Question 1

Which of the following companies utilizes a transaction fee revenue model?
A)WSJ.com
B)E*Trade
C)Twitter
D)Sears.com

Accepted Answer

E*Trade charges transaction fees for every trade made by their customers on their platform.

Question 2

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

Accepted Answer

Market creator is not a variation of the e-tailer business model. It refers to a platform that brings buyers and sellers together to facilitate transactions, rather than selling goods directly to consumers online.

Question 3

All of the following use an advertising revenue model except:
A)Facebook.
B)Yahoo.
C)Google.
D)Amazon.

Accepted Answer

Amazon primarily generates revenue through product sales, while Facebook, Yahoo, and Google all rely heavily on advertising revenue models.

Question 4

Which of the following is not a community provider?
A)LinkedIn
B)Facebook
C)Priceline
D)Pinterest

Accepted Answer

Priceline is not a community provider as it is an online travel booking service, while the other options (LinkedIn, Facebook, and Pinterest) are social networking sites that allow users to connect with and share content with others in a community setting.

Question 5

All of the following can be considered a direct or indirect competitor of Amazon.com except:
A)eBay.
B)Apple's iTunes Store.
C)Barnesandnoble.com.
D)Starbucks.

Accepted Answer

Starbucks is not a direct or indirect competitor of Amazon.com as they are completely different businesses. Amazon.com primarily focuses on e-commerce and digital content while Starbucks is primarily a coffee retailer.

Question 6

Which of the following is not considered a portal?
A)Yahoo
B)MSN
C)WSJ.com
D)AOL

Accepted Answer

Yahoo, MSN, and AOL are all internet portals, whereas WSJ.com is a website specific to the Wall Street Journal and does not serve as a general gateway to other websites or services.

Question 7

The existence of a large number of 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.

Accepted Answer

The answer of The existence of a large number of...

Question 8

Which of the following is an example of the affiliate revenue model?
A)Yahoo
B)eBay
C)Gap.com
D)MyPoints

Accepted Answer

MyPoints operates on an affiliate revenue model, where they earn revenue by referring customers to other businesses and earning a commission on resulting sales. Yahoo, eBay, and Gap.com use other revenue models like advertising or direct sales.

Question 9

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.

Accepted Answer

A perfect market is characterized by perfect competition, which means all firms have equal access to all resources and there are no barriers to entry or exit. This ensures that no firm has an advantage over the others and all firms are price takers rather than price makers. Option B, C, and D all describe situations in which there is an unequal distribution of resources and therefore do not accurately portray a perfect market.

Question 10

Organizations that provide not only funding but also an array of services to start-up companies are referred to as:
A)angel investors.
B)crowdfunders.
C)incubators.
D)venture capital investors.

Accepted Answer

Organizations that provide not only funding but also an array of services to start-up companies are referred to as incubators. Angel investors and venture capital investors provide funding only. Crowdfunders are a type of fundraising through a large number of individuals contributing small amounts of money.

Question 11

Which of the following would be considered an indirect competitor of American Airlines?
A)JetBlue
B)Zipcar
C)Orbitz
D)British Airways

Accepted Answer

Zipcar is an indirect competitor as it offers an alternative mode of transportation (car rental) rather than direct airline services.

Question 12

Assume you are analyzing the market opportunity of a distance learning company, Learnmore.com, that creates education courses delivered over the Internet for the Fortune 1000 corporate market.Assume that the overall size of the distance learning market is $25 billion.The overall market can be broken down into three major market segments: Corporate, College, and Elementary/High School, each of which accounts for a third of the market.Within the Corporate market, there are two market niches: Fortune 1000, which accounts for 60% of the market, and all others, which together account for 40% of the market.What is Learnmore.com's realistic market opportunity, approximately?
A)$5 billion
B)$6.6 billion
C)$165 billion
D)$25 billion

Accepted Answer

The Corporate market is one-third of the $25 billion market, which is approximately $8.33 billion. The Fortune 1000 niche is 60% of the Corporate market, which is approximately $5 billion.

Question 13

Which of the following factors is not a significant influence on a company's competitive environment?
A)how many competitors are active
B)what the market share of each competitor is
C)the availability of supportive organizational structures
D)how competitors price their products

Accepted Answer

The availability of supportive organizational structures may be important for a company's internal operations, but it is not a significant influence on the company's competitive environment. The other factors listed (number of competitors, market share, pricing strategies) all have a direct impact on the company's competition within its industry.

Question 14

A firm's ________ describes how a firm will produce a superior return on invested capital.
A)value proposition
B)revenue model
C)market strategy
D)competitive advantage

Accepted Answer

The answer of A firm's ________ describes how a firm...

Question 15

The business model of e-distributors is quite similar to that of:
A)e-tailers.
B)transaction brokers.
C)exchanges.
D)service providers.

Accepted Answer

E-distributors primarily focus on selling products directly to customers through online platforms, which is similar to the business model of e-tailers. Both e-distributors and e-tailers rely on e-commerce platforms and digital marketing to reach and engage their customers. Although transaction brokers, exchanges, and service providers may also use online channels, their business models are fundamentally different from e-distributors.

Question 16

Your solar-panel manufacturing firm has developed a unique and patented process for creating high-efficiency solar panels at a fraction of current costs.This will enable your firm to adopt a strategy of:
A)cost competition.
B)scope.
C)scale.
D)focus.

Accepted Answer

The unique and patented process allows the firm to produce solar panels at a lower cost, enabling it to compete on price, which is a cost competition strategy.

Question 17

A business document that specifically details how you plan on selling your product and find new customers is called a:
A)sales analysis.
B)business plan.
C)competitive strategy.
D)market strategy.

Accepted Answer

A market strategy is a document that outlines how a business plans to promote and sell its products or services, as well as how it plans to acquire new customers. A sales analysis is a review of a company's sales performance, a business plan details a company's overall strategy and operations, and a competitive strategy outlines how a company plans to compete with other businesses in its industry.

Question 18

Which of the following is an example of the subscription revenue model?
A)Ancestry.com
B)eBay
C)Amazon
D)Twitter

Accepted Answer

Ancestry.com follows the subscription revenue model where users pay a monthly or annual fee to access their genealogy databases and services. eBay, Amazon, and Twitter, on the other hand, use different business models such as e-commerce, advertising, and freemium.

Question 19

Stickiness is an important attribute for which revenue model?
A)advertising revenue model
B)subscription revenue model
C)transaction fee revenue model
D)sales revenue model

Accepted Answer

Stickiness, or the ability to keep users engaged for longer periods of time, is most important for the advertising revenue model. The longer users stay on a platform, the more opportunities there are to show them ads and generate revenue. Subscription models are more focused on attracting a loyal customer base who are willing to pay for access to exclusive content or services, while transaction fee and sales models are more focused on one-time transactions.

Question 20

Horizontal or general 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.

Accepted Answer

Horizontal or general portals typically do not focus on the sales of goods as a primary revenue source; they mainly generate revenue through advertising, transaction fees, and subscription fees.

Quiz 2: E-Commerce Business Models and Concepts

Which of the following companies utilizes a transaction fee revenue model?

Which of the following is not a variation of the e-tailer business model?

All of the following use an advertising revenue model except:

Which of the following is not a community provider?

All of the following can be considered a direct or indirect competitor of Amazon.com except:

Which of the following is not considered a portal?

The existence of a large number of competitors in any one market segment may indicate:

Which of the following is an example of the affiliate revenue model?

A perfect market is one in which:

Organizations that provide not only funding but also an array of services to start-up companies are referred to as:

Which of the following would be considered an indirect competitor of American Airlines?

Which of the following factors is not a significant influence on a company's competitive environment?

A firm's ________ describes how a firm will produce a superior return on invested capital.

The business model of e-distributors is quite similar to that of:

Your solar-panel manufacturing firm has developed a unique and patented process for creating high-efficiency solar panels at a fraction of current costs.This will enable your firm to adopt a strategy of:

A business document that specifically details how you plan on selling your product and find new customers is called a:

Which of the following is an example of the subscription revenue model?

Stickiness is an important attribute for which revenue model?

Horizontal or general portals primarily generate revenue in all of the following ways except: