Chapter 2

Front 1

________ 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

Back 1

B) Value proposition; revenue model

Front 2

All of the following are using a subscription revenue model for e-books except:

A) Amazon.

B) Scribd.

C) Barnes and Noble.

D) Oyster.

Back 2

C) Barnes and Noble.

Front 3

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

Back 3

D) value proposition

Front 4

Which element of the business model relates to the power of customers and suppliers with respect to a business?

A) value proposition

B) competitive environment

C) competitive advantage

D) market strategy

Back 4

B) competitive environment

Front 5

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

Back 5

B) selection and convenience

Front 6

Your company has just implemented a new, more efficient set of business processes that other firms cannot yet obtain. This will enable your firm to adopt a strategy of:

A) cost competition.

B) scope.

C) scale.

D) focus.

Back 6

A) cost competition.

Front 7

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

Back 7

B) revenue model

Front 8

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

A) eHarmony

B) eBay

C) E*Trade

D) Twitter

Back 8

A) eHarmony

Front 9

The ability to retain user attention and engagement 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

Back 9

A) advertising revenue model

Front 10

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

A) Yahoo

B) E*Trade

C) Twitter

D) Sears

Back 10

B) E*Trade

Front 11

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

A) Oyster

B) eBay

C) L.L. Bean

D) MyPoints

Back 11

D) MyPoints

Front 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

Back 12

C) freemium strategy

Front 13

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

Back 13

C) the availability of supportive organizational structures

Front 14

Which of the following would be considered an indirect competitor of Travelocity?

A) Priceline

B) Expedia

C) Orbitz

D) TripAdvisor

Back 14

B) Expedia

Front 15

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.

Back 15

B) the market is saturated.

Front 16

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) Starbucks.

Back 16

D) Starbucks.

Front 17

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.

Back 17

A) there are no competitive advantages or asymmetries because all firms have equal access to all the factors to production.

Front 18

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

A) e-distributors.

B) transaction brokers.

C) exchanges.

D) service providers.

Back 18

A) e-distributors.

Front 19

All of the following use an advertising revenue model except:

A) Twitter.

B) Yahoo.

C) Google.

D) Amazon.

Back 19

D) Amazon.

Front 20

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.

Back 20

C) incubators.

Front 21

Which of the following is not considered a portal?

A) Yahoo

B) MSN

C) Amazon

D) AOL

Back 21

C) Amazon

Front 22

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.

Back 22

C) sales of goods.

Front 23

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

A) sales analysis

B) business plan

C) competitive strategy

D) market strategy

Back 23

D) market strategy

Front 24

Which of the following is not a community provider?

A) LinkedIn

B) Facebook

C) Priceline

D) Pinterest

Back 24

C) Priceline

Front 25

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

Back 25

C) market creator

Front 26

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

A) Priceline.

B) Rhapsody.

C) Dell.

D) eBay.

Back 26

B) Rhapsody.

Front 27

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

Back 27

C) Bluefly

Front 28

The overall retail market in the United States in 2017 was estimated at about:

A) $47 trillion.

B) $4.7 trillion.

C) $490 billion.

D) $47 billion.

Back 28

B) $4.7 trillion.

Front 29

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.

Back 29

A) own the content being provided.

Front 30

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

A) Pandora

B) Dropbox

C) LinkedIn

D) Ning

Back 30

D) Ning

Front 31

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

A) less expensive suppliers.

B) better employees.

C) fewer products.

D) superior products.

Back 31

C) fewer products.

Front 32

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 more cheaply.

Back 32

A) they offer a fast, convenient one-stop site where users can focus on their most important concerns and interests.

Front 33

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

A) e-distributors.

B) e-procurement.

C) exchanges.

D) e-tailers.

Back 33

D) e-tailers.

Front 34

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

A) sales

B) transaction fee

C) advertising

D) subscription

Back 34

A) sales

Front 35

W.W. Grainger is an example of which of the following business models?

A) B2B service provider

B) exchange

C) e-distributor

D) industry consortia

Back 35

C) e-distributor

Front 36

________ create and sell access to digital markets.

A) E-distributors

B) Portals

C) E-procurement firms

D) Market creators

Back 36

C) E-procurement firms

Front 37

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

A) e-distributors

B) e-procurement companies

C) exchanges

D) community providers

Back 37

B) e-procurement companies

Front 38

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

Back 38

B) diminished sharply.

Front 39

SupplyOn is an example of a(n):

A) private industrial network.

B) exchange.

C) industry consortium.

D) e-distributor.

Back 39

C) industry consortium.

Front 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

Back 40

A) brand name

Front 41

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

Back 41

A) the firm's management team

Front 42

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.

Back 42

C) content provider.

Front 43

Which of the following statements about Foursquare is not true?

A) Foursquare combines a social network business model with location-based technology.

B) Foursquare began operating without a revenue model.

C) Foursquare's business model faces significant intellectual property concerns.

D) Foursquare has been able to command a high valuation from venture capital investors despite unimpressive revenue and profits.

Back 43

C) Foursquare's business model faces significant intellectual property concerns.

Front 44

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

Back 44

D) venture capital investors

Front 45

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

Back 45

A) global reach

Front 46

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.

Back 46

B) peer-to-peer streaming.

Front 47

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

Back 47

B) finance/accounting

Front 48

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

Back 48

C) value web

Front 49

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.

Back 49

A) enable individual customization of the product by consumers.

Front 50

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

A) scope

B) differentiation

C) cost

D) focus

Back 50

D) focus