Question 1

An industry ________ is an effort to understand and describe the nature of competition in an industry, the nature of substitute products, the barriers to entry, and the relative strength of consumers and suppliers.

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The answer of An industry ________ is an effort to...

Question 2

Which of the following is not a primary activity in a firm value chain?
A)inbound logistics
B)finance/accounting
C)operations
D)sales and marketing

Accepted Answer

Finance/accounting is considered a support activity rather than a primary activity in the firm value chain. The primary activities include inbound logistics, operations, outbound logistics, marketing and sales, and service. These activities involve the creation, delivery, and support of the product or service that the firm offers. Support activities, on the other hand, provide the infrastructure and resources necessary to carry out the primary activities effectively. Examples of support activities include procurement, technology development, human resource management, and general administration.

Question 3

A(n)________ is a company that sells products and services that are very similar and in the same market segment.

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The answer of A(n)________ is a company that sells products...

Question 4

________ is a social network based on 140-character messages.

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The answer of ________ is a social network based on...

Question 5

The use by a company of its competitive advantage to achieve more advantage in surrounding markets is known as ________.

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The answer of The use by a company of its...

Question 6

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)________.

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The answer of A wealthy individual who invests personal funds...

Question 7

A(n)________ is a set of planned activities designed to result in a profit in the marketplace.

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The answer of A(n)________ is a set of planned activities...

Question 8

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

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The answer of A(n)________ marketplace supplies products and services of...

Question 9

If you wished to leverage the ubiquitous nature of the Web to differentiate your product, you would:
A)enable individual customization of the product by consumers.
B)implement a strategy of commoditization.
C)adopt a strategy of cost competition.
D)develop a scope strategy to compete within a narrower market segment.

Accepted Answer

Enabling individual customization of the product by consumers allows the product to stand out as unique and tailored to the individual's specific needs or preferences. This use of the Web's ubiquity to offer personalized products can differentiate the product from competitors who may not offer such customization options.

Question 10

A(n)________ is the set of activities performed in an industry or in a firm that transforms raw inputs into final products and services.

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The answer of A(n)________ is the set of activities performed...

Question 11

A(n)________ strategy is a strategy to compete in all markets around the globe rather than merely in local, regional, or national markets.

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The answer of A(n)________ strategy is a strategy to compete...

Question 12

A ________ coordinates a firm's suppliers, distributors, and delivery firms with its own production needs using an Internet-based supply chain management system.
A)value chain
B)value system
C)value web
D)business strategy

Accepted Answer

The term "value web" refers to a network of suppliers, distributors, and delivery firms that work together to support a firm's production needs. This network is typically managed using an Internet-based supply chain management system. Therefore, the best choice is C.

Option A, "value chain," refers to the series of activities and processes that a firm engages in to create value for its customers. Option B, "value system," is similar but includes a broader range of external factors that influence the creation of value. Option D, "business strategy," is a more general term that encompasses a range of decisions and actions that a firm takes to achieve its goals. While supply chain management may be an important part of a firm's business strategy, it is not the only factor to consider.

Question 13

In the ________ business model, a Web-based business builds a digital environment in which buyers and sellers can meet, display products, search for products, and establish prices.

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The answer of In the ________ business model, a Web-based...

Question 14

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

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The answer of The financial services, travel services, and job...

Question 15

In the ________ revenue model, a Web site that offers users content or services charges a fee for access to some or all of its offerings.

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The answer of In the ________ revenue model, a Web...

Question 16

The strategy of customer intimacy focuses on developing strong ties with customers in order to increase ________ costs.

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The answer of The strategy of customer intimacy focuses on...

Question 17

All of the following are business models employed by the music industry except:
A)subscription.
B)peer-to-peer streaming.
C)download-and-own.
D)cloud streaming.

Accepted Answer

Peer-to-peer streaming is not a legitimate business model employed by the music industry. It refers to the illegal sharing of music files between individuals over a network without the permission of the copyright holder. Subscription, download-and-own, and cloud streaming are all legitimate business models.

Question 18

________ occurs when there are no differences among products or services and the only basis for choosing a particular product or service is price.

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The answer of ________ occurs when there are no differences...

Question 19

Personal funds derived from savings, credit card advances, home equity loans, and loans from family and friends are examples of ________ that an entrepreneur may use to get a business off the ground.

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The answer of Personal funds derived from savings, credit card...

Question 20

A strategy designed to compete within a narrow market or product segment is called a ________ strategy.
A)scope
B)differentiation
C)cost
D)focus

Accepted Answer

A focus strategy concentrates on a narrow segment or niche within a market and tailors its product offerings to meet the specific needs of that segment. This allows the company to compete effectively in a smaller market where it has a greater chance of being the market leader or at least a significant player.

Quiz 2: E-Commerce Business Models and Concepts