Online Business Models
Pre-Test Questions
Course Introduction
This course explores the various business models that have emerged in the digital era, focusing on how organizations create, deliver, and capture value online. Students will analyze major online business approaches, including e-commerce, subscription services, digital marketplaces, freemium platforms, and peer-to-peer models. Through case studies and real-world examples, the course examines revenue generation strategies, customer engagement techniques, scalability, and the impact of technology on competitive dynamics. Emphasis is placed on adapting traditional business principles to the online environment and evaluating the sustainability of different models in a rapidly changing digital landscape.
Recommended Textbook
E Commerce Essentials 1st Edition by Kenneth
C. Laudon
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11 Chapters
825 Verified Questions
825 Flashcards
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Chapter 1: The Revolution Is Just Beginning
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Sample Questions
Q1) The early years of e-commerce are considered:
A)the most promising time in history for the successful implementation of first mover advantages.
B)an economist's dream come true, where for a brief time consumers had access to all relevant market information and transaction costs plummeted.
C)a stunning technological success as the Internet and the Web increased from a few thousand to billions of e-commerce transactions per year.
D)a dramatic business success as 85% of dot-coms formed since 1995 became flourishing businesses.
Answer: C
Q2) All of the following are characteristics of Web 2.0 sites and applications except:
A)they are inherently highly interactive.
B)they rely on mobile access to the Web.
C)they tend to attract large audiences.
D)they present marketers with extraordinary opportunities for targeted marketing and advertising.
Answer: B
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3
Chapter 2: E-Commerce Business Models and Concepts
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Sample Questions
Q1) Most first movers have the complementary resources needed to sustain their advantage.
A)True
B)False
Answer: False
Q2) ________ create and sell access to digital electronic markets.
A)E-distributors
B)Portals
C)E-procurement firms
D)Market creators
Answer: C
Q3) Which of the following is not considered a portal?
A)Yahoo
B)MSN
C)WSJ.com
D)AOL
Answer: C
Q4) In the ________ revenue model, a Web site that offers users content or services charges a fee for access to some or all of its offerings.
Answer: subscription
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Chapter
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Sample Questions
Q1) Local area networks that operate within a single organization that leases access to the Web directly from regional and national carriers are called:
A)wide area networks.
B)extranets.
C)campus area networks.
D)private exchanges.
Answer: C
Q2) IPv6 provides for 64-bit IP addresses.
A)True
B)False
Answer: False
Q3) In the address http://www.company.com/clients.html, which of the following is the top-level domain?
A).com
B)company.com
C)www
D)http
Answer: A
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Chapter 4: Building an E-Commerce Presence: Web Sites, Mobile Sites,
and Apps
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Sample Questions
Q1) What are the two most important management challenges in building a successful e-commerce presence?
A)developing a clear understanding of business objectives and knowing how to choose the right technology to achieve those objectives
B)having an accurate understanding of your business environment and an achievable business plan
C)building a team with the right skill sets and closely managing the development process
D)identifying the key components of your business plan and selecting the right software, hardware, and infrastructure for your site
Q2) A system design has two main components:
A)a logical design and a physical design.
B)a behavioral design and a technological design.
C)business objectives and technology requirements.
D)front-end systems and back-end systems.
Q3) Discuss some of the unique features that must be taken into account when designing a mobile Web presence.
Q4) A SWOT analysis describes strengths, weaknesses, opportunities, and ________.
Page 6
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Chapter 5: E-Commerce Security and Payment Systems
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Sample Questions
Q1) Which of the following is a prominent hacktivist group?
A)Anonymous
B)Anti-Phishing Working Group
C)IC3
D)Symantec
Q2) ________ involves misrepresenting oneself by using a fake e-mail address or masquerading as someone else.
Q3) What is the most frequent cause of stolen credit cards and card information today?
A)lost cards
B)the hacking and looting of corporate servers storing credit card information
C)sniffing programs
D)phishing attacks
Q4) Discuss the security of communications channels. Include definitions and explanations for the terms Secure Sockets Layer/Transport Layer Security (SSL/TLS), secure negotiated session, session key, and VPN.
Q5) Insiders present a greater security threat to e-commerce sites than outsiders.
A)True
B)False
Q6) To internal computers, a proxy server is known as the ________.
Page 7
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Chapter 6: E-Commerce Marketing and Advertising Concepts
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Sample Questions
Q1) Conversion rate is a measure of the:
A)percentage of visitors who indicate an interest in a site's products by registering or visiting a product's pages.
B)percentage of visitors who become customers.
C)percentage of existing customers who continue to buy on a regular basis.
D)percentage of shoppers who do not return within a year after their initial purchase.
Q2) The ________ rate is an e-mail campaign metric that measures the percentage of e-mails that could not be delivered.
Q3) Which of the following measures the ratio of items purchased to product views?
A)conversion rate
B)cart conversion rate
C)browse-to-buy ratio
D)view-to-cart ratio
Q4) Impressions are a measure of the:
A)number of times an ad is clicked.
B)number of times an ad is served.
C)number of http requests.
D)number of pages viewed.
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Q5) Google's AdSense is an example of network keyword or ________ advertising.
Chapter 7: Ethical, Social, and Political Issues in E-Commerce
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Q1) Liability is a feature of political systems in which a body of law is in place that permits individuals to recover damages done to them by other actors, systems, or organizations.
A)True
B)False
Q2) Most adult social network participants do not have any expectation of personal privacy when using a social network.
A)True
B)False
Q3) Which of the following statements about patents is not true?
A)It is more difficult to obtain a copyright than it is to obtain a patent.
B)The four types of inventions protected by patent law are machines, manmade products, compositions of matter, and processing methods.
C)Computer programs can be patented.
D)In order to be patented, an invention must be nonobvious.
Q4) An ISP basic service plan, allowing 300GB of data transfer per month, with additional data transfer available for $15 for 50GB, is an example of a tiered plan called ________.
Q5) The main stakeholders arguing against net neutrality are ________.
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Chapter 8: Online Retail and Services
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Q1) The MOTO sector of the retail industry is most similar to the ________ sector.
A)specialty stores
B)general merchandise
C)online retail sales
D)product-based services
Q2) Approximately ________ percent of the United States labor force is involved in providing services.
A)30
B)50
C)60
D)80
Q3) The term demand-pull refers to:
A)making products prior to orders being received based on estimated demand.
B)waiting for orders to be received before building a product.
C)channel conflict.
D)multi-channel manufacturers who sell directly online to consumers.
Q4) Why are online travel services so popular for consumers and suppliers?
Q5) In 2012, the number of online buyers was around 150 million.
A)True
B)False
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Chapter 9: Online Content and Media
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Q1) All of the following are subscription services except:
A)Pandora.
B)Spotify.
C)iTunes.
D)Rhapsody.
Q2) In 2012, YouTube supported ________ video streams a day.
A)40 million
B)400 million
C)4 billion
D)40 billion
Q3) In 2012, Amazon's e-book and media store contained around how many book titles?
A)about 10,000
B)about 100,000
C)about 1 million
D)about 10 million
Q4) An example of ________ is a song downloaded from Rhapsody that expires, or cannot be played, if your monthly subscription fee is not paid.
Q5) Amazon's ________ is not just an e-book reader but also a media and entertainment portable device.
Page 11
Q6) Describe the three basic revenue models for digital content delivery.
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Chapter 10: Social Networks, Auctions, and Portals
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Q1) Define the term auction and explain the four major Internet auction types discussed in the chapter and how they function.
Q2) All of the following are solutions to the problem of auction fraud except:
A)seller rating systems.
B)watch lists.
C)proxy bidding.
D)fixed pricing.
Q3) E-mailing buyers to warn them away from a seller is a type of auction fraud known as ________.
Q4) In 2011, the total worth of goods sold on eBay was approximately:
A)$68 million.
B)$680 billion.
C)$6.8 billion.
D)$68 billion.
Q5) MSN is an example of a:
A)general purpose portal.
B)vertical market portal based on affinity group.
C)vertical market portal based on focused content.
D)focused content search engine.
Q6) What are the different types of social networks?
Page 12
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Chapter 11: B2b E-Commerce: Supply Chain Management and
Collaborative Commerce
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Q1) An ________ provides electronic catalogs that represent the products of thousands of direct manufacturers.
A)e-distributor
B)e-procurement company
C)exchange
D)industry consortium
Q2) Define and discuss the terms total inter-firm trade, B2B commerce, and B2B e-commerce in the context of the history and significance of B2B e-commerce.
Q3) ________ purchasing involves long-term written agreements to purchase specified products, with agreed-upon terms and quality, for an extended period of time.
Q4) Which of the following statements about B2B electronic storefronts is not true?
A)They are a predecessor of automated order entry systems.
B)They tend to serve horizontal markets.
C)They are seller-side solutions.
D)They are usually considered a type of Net marketplace.
Q5) E-distributors operate in horizontal markets.
A)True
B)False
Page 13
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