Deck 3: Business Models and Strategies

Question 1

One of the most famous examples of the brokerage model:

A)Dell.
B)Yahoo!.
C)eBay.

Answer 1

C

Question 2

________ is an important element of any business model.

A)Value proposition
B)Competitive analysis
C)Financial forecasting

Answer 2

A

Question 3

Companies share information within the organization on:

A)extranets.
B)intranets.
C)open source networks.

Answer 3

B

Question 4

Which of the following is a type of business marketplace?

A)Consortium
B)Private exchange
C)Both the above

Question 5

Possible applications of the Community model include:

A)fundraising.
B)open collaboration.
C)both of the above.

Question 6

Music file sharing is an example of which Internet business model?

A)Brokerage
B)Peer-to-peer
C)Community

Question 7

Which of the following is a true statement about Internet business models?

A)The business models for B2C and B2B markets are different.
B)The best business models are supported by advertising.
C)Nonprofit organizations and governmental agencies make use of a variety of business models.

Question 8

________ is making recommendations to visitors based on preferences provided by similar visitors.

A)Co-creation
B)Collaboration
C)Collaborative filtering

Question 9

________ is the business model used to describe a site that resells large amounts of content on the web.

A)Portal
B)Machine-to-Machine
C)Infomediary

Question 10

A business model is:

A)how a company makes money.
B)how a not-for-profit achieves its revenue goals.
C)both the above.

Question 11

Among the functions filled by business models are:

A)to conduct a detailed SWOT analysis.
B)to describe the value proposition.
C)to provide detailed pro forma financial statements.

Question 12

Elements of a value proposition do not include:

A)a description of the capabilities of the business.
B)a description of customer service strategy.
C)a description of the target customer.

Question 13

Examples of the infomediary business model include:

A)Amazon.
B)Yahoo!.
C)Wall Street Journal Online.

Question 14

Which of the following is not an element to be considered when preparing an Internet business model?

A)How value will be created for customers.
B)How customers will use the product or service.
C)The importance of multiple revenue streams.

Question 15

The ________ manages and distributes data on the Internet.

A)portal
B)disintermediator
C)infomediary

Question 16

Which of the following is an example of the utility model?

A)Skype
B)Slashdot
C)Both of the above

Question 17

Revenue models for online businesses include:

A)Bringing buyers and sellers together.
B)Reaching buyers directly.
C)both of the above.

Question 18

Disintermediation means:

A)Syndication
B)Eliminate the middleman
C)Direct Selling

Question 19

The main function of a portal is to:

A)provide a huge amount of content.
B)provide access to the Internet.
C)provide free services.

Question 20

________ is making recommendations to visitors based on preferences generated by the purchases of similar visitors.

A)Collaborative filtering
B)Collaboration
C)Co-creation

Question 21

Ecommerce is not applicable to nonprofit markets:

Question 22

Business model and business plan are synonymous terms.

Question 23

When creating their business model Internet marketers must choose a single, specific revenue model.

Question 24

Business models in the B2C space are entirely different from business models in the B2B space.

Question 25

Selling software-based services on the Internet is an example of which type of model?

A)Merchant
B)Brokerage
C)Manufacturer

Question 26

Application Service Providers (ASPs) provide software applications and services to small companies.

Question 27

With the demise of Napster the Peer-to-Peer application is no longer viable.

Question 28

A business model describes how the enterprise creates value for customers and generates revenue.

Question 29

A value proposition describes the value created for all customers who purchase this type of product.

Question 30

The advertising model is an excellent way for a new business to consider making money.

Question 31

The advertising model is an extension of which traditional model?

A)Media Broadcast
B)Banner Advertising
C)Marketplace

Question 32

RSS feeds are:

A)a method of generating revenue from website content.
B)a method of syndicating content.
C)used by large corporations to transmit information over the Internet.

Question 33

A statistical technique to identify underlying patterns in data:

A)provide a huge amount of content.
B)predictive modeling.
C)aggregation.

Question 34

A company selling shoes online to consumers is following which business model?

A)Merchant
B)Brokerage
C)Aggregation

Question 35

eToys illustrates the following concept:

A)Internet firms often have large initial investments in technology and order fulfillment facilities.
B)the importance of various cost elements does not vary greatly from offline to online businesses.
C)for the customer, costs of switching from one supplier to another are high.

Question 36

Affiliate programs are worthwhile but expensive for marketers to operate.

Question 37

The key function of the affiliate model is to:

A)manage and distribute software-based services and solutions.
B)provide financial incentives to partners.
C)share revenue through banner ads.

Question 38

Infomediaries are present only in the B2C marketspace.

Question 39

Advertising is the only feasible revenue stream for most Internet businesses.

Question 40

The value proposition concept only applies to online banking.

Question 41

A proprietary system is usually not sold or licensed.

Question 42

In your own words describe the functions of a business model and explain why the concept is important.

Question 43

The value proposition is an important marketing concept.Explain the concept and give an example of how an Internet business creates value for customers.

Question 44

The subscription model is not applicable to nonprofit markets: