Question 1

Web catalog retailers typically refrain from having return policies on unused merchandise.

Accepted Answer

This statement is not always true. Many web catalog retailers do have return policies on unused merchandise, although the specifics of the policy may vary from retailer to retailer.

Question 2

Companies can adapt their catalog revenue model online by replacing or supplementing their print catalogs with information on their Web sites.

Accepted Answer

By replacing or supplementing their print catalogs with online information, companies can adapt their catalog revenue model to the digital age. This allows them to reach a wider audience and provide up-to-date and interactive content.

Question 3

A disadvantage of the Web catalog revenue model is that the products sold in physical stores cannot be sold on the Web.

Accepted Answer

The statement is false. The Web catalog revenue model can sell products online that are also sold in physical stores. However, there may be restrictions on certain products due to shipping and storage limitations.

Question 4

Companies change their revenue models to meet the needs of the new and changing Web users.

Accepted Answer

With the increasing shift towards online interactions, companies need to adapt their revenue models to cater to the needs of web users. This may involve changes such as offering subscription services, implementing advertising strategies or providing value-added offerings to generate revenue online.

Question 5

Companies using a digital content revenue model sell rights to access the information they own.

Accepted Answer

Companies using digital content revenue models typically sell access rights to the content they own, such as through subscriptions or pay-per-view models.

Question 6

Most successful advertising on the Web is targeted at specific groups.

Accepted Answer

Targeted advertising is more effective than generic advertising because it reaches a specific group of consumers who are more likely to be interested in the product or service being advertised. This results in higher click-through rates and a better return on investment for advertisers.

Question 7

The advertising-supported revenue model is the one used by broadcast network television in the United States.

Accepted Answer

This is true. Broadcast network television in the United States primarily relies on revenue from advertising in order to fund their programming.

Question 8

Publishers do not experience sales losses as a result of online distribution.

Accepted Answer

Publishers may experience sales losses as a result of online distribution due to factors such as piracy, reduced pricing, and competition from self-publishing options.

Question 9

There has been little consensus on how to measure and charge for site visitor views, even after almost 20 years of experience with the medium.

Accepted Answer

This statement is true as there is a lack of consensus on how to measure and charge for site visitor views despite years of experience with the internet.

Question 10

A revenue model where the seller establishes a brand image, and then uses the strength of that image to sell through printed information mailed to prospective buyers, who place orders by mail or telephone is called the _____ model.

Accepted Answer

The catalog revenue model involves the seller creating a printed catalog that showcases their products and services, which is then mailed to potential customers. The seller's brand image is established through the catalog, and customers place orders through mail or telephone. Therefore, option C (catalog) is the correct answer. Option A (digital content) and B (web catalog) involve online channels, while option D (mass media) usually refers to advertising through TV, radio, and other forms of traditional media.

Question 11

All electronic commerce initiatives have the goal of providing revenue.

Accepted Answer

Electronic commerce initiatives can have various goals beyond generating revenue, such as improving customer service, streamlining business processes, increasing brand awareness, or gathering customer data and insights.

Question 12

Although online banks let customers pay their bills electronically, most customers still receive their bills in the mail.

Accepted Answer

Although online banking allows for electronic bill payment, it is still common for companies to send bills through the mail.

Question 13

Web companies with unprofitable growth phases for long durations retained their revenue models to grow successfully.

Accepted Answer

Many successful web companies have had to pivot or significantly adjust their revenue models from their initial unprofitable phases to find a path to profitability and sustainable growth.

Question 14

Many classified advertising sites generate substantial revenue, replacing newspapers' historical role as the primary carrier of classified ads.

Accepted Answer

Classified advertising sites such as Craigslist, eBay Classifieds, and Kijiji have become popular alternatives to traditional print newspapers for classified ads, and have generated substantial revenue as a result. Thus, the statement is true.

Question 15

Business-to-business sellers are passive adopters of the Web catalog model.

Accepted Answer

Business-to-business sellers have actively adopted the Web catalog model as it allows them to showcase a large number of products, reduce costs associated with traditional catalog printing and distribution, and offer real-time inventory and pricing information to their customers.

Question 16

Advertisers pay less to have their ad appear near a discussion of a technology related to their product or on a page that reviews the product.

Accepted Answer

Advertisers often pay more to have their ads appear near discussions or reviews of technology related to their product because targeted advertising is considered more effective and valuable, as it reaches an audience already interested in similar products or topics.

Question 17

On Web sites that use the advertising-subscription revenue model, subscribers are typically subjected to much more advertising than they are on sites supported completely by advertising.

Accepted Answer

On Web sites that use the advertising-subscription revenue model, subscribers are typically subjected to less advertising than they are on sites supported completely by advertising. This is because subscribers have already paid for access to the content, so the website does not need to rely on ad revenue as much to generate income.

Question 18

People spend less time at a sticky Web site and are thus, exposed to very little advertising.

Accepted Answer

A sticky website is designed to hold a visitor's attention longer and engage them more deeply, often resulting in more exposure to advertising as they spend more time browsing through the content.

Question 19

In the fee-for-service model, the fee is based on the number or size of transactions the service providers process.

Accepted Answer

The answer of In the fee-for-service model, the fee is...

Question 20

The Web provides a way for technical content developers to reach retail customers.

Accepted Answer

The Web provides a platform for technical content developers to reach a larger audience including retail customers. They can leverage various channels such as social media, blogs, and online marketplaces to showcase their products or services to potential customers.

Quiz 3: Selling on the Web