Chapter 2 Quiz 1 Econ 139A
1) ________ and ________ are typically the most easily identifiable aspects of a company’s business model.
B) Value proposition; revenue model
3) Which element of the business model addresses what a firm provides that other firms cannot?
D) value proposition
4) Which element of the business model refers to the presence of substitute products in the market?
B) competitive environment
5) Which of the following represent Amazon’s primary value proposition(s)?
B) selection and convenience
6) A firm’s ________ describes how a firm will produce a return on invested capital.
B) revenue model
7) Which of the following is an example of the subscription revenue model?
8) Stickiness is an important attribute for which of the following revenue models?
A) advertising revenue model
9) Which of the following companies use a transaction fee revenue model?
10) Which of the following is an example of the affiliate revenue model?
11) Which of the following involves a company giving away a certain level of product or services without charge, but then charging a fee for premium levels of the product or service?
C) freemium strategy
12) Which of the following is not a significant influence on a company’s competitive environment?
C) the availability of supportive organizational structures
13) All of the following would be considered a direct competitor of Priceline except:
14) The existence of many competitors in any one market segment may indicate:
B) the market is saturated.
15) All of the following can be considered a direct or indirect competitor of Amazon except:
16) 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.
17) Organizations that typically provide an array of services to start-up companies along with a small amount of funding are referred to as:
18) A ________ specifically details how you plan to find customers and sell your product.
D) market strategy
19) Which of the following was not able to successfully implement a freemium business model?
20) All of the following may lead to a competitive advantage except:
C) fewer products.
21) Which of the following is an unfair competitive advantage?
A) brand name
22) Which of the following gives a business model the most credibility with outside investors?
A) the firm’s management team
23) Which of the following statements about Foursquare is not true?
D) In 2016, Foursquare decided to refocus its effort on developing a subscription-based revenue model.
24) Which type of investor typically becomes interested in a start-up company after it has begun generating revenue?
D) venture capital investors
25) Which of the following is another name for a revenue model?
C) financial model
26) All of the following use a social network marketing strategy except:
27) The use of a company’s competitive advantage to penetrate surrounding markets is known as ________.
28) A wealthy individual who invests personal funds in a start-up in exchange for an equity share in the business is referred to as a(n) ________.
B) angel investor
29) Which of the following is not a key element of an elevator pitch?
C) legal structure
40) Which of the following is not a community provider?
C) Blue Nile
42) An example of a company using the content provider model is:
43) Which of the following is not an example of the bricks-and-clicks e-tailing business model?
45) In general, the key to becoming a successful content provider is to:
A) own the content being provided.
47) All of the following use an advertising revenue model except:
48) Which of the following is not considered a portal?
49) Portals primarily generate revenue in all of the following ways except:
C) sales of goods.
50) The basic value proposition of community providers is:
A) they offer a fast, convenient one-stop site where users can focus on their most important concerns and interests.
51) eBay uses all of the following business models except:
C) content provider.
52) All of the following are business models employed in the online music industry except:
B) peer-to-peer streaming.
53) The financial services, travel services, and job placement services industries typically use the ________ business model.
B) transaction broker
54) In the ________ business model, a web-based business builds a digital environment in which buyers and sellers can meet, display products, search for products, and establish prices.
A) market creator
57) All of the following are examples of business-to-business (B2B) business models except:
58) What is the primary revenue model for an e-distributor?
59) Amazon is an example of which of the following business models?
60) ________ create and sell access to digital markets.
C) E-procurement firms
61) Which of the following may offer its customers value chain management software?
B) e-procurement companies
62) Over the past decade, the number of exchanges has:
B) diminished sharply.
63) TheSeam is an example of a(n):
C) industry consortium.
64) A ________ marketplace supplies products and services of interest to particular industries.
67) Which business strategy involves implementing a new, more efficient set of business processes that other firms cannot yet obtain?
A) strategy of cost competition
68) Which of the following features of e-commerce technology changes industry structure by lowering barriers to entry but greatly expands the market at the same time?
A) global reach
69) Which of the following is not a primary activity in a firm value chain?
70) A ________ is a networked business ecosystem that coordinates a firm’s suppliers, distributors, and delivery firms with its own production needs using an Internet-based supply chain management system.
C) value web
71) If you wished to leverage the ubiquitous nature of the Web to differentiate your product, you would:
A) enable individual customization of the product by consumers.
72) A strategy designed to compete within a narrow market or product segment is called a ________ strategy.
73) ________ technologies are technologies that enable the incremental improvement of products and services.
74) Innovative entrepreneurs and their business firms that destroy existing business models are referred to as ________.