Question 1

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 illegal file sharing and streaming of music among users without any payment or authorization. The other three options are legitimate business models used by the music industry for music distribution and monetization.

Question 2

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

Accepted Answer

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

Question 3

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

Accepted Answer

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

Question 4

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.

Accepted Answer

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

Question 5

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

Accepted Answer

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

Question 6

Carbonite is a company that uses a(n) ________ business model.

Accepted Answer

The answer of Carbonite is a company that uses a(n)...

Question 7

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

Accepted Answer

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

Question 8

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

A value web is a network of suppliers, producers, distributors, and customers who participate in the production, delivery, and servicing of a product or service. It is facilitated by advanced information and telecommunications technologies, such as the Internet, to coordinate the activities of all members of the network. Therefore, a value web is the best choice for the given scenario as it involves coordinating suppliers, distributors, and delivery firms using an Internet-based supply chain management system. The other options, value chain and value system, refer to the internal activities of a firm, whereas business strategy is too broad and generic to be the correct answer.

Question 9

A firm's ________ refers to the other companies operating in the same marketspace selling similar products.

Accepted Answer

The answer of A firm's ________ refers to the other...

Question 10

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.

Accepted Answer

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

Question 11

A(n) ________ is a company that collects information from a wide variety of sources and then adds value to that information.

Accepted Answer

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

Question 12

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

Accepted Answer

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

Question 13

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 not a primary activity in a firm value chain as it is considered a support activity, along with procurement, technology development, and human resource management. The primary activities include inbound logistics, operations, outbound logistics, marketing and sales, and service.

Question 14

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

Accepted Answer

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

Question 15

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

Accepted Answer

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

Question 16

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

Accepted Answer

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

Question 17

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.

Accepted Answer

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

Question 18

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 would differentiate the product by offering a unique and personalized experience that can only be provided through the use of the Web. This takes advantage of the ubiquitous nature of the Web and leverages it to offer something that cannot be easily replicated by competitors. Implementing a strategy of commoditization (B) or cost competition (C) would not differentiate the product, as these strategies are focused on reducing costs and competing on price. Developing a scope strategy to compete within a narrower market segment (D) may differentiate the product, but it would not effectively leverage the ubiquitous nature of the Web.

Question 19

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 strategy designed to compete within a narrow market or product segment is called a focus strategy. A focus strategy concentrates on serving a particular target market or niche with a narrow product offering and differentiation based on a particular customer need. This strategy is effective when a company wants to concentrate its resources and efforts on a specific market segment and create a strong customer base within that segment by providing unique product features, quality, or customer experience.

Question 20

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

Accepted Answer

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

Quiz 2: E-Commerce Business Models and Concepts

All of the following are business models employed by the music industry except: