Online Business Models
Test Preparation
Course Introduction
This course explores the various business models that thrive in the digital environment, analyzing how companies create, deliver, and capture value online. Students will examine successful e-commerce, subscription, freemium, platform-based, and sharing economy frameworks, among others, considering both theoretical and practical perspectives. Through case studies and real-world examples, the course covers revenue generation strategies, customer acquisition and retention, and the impact of emerging technologies on traditional and innovative business structures. By the end of the course, students will understand the dynamics of digital markets and be equipped to design or evaluate effective online business models.
Recommended Textbook E Commerce 2015 11th Edition by Kenneth C. Laudon
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12 Chapters
1032 Verified Questions
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Chapter 1: The Revolution Is Just Beginning
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Sample Questions
Q1) ________ refers to the displacement of market middlemen and the creation of a new direct relationship between producers and consumers.
Answer: Disintermediation
Q2) The term e-business refers to the digital enabling of transactions and processes involving an exchange of value across organizational boundaries.
A)True
B)False
Answer: False
Q3) Which of the following types of merchants has the highest share of retail online sales?
A) virtual (Web only)
B) catalog/call center
C) retail chain
D) consumer brand manufacturer
Answer: A
Q4) The total number of users or customers an e-commerce business can obtain is a measure of its ________.
Answer: reach
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Chapter 2: E-Commerce Business Models and Concepts
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Sample Questions
Q1) All of the following are using a subscription revenue model for e-books except:
A) Amazon.
B) Scribd.
C) Barnes and Noble.
D) Oyster.
Answer: C
Q2) What is the primary revenue model for an e-distributor?
A) sales
B) transaction fee
C) advertising
D) subscription
Answer: A
Q3) A(n) ________ is a company that sells products and services that are very similar and in the same market segment.
Answer: direct competitor
Q4) SaaS and PaaS providers can typically provide services at lower costs through scale economies.
A)True
B)False
Answer: True
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Chapter
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Sample Questions
Q1) A small application that you embed in a Web page in order to include content and functionality from a different Web site is called a(n) ________.
Answer: widget
Q2) During which phase of the development of the Internet was the personal computer invented?
A) Commercialization phase
B) Institutional phase
C) Innovation phase
D) Consolidation phase
Answer: B
Q3) The Web runs in which layer of Internet architecture?
A) Network Technology Substrate layer
B) Middleware Services layer
C) Transport Services and Representation Standards layer
D) Applications layer
Answer: D
Q4) ________ are central directories that list all domain names currently in use for specific domains.
Answer: Root servers
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Chapter
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Sample Questions
Q1) Beginning the e-commerce development process with a mobile presence rather than a desktop Web site is referred to as ________.
Q2) Which of the following typically includes a data flow diagram to describe the flow of information for an e-commerce site?
A) physical design
B) logical design
C) testing plan
D) co-location plan
Q3) Which of the following is the most commonly used server-side scripting language?
A) Ruby on Rails
B) Django
C) PHP
D) Perl
Q4) Which of the following is used to process certificates and private/public key information?
A) HTTP
B) Secure Sockets Layer/Transport Layer Security
C) File Transfer Protocol
D) data capture tools
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Chapter 5: E-Commerce Security and Payment Systems
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Sample Questions
Q1) An intrusion detection system can perform all of the following functions except:
A) examining network traffic.
B) setting off an alarm when suspicious activity is detected.
C) checking network traffic to see if it matches certain patterns or preconfigured rules.
D) blocking suspicious activity.
Q2) All of the following are methods of securing channels of communication except:
A) SSL/TLS.
B) certificates.
C) VPN.
D) FTP.
Q3) ________ text is text that has been encrypted and thus cannot be read by anyone other than the sender and the receiver.
Q4) All the following statements about symmetric key cryptography are True except:
A) in symmetric key cryptography, both the sender and the receiver use the same key to encrypt and decrypt a message.
B) the Data Encryption Standard is a symmetric key encryption system.
C) symmetric key cryptography is computationally slower.
D) symmetric key cryptography is a key element in digital envelopes.
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Chapter 6: E-Commerce Marketing and Advertising Concepts
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Sample Questions
Q1) Which of the following forms of online advertising is expected to grow the fastest between 2014 and 2018?
A) paid search
B) sponsorships
C) search engines
D) rich media
Q2) Which of the following examples illustrates the "Long Tail" phenomenon?
A) Rhapsody music streaming service reported that its no play rate had increased to over 20%.
B) The number of blockbuster "winner take all" video titles is declining.
C) Over 50% of Netflix's 100,000 titles are rented at least once a day by someone.
D) The average blog has a readership of slightly more than 1.
Q3) Which of the following features of e-commerce technology allows fine-grained, highly detailed information on consumers' real-time behavior to be gathered and analyzed?
A) personalization/customization
B) information density
C) social technology
D) interactivity
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Chapter 7: Social, Mobile, and Local Marketing
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Sample Questions
Q1) Which of the following categories do people most use their mobile devices for?
A) entertainment
B) socializing
C) shopping
D) reading news and magazines
Q2) What are the basic steps in creating a Pinterest marketing campaign?
Q3) Which of the following is another term for amplification?
A) impressions
B) reach
C) conversation rate
D) conversion ratio
Q4) How does Google Analytics track user behavior at a participating Web site?
A) cookies
B) beacons
C) server logs
D) super cookies
Q5) ________ involves using any of a variety of means to attract people to your Web site and other social marketing platforms, such as Facebook and Twitter.
Q6) How do people actually use their mobile devices today?
Q7) Name and describe the five steps in the social marketing process.
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Chapter 8: Ethical, Social, and Political Issues in E-Commerce
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Sample Questions
Q1) Which of the following is not one of the issues complicating the taxation of e-commerce sales?
A) Taxes raised are used for different government purposes.
B) Sales taxes and policies vary by state and country.
C) Retailers legally only have to charge sales tax if they have operations located in the same state as a consumer.
D) Small online businesses are unable to manage sales taxes to thousands of different jurisdictions.
Q2) Discuss in depth one ethical, social, or political issue that is presently in the news surrounding the Internet and e-commerce.
Q3) How long does copyright protection extend for corporate-owned works?
A) 25 years
B) 50 years
C) 75 years
D) 95 years
Q4) The doctrine of ________ permits teachers and writers to use copyrighted materials without permission under certain circumstances.
Q5) ________ is the largest private personal database in the world.
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Chapter 9: Online Retailing and Services
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Sample Questions
Q1) Online retail constitutes about 6% of the total retail market today.
A)True
B)False
Q2) The lower the cost of sales compared to ________, the higher the gross profit.
A) assets
B) revenue
C) gross margin
D) operating expenses
Q3) Which of the following has introduced a tool known as Consumer Alerts to inform readers when a review is likely to be fraudulent?
A) Yelp
B) TripAdvisor
C) Angie's List
D) TripExpert
Q4) LivingSocial is an example of local commerce.
A)True
B)False
Q5) ________ measures the percentage of sales revenue a firm is able to retain after all expenses are deducted from gross revenues.
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Chapter 10: Online Content and Media
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Sample Questions
Q1) What is the book publishing industry's view of the intellectual property protections offered by Apple and Amazon?
Q2) Which of the following online newspaper sites or groups attracts the highest number of daily unique visitors?
A) USA Today
B) Washington Post
C) Wall Street Journal
D) The New York Times
Q3) Grand Theft Auto is an example of a(n) ________ game.
Q4) Online readership of newspapers is declining by more than 10% a year.
A)True
B)False
Q5) DRM refers to a combination of ________ for protecting digital content.
A) hardware and software methods
B) technical and legal means
C) user and publisher agreements
D) local and remote policies
Q6) Content convergence describes convergence in the design, production, and ________ of content.
Q7) In the ________ model for e-books, prices are set by the publisher.
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Chapter 11: Social Networks, Auctions, and Portals
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Sample Questions
Q1) ________ accounts for over 40% of eBay's revenues.
Q2) Which of the following is not one of the top factors a business should consider when planning an Internet auction?
A) type of product
B) type of auction
C) location of auction
D) bid increments
Q3) Which social network functionality allows users to easily post messages to the entire community?
A) message board
B) chat
C) instant messaging
D) e-mail
Q4) Threatening negative feedback in return for a benefit is an example of:
A) feedback extortion.
B) offensive shill feedback.
C) defensive shill feedback.
D) sending spam.
Q5) E-mailing buyers to warn them away from a seller is a type of auction fraud known as ________.
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Chapter 12: B2b E-Commerce: Supply Chain Management and
Collaborative Commerce
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Sample Questions
Q1) An exchange is an independently owned online marketplace that connects many suppliers and buyers.
A)True
B)False
Q2) Purchasing managers are the key players in the procurement process.
A)True
B)False
Q3) All of the following are examples of direct goods in the auto industry except:
A) sheet steel.
B) shatter-resistant glass.
C) rubber molding.
D) desktop computers.
Q4) Define and explain supply chain management systems, supply chain simplification, and collaborative commerce, and the relationship between these concepts.
Q5) Identify and describe the major stages in the development of B2B commerce.
Q6) BYOD stands for ________.
Q7) Private industrial networks are closely tied to ERP systems used by large firms.
A)True
B)False
Page 14
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