E-commerce 2018 14th Edition By Kenneth - Test Bank

Chapter 2   E-commerce Business Models and Concepts

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) Competitive advantage; competitive environment

D) Revenue model; market opportunity

Answer:  B

Difficulty:  Moderate

AACSB:  Application of knowledge

Learning Objective:  2.1: Identify the key components of e-commerce business models.

2) Which of the following uses a subscription revenue model for books?

A) Spotify

B) Scribd

C) Rhapsody

D) Pandora

Answer:  B

Difficulty:  Moderate

AACSB:  Application of knowledge

Learning Objective:  2.1: Identify the key components of e-commerce business models.

3) Which element of the business model addresses what a firm provides that other firms do not and cannot?

A) competitive environment

B) competitive advantage

C) market strategy

D) value proposition

Answer:  D

Difficulty:  Moderate

AACSB:  Application of knowledge

Learning Objective:  2.1: Identify the key components of e-commerce business models.

4) 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

Answer:  B

Difficulty:  Moderate

AACSB:  Application of knowledge

Learning Objective:  2.1: Identify the key components of e-commerce business models.

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

Answer:  B

Difficulty:  Moderate

AACSB:  Analytical thinking

Learning Objective:  2.1: Identify the key components of e-commerce business models.

6) 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

Answer:  B

Difficulty:  Moderate

AACSB:  Application of knowledge

Learning Objective:  2.1: Identify the key components of e-commerce business models.

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

A) eHarmony

B) eBay

C) E*Trade

D) Twitter

Answer:  A

Difficulty:  Moderate

AACSB:  Application of knowledge

Learning Objective:  2.1: Identify the key components of e-commerce business models.

8) 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

Answer:  A

Difficulty:  Moderate

AACSB:  Application of knowledge

Learning Objective:  2.1: Identify the key components of e-commerce business models.

9) Which of the following companies uses a transaction fee revenue model?

A) Yahoo

B) E*Trade

C) Twitter

D) Birchbox

Answer:  B

Difficulty:  Moderate

AACSB:  Application of knowledge

Learning Objective:  2.1: Identify the key components of e-commerce business models.

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

A) Scribd

B) eBay

C) L.L. Bean

D) MyPoints

Answer:  D

Difficulty:  Moderate

AACSB:  Application of knowledge

Learning Objective:  2.1: Identify the key components of e-commerce business models.

11) 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

Answer:  C

Difficulty:  Moderate

AACSB:  Analytical thinking

Learning Objective:  2.1: Identify the key components of e-commerce business models.

12) 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

Answer:  C

Difficulty:  Difficult

AACSB:  Application of knowledge

Learning Objective:  2.1: Identify the key components of e-commerce business models.