAdvisor -Yelp -TripExpert -Angie's List
-Yelp
In ________, all of a customer's financial (and even nonfinancial) data are pulled together into a single, personalized website. -a financial portal -account aggregation -EBPP systems -integrated financial services
-account aggregation
Omni-channel merchants are also referred to as: -bricks-and-clicks companies. -manufacturer-direct firms. -virtual merchants. -catalog merchants.
-bricks-and-clicks companies.
All of the following are challenges faced by bricks-and-clicks firms except: -handling returns of online purchases at retail outlets. -building a brand name. -building a credible website. -coordinating prices across channels.
-building a brand name.
All of the following are challenges for catalog merchants except: -high costs of printing and mailing. -building a credible website. -building sophisticated order entry and fulfillment systems. -the need to bring staff in or manage new technology.
-building sophisticated order entry and fulfillment systems.
Which of the following occurs when retailers of products must compete on price and currency of inventory directly against the manufacturer? -localization -channel conflict -disintermediation -hypermediation
-channel conflict
Gross margin is defined as gross profit: -minus total operating expenses. -minus net income. -divided by cost of sales. -divided by net sales revenues.
-divided by net sales revenues.
What is another name for pro forma earnings? -generally accepted accounting principles (GAAP) earnings -earnings before income taxes, depreciation, and amortization (EBITDA) -net margin -operating income
-earnings before income taxes, depreciation, and amortization (EBITDA)
Which of the following is not one of the seven major segments of the retail industry? -gasoline and fuel -electronics and computers -food and beverage -specialty stores
-electronics and computers
All of the following services require extensive personalization except: -accounting services. -legal services. -medical services. -financial services.
-financial 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: -developing a fast-response online order and fulfillment system. -high cost structures. -channel conflict. -moving to a demand-pull model.
-high cost structures.
All of the following statements about Amazon are true except: -eBay can be considered a competitor of Amazon's. -Amazon Web Services is now a major part of Amazon's business. -in 2016, Amazon purchased Jet.com, one of its discount competitors. -the rising cost of shipping represents one of the biggest threats to Amazon's long-term profitability.
-in 2016, Amazon purchased Jet.com, one of its discount competitors.
All of the following were parts of the vision during the early days of e-commerce except the belief that: -entry costs to the online retail market would be much less than those needed to establish a physical storefront. -online consumers were rational and cost-driven. -new, "first-mover" middlemen, with expertise in e-commerce, would force traditional intermediaries out of business. -the cost of acquiring customers would be much lower.
-new, "first-mover" middlemen, with expertise in e-commerce, would force traditional intermediaries out of business.
The MOTO sector of the retail industry is most similar to the ________ sector. -general merchandise -specialty stores -online retail sales -consumer durables
-online retail sales
Operating margin is defined as: -net sales revenues divided by net income or loss. -operating income or loss divided by total operating expenses. -operating income or loss divided by net sales revenues. -net assets divided by net liabilities.
-operating income or loss divided by net sales revenues.
All of the following are strategic factors that pertain specifically to a firm and its related businesses except: -synergies. -core competencies. -technology. -power of customers.
-power of customers.
All of the following statements about the online insurance industry are true except: -According to comScore, the online channel is consumers' preferred method for shopping for auto insurance policies. -the industry has been very successful in attracting visitors searching for information. -websites of almost all the major firms provide the ability to obtain an online quote. -the Internet has lowered search costs, increased price comparison, and decreased prices to consumers for all forms of insurance.
-the Internet has lowered search costs, increased price comparison, and decreased prices to consumers for all forms of insurance.
