Question 1

Claire browses for clothing at Banana Republic's website, but goes to a Banana Republic store to try on and purchase the clothing.This demonstrates what aspect of e-business?

Accepted Answer

This demonstrates the concept of omnichannel retailing, where a customer may research and browse products online but still prefer to make the final purchase in-store. The online presence of the company may have led the customer to the physical store, resulting in increased sales.

Question 2

Rosie's Flowers Company in Tulips, Ohio, uses an e-commerce software programme on its website to allow customers to enter their own orders for flowers that are delivered by the end of the next business day.Rosie's Flowers follows a(n) ____ model.

Accepted Answer

Rosie's Flowers has a website that enables customers to order and purchase flowers online, which indicates that it uses the business-to-customer (B2C) model.

Question 3

Which of the following would not be considered a revenue stream?

Accepted Answer

The sale of a Sony music warehouse is a one-time event and not a recurring source of revenue, making it not a revenue stream. The other options are all recurring sources of revenue.

Question 4

McDonald's and Burger King share a similar ____ because they offer about the same products and need about the same type of employees.

Accepted Answer

The fact that McDonald's and Burger King offer similar products and require similar employees suggests that they have a similar business model. This includes their operations, supply chain, and overall strategy for running their fast food restaurants. The other options (A, B, D, E) do not accurately describe the relationship between these two companies.

Question 5

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

Accepted Answer

The statement clearly mentions that the Wall Street Journal's online edition is not provided free to internet users. Therefore, the primary revenue stream for this online version is likely to be subscription fees.

Question 6

Marta invests a substantial amount of money to take her business online.She is extremely discouraged when three months pass and she has not produced enough new revenues to offset the high start-up costs.What sound advice could you give Marta?

Accepted Answer

Starting an e-business requires significant investment and it is common for it to take some time to recover the initial investment. Three months is a relatively short amount of time to determine the long-term success of the business. Marta should continue to monitor her progress and make adjustments as needed to improve revenue. Cutting her losses now or taking the business offline after only two additional months may not be the best decisions without fully exploring other options. Doubling the investment in the e-business is not recommended without first evaluating the reasons for the lack of revenue and assessing the potential ROI.

Question 7

Christopher notices that his Discover Card statement gives the company's Web address (Discovercard.com) and directs him there to pay his bills and answer his questions.What e-business strategy is Discover employing with this reference to its Web site?

Accepted Answer

Discover is using a cost-cutting e-business strategy by directing customers to its website to pay their bills and answer their questions, reducing the need for costly customer service representatives and mail-based billing systems.

Question 8

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

Accepted Answer

Online auction sites such as eBay usually generate their primary revenue stream through fees charged for selling products on the site. They usually charge a certain percentage of the sale price as a fee for using their platform to sell items. This fee varies depending on the type of item being sold and the selling price.

Question 9

Creating a website so that customers can search for information instead of calling the company's offices and speaking to a customer-service representative is an e-business strategy designed to increase profit by

Accepted Answer

By allowing customers to find information on a website, the company can reduce the need for customer service representatives, which ultimately reduces expenses.

Question 10

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

Accepted Answer

This model involves online transactions between businesses, which fits the scenario of an internet distributor of office supplies bidding and awarding contracts for customer purchases.

Question 11

Commerce through smartphones and other mobile devices is known as

Accepted Answer

M-commerce stands for mobile commerce, which refers to the buying and selling of goods and services through smartphones and other mobile devices. Choice B (c-commerce) is not a commonly used term and may not refer specifically to mobile commerce. Choice C (mobile retailing) is a part of m-commerce but does not encompass the entire concept of m-commerce. Choices D (C2C) and E (M2C) are not the correct terms for mobile commerce. C2C refers to consumers buying and selling from each other, while M2C does not have a widely accepted definition.

Question 12

Money that an electronics retailer receives through the online sales of extended warranty plans provides a(n) ____ for the company.

Accepted Answer

The money received from online sales of extended warranty plans is considered a revenue stream, as it is a source of income for the company.

Question 13

Peer-to-peer software that allows users to share information over the Internet is known as a ____ model.

Accepted Answer

Peer-to-peer software allows users to directly share information or files with each other without needing a centralized server. Consumer-to-consumer (C2C) is the model that best describes this direct sharing between users, making option A the correct choice. Seller-to-consumer (B2C) refers to online transactions between businesses and consumers, while business-to-consumer (B2C) refers to companies selling their products or services to individual customers. Vendor-to-consumer is not a commonly used term in the industry, and pay-per-view refers to a payment model for accessing specific content rather than a sharing model.

Question 14

A business model represents a ____ in a business situation.

Accepted Answer

A business model represents a group of common characteristics and behaviours. It defines how a company creates, delivers, and captures value for its stakeholders. While customer focus, supplier relations, profit generation, and shared values are important aspects of a business model, they are not the defining feature.

Question 15

Gap.com, the clothier's online site, focuses on conducting business with individual customers.This represents a ____ model.

Accepted Answer

The online site of Gap.com focuses on selling its clothing products to individual consumers, hence it represents a Business-to-Consumer (B2C) model.

Question 16

Bit Torrent is an example of ____ model.

Accepted Answer

Bit Torrent is a P2P (peer-to-peer) model, which falls under consumer-to-consumer category.

Question 17

Which of the following would be considered a revenue stream?

Accepted Answer

All of the above options (Advertising, Subscription fees, Sales of products, and Sales of services) can be considered revenue streams for a business. Revenue streams refer to the sources of income for a business, and they can come from various sources like product sales, service sales, advertising revenues, and subscription fees. Therefore, all the options are correct.

Question 18

An Internet consulting company uses its Web site to allow its corporate clients to obtain information, analyse data, and ask questions.This consulting company is using a ____ model.

Accepted Answer

The company is providing services to other businesses (corporate clients), so it is a business-to-business (B2B) model. The fact that the services are provided through a website does not change the nature of the business model.

Question 19

One type of B2B model focuses on

Accepted Answer

The question asks for one specific type of B2B model, and option A is the only one that directly addresses this. Option B focuses on increasing costs to consumers, which is not a B2B model. Option C talks about gaining the loyalty of individual buyers, which is a B2C model. Option D refers to reducing the costs of finished products, which is not a B2B model. Therefore, the best answer is A.

Question 20

The ABC Auto Supply Company of Burlington, Vermont, uses an e-commerce software programme on its Web site to allow customers such as Quickeeze Body Shop to enter their own orders for auto parts.ABC is following a(n) ____ business model.

Accepted Answer

ABC Auto Supply Company is using a Business-to-Business (B2B) model as it allows other businesses, like Quickeeze Body Shop, to place orders for auto parts through its e-commerce platform.

Quiz 15: Social Media and E-Business