Test Bank for E Commerce 2017 13th Laudon

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CLICK HERE TO ACCESS FULL TEST BANKTEST BANK FOR E Commerce 201713th Edition By Laudon ISBN13-9780134601564CLICK HERE TO ACCESS FULL VERSIONE-commerce 2017:…
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CLICK HERE TO ACCESS FULL TEST BANKTEST BANK FOR E Commerce 201713th Edition By Laudon ISBN13-9780134601564CLICK HERE TO ACCESS FULL VERSIONE-commerce 2017: Business, Technology, and Society, 13e (Laudon/Traver) 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 Diff: Moderate AACSB: Application of knowledge LO: 2.1: Identify the key components of e-commerce business models. 2) All of the following use a subscription revenue model for music except: A) Spotify. B) eHarmony. C) Rhapsody. D) Pandora. Answer: B Diff: Moderate AACSB: Application of knowledge LO: 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 cannot? A) competitive environment B) competitive advantage C) market strategy D) value proposition Answer: D Diff: Moderate AACSB: Application of knowledge LO: 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 Diff: Moderate AACSB: Application of knowledge LO: 2.1: Identify the key components of e-commerce business models.1 Copyright Š 2018 Pearson Education, Inc.5) 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 Answer: B Diff: Moderate AACSB: Analytical thinking LO: 2.1: Identify the key components of e-commerce business models. 6) 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 Answer: B Diff: Moderate AACSB: Application of knowledge LO: 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) Scribd B) eBay C) E*Trade D) Twitter Answer: A Diff: Moderate AACSB: Application of knowledge LO: 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 Diff: Moderate AACSB: Application of knowledge LO: 2.1: Identify the key components of e-commerce business models.2 Copyright Š 2018 Pearson Education, Inc.9) Which of the following companies use a transaction fee revenue model? A) Yahoo B) E*Trade C) Twitter D) Birchbox Answer: B Diff: Moderate AACSB: Application of knowledge LO: 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 Diff: Moderate AACSB: Application of knowledge LO: 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 Diff: Moderate AACSB: Analytical thinking LO: 2.1: Identify the key components of e-commerce business models. 12) 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 Answer: C Diff: Difficult AACSB: Application of knowledge LO: 2.1: Identify the key components of e-commerce business models.3 Copyright Š 2018 Pearson Education, Inc.13) All of the following would be considered a direct competitor of Priceline except: A) Travelocity. B) Expedia. C) Orbitz. D) ESPN. Answer: D Diff: Difficult AACSB: Analytical thinking LO: 2.1: Identify the key components of e-commerce business models. 14) 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. Answer: B Diff: Difficult AACSB: Application of knowledge LO: 2.1: Identify the key components of e-commerce business models. 15) 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. Answer: D Diff: Moderate AACSB: Analytical thinking LO: 2.1: Identify the key components of e-commerce business models. 16) 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. Answer: A Diff: Difficult AACSB: Application of knowledge LO: 2.1: Identify the key components of e-commerce business models.4 Copyright Š 2018 Pearson Education, Inc.17) 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. Answer: C Diff: Moderate AACSB: Application of knowledge LO: 2.1: Identify the key components of e-commerce business models. 18) 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 Answer: D Diff: Easy AACSB: Application of knowledge LO: 2.1: Identify the key components of e-commerce business models. 19) Which of the following was not able to successfully implement a freemium business model? A) Pandora B) Dropbox C) LinkedIn D) Baremetrics Answer: D Diff: Moderate AACSB: Application of knowledge LO: 2.1: Identify the key components of e-commerce business models. 20) All of the following may lead to a competitive advantage except: A) less expensive suppliers. B) better employees. C) fewer products. D) superior products. Answer: C Diff: Moderate AACSB: Application of knowledge LO: 2.1: Identify the key components of e-commerce business models.5 Copyright Š 2018 Pearson Education, Inc.21) Which of the following is an unfair competitive advantage? A) brand name B) access to global markets C) lower product prices D) superior technology Answer: A Diff: Moderate AACSB: Application of knowledge LO: 2.1: Identify the key components of e-commerce business models. 22) 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 Answer: A Diff: Moderate AACSB: Application of knowledge LO: 2.1: Identify the key components of e-commerce business models. 23) 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. Answer: D Diff: Moderate AACSB: Analytical thinking LO: 2.1: Identify the key components of e-commerce business models. 24) 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 Answer: D Diff: Moderate AACSB: Application of knowledge LO: 2.1: Identify the key components of e-commerce business models.6 Copyright Š 2018 Pearson Education, Inc.25) Which of the following is another name for a revenue model? A) business model B) business strategy C) financial model D) financial statements Answer: C Diff: Easy AACSB: Application of knowledge LO: 2.1: Identify the key components of e-commerce business models. 26) All of the following use a social network marketing strategy except: A) Twitter. B) YouTube. C) Pinterest. D) Amazon. Answer: D Diff: Easy AACSB: Application of knowledge LO: 2.1: Identify the key components of e-commerce business models. 27) The use of a company's competitive advantage to penetrate surrounding markets is known as . A) market strategy B) differentiation C) leverage D) focus Answer: C Diff: Moderate AACSB: Application of knowledge LO: 2.1: Identify the key components of e-commerce business models. 28) 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 Answer: B Diff: Moderate AACSB: Application of knowledge LO: 2.1: Identify the key components of e-commerce business models.7 Copyright Š 2018 Pearson Education, Inc.29) 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 Answer: C Diff: Moderate AACSB: Application of knowledge LO: 2.1: Identify the key components of e-commerce business models. 30) A value proposition defines how a company's product or service fulfills the needs of a customer. Answer: TRUE Diff: Easy AACSB: Application of knowledge LO: 2.1: Identify the key components of e-commerce business models. 31) Firms that fail to produce returns greater than alternative investments typically go out of business. Answer: TRUE Diff: Easy AACSB: Application of knowledge LO: 2.1: Identify the key components of e-commerce business models. 32) Asymmetries enable some firms to have an edge over others. Answer: TRUE Diff: Moderate AACSB: Application of knowledge LO: 2.1: Identify the key components of e-commerce business models. 33) First movers are usually more successful than follower firms. Answer: FALSE Diff: Moderate AACSB: Application of knowledge LO: 2.1: Identify the key components of e-commerce business models. 34) All firms need an organization to efficiently implement their business plans and strategies. Answer: TRUE Diff: Easy AACSB: Application of knowledge LO: 2.1: Identify the key components of e-commerce business models.8 Copyright Š 2018 Pearson Education, Inc.35) 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. Answer: TRUE Diff: Moderate AACSB: Application of knowledge LO: 2.1: Identify the key components of e-commerce business models. 36) Why is the management team such an important element of a business model? Answer: A strong management team gives a model instant credibility to outside investors, immediate market-specific knowledge, and experience in implementing business plans. A strong management team may not be able to salvage a weak business model, but the team should be able to change the model and redefine the business as it becomes necessary. Diff: Moderate AACSB: Application of knowledge; Written and oral communication LO: 2.1: Identify the key components of e-commerce business models. 37) Who are the e-commerce enablers and why are they important? Answer: No discussion of e-commerce business models would be complete without mention of a group of companies whose business model is focused on providing the infrastructure necessary for e-commerce companies to exist, grow, and prosper. E-commerce enablers provide the hardware, operating system software, networks and communications technology, applications software, web design, consulting services, and other tools required for e-commerce. While these firms may not be conducting e-commerce per se (although in many instances, e-commerce in its traditional sense is, in fact, one of their sales channels), as a group they have perhaps profited the most from the development of e-commerce. Diff: Moderate AACSB: Application of knowledge; Written and oral communication LO: 2.1: Identify the key components of e-commerce business models. 38) Define elevator pitch and describe its key elements. Answer: An elevator pitch is a short two-to-three-minute presentation aimed at convincing investors to invest. The key elements of an elevator pitch are an introduction, in which you state your name and position, your company's name and a tagline in which you compare what your company does to a well-known company; background, in which you state the origin of your idea, and the problem you are trying to solve, the industry size/market opportunity, in which you provide brief facts about the size of the market; revenue model/numbers/growth metrics, in which you provide insight into your company's revenue model and results thus far, how fast it is growing, and early adopters, if there are any; funding, in which you state the amount of funds you are seeking and what it will help you achieve; and finally exit strategy, in which you explain how your investors will achieve a return on their investment. Diff: Moderate AACSB: Application of knowledge LO: 2.1: Identify the key components of e-commerce business models.9 Copyright Š 2018 Pearson Education, Inc.39) Define organizational development and describe its importance in relation to the implementation of a business plan and strategy. Answer: Organizational development is a plan that describes how the company will organize the work that needs to be accomplished in the business plan or strategy. Typically, work is divided into functional departments, such as production, shipping, marketing, customer support, and finance. Jobs within these functional areas are defined, and then recruitment begins for specific job titles and responsibilities. Typically, in the beginning, generalists who can perform multiple tasks are hired. As the company grows, recruiting becomes more specialized. For instance, at the outset, a business may have one marketing manager. But after two or three years of steady growth, that one marketing position may be broken down into seven separate jobs done by seven individuals. All firms—new ones in particular—need an organization to efficiently implement their business plans and strategies. Many e-commerce firms and many traditional firms that attempt an ecommerce strategy have failed because they lacked the organizational structures and supportive cultural values required to support new forms of commerce. Diff: Moderate AACSB: Analytical thinking; Written and oral communication LO: 2.1: Identify the key components of e-commerce business models. 40) Which of the following is not a community provider? A) LinkedIn B) Facebook C) Blue Nile D) Pinterest Answer: C Diff: Easy AACSB: Application of knowledge LO: 2.2: Describe the major B2C business models. 41) 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 Answer: C Diff: Moderate AACSB: Application of knowledge LO: 2.2: Describe the major B2C business models.10 Copyright Š 2018 Pearson Education, Inc.42) An example of a company using the content provider model is: A) Priceline. B) Rhapsody. C) Dell. D) eBay. Answer: B Diff: Moderate AACSB: Application of knowledge LO: 2.2: Describe the major B2C business models. 43) 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 Answer: C Diff: Easy AACSB: Application of knowledge LO: 2.2: Describe the major B2C business models. 44) 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. Answer: B Diff: Moderate AACSB: Application of knowledge LO: 2.2: Describe the major B2C business models. 45) 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. Answer: A Diff: Moderate AACSB: Application of knowledge LO: 2.2: Describe the major B2C business models.11 Copyright Š 2018 Pearson Education, Inc.46) The business model of e-tailers is similar to that of: A) e-distributors. B) transaction brokers. C) exchanges. D) service providers. Answer: A Diff: Easy AACSB: Analytical thinking LO: 2.2: Describe the major B2C business models. 47) All of the following use an advertising revenue model except: A) Twitter. B) Yahoo. C) Google. D) Amazon. Answer: D Diff: Moderate AACSB: Application of knowledge LO: 2.2: Describe the major B2C business models. 48) Which of the following is not considered a portal? A) Yahoo B) MSN C) Amazon D) AOL Answer: C Diff: Easy AACSB: Application of knowledge LO: 2.2: Describe the major B2C business models. 49) 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. Answer: C Diff: Moderate AACSB: Application of knowledge LO: 2.2: Describe the major B2C business models.12 Copyright Š 2018 Pearson Education, Inc.50) 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. Answer: A Diff: Moderate AACSB: Application of knowledge LO: 2.2: Describe the major B2C business models. 51) 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. Answer: C Diff: Moderate AACSB: Application of knowledge LO: 2.2: Describe the major B2C business models. 52) 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. Answer: B Diff: Moderate AACSB: Application of knowledge LO: 2.2: Describe the major B2C business models. 53) 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 Answer: B Diff: Easy AACSB: Application of knowledge LO: 2.2: Describe the major B2C business models.13 Copyright Š 2018 Pearson Education, Inc.54) 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 Answer: A Diff: Moderate AACSB: Application of knowledge LO: 2.2: Describe the major B2C business models. 55) On-demand service companies are characterized by the free sharing of resources between the company and consumers. Answer: FALSE Diff: Moderate AACSB: Applicatio
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