Acc 270 Ch 8 Book Quiz

One of the biggest problems facing Internet access for the world's poor is that such a small percentage of the global population living poverty lives near a mobile cellphone tower. true false

About 85 percent of the world's population already lives within range of a cell tower with at least a 2G data network.

Which additional factors favor the competitive dynamics of smartphone apps over browser-based desktop services? Smartphones apps can access a phone's media library and cloud storage. Smartphone apps can use push notifications. Smartphone apps also get an icon on the home screen. Limited screen real-estate on mobile devices All of the above

All of the above: Photos and video shot from a phone can be shared easier than if they need to be downloaded to a desktop, first. Push notifications engage user attention in a way browsers can't. A home screen icon is more readily seen than a web bookmark. And limited screen real estate on mobile decreases likelihood that a firm will envelop rivals by offering a new feature if it means the interface will be cluttered.

A(n) ___________________ is measured each time an ad is served to a user for viewing, i.e. each time an ad appears on someone's screen. page view hit install impression

An impression is measured each time an ad is served to a user for viewing (i.e. each time an ad appears on someone's screen). page view

When taken together, these features enlist websites to serve as vassal states in the Facebook empire. Photos API to integrate Facebook logon, likes, and other open graph features into other sites Facebook Messenger's app store Facebook's equity stake in all firms that have a fan page on the service

Another aspect of the Facebook platform, Facebook's Open Graph, continues to project Facebook's influence beyond the site itself. The initiative allows developers to link web pages and app usage into the social graph, placing Facebook directly at the center of identity, sharing, and personalization—not only on Facebook but also across the Web.

_____ is the concern that an advertisement will run near offensive material, embarrassing an advertiser and degrading their brands. Content adjacency Advertising proximity Reputation management Information manipulation Encroachment

Content adjacency is the concern that an advertisement will run near offensive material, embarrassing an advertiser and degrading their brands. Consider all of the questionable titles in social networking groups. Do advertisers really want their ads running alongside conversations that are racy, offensive, illegal, or that may even mock their products? This potential juxtaposition is a major problem with any site offering ads adjacent to free-form social media.

_____ refer(s) to systems distributed throughout the Internet that help to improve the delivery speeds of Web pages and other media, typically by spreading access across multiple sites located closer to users. Broadband networks Link farms Content delivery networks Data communication networks Service-oriented architecture

Content delivery networks are systems distributed throughout the Internet that help to improve the delivery speeds of Web pages and other media, typically by spreading access across multiple sites located closer to users.

Facebook is so strong due to a team of domain experts. Genius developers are allowed to stay focused on a single project, perhaps throughout their career, serving as a resource for all new employees that enter that group. true false

Every eighteen months employees are required to leave their teams and work on something different for at least a month. Getting people into new groups helps spread the firm's geniuses' knowledge more broadly, generates idea flow, and prevents managers from developing fiefdoms.

It can be easier to recruit employees before a firm goes public, since staff granted shares and options may see an upside at IPO. true or false

Facebook also finds that in a voraciously competitive high-end technical job market, the firm no longer has the promise of a massive IPO pay-day as a recruiting lure. true

Highlighting both a challenge and opportunity, Facebook's international users still contribute only a small fraction of the firm's overall ad revenue. true false

Facebook has also been able to earn more from its global audience, with 51 percent of ad dollars now coming from outside the US.

Facebook actually cut back on ads in newsfeeds, resulting in higher profits. true false

Facebook has also leveraged a bit of Econ 101 to juice profits. Instead of annoying users by saturating their feeds with ads, Facebook has actually cut back on the percentage of ads that appear in feeds. This has created an inventory scarcity that allowed the firm to jack up prices as firms compete for a slot (i.e. more demand for limited supply). The net result: a better user experience and higher profits.

Facebook has offered a system where Web site operators can choose to accept a user's Facebook credentials for logging in. Users appreciate this feature because: Web site operators typically charge them for logging in. they can access content without having to create a new account. they dislike having to visit Facebook first before visiting other Web sites. Facebook can track these movements and update friends via feeds. they log into Facebook multiple times a day.

Facebook offered a system where Web site operators can choose to accept a user's Facebook credentials for logging in. Users like this because they can access content without the hurdle of creating a new account. Web sites like it because with the burden of signing up out of the way, Facebook's login removes an impediment to user acquisition.

Programming hooks, or guidelines published by firms that tell other programs how to get a service to perform a task such as send or receive data, are known as _____. collaborative filtering software service design frameworks application programming interfaces standard design structures information reproducing frameworks

Facebook published a set of application programming interfaces (APIs) that specified how programs could be written to run within and interact with Facebook, allowing any programmer to write applications that would run inside a user's profile.

Relating the Facebook platform to sources of value from network effects, developers creating applications create ___________________ that have the potential to add value to Facebook beyond what the firm itself provides to its users. unique selling propositions business intelligence opportunity costs complementary benefits vertical niches

Facebook's platform allows the firm to further leverage the network effect. Developers creating applications create complementary benefits that have the potential to add value to Facebook beyond what the firm itself provides to its users.

In order to expand earned-media reach, organizations should include a request at the end of their Facebook posts that requests that users reshare the information. True/False

False: Don't beg for likes or reshares. That'll get your post punished, decreasing its reach.

By default, a post by a "liked" firm or friend will appear in your feed. true false

False: Not everyone sees every post to their feed; like Google, Facebook uses a secret and constantly refined algorithm that attempts to identify what you're most interested in, while cutting "spammy" content.

Facebook COO Sheryl Sandberg's ad industry experience was cultivated at Yahoo! true/false

False: Regularly named to Fortune magazine's "Most Powerful Women in Business" list, Sandberg came to Facebook from Google (before that, she was chief of staff to US Treasury secretary Larry Summers).

Facebook's advertising future: is clouded due to continued uncertainty that the firm will be able to monetize mobile. has been helped by large growth in the lucrative app-install ad market. is limited because the only data used in target is data that Facebook acquires within its own websites and apps. is more promising since content adjacency is less of a problem for Facebook than it is in Google's massive and uncertain search results. is more promising in international markets, where Facebook's ARPU is greater than it is among less-valuable US users.

Firms such as King, Disney, and Warner Bros. are spending millions of dollars per month marketing their games on Facebook, allowing the firm's Mobile App Install program to bring in business totaling in the hundreds of millions of dollars.

From the privacy and user-content fiascos faced by Facebook, managers can learn that: violation of public trust can lead to intense public scrutiny and regulatory consequences. advertising revenues need not be the only source of income for social networks. high switching costs don't prevent users from migrating to other services. users usually trust a firm's ability to secure their content if advertising partners include well-known firms that consumers likely already trust. a large number of passionate users is essential to get a firm to act more democratically.

Firms that violate the public trust should expect the equivalent of a high-powered investigative microscope examining their every move, a very public airing of the findings and possible governmental action, such as the US FTC's actions towards Facebook.

The bulk of Facebook's revenue is earned through: selling applications developed on its platform. its role as an online banker. gaming. advertising. loaning user information to data mining organizations.

If Facebook is going to continue to give away its services for free, it needs to make money somehow. Right now the bulk of revenue comes from advertising. Fortunately for the firm, online advertising is hot.

Which of the following statements is true? Facebook has a lower ARPU than Google. While Google earns more ad revenue than Facebook, Facebook is more profitable than Google. The virality of Facebook feeds and trustworthiness of friends one one's social graph helps Facebook achieve higher ad click-through-rates than Google. Google's ability to index the majority of Facebook's content means Google actually earns money displaying ads in search results from material stored on Facebook's servers. China is Facebook's largest market for advertising revenue.

In terms of Average Revenue Per User (ARPU), all the time users spend on Facebook is worth only a small fraction on a per-user basis as time spent on Google.

Which of the following statements is true about Facebook's acquisition of WhatsApp? While WhatsApp's messaging lagged Facebook's in the high-growth markets of India, Brazil, and Mexico, the service was growing at a faster rate. WhatsApp's average revenue per user in developing markets is actually higher than Facebook's. WhatsApp had fewer global users than SnapChat, but SnapChat refused Facebook's acquisition offer, so the WhatsApp purchase made Facebook a strong number-two player in mobile messaging. WhatsApp's share of the global mobile messaging market was so much greater than Facebook's, Zuckerberg saw WhatsApp as the best way for Facebook to remain relevant in this market. WhatsApp was popular in markets where Facebook is blocked by local governments.

In the high-growth markets of India, Brazil, and Mexico, WhatsApp usage was twelve to sixty-four times ahead of Facebook for mobile messaging. Acquiring WhatsApp was key to ensuring Facebook wasn't relegated to being a mobile messaging also-ran.

Which of the following is true about Facebook Messenger? It has become a games platform It has become a payments platform It is now used as a tool for customer support and service It is a Skype competitor All of the above None of the above

It's also a Skype competitor, offering free VoIP (Voice over IP) Internet calls. Under Marcus, Messenger has also expanded to become a tool for corporations to communicate with customers. In addition, it has become a payments platform. Games (a Pictionary/DrawSomething-clone called Doodle Draw) followed.

What reason did Mark Zuckerberg give for acquiring Oculus VR? to acquire a firm that had already acquired a massive end-user customer base. to acquire a firm that already had a huge stable of third-party applications, practically ensuring Oculus will be the dominant VR platform. to start building what Zuckerberg hopes is the next major computing platform that will come after mobile. to remove competition from an even younger entrepreneur than Zuckerberg who threatens Facebook with smarts and talent. to keep pace with earlier virtual reality acquisitions made by Amazon, Apple, and Google.

Justifying the acquisition, Zuckerberg has also said, "Strategically we want to start building the next major computing platform that will come after mobile."

Many entrepreneurs accept start-up capital from _____, investor groups that provide funding in exchange for a stake in the firm and often, a degree of managerial control usually in the form of a voting seat, or seats on the firm's board of directors. personal financiers credit unions financial institutions money lenders venture capital firms

Many entrepreneurs accept start-up capital from venture capitalists (VCs), investor groups that provide funding in exchange for a stake in the firm and often, a degree of managerial control (usually in the form of a voting seat or seats on the firm's board of directors).

Mobile ads present such an opportunity in part because users check their phones so much, offering a chance to show many more ads throughout the day. true false

Mobile users provide Facebook with a steadier flow of customer interaction throughout the day. One survey found that the average smartphone user checks Facebook fourteen times a day and that most check their phones immediately after waking up in the morning.

At the time of its IPO, Facebook earned no money from mobile advertising, but today mobile brings in the majority of the firm's ad revenue. true or false

Mobile was an early concern—the firm made no money on mobile at the time of its IPO. Today, mobile brings in over 70 percent of Facebook advertising revenue. true

Facebook has lots of upsides in part because its audience in key demographics is so much smaller than conventional television networks. true false

More people age eighteen to twenty-four access Facebook during evening primetime hours than watch ABC, CBS, NBC, and Fox combined.

Most banner ads are charged based on: CPM CPC App installs Click-thrus

Most banner ads don't charge per click but rather CPM, or cost per thousand impressions (the M representing the roman numeral for one thousand).

What feature of Facebook helps new applications gain visibility among users? News feeds Tweets Scraps User verification Mutual friend approval

News feeds helped apps spread like wildfire and the early movers offered adoption rates never before seen by small groups of software developers.

Open source software refers to: free software whose source code is available for modification by anyone. software that, theoretically, can be expanded infinitely by including similar code from other software. software that can increase the speed of Internet transmissions by opening up multiple pathways for message packets. software programs that tell other programs how to get a service to perform a task such as send or receive data. a clutch of software programs controlled by a single source program that monitors data transmissions between individual software.

Open source software powers many sites like Facebook. Open source software is very often developed in a public, collaborative manner and it can be classified under crowdsourcing efforts.

One of the reasons behind Beacon's failure is a common one: managers failed to completely consider the components and interplay among elements in an information system. Which of the following is not a component of an information system (IS)? Hardware Software Data People Procedures None of the above, all of the above are components of IS

Savvy managers look beyond technology and consider complete information systems—not just the hardware and software of technology but also the interactions among the data, people, and procedures that make up (and are impacted by) information systems. Beacon's failure is a cautionary tale of what can go wrong if users fail to broadly consider the impact and implications of an information system on all those it can reach.

_____ is an attempt to profit from a falling stock price. Going long Down-selling Short selling Cross-selling Up-selling

Short selling is an attempt to profit from a falling stock price. Short sellers sell shares they don't own with an obligation of late repayment.

Sites that cannot be indexed by Google and other search engines are referred to as the _____. black hole black net dark Web walled garden semantic Web

Sites that can't be indexed by Google and other search engines are referred to as the dark Web. Since Google can't index many of Facebook's profile pages, Facebook has the opportunity to develop a search engine that could go beyond the power of Google.

Why is it potentially easier for services delivered over mobile apps to recreate a social graph than it is for users of a browser-based service? Smartphones can access a user's address book Apps use a universal cookie, enabling apps to freely access data from other apps Apps are not part of the dark web, so content can be easily imported The unlimited data plans that most smartphone users subscribe to make data extraction from Facebook essentially free APIs expose an entire user's social graph

Smartphone apps can access a user's address book. This makes it easier to rebuild the social graph for a new mobile service.

The phrase _____ refers to the global mapping of users, organizations, and how they are connected. index social graph blog feed network internality

Social graph is the global mapping of users and organizations, and how they are connected.

Critics worry that for billions of low-income users, Facebook will come to represent the only Internet they know and have access to, deepening the roots and entanglement vines of the firm's walled garden. true false

Some worry that for billions of low-income users, Facebook will come to represent the only Internet they know and have access to, deepening the roots and entanglement vines of the firm's walled garden.

The failure of China's WeChat platform shows the folly of trying to create an application platform through a mobile app. true false

Successful WeChat offers an open platform that supports digital payments, shopping, gaming, banking, Uber-style taxi service, and open access to third-party developers.

Many leading content outlets use Facebook Instant Articles feature because: Articles load faster, increasing the likelihood that they'll be read (and ads will be served) These articles strip out Google ads and use Facebook's less expensive ads. Facebook leverages the front-facing camera on your mobile phone to watch where users look, offering feedback to content providers on effective ad copy and placement Bloggers bypass the mainstream media (MSM) and share via Facebook, getting a cut of any subscription revenue for commercial sign-ups All of the above

The "Instant Articles" service helps vendors overcome the problem of slow page loads and content that's poorly formatted for mobile. Articles usually take an average of eight seconds to load, often enough to prompt users to quit. This causes content providers to miss out on the ad revenue from a page view. Caching articles on Facebook's servers allows pages to load ten times faster.

A key advance of the Oculus Rift was: It was complete and selling to consumers at the time of Facebook's acquisition of the parent firm It integrated seamlessly with existing Xbox games, displaying the firm's entire library in full, immersive virtual reality. The first version was a stand-alone product, used without requiring integration with PCs, smartphones, or other devices. It didn't make users puke.

The Rift's big breakthrough is that it doesn't make you puke. Previous VR efforts had so much latency (delay) in image rendering that users would become disoriented to the point of nausea.

What was the biggest problem with the rollout of Facebook's Beacon platform? It forced consumers to pay for using the service. It was an "opt out" program. It was a credits-based rewards system. It failed to leverage the social graph in any manner. It was an "opt in" service.

The biggest problem with Beacon was that it was "opt out" instead of "opt in." Facebook (and its partners) assumed users would agree to sharing data in their feeds, when such sharing was often unwelcome by users.

The cost a consumer incurs when moving from one product to another is known as _____. opportunity costs fixed costs variable costs switching costs marginal costs

The cost a consumer incurs when moving from one product to another is known as switching costs. It can involve actual money spent, as well as investments in time, any data loss, and so forth.

The term _____ refers to a collection of computing resources available for access over the Internet. crowdsourcing RSS feed cloud walled garden dark Web

The term cloud refers to a collection of resources available for access over the Internet. The Facebook cloud (the big group of connected servers that power the site) is scattered across multiple facilities, including server farms in San Francisco, Santa Clara, northern Virginia, Oregon, and North Carolina.

_____ occur(s) when others take advantage of a user or service without providing any sort of reciprocal benefits. The free rider problem Switching costs Network effects The fast follower problem The Osborne effect

Too much data portability presents a free rider problem where firms mooch off Facebook's infrastructure without offering much in return.

One challenge for Facebook Mobile is newsfeed ads. Users tend to ignore ads in their newsfeed even more than they do ads that appear on the side of conventional web pages. true false

Unlike search ads, ads in the news feed move beyond the easy-to-ignore real estate on the right side of the desktop and instead put a message right in the middle of the exact screen real estate that a user is paying attention to. News feed ads have been shown to deliver a return on investment that is twenty-six times higher than that of sidebar ads.

Which of the following is perhaps the most significant contributor to Facebook's ability to strengthen and deliver user value from the social graph? Feeds Games Profiles Messages Events

While the authenticity and trust offered by Facebook was critical, offering News Feeds concentrated and released value from the social graph.

Facebook allows any developer to add a Facebook "Like" button to their site with just a few lines of HTML code. What advantage do websites leverage by integrating this feature? Co-identification Envelopment Viral distribution Peer production Staying power

With just a few lines of HTML code, any developer could add a Facebook "Like" button to their site and take advantage of the social network's power of viral distribution.

Two strategic assets considered vital to Facebook's enduring competitive advantage in social networking are switching costs and network effects. true/false

true: Without the network effect, Facebook wouldn't exist. And it's because of the network effect that another smart kid in a dorm can't rip off Zuckerberg in any market where Facebook is the biggest fish. Even an exact copy of Facebook would be a virtual ghost town with no social graph. The switching costs for Facebook are also extremely powerful. A move to another service means recreating your entire social graph. The more time you spend on the service, the more you've invested in your graph and the less likely you are to move to a rival.