Deck 8: Online Retail and Services

Question 1

The MOTO sector of the retail industry is most similar to the ________ sector.

A)specialty stores
B)general merchandise
C)online retail sales
D)product-based services

Answer 1

C

Question 2

Which of the following sectors of the United States retail industry is the largest?

A)consumer durables
B)specialty stores
C)gasoline and fuel
D)online retail

Answer 2

A

Question 3

In 2012, the number of online buyers was around 150 million.

Answer 3

True

Question 4

Consumers are primarily price-driven when shopping on the Internet.

Question 5

In 2012, online retail sales revenues were approximately:

A)$2.24 billion.
B)$22.4 billion.
C)$224 billion.
D)$2.24 trillion.

Question 6

All of the following were parts of the vision during the early days of e-commerce except the belief that:

A)new, "first-mover" middlemen, with expertise in e-commerce, would force traditional intermediaries out of business.
B)Web consumers were rational and cost-driven.
C)entry costs to the online retail market would be much less than those needed to establish a physical storefront.
D)the cost of acquiring customers would be much lower.

Question 7

Contrary to predictions of analysts made during the early days of e-commerce, the Internet has led to both disintermediation and hypermediation on a widespread basis.

Question 8

The Internet has been a powerful influence on consumer insurance decisions.

Question 9

In 2012, more travel was booked online than offline.

Question 10

Which of the following statements is not true?

A)Compared to general merchandisers, the transition to e-commerce has been easier for MOTO firms.
B)The MOTO sector is also called the general merchandise sector.
C)MOTO was the last technological revolution that preceded e-commerce.
D)Distribution of catalogs is one of MOTO retailers' biggest expenses.

Question 11

The online mortgage industry has transformed the process of obtaining a mortgage.

Question 12

Personal consumption of retail goods and services accounts for approximately ________ of the United States GDP.

A)$11 billion
B)$110 billion
C)$1.1 trillion
D)$11 trillion

Question 13

Mobile commerce currently accounts for more retail goods sold than social commerce.

Question 14

The major impact of Internet real estate sites is in enabling online-only property transactions.

Question 15

In 2012, approximately what percentage of Internet users over the age of 14 made a purchase at an online retail store?

A)30 percent
B)50 percent
C)70 percent
D)90 percent

Question 16

Which of the following is not one of the seven major segments of the retail industry?

A)electronics and computers
B)consumer durables
C)gasoline and fuel
D)food and beverage

Question 17

Over 100 million U.S. consumers now use online banking.

Question 18

Groupon is an example of local commerce.

Question 19

In the United States, the service sector accounts for about 75 percent of all economic activity.

Question 20

Online retailing is one of the largest segments of the retail industry.

Question 21

All of the following are challenges for catalog merchants except:

A)high costs of printing and mailing.
B)building a credible Web site.
C)the need to bring staff in or manage new technology.
D)building sophisticated order entry and fulfillment systems.

Question 22

Which of the following is a job site aggregator?

A)SimplyHired
B)Craigslist
C)Monster
D)CareerBuilder

Question 23

The top 25 retailers account for about ________ percent of all online retail.

A)90
B)60
C)45
D)20

Question 24

Approximately ________ percent of the United States labor force is involved in providing services.

A)30
B)50
C)60
D)80

Question 25

All of the following services require extensive personalization except:

A)financial services.
B)legal services.
C)medical services.
D)accounting services.

Question 26

Which of the following statements about the online real estate services market is not true?

A)The major impact of Internet real estate sites is in influencing offline decisions.
B)Real estate differs from other types of online financial services because it is impossible to complete a property transaction online.
C)The primary service offered by real estate sites is a listing of houses available.
D)The Internet and e-commerce have created significant disintermediation in the real estate marketplace.

Question 27

Which of the following is not an example of a transaction broker?

A)a stockbroker
B)a real estate agent
C)an accountant
D)an employment agency

Question 28

The term demand-pull refers to:

A)making products prior to orders being received based on estimated demand.
B)waiting for orders to be received before building a product.
C)channel conflict.
D)multi-channel manufacturers who sell directly online to consumers.

Question 29

All of the following are trends in the financial service industry except:

A)industry consolidation.
B)integrated financial services.
C)pure online banks are displacing established multi-channel firms.
D)growth of online personal banking.

Question 30

Which of the following is not one of the methods used by traditional retailers to develop multi-channel integration?

A)online Web catalog
B)online order, in-store pickup
C)online supply-push
D)online promotions for offline purchases

Question 31

Which of the following statements about financial portals is not true?

A)They do not offer financial services.
B)They add to the online price competition in the finance industry.
C)Their strategy is similar to that of large banking institutions.
D)They make their money from advertising, referral fees, and subscription fees.

Question 32

In ________, all of a customer's financial (and even nonfinancial)data are pulled together at a single personalized Web site.

A)account aggregation
B)a financial portal
C)integrated financial services
D)EBPP systems

Question 33

Virtual merchants face potentially large costs for all of the following except:

A)building and maintaining a Web site.
B)building and maintaining physical stores.
C)building an order fulfillment infrastructure.
D)developing a brand name.

Question 34

All of the following are examples of the challenges that traditional manufacturers experience when using the Internet to sell directly to the consumer except:

A)moving to a supply-push model.
B)high cost structures.
C)developing a fast-response online order and fulfillment system.
D)channel conflict.

Question 35

All of the following are challenges faced by bricks-and-clicks firms except:

A)coordinating prices across channels.
B)handling returns of Web purchases at retail outlets.
C)building a credible Web site.
D)building a brand name.

Question 36

All of the following are advantages of online retail except:

A)lower supply chain costs.
B)lower cost of distribution.
C)ability to change prices.
D)faster delivery of goods.

Question 37

Which of the following is not one of the central challenges facing the online retail industry?

A)lack of physical store presence
B)consumer concerns about the privacy of personal information
C)inconvenience in returning goods
D)delivery delays

Question 38

Which of the following statements about the online insurance industry is not true?

A)The Internet has dramatically changed the insurance industry's value chain.
B)Web sites of almost all the major firms provide the ability to obtain an online quote.
C)Internet usage has led to a decline in term life insurance prices industry-wide.
D)The industry has been very successful in attracting visitors searching for information.

Question 39

Craigslist is a player in which of the following online services market?

A)real estate services and career services
B)insurance services and brokerage services
C)travel services
D)online accounting services

Question 40

The Internet has resulted in lower search costs, increased price comparison, and lower prices to consumers for which insurance product line?

A)term life insurance
B)automobile insurance
C)health insurance
D)property and casualty insurance

Question 41

In 2012, the average annual amount spent online was:

A)$500.
B)$675.
C)$1,200.
D)$1,500.

Question 42

Online retail comprises about ________ percent of the U.S. retail industry.

A)3
B)6
C)12
D)15

Question 43

Revenues from social commerce were expected to reach ________ in 2012.

A)$30 million
B)$300 million
C)$3 billion
D)$30 billion

Question 44

Which of the following best explains why the service sector is a natural avenue for e-commerce?

A)The service sector is less geographically reliant and more globally oriented.
B)The service sector has historically been more technology-reliant.
C)Much of the value in services is based on the collection, storage, and exchange of information.
D)It is not; services are difficult to translate to e-commerce because they rely on face-to-face communication and barter.

Question 45

All of the following are top comparison shopping sites except:

A)Nextag.
B)Fiserv.
C)PriceGrabber.
D)Shopping.com.

Question 46

Online travel services revenues in 2012 were approximately:

A)$120 million.
B)$12 billion.
C)$120 billion.
D)$1.2 trillion.

Question 47

Which of the following is not an online recruitment site?

A)Dice
B)Monster
C)Trulia
D)Indeed

Question 48

Around how many display ads were shown online in the United States in 2012?

A)48 billion
B)480 billion
C)4)8 trillion
D)48 trillion

Question 49

Blue Nile is an example of a:

A)brick-and-clicks merchant.
B)virtual merchant.
C)catalog merchant.
D)financial portal.

Question 50

During what period were online retail revenues basically flat?

A)2007-2008
B)2008-2009
C)2009-2010
D)2010-2011

Question 51

Which of the following was the top online bank by percentage of total Web bank visits in October 2012?

A)Wells Fargo Online Banking
B)Chase Online Banking
C)Bank of America Online Banking
D)Capital One Online Banking

Question 52

Personal consumption of retail goods and services accounts for about ________ percent of the total gross domestic product.

A)10
B)30
C)50
D)70

Question 53

What is the largest sector of the online travel services market in terms of revenue?

A)hotel reservations
B)car reservations
C)cruise/tour reservations
D)airline reservations

Question 54

Which of the following is one of the last pure online banks?

A)ING Direct
B)NetBank
C)VirtualBank
D)Wingspan Bank

Question 55

Thus far, the most successful and innovative pure-play online retailer is ________.

Question 56

Which of the following statements is not true?

A)Price competition among online travel services is difficult as comparison shopping for better prices is easy.
B)Online travel services is one of the few sectors in which extensive disintermediation has occurred.
C)The ability of travel products and services to be commoditized is a significant factor in the explosive growth of the online travel services industry.
D)The online travel services industry has gone through a period of consolidation.

Question 57

All of the following are early innovators that are no longer in business except:

A)Kozmo.
B)Webvan.
C)Expedia.
D)BizConsult.com.

Question 58

A(n)________ is a single channel Web firm that generates almost all of its revenues from online sales.

Question 59

All of the following can be considered a competitor for Blue Nile except:

A)Amazon.
B)Bidz.com.
C)Ice.com.
D)Fossil.com.

Question 60

In a(n)________ strategy, traditional merchants combine their offline retail and online retail stores and services to provide a seamless customer experience.

Question 61

Describe the state of the online retail sector today.

Question 62

________ occurs when physical retailers of products must compete on price and currency of inventory directly against the manufacturer.

Question 63

________ is the official Web site of the National Association of Realtors and one of the top online real estate sites in terms of market share of visits.

Question 64

________ are sites that provide consumers with comparison shopping services, independent financial advice, and financial planning.

Question 65

________ is the leading supplier of reservation, table management, and guest management software for restaurants.

Question 66

In a(n)________ model, products are made prior to orders received based on estimated demand.

Question 67

________ began as a supplier-owned travel reservation system and is now a public company.

Question 68

Identify and discuss the key features of the online insurance industry.

Question 69

Also called multi-channel merchants, ________ companies merchants have a network of physical stores as their primary retail channel but also have introduced online offerings.

Question 70

The four major sectors in the travel market are airline tickets, hotel reservations, cruises/tours, and ________.

Question 71

The leading provider of account aggregation technology is ________.

Question 72

________ provides job search centers for more than 9,000 Web sites, and 140 newspapers.

Question 73

Explain why online career services are so well suited to the Web.

Question 74

Describe the vision of online retailing during the early days of e-commerce. Did these predictions and assumptions turn out to be true?

Question 75

Why are online travel services so popular for consumers and suppliers?