E-commerce Quiz Week-14: E-commerce Retail and Services

Gross margin is defined as gross profit:

• minus total operating expenses.

• divided by net sales revenues.

• divided by cost of sales.

• minus net income.

The term supply-push refers to:

• making products prior to orders being received based on estimated demand.

• waiting for orders to be received before building a product.

• channel conflict.

• multi-channel manufacturers who sell directly online to consumers.

What is the largest sector of the online travel services market in terms of revenue?

• hotel reservations

• car reservations

• cruise/tour reservations

• airline reservations

Which of the following measures the percentage of sales revenue a firm can retain after all expenses are deducted from gross revenues?

• gross profit

• net margin

• operating margin

• working capital

Which of the following best explains why the service sector is a natural avenue for e-commerce?

• The service sector is less geographically reliant and more globally oriented.

• The service sector has historically been more technology-reliant.

• Much of the value in services is based on the collection, storage, and exchange of information.

• It is not; services are difficult to translate to e-commerce because they rely on face-to-face communication and barter.

All of the following are challenges faced by bricks-and-clicks firms except:

• coordinating prices across channels.

• handling returns of online purchases at retail outlets.

• building a credible website.

• building a brand name.

Service industry groups are categorized generally into two groups, those that provide transaction brokering and those that involve:

• retailing goods.

• personalization.

• information brokering.

• providing hands-on services.

Which of the following is not a key industry strategic factor?

• synergies

• barriers to entry

• industry value chain

• existence of substitute products

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

• the cost of products being sold

• marketing costs

• administrative overhead

• amortization of goodwill

All of the following are advantages of online retail except:

• lower supply chain costs.

• lower cost of distribution.

• ability to change prices.

• faster delivery of goods.