Question 1

Which of the following terms describes tech-savvy people born after 1990?

Accepted Answer

The term "digital natives" describes tech-savvy people born after 1990 because this generation has grown up with technology as a ubiquitous part of their daily lives. They are comfortable using technology and are able to quickly adapt to new technologies. The term "millennials" refers to people born between 1981-1996 and is a broader demographic group that includes both digital natives and non-digital natives. The terms "techies" and "social gamers" are too narrow to describe this entire generation.

Question 2

What is usually the primary revenue stream for online auction sites such as eBay?

Accepted Answer

The primary revenue stream for online auction sites such as eBay is the fees charged for selling products on the site. Sellers are charged a listing fee and a percentage of the final sale price for each item sold.

Question 3

An Internet distributor of office supplies has a system of bidding and awarding contracts online for customer purchases. This is most likely which type of model?

Accepted Answer

The fact that the system is used for bids and contracts for customer purchases suggests a business-to-business (B2B) model, where the distributor is providing supplies to other businesses.

Question 4

McDonald's and Burger King offer about the same products and need about the same type of employees; which of the following is therefore similar for both companies?

Accepted Answer

Burger King and McDonald's both follow a similar business model of offering fast food at affordable prices with a focus on convenience and speed of service. This includes using similar equipment, ingredients, and production processes. While there may be differences in marketing campaigns and hierarchies of service, the overall business model is what sets them apart from other types of restaurants. Background is not relevant to the similarity between the two companies.

Question 5

Claire browses for clothing at Banana Republic's website but goes to a Banana Republic store to try on and purchase the clothing. Based on this information, which online business model has Banana Republic adopted?

Accepted Answer

Banana Republic has adopted a click-and-mortar retailing model where customers can browse and purchase items online, but also have the option to try on and purchase items in physical stores.

Question 6

You can shop for Gap clothes at any of their thousands of company-owned and franchise stores or online at Gap.com. Which business model does this illustrate?

Accepted Answer

Gap has both physical stores and an online presence, making it an example of click-and-mortar retailing.

Question 7

An Internet consulting company uses its website to allow its corporate clients to obtain information, analyze data, and ask questions. Which model is this consulting company using?

Accepted Answer

The model being used by the consulting company is B2B (business-to-business) as it is providing services to other businesses (its corporate clients).

Question 8

An international auction company offers sellers the opportunity to buy or sell items via auction and provides an easy place to trade on the Internet. It charges a fee per month along with a fee per sale of 3-7%, depending on the transaction amount. Which online business model does this illustrate?

Accepted Answer

The company charges a fee per month and a fee per sale, indicating a fee-based platform business model.

Question 9

Using data about buying preferences and customer profiles allows management to do all of the following EXCEPT which one?

Accepted Answer

While using data about buying preferences and customer profiles can inform decisions about pricing strategies, it does not necessarily mean that lower prices will be offered. Other factors such as competition and profitability also play a role in determining pricing decisions.

Question 10

Key performance indicators or KPIs are measurements that a company uses to track its progress toward achieving which of the following?

Accepted Answer

KPIs are measurements that a company uses to track its progress toward achieving various objectives and strategic goals.

Question 11

A cut flower grower, shipper, and wholesaler uses an e-commerce software program on its website to allow florists to enter their own orders for flowers that are delivered by the end of the next business day. Which type of online business model does this reflect?

Accepted Answer

The model described is B2B procurement, as it involves a business (the cut flower grower, shipper, and wholesaler) selling directly to other businesses (florists) through an online platform.

Question 12

Jane.com is a boutique marketplace that brings together individual sellers or small businesses to sell women and children's clothing and home decor online. This is an example of which business model?

Accepted Answer

Jane.com operates as a fee-based platform, charging individual sellers or small businesses a fee to sell their products on the platform.

Question 13

The Wall Street Journal's online edition is not provided free to Internet users. Therefore, the primary revenue stream for this online version is probably which of the following?

Accepted Answer

The question states that the Wall Street Journal's online edition is not provided free to internet users, implying that users must pay to access the content. Therefore, the primary revenue stream for this online version is likely subscription fees.

Question 14

Which of the following are measurements used by a company to track its progress toward achieving an objective?

Accepted Answer

Key performance indicators (KPIs) are commonly used by companies to track their progress towards achieving an objective. Social media message (SMM), Performance measurement metrics (PMM), and Online performance metrics (OPM) are not commonly used terms for measuring progress towards objectives.

Question 15

Rebecca is conducting research to determine how to get her company's listing higher up on search engine results when customers do a search for permanent makeup. What is this online marketing tactic called?

Accepted Answer

The tactic described is search engine optimization (SEO), which involves optimizing a website's content and structure to improve its ranking on search engine results pages.

Question 16

Viva Auto Supply Company uses an e-commerce software program on its website to allow customers such as Breeze Body Shop to enter their own orders for auto parts. Which business model is Viva following?

Accepted Answer

Viva Auto Supply Company is following a Business-to-Business (B2B) model because it allows other businesses (like Breeze Body Shop) to order auto parts from its website, indicating transactions between two businesses.

Question 17

You can buy a wide variety of merchandise at Overstock.com from furniture to electronics, jewellery, clothing, and home décor, but the company does not have any physical stores. What online business model does this represent?

Accepted Answer

Overstock.com represents the online-only retailing business model, as it operates solely through its e-commerce website and does not have any physical stores.

Question 18

Grainger, a leading supplier of maintenance, repair, and operating (MRO) supplies for businesses, has partnered with SAP AG to integrate its online catalogue, providing easy electronic commerce transactions between Grainger and its online customers resulting in reduced purchasing costs and improved efficiency. Which online business model does this reflect?

Accepted Answer

The partnership between Grainger and SAP AG to integrate their online catalogue for easy B2B e-commerce transactions indicates a B2B procurement online business model.

Question 19

Which of the following would be considered a revenue stream?

Accepted Answer

All of the options listed (subscription fees, sales of products, sales of services) represent ways in which a company can generate revenue.

Question 20

Tutor.com is an online tutoring service that provides 24/7 access to tutors in over 40 subjects in its online classroom. Students can choose a variety of plans, beginning at $39.99 per month. What type of online business model does this represent?

Accepted Answer

Tutor.com is a fee-based platform, as it charges a monthly fee for access to its online tutoring services.

Quiz 16: Exploring Business Technology