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11) ________ refers to the design of business models that reintroduce middlemen in order to reduce the challenges brought on by dealing directly with customers. A) Reintermediation B) Demutualization C) Gentrification D) Disintermediation E) Mutualization 12) Which of the following is an example of reintermediation? A) The black Centurian card is issued by invitation only to customers who spend more than $250,000 a year on other American Express cards. B) P&G acquires the list of parents-to-be and showers them with samples of Pampers and other baby products to capture a share of their future purchases. C) Kambo, a fashion apparel company that deals directly with customers to sell its products, added retailers to its supply chain to cater to its target audience in remote geographic locations. D) OakTeak, a furniture manufacturing firm, started selling directly to its customers after it experienced a dip in sales due to channel conflicts between retailers. E) Dunkin’ Donuts expanded its menu beyond breakfasts by adding hearty snacks that substitute for meals, which consists of items like Dunkin’ Dawgs, hot dogs wrapped in dough. 13) Companies following a ________ business strategy choose to operate solely in the traditional physical markets. A) click-only B) click-and-mortar C) brick-and-click D) click-and-brick E) brick-and-mortar 14) Which of the following statements is true about firms pursuing a brick-and-mortar business strategy? A) These firms do not have physical store locations. B) These firms do not indulge in electronic commerce. C) These firms focus purely on electronic commerce to conduct business. D) These firms conduct business electronically in cyberspace. E) These firms operate in both physical and virtual arenas. 15) Which of the following statements is true about companies pursuing a click-only business strategy? A) These companies approach business activities in a traditional manner by operating physical locations. B) These companies operate in both physical and virtual arenas. C) These companies do not indulge in electronic commerce to conduct their businesses. D) These companies do not have physical store locations. E) These companies choose to operate solely in the traditional physical markets. 16) Which of the following statements is true about firms pursuing a click-and-mortar business strategy? A) These firms focus purely on electronic commerce to conduct businesses. B) These firms operate in both physical and virtual arenas. C) These firms do not indulge in electronic commerce. D) These firms only conduct business electronically in cyberspace. E) These firms do not have physical store locations. 17) Which of the following firms would most likely pursue the brick-and-mortar strategy? A) KEH.com is a used camera dealer that buys and sells cameras across the globe. B) Castro’s is a watch manufacturing firm known for its effective mass customization. C) SmartInv is a brokerage firm that allows its customers to personalize their portfolios. D) BestBaker is a local bakery store in Bantam, Connecticut and caters exclusively to its residents. E) Nebo, a computer manufacturer, has pursued disintermediation and sells directly to customers. 18) Which of the following statements is true about firms pursuing a click-and-mortar business strategy? A) These firms learn how to fully maximize commercial opportunities in both domains. B) These firms can often compete more effectively on price. C) These firms tend to be highly adept with technology and can innovate very rapidly as new technologies become available. D) Customers of these firms find it difficult to return a product in case of damages. E) These firms can reduce prices to rock-bottom levels, although a relatively small firm may not sell enough products. 19) EZBiz, the brainchild of three college friends, is a startup venture which plans to produce and market sports gear. They are currently trying to decide between a brick-and-click strategy and a click-only strategy. Which of the following, if true, would most undermine the decision to adopt a click-only strategy? A) The company has limited access to funds and is looking to keep its costs low. B) The public is wary of sharing confidential information after a recent spate of credit card scandals. C) A competitor is facing severe backlash after inadvertently releasing sensitive data into the public domain. D) Several companies who have switched from brick-and-mortar strategy to a click-only are experiencing severe channel conflicts. E) Some click-only companies have been unable to achieve economies of scale and subsequently are unable to offer lower prices. 20) EZBiz, the brainchild of three college friends, is a startup venture which plans to produce sports gear. They are currently trying to decide between a brick-and-click strategy and a click-only strategy. Which of the following, if true, would most support the decision to adopt a click-only strategy? A) E-commerce places firms on a global platform, in direct competition with the best in the business. B) Retailers have a preference for established brands that can pay good margins. C) Research suggests that some customers prefer online shopping because of the convenience it offers. D) Product trials and demonstrations are an essential part of the consumer buying process. E) Cyber laws are yet to reach the level of sophistication required to facilitate safe online transactions.

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