Question 1

A firm's ________ describes how a firm will produce a superior return on invested capital.
A)value proposition
B)revenue model
C)market strategy
D)competitive advantage

Accepted Answer

B

Question 2

Most first movers have the complementary resources needed to sustain their advantage.

Accepted Answer

False

Question 3

The Internet's universal standards decrease the cost of industry and firm operations.

Accepted Answer

Universal standards on the Internet allow for interoperability and compatibility between different technologies and systems, reducing the costs of operations for industries and firms.

Question 4

Social technologies change industry structure by shifting programming and editorial decisions to consumers.

Accepted Answer

Social technologies allow users to create and share content, giving them a greater role in shaping industry trends and decisions. This shift in power can lead to changes in industry structure as companies and organizations adapt to meet the changing preferences and demands of consumers.

Question 5

Barriers to entry into the e-tail marketplace are high.

Accepted Answer

The answer of Barriers to entry into the e-tail marketplace...

Question 6

________ and ________ are typically the most easily identifiable aspects of a company's business model.
A)Market strategy; market opportunity
B)Value proposition; revenue model
C)Value proposition; competitive environment
D)Revenue model; market strategy

Accepted Answer

The value proposition (what a company offers and why it is unique/different from competitors) and the revenue model (how a company generates revenue) are the most easily identifiable aspects of a business model. Market strategy, market opportunity, and competitive environment are all important components of a business model, but may not be as immediately recognizable as the value proposition and revenue model.

Question 7

Which of the following is an example of the subscription revenue model?
A)Ancestry.com
B)eBay
C)Amazon
D)Twitter

Accepted Answer

Ancestry.com is an example of the subscription revenue model as it charges users for access to its genealogy database and research tools.

Question 8

Which of the following are Amazon's primary value propositions?
A)personalization and customization
B)selection and convenience
C)reduction of price discovery cost
D)management of product delivery

Accepted Answer

Amazon's primary value propositions are selection and convenience, meaning they offer a wide variety of products and make it easy for customers to find and purchase them. While personalization and customization, reduction of price discovery cost, and management of product delivery are important factors for Amazon, they are not the primary value propositions.

Question 9

Which element of the business model examines who else occupies the firm's intended marketspace?
A)value proposition
B)competitive environment
C)competitive advantage
D)market strategy

Accepted Answer

The competitive environment element of the business model examines who else occupies the firm's intended marketspace, including direct and indirect competitors. The value proposition focuses on the unique benefits the firm offers to its customers, the competitive advantage explains how the firm differentiates itself from its competitors, and the market strategy outlines the plan for entering and growing within the marketspace.

Question 10

Visitors to specialized niche portals tend to spend less money than the average visitor to a horizontal portal.

Accepted Answer

Visitors to specialized niche portals often spend more money as they are more targeted and interested in specific products or services, leading to higher conversion rates compared to the broader audience of horizontal portals.

Question 11

The terms revenue model and financial model can be used interchangeably.

Accepted Answer

The answer of The terms revenue model and financial model...

Question 12

In order to be considered successful, a firm must produce returns greater than alternative investments.

Accepted Answer

This is true as investors will not invest in a firm if they can receive better returns from alternative investments. The firm needs to provide a competitive return on investment to be successful.

Question 13

All of the following are key elements of a business model except:
A)competitive environment.
B)organizational development.
C)information technology strategy.
D)market strategy.

Accepted Answer

The answer of All of the following are key elements...

Question 14

Interfirm rivalry is one area of the business environment where e-commerce technologies have had an impact on most industries.

Accepted Answer

E-commerce technologies, such as online marketplaces and digital supply chain management, have made it easier for businesses to compete and differentiate themselves in the market by leveraging technology to streamline their operations and offer more personalized, convenient services to customers. This has increased the intensity of interfirm rivalry, as companies try to outdo each other with innovative products and superior customer experiences.

Question 15

All firms need an organization to efficiently implement their business plans and strategies.

Accepted Answer

All firms need an organization to coordinate and manage resources and activities to achieve their goals and objectives. This includes defining roles, responsibilities, and decision-making processes, as well as establishing communication channels and work flows. A well-designed organization can help firms to optimize their performance, adapt to changing conditions, and achieve sustainable growth.

Question 16

Differentiation refers to situations in which there is little difference between products and the only basis of choosing a product is price.

Accepted Answer

Differentiation refers to creating unique qualities or features in a product that distinguish it from competitors and appeal to consumers beyond just price.

Question 17

Which element of the business model addresses the question of why a customer should buy from the firm?
A)revenue model
B)competitive advantage
C)market strategy
D)value proposition

Accepted Answer

The value proposition element of the business model is the one that addresses the question of why a customer should buy from the firm. It is a statement that describes the unique benefit that the product or service provides to the customer and how it solves their problem or meets their needs.

Question 18

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

Accepted Answer

A value proposition is a statement that outlines the benefits that a product or service offers to its customers and how it addresses their needs or solves their problems. It is a critical element in marketing a product or service, as it helps customers understand why they should choose that product or service over other alternatives in the market.

Question 19

Your solar-panel manufacturing firm has developed a unique and patented process for creating high-efficiency solar panels at a fraction of current costs. This will enable your firm to adopt a strategy of:
A)cost competition.
B)scope.
C)scale.
D)focus.

Accepted Answer

The answer of Your solar-panel manufacturing firm has developed a...

Question 20

Interactivity that enables product customization alters industry structure by reducing the threat of substitutes.

Accepted Answer

Interactivity that enables product customization reduces the threat of substitutes by providing a unique product that cannot be easily replicated by competitors. This can alter the industry structure by making it more difficult for new entrants or substitute products to compete.

Quiz 2: E-Commerce Business Models and Concepts

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

Most first movers have the complementary resources needed to sustain their advantage.

The Internet's universal standards decrease the cost of industry and firm operations.

Social technologies change industry structure by shifting programming and editorial decisions to consumers.

Barriers to entry into the e-tail marketplace are high.

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

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

Which of the following are Amazon's primary value propositions?

Which element of the business model examines who else occupies the firm's intended marketspace?