ECOM 101 TestBank CH 2-7 - MCQ &
TF ONLY latest update
ECOM 101 TestBank CH 2-7 - MCQ &
TF ONLY latest update
ECOM 101 TestBank CH 2-7 - MCQ &
TF ONLY latest update
,ECOM 101 TestBank CH 2-7 - MCQ &
TF ONLY latest update
Your text here 1
E-commerce 2013, 9e (Laudon/Traver)
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
ECOM 101 TestBank CH 2-7 - MCQ &
TF ONLY latest update
,ECOM 101 TestBank CH 2-7 - MCQ &
TF ONLY latest update
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 update
, ECOM 101 TestBank CH 2-7 - MCQ &
TF ONLY latest update
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?
ECOM 101 TestBank CH 2-7 - MCQ &
TF ONLY latest update
TF ONLY latest update
ECOM 101 TestBank CH 2-7 - MCQ &
TF ONLY latest update
ECOM 101 TestBank CH 2-7 - MCQ &
TF ONLY latest update
,ECOM 101 TestBank CH 2-7 - MCQ &
TF ONLY latest update
Your text here 1
E-commerce 2013, 9e (Laudon/Traver)
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
ECOM 101 TestBank CH 2-7 - MCQ &
TF ONLY latest update
,ECOM 101 TestBank CH 2-7 - MCQ &
TF ONLY latest update
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 update
, ECOM 101 TestBank CH 2-7 - MCQ &
TF ONLY latest update
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?
ECOM 101 TestBank CH 2-7 - MCQ &
TF ONLY latest update
