Question 1. Network externalities are related to which of the following features of E-commerce technology?

A. Richness

B. Interactivity

C. Universal standards

D. Information density

Question 2. Which of the following is NOT yet a public company?

A. Zynga

B. LinkedIn

C. Groupon

D. Twitter

Question 3. Which of the following statements is NOT true?

A. In 2012, apps accounted for a small but growing amount of E-commerce revenues.

B. The amount of data the average American consumes each day is decreasing.

C. E-books today account for about half of all book sales.

D. Computing and networking component prices are continuing to fall dramatically.

Question 4. Stickiness is an important attribute for which revenue model?  

A. Advertising revenue model

B. Subscription revenue model

C. Transaction fee revenue model

D. Sales revenue model

Question 5. Which of the following is an example of the subscription revenue model?

A. Ancestry.com

B. eBay

C. Amazon

D. Twitter

Question 6. The business model of e-distributors is quite similar to that of:

A. e-tailers.

B. transaction brokers.

C. exchanges.

D. service providers.

Question 7. A business document that specifically details how you plan on selling your product and find new customers is called a:  

A. sales analysis.

B. business plan.

C. competitive strategy.

D. market strategy.

Question 8. All of the following may lead to a competitive advantage EXCEPT:

A. less expensive suppliers.

B. better employees.

C. fewer products.

D. superior products.

Question 9. Which of the following is NOT a characteristic of a perfect competitive market?  

A. Price, cost, and quality information are equally distributed.

B. A nearly infinite set of suppliers compete against one another.

C. Customers have access to all relevant information worldwide.

D. It is highly regulated.

Question 10. Expedia is an example of a:

A. community provider.

B. transaction broker.

C. market creator.

D. service provider.

Question 11. Which of the following is one of the three primary societal issues related to E-commerce?

A. Liability

B. Anonymity

C. Equity

D. Individual privacy

Question 12. Interactivity in the context of E-commerce can be described as:

A. the ability to physically touch and manipulate a product.

B. the complexity and content of a message.

C. the ability of consumers to create and distribute content.

D. the enabling of two-way communication between consumer and merchant.

Question 13. 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.

B. implement a strategy of commoditization.

C. adopt a strategy of cost competition.

D. develop a scope strategy to compete within a narrower market segment.

Question 14. All of the following are assets of Twitter EXCEPT:

A. user attention.

B. audience size.

C. database of tweets.

D. retail inventory.

Question 15. Which of the following is a combination of blog platform and social network?

A. Instagram

B. Tumblr

C. Wikipedia

D. Foursquare

Question 16. All of the following were visions of E-commerce expressed during the early years of E-commerce EXCEPT:

A. a nearly perfect competitive market.

B. friction-free commerce.

C. disintermediation.

D. fast-follower advantage.

Question 17. The integration of video, audio, and text marketing messages into a single marketing message and consuming experience is an example of:

A. richness.

B. ubiquity.

C. information density.

D. personalization.

Question 18. Assume you are analyzing the market opportunity of a distance learning company, Learnmore.com,, that creates education courses delivered over the Internet for the Fortune 1000 corporate market. Assume that the overall size of the distance learning market is $25 billion. The overall market can be broken down into three major market segments: Corporate, College, and Elementary/High School, each of which accounts for a third of the market. Within the Corporate market, there are two market niches: Fortune 1000, which accounts for 60% of the market, and all others, which together account for 40% of the market. What is Learnmore.com's realistic market opportunity, approximately?

A. $25 billion

B. $6.6 billion

C. $165 billion

D. $5 billion

Question 19. Which of the following is a characteristic of the Consolidation phase of E-commerce?

A. Predominance of pure online strategies

B. Emphasis on revenue growth versus profits

C. First mover advantages

D. Shift to a business-driven approach

Question 20. Horizontal or general portals primarily generate revenue in all of the following ways EXCEPT:

A. charging advertisers for ad placement.

B. collecting transaction fees.

C. sales of goods.

D. charging subscription fees.