Question 1

Which of the following statements is true about firms pursuing a brick-and-mortar business strategy?
A) These firms avoid indulgence in physical store locations.
B) These firms avoid indulgence in electronic commerce.
C) These firms are only involved in export business activities.
D) These firms indulge in rafter bidding activities.
E) These firms operate in both physical and virtual arenas.

Accepted Answer

Firms pursuing a brick-and-mortar business strategy focus on physical store locations and typically avoid or minimize involvement in electronic commerce.

Question 2

Walmart.com is an example of a ________ retailer.
A) brick-and-mortar
B) click-only
C) bricks-and-clicks
D) click-and-flip
E) brick-and-flip

Accepted Answer

Walmart.com is a "bricks-and-clicks" retailer because it operates physical brick-and-mortar stores as well as an online e-commerce website.

Question 3

A click-and-mortar business strategy is also referred to as a ________ business strategy.
A) click-and-flip
B) brick-and-mortar
C) click-only
D) bricks-and-clicks
E) brick-and-flip

Accepted Answer

A click-and-mortar business strategy is also known as a bricks-and-clicks business strategy. This strategy involves a company having both physical brick-and-mortar stores as well as an online presence or e-commerce platform, allowing customers to interact with the company through multiple channels. This strategy can help a company expand its reach and provide customers with more options for accessing their products or services.

Question 4

________ are two-dimensional barcodes with a high storage capacity that are typically used to point the consumer to a particular Web page when he or she scans the barcode with a mobile device's camera.
A) Viral codes
B) QR codes
C) MSI barcodes
D) MaxiCodes
E) CPC Binary Barcodes

Accepted Answer

QR codes are specifically designed for mobile devices and can be scanned with a smartphone's camera. When scanned, the code can direct the user to a particular website or page with more information about a product or service.

Question 5

Companies using a ________ business strategy are also called virtual companies.
A) click-and-flip
B) click-only
C) brick-and-mortar
D) bricks-and-clicks
E) click-and-mortar

Accepted Answer

Companies using a "click-only" business strategy operate exclusively online, without any physical storefronts, making them virtual companies.

Question 6

The online sales of goods and services are known as ________.
A) e-information
B) e-integration
C) e-tailing
D) e-collaboration
E) e-filing

Accepted Answer

The term used for online sales of goods and services is e-tailing or electronic retailing. Hence, option C is the correct answer. Option A (e-information) refers to online information sharing, option B (e-integration) refers to the integration of various business processes using technology, option D (e-collaboration) refers to online collaboration between individuals or organizations, and option E (e-filing) refers to the electronic filing of documents or forms.

Question 7

Which of the following is a disadvantage of e-tailing?
A) It is limited by physical store and shelf space restrictions.
B) It requires additional time for products to be delivered.
C) It complicates the process of comparison shopping.
D) It restricts companies from effectively competing on prices.
E) It reduces a company's inventory turnover time.

Accepted Answer

The disadvantage of e-tailing is that customers have to wait for the products to be delivered, which can take additional time compared to purchasing in a physical store. The other options listed are not disadvantages of e-tailing.

Question 8

The concept of the Long Tail refers to a focus on ________.
A) brand evangelism
B) broad markets
C) generic brands
D) brand dilution
E) niche markets

Accepted Answer

The Long Tail concept emphasizes on catering to niche markets, as opposed to broad markets which is traditional mass market approach. It emphasizes that the revenue from many small niche markets can accumulate to be greater than the revenue from a few large markets.

Question 9

EZBiz,the brainchild of three college friends,is a startup venture that plans to produce and market sports gear.The venture is still stuck in the planning phase as they have not been able to decide the suitable business strategy to opt for.They are currently trying to decide between a bricks-and-clicks strategy and a click-only strategy.Which of the following,if true,would most undermine the decision to adopt a click-only strategy?
A) The company has limited access to funds and is looking to keep its costs low.
B) The public is wary of sharing confidential information after a recent spate of credit card scandals.
C) A competitor is facing severe backlash after inadvertently releasing sensitive data into the public domain.
D) Several companies who have switched from a brick-and-mortar strategy to a click-only strategy are experiencing severe channel conflicts.
E) Some click-only companies have been unable to achieve economies of scale and are subsequently unable to offer lower prices.

Accepted Answer

The public's wariness of sharing confidential information online directly undermines the viability of a click-only strategy, as it suggests potential customers might be hesitant to make purchases through an online-only platform due to security concerns.

Question 10

Which of the following occurs in a reverse pricing model?
A) Customers specify the product they are looking for and how much they are willing to pay for it.
B) Companies set the prices that customers pay for products.
C) Companies conduct an online auction for all products available for sale.
D) Customers specify the product they are looking for and the company provides the product with a price.
E) Companies negotiate special volume discounts with local businesses and offer them to their customers.

Accepted Answer

In a reverse pricing model, the customers specify the product they are looking for and how much they are willing to pay for it. The companies then decide whether or not to fulfill the customer's request at the specified price.

Question 11

Bookseller Barnes & Noble is an example of a ________ company.
A) flip-only
B) click-only
C) click-and-mortar
D) click-and-flip
E) brick-and-mortar

Accepted Answer

Barnes & Noble has physical stores as well as an online store, making it a click-and-mortar company.

Question 12

In e-business terminology,________ companies are sometimes called "pure play companies."
A) bricks-and-clicks
B) click-and-mortar
C) brick-and-mortar
D) click-and-flip
E) click-only

Accepted Answer

Click-only companies are businesses that operate solely online, without a physical storefront. These companies are sometimes referred to as "pure play companies" because they focus exclusively on e-commerce and do not have the added complexity of managing a brick-and-mortar presence.

Question 13

In ________ pricing,companies set the prices that consumers pay for products.
A) viral
B) top-up
C) menu-driven
D) reverse
E) rafter bid

Accepted Answer

Menu-driven pricing is where the company sets the prices for the different products offered, giving consumers a menu of options to choose from. This is a common pricing strategy used in industries such as restaurants, where customers can choose from different items on the menu at set prices.

Question 14

Companies following a ________ business strategy choose to operate solely in the traditional physical markets approaching business activities in a traditional manner.
A) click-only
B) high-cost leadership
C) low-cost leadership
D) click-and-flip
E) brick-and-mortar

Accepted Answer

The term "brick-and-mortar" refers to physical stores or businesses that operate in a traditional manner, relying on face-to-face interaction with customers and physical storefronts. Therefore, companies that follow a brick-and-mortar business strategy choose to operate solely in the traditional physical markets.

Question 15

Online retailer Amazon.com is an example of a ________ company.
A) click-and-mortar
B) click-and-flip
C) bricks-and-clicks
D) click-only
E) brick-and-mortar

Accepted Answer

Amazon.com is an example of a click-only company, as it operates exclusively online without any physical retail locations.

Question 16

With respect to e-tailing,________ can initiate certain actions,such as making a phone call to a sales representative,or sending a text message to a pre-specified number.
A) MaxiCodes
B) CPC Binary Barcodes
C) viral codes
D) MSI barcodes
E) QR codes

Accepted Answer

QR codes are two-dimensional barcodes that can be scanned using a smartphone or tablet. They can be programmed to initiate certain actions, such as making a phone call to a sales representative or sending a text message to a pre-specified number.

Question 17

Without middlemen like Travelocity.com,Orbitz.com,and other travel Web sites,a consumer would have to check all airline Web sites in order to find the flight with the best connection or lowest price.The introduction of middlemen in business models is an example of ________.
A) reintermediation
B) remutualization
C) gentrification
D) disintermediation
E) defalcation

Accepted Answer

Reintermediation refers to the introduction or reintroduction of an intermediary between consumers and producers or service providers, which is what occurs when travel websites aggregate flight options for consumers, making it easier for them to compare and purchase flights.

Question 18

Which of the following statements is true about firms pursuing a click-and-mortar business strategy?
A) These firms are only involved in export business activities.
B) These firms operate in both physical and virtual arenas.
C) These firms are involved in rafter bidding activities.
D) These firms conduct business only electronically in cyberspace.
E) These firms avoid indulgence in physical store locations.

Accepted Answer

Firms pursuing a click-and-mortar strategy operate both physical and virtual (online) stores. They integrate their online and offline activities to offer a seamless customer experience, leveraging the strengths of both channels. Firms pursuing this strategy strive to provide customers with multiple touchpoints for interacting with the brand, and they use online channels to create awareness, promote their products, and engage customers, while simultaneously providing them with the option to purchase in-store or online.

Question 19

Which of the following statements is true about companies pursuing a click-only business strategy?
A) These companies approach business activities by operating in physical locations.
B) These companies operate in both physical and virtual arenas.
C) These companies conduct business electronically in cyberspace.
D) These companies are only involved in export business activities.
E) These companies choose to operate their business activities solely in the traditional manner.

Accepted Answer

Companies pursuing a click-only business strategy conduct business electronically in cyberspace, which means they operate solely in the virtual world and do not have physical locations for their business activities.

Question 20

How do comparison shopping sites generate revenue?
A) by charging a commission on transactions
B) by selling their products in physical stores as well
C) by charging a virtual shelf space fee to manufacturers
D) by increasing the click count on their sites
E) by charging distribution fees to consumers

Accepted Answer

Comparison shopping sites generate revenue by charging a commission on transactions made through their platform. They earn a percentage of the sale every time a consumer buys a product through their site.

Quiz 4: Enabling Business-To-Consumer Electronic Commerce

Which of the following statements is true about firms pursuing a brick-and-mortar business strategy?

Walmart.com is an example of a ________ retailer.

A click-and-mortar business strategy is also referred to as a ________ business strategy.

________ are two-dimensional barcodes with a high storage capacity that are typically used to point the consumer to a particular Web page when he or she scans the barcode with a mobile device's camera.

Companies using a ________ business strategy are also called virtual companies.

The online sales of goods and services are known as ________.

Which of the following is a disadvantage of e-tailing?

The concept of the Long Tail refers to a focus on ________.

Which of the following occurs in a reverse pricing model?

Bookseller Barnes & Noble is an example of a ________ company.

In e-business terminology,________ companies are sometimes called "pure play companies."

In ________ pricing,companies set the prices that consumers pay for products.

Companies following a ________ business strategy choose to operate solely in the traditional physical markets approaching business activities in a traditional manner.

Online retailer Amazon.com is an example of a ________ company.

With respect to e-tailing,________ can initiate certain actions,such as making a phone call to a sales representative,or sending a text message to a pre-specified number.

Without middlemen like Travelocity.com,Orbitz.com,and other travel Web sites,a consumer would have to check all airline Web sites in order to find the flight with the best connection or lowest price.The introduction of middlemen in business models is an example of ________.

Which of the following statements is true about firms pursuing a click-and-mortar business strategy?

Which of the following statements is true about companies pursuing a click-only business strategy?

How do comparison shopping sites generate revenue?