Deck 2: E-Commerce Business Models and Concepts

Question 1

All of the following would be considered a direct competitor of Priceline except:

A)Travelocity.
B)Expedia.
C)Orbitz.
D)ESPN.

Answer 1

D

Question 2

All of the following are use a subscription revenue model for music except:

A)Spotify.
B)eHarmony.
C)Rhapsody.
D)Pandora.

Answer 2

B

Question 3

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

A)Scribd
B)eBay
C)E*Trade
D)Twitter

Answer 3

A

Question 4

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

A)eBay.
B)Apple's iTunes Store.
C)Walmart.
D)Priceline.

Question 5

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

Question 6

Which element of the business model refers to the presence of substitute products in the market?

A)value proposition
B)competitive environment
C)competitive advantage
D)market opportunity

Question 7

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.

Question 8

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

A)Scribd
B)eBay
C)L.L.Bean
D)MyPoints

Question 9

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

A)how many competitors are active
B)the market share of each competitor
C)the availability of supportive organizational structures
D)how competitors price their products

Question 10

Which element of the business model addresses what a firm provides that other firms cannot?

A)competitive environment
B)competitive advantage
C)market strategy
D)value proposition

Question 11

Which of the following is not a community provider?

A)LinkedIn
B)Facebook
C)Blue Nile
D)Pinterest

Question 12

Which of the following involves a company giving away a certain level of product or services without charge,but then charging a fee for premium levels of the product or service?

A)advertising revenue model
B)subscription revenue model
C)freemium strategy
D)transaction fee revenue model

Question 13

A ________ specifically details how you plan to find customers and sell your product.

A)sales analysis
B)business plan
C)competitive strategy
D)market strategy

Question 14

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

A)value proposition
B)revenue model
C)market strategy
D)competitive advantage

Question 15

Organizations that typically provide an array of services to start-up companies along with a small amount of funding are referred to as:

A)angel investors.
B)crowdfunders.
C)incubators.
D)venture capital investors.

Question 16

Stickiness is an important attribute for which of the following revenue models?

A)advertising revenue model
B)subscription revenue model
C)transaction fee revenue model
D)affiliate revenue model

Question 17

The existence of many 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.

Question 18

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

A)Yahoo
B)E*Trade
C)Twitter
D)Birchbox

Question 19

Which of the following represent Amazon's primary value proposition(s)?

A)personalization and customization
B)selection and convenience
C)reduction of price discovery cost
D)management of product delivery

Question 20

________ 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)Competitive advantage;competitive environment
D)Revenue model;market opportunity

Question 21

Which of the following was not able to successfully implement a freemium business model?

A)Pandora
B)Dropbox
C)LinkedIn
D)Baremetrics

Question 22

Asymmetries enable some firms to have an edge over others.

Question 23

Which of the following gives a business model the most credibility with outside investors?

A)the firm's management team
B)the firm's value proposition
C)the firm's market opportunity
D)the firm's market strategy

Question 24

In general,the key to becoming a successful content provider is to:

A)own the content being provided.
B)own the technology by which content is created,presented,and distributed.
C)provide online content for free.
D)provide other services as well as online content.

Question 25

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

Question 26

First movers are usually more successful than follower firms.

Question 27

Firms that fail to produce returns greater than alternative investments typically go out of business.

Question 28

The use of a company's competitive advantage to penetrate surrounding markets is known as ________.

A)market strategy
B)differentiation
C)leverage
D)focus

Question 29

An example of a company using the content provider model is:

A)Priceline.
B)Rhapsody.
C)Dell.
D)eBay.

Question 30

All of the following may lead to a competitive advantage except:

A)less expensive suppliers.
B)better employees.
C)fewer products.
D)superior products.

Question 31

The overall retail market in the United States in 2016 was estimated at about:

A)$48 trillion.
B)$4.8 trillion.
C)$480 billion.
D)$48 billion.

Question 32

Which of the following is not an example of the bricks-and-clicks e-tailing business model?

A)Walmart
B)Sears
C)Bluefly
D)Staples

Question 33

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

Question 34

Which of the following statements about Foursquare is not true?

A)Foursquare combines a social network business model with location-based technology.
B)Foursquare has struggled to find profitability.
C)Foursquare's business model raises significant privacy concerns.
D)In 2016,Foursquare decided to refocus its effort on developing a subscription-based revenue model.

Question 35

All of the following use a social network marketing strategy except:

A)Twitter.
B)YouTube.
C)Pinterest.
D)Amazon.

Question 36

Which of the following is not a key element of an elevator pitch?

A)exit strategy
B)growth metrics
C)legal structure
D)market opportunity

Question 37

Which of the following is another name for a revenue model?

A)business model
B)business strategy
C)financial model
D)financial statements

Question 38

Which type of investor typically becomes interested in a start-up company after it has begun generating revenue?

A)incubators
B)angel investors
C)crowdfunders
D)venture capital investors

Question 39

A wealthy individual who invests personal funds in a start-up in exchange for an equity share in the business is referred to as a(n)________.

A)incubator
B)angel investor
C)venture capital investor
D)crowdfunder

Question 40

Which of the following is an unfair competitive advantage?

A)brand name
B)access to global markets
C)lower product prices
D)superior technology

Question 41

The JOBS Act and issuance of enabling regulations by the Securities and Exchange Commission allow a start-up company to use crowdfunding to solicit investors to invest in small and early-stage start-ups.

Question 42

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

A)community provider
B)transaction broker
C)market creator
D)e-tailer

Question 43

What is the primary revenue model for an e-distributor?

A)sales
B)transaction fee
C)advertising
D)subscription

Question 44

eBay uses all of the following business models except:

A)B2C market creator.
B)C2C market creator.
C)content provider.
D)e-commerce infrastructure provider.

Question 45

The basic value proposition of community providers is:

A)they offer a fast,convenient one-stop site where users can focus on their most important concerns and interests.
B)they offer consumers valuable,convenient,time-saving,and low cost alternatives to traditional service providers.
C)they create a digital electronic environment for buyers and sellers to meet,agree on a price,and transact.
D)they increase customers' productivity by helping them get things done faster and with less expense.

Question 46

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

A)subscription.
B)peer-to-peer streaming.
C)download-and-own.
D)cloud streaming.

Question 47

Why is the management team such an important element of a business model?

Question 48

Define elevator pitch and describe its key elements.

Question 49

Define and describe the transaction broker business model and discuss the eight components of the business model for this type of B2C firm.

Question 50

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.

Question 51

The business model of e-tailers is similar to that of:

A)e-distributors.
B)transaction brokers.
C)exchanges.
D)service providers.

Question 52

Which of the following is not considered a portal?

A)Yahoo
B)MSN
C)Amazon
D)AOL

Question 53

Amazon is an example of which of the following business models?

A)B2B service provider
B)exchange
C)e-distributor
D)industry consortia

Question 54

All of the following use an advertising revenue model except:

A)Twitter.
B)Yahoo.
C)Google.
D)Amazon.

Question 55

Who are the e-commerce enablers and why are they important?

Question 56

On-demand service companies are characterized by the free sharing of resources between the company and consumers.

Question 57

________ create and sell access to digital markets.

A)E-distributors
B)Portals
C)E-procurement firms
D)Market creators

Question 58

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.

A)market creator
B)community provider
C)e-tailer
D)portal

Question 59

Define organizational development and describe its importance in relation to the implementation of a business plan and strategy.

Question 60

All of the following are examples of business-to-business (B2B)business models except:

A)e-distributors.
B)e-procurement.
C)exchanges.
D)portals.

Question 61

Which business strategy involves implementing a new,more efficient set of business processes that other firms cannot yet obtain?

A)strategy of cost competition
B)scope strategy
C)customer intimacy strategy
D)focus/market niche strategy

Question 62

Which of the following features of e-commerce technology changes industry structure by lowering barriers to entry but greatly expands the market at the same time?

A)global reach
B)richness
C)interactivity
D)personalization

Question 63

A ____________ is a networked business ecosystem that 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

Question 64

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

A)perfect
B)differentiated
C)horizontal
D)vertical

Question 65

TheSeam is an example of a(n):

A)private industrial network.
B)exchange.
C)industry consortium.
D)e-distributor.

Question 66

The Internet's universal standards can change industry structure by decreasing barriers to entry and increasing competition within an industry.

Question 67

What is a B2B exchange,and what benefits do they offer? Given those benefits,why are they today only a small part of the overall B2B picture?

Question 68

Scale economies are efficiencies that result from flattening the hierarchy of an organization.

Question 69

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.

Question 70

Which of the following is not a primary activity in a firm value chain?

A)outbound logistics
B)finance/accounting
C)operations
D)after-sales service

Question 71

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

Question 72

A strategy designed to compete within a narrow market or product segment is called a ________ strategy.

A)scope
B)differentiation
C)commoditization
D)focus

Question 73

Which of the following may offer its customers value chain management software?

A)e-distributors
B)e-procurement companies
C)exchanges
D)community providers

Question 74

E-commerce has decreased price competition in nearly all markets.

Question 75

________ technologies are technologies that enable the incremental improvement of products and services.

A)Sustaining
B)Differentiating
C)Disruptive
D)Commodity

Question 76

Innovative entrepreneurs and their business firms that destroy existing business models are referred to as ________.

A)crowdfunders
B)venture capitalists
C)disruptors
D)angel investors

Question 77

Over the past decade,the number of exchanges has:

A)greatly increased.
B)diminished sharply.
C)stayed about the same.
D)increased slowly but steadily.

Question 78

A company's strong linkages with its customers decreases switching costs.

Question 79

The term unfit fitness refers to a situation in which employees of a firm have the wrong skills for the current environment.

Question 80

SaaS and PaaS providers can typically provide services at lower costs through scale economies.