A firms ________ describes how a firm will produce a superior return on invested capital.

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A firms ________ describes how a firm will produce a superior return on invested capital.

E-commerce 2016: Business. Technology. Society., 12e (Laudon)

Chapter 2 E-commerce Business Models and Concepts

1) ________ and ________ are typically the most easily identifiable aspects of a company's

business model.

A) Market strategy; market opportunity

B) Value proposition; revenue model

C) Value proposition; competitive environment

D) Revenue model; market strategy

Answer: B

Difficulty: Moderate

AACSB: Application of knowledge

LO: 2.1: Identify the key components of e-commerce business models.

2) All of the following are using a subscription revenue model for music except:

A) Spotify.

B) Scribd.

C) Rhapsody.

D) Pandora.

Answer: B

Difficulty: Moderate

AACSB: Application of knowledge

LO: 2.1: Identify the key components of e-commerce business models.

3) Which element of the business model addresses what a firm provides that other firms do not

! 1

Copyright © 2017 Pearson Education, Inc.

Which of the following is another name for revenue model?

Revenue model is sometimes used as another term for a business model, which is a structure for generating value for customers.

Which of the following is an example of a company using the content provider model?

An example of a company using a content provider service can be such a technological giant as Lenovo, utilizing the services of 1WorldSync Content Solutions. Some other examples of companies getting product information from CSP are HP, Sony, Dell, CDiscount, Microsoft, Acer, 3M, Tefal, L'oreal, and many others.

Which element of business model addresses the question of why a customer should buy from the firm?

A value proposition stands as a promise by a company to a customer or market segment. The proposition is an easy-to-understand reason why a customer should buy a product or service from that particular business.

Which of the following are Amazon's primary value proposition?

In summary, Jeff Bezos called out Amazon's 3 key value propositions as: Low Prices. Fast Delivery. Large Choice of products (and services)