ECOM 101 TestBank CH 2-7 - MCQ & TF ONLY latest
E-commerce 2013, 9e (Laudon,Traver) TESTBANK
, ECOM 101 TestBank CH 2-7 - MCQ & TF ONLY latest
Chapter 2 E-commerce Business Models and Concepts
1) A value proposition defines how a company's product or service fulfills the needs of a
customer.
Answer: TRUE
2) The terms revenue model and financial model can be used interchangeably.
Answer: TRUE
3) In order to be considered successful, a firm must produce returns greater than alternative
investments.
Answer: TRUE
4) An asymmetry exists whenever one participant in a market has more resources than other
participants.
Answer: TRUE
5) Most first movers have the complementary resources needed to sustain their advantage.
Answer: FALSE
6) All firms need an organization to efficiently implement their business plans and strategies.
Answer: TRUE
7) Visitors to specialized niche vortals tend to spend less money than the average visitor to a
horizontal portal.
Answer: FALSE
8) Barriers to entry into the e-tail marketplace are high.
Answer: FALSE
9) Differentiation refers to situations in which there is little difference between products and the
only basis of choosing a product is price.
Answer: FALSE
10) Scale economies are efficiencies that result from flattening the hierarchy of an organization.
Answer: FALSE
, ECOM 101 TestBank CH 2-7 - MCQ & TF ONLY latest
11) Real markets are perfect markets.
Answer: FALSE
12) The Internet's universal standards decrease the cost of industry and firm operations.
Answer: TRUE
13) Interactivity that enables product customization alters industry structure by reducing the
threat of substitutes.
Answer: TRUE
14) Interfirm rivalry is one area of the business environment where e-commerce technologies
have had an impact on most industries.
Answer: TRUE
15) Social technologies change industry structure by shifting programming and editorial
decisions to consumers.
Answer: TRUE
16) and are typically the most easily identifiable aspects of a company's
business model.
A) Market strategy; market opportunity
B) Value proposition; revenue model
C) Value proposition; competitive environment
D) Revenue model; market strategy
Answer: B
17) All of the following are key elements of a business model except:
A) competitive environment.
B) organizational development.
C) information technology strategy.
D) market strategy.
Answer: C
18) Which element of the business model addresses the question of why a customer should buy
from the firm?
A) revenue model
B) competitive advantage
C) market strategy
D) value proposition
Answer: D
, ECOM 101 TestBank CH 2-7 - MCQ & TF ONLY latest
19) Which element of the business model examines who else occupies the firm's intended
marketspace?
A) value proposition
B) competitive environment
C) competitive advantage
D) market strategy
Answer: B
20) Which of the following are Amazon's primary value propositions?
A) personalization and customization
B) selection and convenience
C) reduction of price discovery cost
D) management of product delivery
Answer: B
21) 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.
Answer: A
22) 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
Answer: B
23) Which of the following is an example of the subscription revenue model?
A) Ancestry.com
B) eBay
C) Amazon
D) Twitter
Answer: A
E-commerce 2013, 9e (Laudon,Traver) TESTBANK
, ECOM 101 TestBank CH 2-7 - MCQ & TF ONLY latest
Chapter 2 E-commerce Business Models and Concepts
1) A value proposition defines how a company's product or service fulfills the needs of a
customer.
Answer: TRUE
2) The terms revenue model and financial model can be used interchangeably.
Answer: TRUE
3) In order to be considered successful, a firm must produce returns greater than alternative
investments.
Answer: TRUE
4) An asymmetry exists whenever one participant in a market has more resources than other
participants.
Answer: TRUE
5) Most first movers have the complementary resources needed to sustain their advantage.
Answer: FALSE
6) All firms need an organization to efficiently implement their business plans and strategies.
Answer: TRUE
7) Visitors to specialized niche vortals tend to spend less money than the average visitor to a
horizontal portal.
Answer: FALSE
8) Barriers to entry into the e-tail marketplace are high.
Answer: FALSE
9) Differentiation refers to situations in which there is little difference between products and the
only basis of choosing a product is price.
Answer: FALSE
10) Scale economies are efficiencies that result from flattening the hierarchy of an organization.
Answer: FALSE
, ECOM 101 TestBank CH 2-7 - MCQ & TF ONLY latest
11) Real markets are perfect markets.
Answer: FALSE
12) The Internet's universal standards decrease the cost of industry and firm operations.
Answer: TRUE
13) Interactivity that enables product customization alters industry structure by reducing the
threat of substitutes.
Answer: TRUE
14) Interfirm rivalry is one area of the business environment where e-commerce technologies
have had an impact on most industries.
Answer: TRUE
15) Social technologies change industry structure by shifting programming and editorial
decisions to consumers.
Answer: TRUE
16) and are typically the most easily identifiable aspects of a company's
business model.
A) Market strategy; market opportunity
B) Value proposition; revenue model
C) Value proposition; competitive environment
D) Revenue model; market strategy
Answer: B
17) All of the following are key elements of a business model except:
A) competitive environment.
B) organizational development.
C) information technology strategy.
D) market strategy.
Answer: C
18) Which element of the business model addresses the question of why a customer should buy
from the firm?
A) revenue model
B) competitive advantage
C) market strategy
D) value proposition
Answer: D
, ECOM 101 TestBank CH 2-7 - MCQ & TF ONLY latest
19) Which element of the business model examines who else occupies the firm's intended
marketspace?
A) value proposition
B) competitive environment
C) competitive advantage
D) market strategy
Answer: B
20) Which of the following are Amazon's primary value propositions?
A) personalization and customization
B) selection and convenience
C) reduction of price discovery cost
D) management of product delivery
Answer: B
21) 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.
Answer: A
22) 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
Answer: B
23) Which of the following is an example of the subscription revenue model?
A) Ancestry.com
B) eBay
C) Amazon
D) Twitter
Answer: A
