CSIS1010- Chapter 9 Quiz

Which of the following is not be considered a current asset? A. Cash B. Marketable securities C. Long-term investments D. Accounts receivable

C. Long-term investments

All of the following have introduced their own versions of Buy buttons except: A. Facebook. B. Pinterest. C. Tumblr. D. Instagram.

C. Tumblr

Why have so many online retailers had difficulty in achieving profits? How has this changed by 2017?

-Lowering prices below the total costs of goods and operations -Failing to attract a large enough audience to their websites -Spending too much on customer acquisition and marketing Now, most have learned their lesson and a lower amount of merchants are selling below cost. There has also been a change in consumer culture and attitudes.

What is another name for pro forma earnings? A. Earnings before income taxes, depreciation, and amortization (EBITDA) B. Operating income C. Generally accepted accounting principles (GAAP) earnings D. Net margin

A. Earnings before income taxes, depreciation, and amortization (EBITDA)

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. Entry costs to the online retail market would be much less than those needed to establish a physical storefront. C. Online consumers were rational and cost-driven. 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.

________ has introduced a tool known as Consumer Alerts to inform readers when a review is likely to be fraudulent? A. Yelp B. Angie's List C. TripExpert D. TripAdvisor

A. Yelp

In the United States, the service sector accounts for approximately ________ % of the United States GDP. A. 75 B. 70 C. 85 D. 80

D. 80

In ________, all of a customer's financial (and even nonfinancial) data are pulled together into a single, personalized website. A. A financial portal B. Integrated financial services C. EBPP systems D. Account aggregation

D. Account aggregation

What is the largest sector of the online travel services market in terms of revenue? A. Cruise/tour reservations B. Car reservations C. Dotel reservations D. Airline reservations

D. Airline reservations

Which of the following is not an example of a transaction broker? A. A real estate agent B. An employment agency C. A stockbroker D. An accountant

D. An accountant

Which of the following provides a financial snapshot of a company's assets and liabilities (debts) on a given date? A. Gross margin B. Operating margin C. Working capital D. Balance sheet

D. Balance sheet

Virtual merchants face potentially large costs for all of the following except: A. Building an order fulfillment infrastructure. B. Developing a brand name. C. Building and maintaining a website. D. Building and maintaining physical stores.

D. Building and maintaining physical stores

All of the following are advantages of online retail except: A. Lower cost of distribution. B. Ability to change prices. C. Lower supply chain costs. D. Faster delivery of goods

D. Faster delivery of goods

Current liabilities are debts of the firm that will be due within: A. Three months. B. Six months. C. Two years. D. One year.

D. One year

Craigslist is a player in which of the following online services markets? A. Insurance services and brokerage services B. Real estate services and career services C. Online accounting services D. Travel services

B. Real estate services and career services

Omni-channel merchants are also referred to as: A. Catalog merchants. B. Virtual merchants. C. Bricks-and-clicks companies. C. Manufacturer-direct firms.

C. Bricks-and-clicks companies

All of the following services require extensive personalization except: A. Accounting services. B. Medical services. C. Financial services. D. Legal services.

C. Financial services

All of the following are terms used to describe on-demand service companies except: A. We-commerce. B. Omni-channel commerce. C. Mesh economy. D. Collaborative commerce.

B. Omni-channel commerce

Operating margin is defined as: A. Net assets divided by net liabilities. B. Operating income or loss divided by total operating expenses. C. Net sales revenues divided by net income or loss. D. Operating income or loss divided by net sales revenues.

D. Operating income or loss divided by net sales revenues.

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

False

TRUE OR FALSE Big data plays an important role in predictive marketing.

True

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

True

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

True

All of the following statements about the online insurance industry are true except: A. Websites of almost all the major firms provide the ability to obtain an online quote. B. The Internet has lowered search costs, increased price comparison, and decreased prices to consumers for all forms of insurance. C. The industry has been very successful in attracting visitors searching for information. D. According to comScore, the online channel is consumers' preferred method for shopping for auto insurance policies.

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

All of the following statements about the MOTO sector are true except: A. MOTO was the last technological revolution that preceded e-commerce. B. The MOTO sector is also referred to as the specialty store sector. C. Compared to general merchandisers, the transition to e-commerce has been easier for MOTO firms. D. Distribution of catalogs is one of MOTO retailers' biggest expenses.

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

All of the following were factors that precipitated the growth of MOTO except: A. The growth of the credit card industry. B. The growth of the cellular phone industry. C. Falling long distance telecommunications prices. D. The national toll-free call system.

B. The growth of the cellular phone industry

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. The online travel services sector is one of the few in which extensive disintermediation has occurred. C. The online travel services industry has gone through a period of consolidation. D. The ability of travel products and services to be commoditized is a significant factor in the explosive growth of the online travel services industry.

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

Which of the following best explains why the service sector is a natural avenue for e-commerce? A. The service sector is less geographically reliant and more globally oriented. B. It is not; services are difficult to translate to e-commerce because they rely on face-to-face communication and barter. C. Much of the value in services is based on the collection, storage, and exchange of information. D. The service sector has historically been more technology-reliant.

C. Much of the value in services is based on the collection, storage, and exchange of information.

Which of the following is not a major trend in online retail for 2017-2018? A. Buying online has become a normal, mainstream, everyday experience. B. The average annual purchase of online buyers continues to increase. C. The number of online buyers begins to plateau. D. Online retailers place an increased emphasis on providing an improved "shopping experience".

C. The number of online buyers begins to plateau.

Which of the following has the highest share of online retail sales? A. Catalog merchants B. Manufacturer-direct C. Virtual merchants D. Omni-channel merchants

C. Virtual merchants

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. High cost structures. B. Developing a fast-response online order and fulfillment system. C. Channel conflict. D. Moving to a demand-pull model.

A. High cost structures

Which of these job recruitment sites is not a job listing aggregator? A. SimplyHired B. CareerBuilder C. Indeed D. Glassdoor

B. CareerBuilder

Which of the following has the second-highest share of online retail sales? A. Catalog merchants B. Omni-channel merchants C. Manufacturer-direct D. Virtual merchants

B. Omni-channel merchants

Which of the following is not true about on-demand service firms? A. On-demand service firms facilitate access to resources. B. On-demand service firms are a totally new phenomenon without precedent in the history of e-commerce. C. It is not likely that on-demand service firms will totally escape government regulation. D. The growth of on-demand service firms is supported using online reputation systems based on peer review.

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

Which of the following is not one of the methods used by traditional retailers to develop omni-channel integration? A. Online catalog B. Online supply-push C. Online order, in-store pickup D. Online promotions for offline purchases

B. Online supply-push

Service industry groups are categorized generally into two groups, those that provide transaction brokering and those that involve: A. Information brokering. B. Providing hands-on services. C. Personalization. D. Retailing goods.

B. Providing hands-on services

The Internet has resulted in lower search costs, increased price comparison, and lower prices to consumers for which insurance product line? A. Property and casualty insurance B. Term life insurance C. Health insurance D. Automobile insurance

B. Term Life Insurance

TRUE OR FALSE The major impact of Internet real estate sites is influencing offline decisions.

True

For a quick check of a firm's short-term financial health, examine its: A. Cost of sales. B. Gross margin. C. Long-term debt. D. Working capital.

D. Working capital

TRUE OR FALSE Consumers are primarily price-driven when shopping on the Internet. True

False

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

False

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

True

Which of the following is not a key industry strategic factor? A. Existence of substitute products B. Industry value chain C. Synergies D. Barriers to entry

C. Synergies

TRUE OR FALSE Personal consumption of retail goods and services accounts for over 75% of total gross domestic product (GDP).

False

Approximately ________ % of the United States labor force is involved in providing services. A. 70 B. 80 C. 60 D. 50

B. 80

Which of the following is an on-demand service company focused on lodging? A. Task Rabbit B. Airbnb C. Uber D. Lyft

B. Airbnb

Which of the following is not a major trend in the online recruitment services industry? A. Social recruiting B. Disintermediation C. Use of big data technologies in the hiring process D. Millennials and GenX primarily use mobile devices to search for jobs

B. Disintermediation

Which of the following is not one of the seven major segments of the retail industry? A. Specialty stores B. Electronics and computers C. Gasoline and fuel D. Food and beverage

B. Electronics and computers

Which of the following is not categorized as an operating expense? A. Administrative overhead B. The cost of products being sold C. Amortization of goodwill D. Marketing costs

B. The cost of products being sold

Expedia owns all of the following except: A. CheapTickets B. TripAdvisor. C. Travelocity. D. Orbitz.

B. TripAdvisor

Which of the following occurs when retailers of products must compete on price and currency of inventory directly against the manufacturer? A. Channel conflict B. Localization C. Disintermediation D. Hypermediation

A. Channel conflict

TRUE OR FALSE In 2017, about 80% of online buyers were expected to make a purchase using a mobile device.

True

TRUE OR FALSE In 2017, almost 60% of the adult U.S. population was expected to use online banking.

True

TRUE OR FALSE On-demand service companies collect a fee from both sellers and buyers who use the platform.

True

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

True

Which of the following measures the percentage of sales revenue a firm can retain after all expenses are deducted from gross revenues? A. Operating margin B. Net margin C. Gross profit D. Working capital

B. Net margin

In 2016, ________ retailers generated approximately 85% of all online retail? A. 5,000 B. 5 C. 500 D. 50

C. 500

In 2017, approximately what percentage of Internet users over the age of 14 made a purchase at an online retail store? A. 38% B. 98% C. 78% D. 58%

C. 78%

Which of the following is not an example of a virtual merchant? A. Wayfair B. Overstock C. Rue La La D. Dell

D. Dell

For a quick check of a firm's short-term financial health, examine its: A. Working capital. B. Long-term debt. C. Cost of sales. D. Gross margin.

A. Working capital

All of the following are challenges faced by bricks-and-clicks firms except: A. Handling returns of online purchases at retail outlets. B. Building a brand name. C. Building a credible website. D. Coordinating prices across channels.

B. Building a brand name

________ is a subscription-based retailer using predictive marketing and Big Data? A. Stitch Fix B. Dell C. Lands' End D. Macy's

A. Stitch Fix