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Which of the following is not one of the central challenges facing the online retail industry?


A) lack of physical store presence
B) consumer concerns about the privacy of personal information
C) inconvenience in returning goods
D) delivery delays

E) All of the above
F) A) and D)

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All of the following were parts of the vision during the early days of e-commerce except the belief that:


A) new, "first-mover" middlemen, with expertise in e-commerce, would force traditional intermediaries out of business.
B) Web consumers were rational and cost-driven.
C) entry costs to the online retail market would be much less than those needed to establish a physical storefront.
D) the cost of acquiring customers would be much lower.

E) A) and B)
F) A) and C)

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Define economic viability and explain the factors involved in assessing a firm's economic viability.

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Economic viability refers to the ability...

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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

E) B) and C)
F) A) and D)

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Which of the following provides a financial snapshot of a company's assets and liabilities (debts) on a given date?


A) working capital
B) operating margin
C) balance sheet
D) gross margin

E) C) and D)
F) None of the above

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Which of the following is not one of the methods used by traditional retailers to develop omni-channel integration?


A) online Web catalog
B) online order, in-store pickup
C) online supply-push
D) online promotions for offline purchases

E) B) and D)
F) A) and B)

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Which of the following occurs when retailers of products must compete on price and currency of inventory directly against the manufacturer?


A) disintermediation
B) localization
C) channel conflict
D) hypermediation

E) A) and B)
F) C) and D)

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Naturebox is an example of a subscription-based retail revenue model.

A) True
B) False

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Which of the following is not categorized as an operating expense?


A) the cost of products being sold
B) marketing costs
C) administrative overhead
D) amortization of goodwill

E) A) and B)
F) A) and C)

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Which of the following statements is not true about the automobile and automobile parts and accessories online retail category?


A) Most of the revenue in this category is generated from the sales of automobiles.
B) Automobile manufacturers use the Internet to deliver branding advertising.
C) U) S. franchising law prohibits automobile manufacturers from selling cars directly to consumers.
D) Automobile retailing is dominated by dealership networks.

E) B) and D)
F) All of the above

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The term supply-push 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.

E) B) and C)
F) A) and B)

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More than 50% of the adult U.S. population use online banking.

A) True
B) False

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Why have so many online retailers had difficulty in achieving profits? How has this changed by 2015?

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There are a number of reasons for the di...

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Explain why online career services are so well suited to the Web.

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Next to travel services, job-hunting ser...

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Discuss Amazon's future prospects. Do you think Amazon will ever be consistently profitable?

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In 2015, Amazon finally began to show in...

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Online retail constitutes about 20% of the total retail market today.

A) True
B) False

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Which of the following is not true about on-demand service firms?


A) The growth of on-demand service firms is supported by the use of online reputation systems based on peer review.
B) It is not likely that on-demand service firms will totally escape government regulation.
C) On-demand service firms facilitate access to resources.
D) On-demand service firms are a totally new phenomenon without precedent in the history of e-commerce.

E) A) and B)
F) A) and C)

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All of the following statements about the online insurance industry are true except:


A) the Internet has dramatically changed the insurance industry's value chain.
B) Web sites of almost all the major firms provide the ability to obtain an online quote.
C) Internet usage has led to a decline in term life insurance prices industry-wide.
D) the industry has been very successful in attracting visitors searching for information.

E) A) and B)
F) A) and C)

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The online mortgage industry has transformed the process of obtaining a mortgage.

A) True
B) False

Correct Answer

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Which of the following categories generates the highest percentage of online retail revenue?


A) computers and electronics
B) apparel and accessories.
C) books/music/video
D) automobile and automobile parts and accessories

E) A) and B)
F) B) and C)

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