Question 1

Which of the following is not a variation of the e-tailer business model?
A) bricks-and-clicks
B) virtual merchant
C) market creator
D) manufacturer-direct

Accepted Answer

Market creator is not a variation of the e-tailer business model. It refers to a platform that brings buyers and sellers together to facilitate transactions, rather than selling goods directly to consumers online.

Question 2

All of the following use an advertising revenue model except:
A) Facebook.
B) Yahoo.
C) Google.
D) Amazon.

Accepted Answer

Amazon primarily generates revenue through e-commerce sales, while Facebook, Yahoo, and Google rely heavily on advertising revenue.

Question 3

The business model of e-distributors is quite similar to that of:
A) e-tailers.
B) transaction brokers.
C) exchanges.
D) service providers.

Accepted Answer

The business model of e-distributors is focused on selling products directly to customers through online channels, which is similar to the business model of e-tailers. E-tailers are retailers that sell products online and have a direct interface with customers. Transaction brokers facilitate transactions between buyers and sellers, exchanges bring together buyers and sellers in a specific market, and service providers offer services rather than products.

Question 4

Which of the following is an example of the affiliate revenue model?
A) Yahoo
B) eBay
C) Gap.com
D) MyPoints

Accepted Answer

MyPoints is an online rewards program that earns affiliate revenue by partnering with merchants and receiving a commission for every purchase made through their platform. Yahoo, eBay, and Gap.com have different revenue models.

Question 5

Assume you are analyzing the market opportunity of a distance learning company, Learnmore.com, that creates education courses delivered over the Internet for the Fortune 1000 corporate market. Assume that the overall size of the distance learning market is $25 billion. The overall market can be broken down into three major market segments: Corporate, College, and Elementary/High School, each of which accounts for a third of the market. Within the Corporate market, there are two market niches: Fortune 1000, which accounts for 60% of the market, and all others, which together account for 40% of the market. What is Learnmore.com's realistic market opportunity, approximately?
A) $5 billion
B) $6.6 billion
C) $165 billion
D) $25 billion

Accepted Answer

The answer of Assume you are analyzing the market opportunity...

Question 6

The existence of a large number of competitors in any one market segment may indicate:
A) an untapped market niche.
B) the market is saturated.
C) no one firm has differentiated itself within that market.
D) a market that has already been tried without success.

Accepted Answer

The answer of The existence of a large number of...

Question 7

Which of the following factors is not a significant influence on a company's competitive environment?
A) how many competitors are active
B) what the market share of each competitor is
C) the availability of supportive organizational structures
D) how competitors price their products

Accepted Answer

The availability of supportive organizational structures may not be a significant influence on a company's competitive environment as it refers to the internal factors within a company and does not directly impact external competition from other companies. The other options all directly relate to factors that influence the level of competition a company faces from its rivals.

Question 8

All of the following can be considered a direct or indirect competitor of Amazon.com except:
A) eBay.
B) Apple's iTunes Store.
C) Barnesandnoble.com.
D) Starbucks.

Accepted Answer

Starbucks is not a competitor of Amazon.com as it is primarily a coffee and beverage retailer. The other options all involve e-commerce and/or digital content sales, which directly or indirectly compete with Amazon's offerings.

Question 9

Which of the following is not a community provider?
A) LinkedIn
B) Facebook
C) Priceline
D) Pinterest

Accepted Answer

Priceline is not a community provider, as it is a website that allows users to book travel arrangements such as flights and hotels, but it is not a platform for social interaction or content sharing like LinkedIn, Facebook, and Pinterest.

Question 10

Which of the following companies utilizes a transaction fee revenue model?
A) WSJ.com
B) E*Trade
C) Twitter
D) Sears.com

Accepted Answer

E*Trade generates revenue through transaction fees charged on securities trades made by its customers. WSJ.com provides subscription-based access to its content, Twitter generates revenue primarily through advertising, and Sears.com earns revenue through the sale of products.

Question 11

A perfect market is one in which:
A) there are no competitive advantages or asymmetries because all firms have equal access to all the factors to production.
B) one firm develops an advantage based on a factor of production that other firms cannot purchase.
C) one participant in the market has more resources than the others.
D) competition is at a minimum, as each niche market within an industry is served by the company with the greatest competitive advantage.

Accepted Answer

A perfect market is characterized by equal access to all factors of production, meaning no firm has a competitive advantage over others. This leads to intense competition, which results in efficient allocation of resources and maximum societal welfare.

Question 12

Horizontal or general portals primarily generate revenue in all of the following ways except:
A) charging advertisers for ad placement.
B) collecting transaction fees.
C) sales of goods.
D) charging subscription fees.

Accepted Answer

Horizontal or general portals do not typically sell goods directly, so sales of goods would not be a primary revenue stream. Ad placement, transaction fees, and subscription fees are all common ways for horizontal portals to generate revenue.

Question 13

Which of the following would be considered an indirect competitor of American Airlines?
A) JetBlue
B) Zipcar
C) Orbitz
D) British Airways

Accepted Answer

The answer of Which of the following would be considered...

Question 14

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 charges users a subscription fee to access their genealogy and family history resources, making it an example of the subscription revenue model. eBay, Amazon, and Twitter primarily rely on transactional revenue models.

Question 15

All of the following statements about Groupon are true except:
A) Groupon has yet to show a profit.
B) Groupon combines two major trends in e-commerce: localization and social networks.
C) It is unclear if Groupon's business model is sustainable.
D) Groupon believes it must scale up fast in a winner-take-all market.

Accepted Answer

Groupon has shown a profit in some quarters, so the statement that it has yet to show a profit is incorrect.

Question 16

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

The answer of A firm's ________ describes how a firm...

Question 17

Which of the following is not considered a portal?
A) Yahoo
B) MSN
C) WSJ.com
D) AOL

Accepted Answer

Yahoo, MSN, and AOL are all examples of portals as they provide a gateway to a variety of internet services such as email, news, and search engines. WSJ.com, on the other hand, is a news website and does not provide a gateway to other services, making it not a portal.

Question 18

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 19

Stickiness is an important attribute for which revenue model?
A) advertising revenue model
B) subscription revenue model
C) transaction fee revenue model
D) sales revenue model

Accepted Answer

Stickiness, or the ability of a website or app to keep users engaged and returning frequently, is crucial for the advertising revenue model. Advertisers want to reach a large and engaged audience, and sticky websites provide just that, which in turn generates higher advertising revenue.

Question 20

A business document that specifically details how you plan on selling your product and find new customers is called a:
A) sales analysis.
B) business plan.
C) competitive strategy.
D) market strategy.

Accepted Answer

A market strategy outlines the specific tactics and activities that a company will use to promote and sell its products or services. This plan typically includes details on target markets, promotional channels, pricing strategies, and distribution methods. It is different from a sales analysis, which focuses on analyzing past sales performance, or a competitive strategy, which focuses on how a company plans to compete with other businesses in the market. A business plan may include a market strategy, but it is a broader document that outlines the company's overall goals, strategies, and financial projections.

Quiz 2: E-Commerce Business Models and Concepts

Which of the following is not a variation of the e-tailer business model?

All of the following use an advertising revenue model except:

The business model of e-distributors is quite similar to that of:

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

The existence of a large number of competitors in any one market segment may indicate:

Which of the following factors is not a significant influence on a company's competitive environment?

All of the following can be considered a direct or indirect competitor of Amazon.com except:

Which of the following is not a community provider?

Which of the following companies utilizes a transaction fee revenue model?

A perfect market is one in which:

Horizontal or general portals primarily generate revenue in all of the following ways except:

Which of the following would be considered an indirect competitor of American Airlines?

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

All of the following statements about Groupon are true except:

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

Which of the following is not considered a portal?

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:

Stickiness is an important attribute for which revenue model?

A business document that specifically details how you plan on selling your product and find new customers is called a: