CHAPTER 7 HOMEWORK EXAM QUESTIONS

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CHAPTER 7 HOMEWORK EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -15 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: Reports suggest that Amazon cargo jets:

Answer:

fly full, but with lighter loads, cutting fuel costs.

Question 2: Strategy followed by Amazon's founder

Answer:

postponed profit harvesting

Question 3: Amazon Dash

Answer:

was discontinued in 2019 due to declines in usage and, most likely, the low profit margin it provided

Question 4: Amazon Go

Answer:

allows customers to scan a phone app and enter then pick up whatever they want and be billed automatically when they leave the store

Question 5: Amazon weigh products prior to shipping

Answer:

to identify improperly completed orders

Question 6: Amazon's fastest growing business is

Answer:

Amazon Web Services Question 7: Benefits that Amazon has gained by using robots in its warehouses:

Answer:

lights-out distribution centers where no one works on the warehouse floor = FALSE faster order fulfillment times = TRUE faster stocking of shelves when products arrive at the warehouse = TRUE increased storage in warehouses = TRUE

Question 8: Which of the following is true of Amazon's warehousing process?

A.) Amazon made its own robots, which are in charge of building an order from a warehouse's inventory without any human intervention.B.) When stacking shelves in its warehouses, Amazon ensures that no two similar products sit next to each other.C.) Amazon's items that are heavily discounted and about to be written off as 'unsellable inventory' are dropped in an area called 'mass land' in one last-ditch effort to move under-performing warehouse stock.D.) Amazon's items that produce the most sales volume are stocked on shelves, alphabetically, to speed selection and packing.E.) Amazon's systems stamp names and addresses on boxes so they can be filled by pickers directly from shelves.

Answer:

B Question 9: Firms that cannot generate cash quickly enough are referred to as having

Answer:

liquidity problems

Question 10: A/B testing

Answer:

randomized group of experiments used to collect data and compare performance among 2 options studied

Question 11: A firm's period between paying suppliers for products and collecting funds from customers who purchase these products is referred to as the _____.

Answer:

cash conversion cycle Question 12: Example of agency pricing:

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• A manufacturer and a retailer work in a collaborative manner to decide the price of the final

product.B.) The government of a country sets the minimum price for certain agricultural products to cover the costs incurred by the farmers.C.) A retail store purchases merchandise from a manufacturer and sells the merchandise at whatever prices it wishes to charge.D.) A department store gets a cut on the selling price of a product, which is set by the product's manufacturer.E.) The local government sets the maximum price for a certain product that retailers cannot exceed.

Answer:

D Question 13: Allowing third-party sellers to list their products on Amazon is controversial. Why would Amazon allow products sold by others to appear on its site?

Answer:

A network effect competitive advantage is created where more buyers attract more sellers, which helps Amazon gain an advantage over any rival attempting to create a similar marketplace.Amazon's brand is reinforced as a first-choice shopping destination.Although products are sold by third parties, Amazon gains valuable data on things such as customer browsing habits and sales.

Question 14: Affiliate program

Answer:

efforts that pay referring websites a percentage of revenue eanred from a refferal

Question 15: Factors that likely contributed to the failure of the Fire phone

Answer:

late to the smartphone market lacked network effects for its new system rivals benefited from significant customer switching costs