ACC 270 Exam 1 Study Guide
Which of the following represents one of the primary components of the value chain? A) Outbound logistics B) Firm infrastructure C) Human resource management D) Research and development E) Procurement
A) Outbound logistics
_____ are the super tiny on-off switches in a chip that work collectively to calculate or store things in memory. A) Transistors B) Multicore processors C) Single-core processors D) Conductors E) Inductors
A) Transistors
Amazon's moves are largely motivated by: A) customer focus. B) cost cutting. C) the focus on making immediate supplier payments. D) internal leadership E) technology. advancements.
A) customer focus.
Nokia is a cell phone brand that offers digital cameras as part of its cell phone products. It is now in direct competition with camera brands such as Canon and Sony, and has become the world's largest seller of cameras. This is an example of: A) envelopment. B) product customization. C) market diversity. D) product development. E) market innovation.
A) envelopment.
A market dominated by a small number of powerful sellers is known as a(n) _____ . A) oligopoly B) pure play C) short tail D) blue ocean E) greenfield
A) oligopoly
_____ are products or services that add additional value to the primary product or service that makes up a network. A) Quantum efforts B) Substitute components C) Complementary benefits D) Orthogonal gains E) Standby additions
C) Complementary benefits
The phrase ________ refers to promotions that grow organically from customer efforts or other favorable publicity (e.g. think positive tweets, shared Facebook posts, and pins on Pinterest).
earned media
By going public, Netflix encountered competition from the large, established firms Wal-Mart and Blockbuster. What aspect of Netflix going public lured these firms into the market? A) By going public, Netflix was required to disclose its financial position. B) By going public, Netflix was forced to reveal the Cinematch algorithm used to classify user ratings. C) Netflix's model of flat-rate monthly subscriptions was found to be more profitable than a per-disc rental fee model. D) Netflix's plan to enter the online movie streaming market alerted rivals to the possibility of losing their market share. E) The migration of Netflix services to cover the Blu-ray disc market opened up opportunities for rivals.
A) By going public, Netflix was required to disclose its financial position.
Cisco purchased Pure Digital, maker of the Flip video recorder, but ended up shutting the unit down a little over two years later. The reason for Cisco's failure was: A) Envelopment. Smartphone manufacturers and music players began to offer video recording features, enveloping the benefit provided by Pure's gear in their offerings. B) Network effects. Late-arriving Cisco could not compete against the dominance of existing, incompatible standards created by early-moving incumbents. C) The Osbour Effect. Cisco preannounced a product and no one wanted its current offerings. D) Staying power. Consumers weren't convinced a small firm like Cisco could win in the market.
A) Envelopment. Smartphone manufacturers and music players began to offer video recording features, enveloping the benefit provided by Pure's gear in their offerings.
_____ is the biggest photo-sharing site on the Web, taking in around three billion photos each month. A) Facebook B) Picasa C) Shutterfly D) Flickr E) Photobucket
A) Facebook
Which of the following is a source of bargaining power of buyers? A) Greater choice of products B) High switching costs C) Loyalty programs D) Network effects E) Unique and highly differentiated products
A) Greater choice of products
How are News Feeds a source of value for users on Facebook? A) It fosters the virality of information sharing vital to delivering value from the social graph. B) They are innovative and Facebook is the only social network to offer the feature. C) They are effective in protecting a user's personal information from others. D) They ensure that a single post will reach all friends and fans. E) They offer cross connectivity for users across several social networking sites.
A) It fosters the virality of information sharing vital to delivering value from the social graph.
Amazon was started by: A) Jeff Bezos B) Catherine Cook C) Shawn Fanning D) Linus Torvalds E) Kevin Rose
A) Jeff Bezos
Dynamic pricing: A) refers to pricing that shifts over time based on conditions associated with product supply and demand. B) refers to pricing that is always a notch higher than competition. C) refers to pricing strategies that focuses on consistency even if environmental conditions fluctuate wildly. D) is also known as the bargaining power of customers. E) refers to pricing that is always a notch below competition.
A) refers to pricing that shifts over time based on conditions associated with product supply and demand.
Grid computing is a type of computing in which: A) special software is installed on several computers enabling them to work together on a common problem. B) computers are designed with many microprocessors that work together, simultaneously, to solve problems. C) quantum properties, such as superposition and entanglement, are used to represent data and perform operations on these data. D) microprocessors with two or more (typically lower power) calculating processor cores are fabricated on the same piece of silicon to solve multiple problems. E) computer software seeks to reproduce or mimic human thought, decision making, or brain functions.
A) special software is installed on several computers enabling them to work together on a common problem.
Many pundits assumed Amazon would fail. Why? A) the firm was losing money and competing against established, well known, offline brands who were going online. B) Amazon was too short-term focused. C) the firm was based in Seattle, rather than Silicon Valley. D) Amazon sales were not increasing. E) all of the above.
A) the firm was losing money and competing against established, well known, offline brands who were going online.
"Users want some semblance of control over their personal data, even if they are not bothered to manage it." This is often known as: A) the paradox of privacy B) crowdsourcing C) Metcalfe's Law D) uncertainty of decisions E) free rider problem
A) the paradox of privacy
Technology experts in the area of user-interface design: A) work to make sure systems are intuitive and easy to use. B) leverage technology to make legacy systems more efficient. C) specialize in technology for competitive advantage. D) focus on the effective back-up systems for critical business data. E) provide direction on technology-related security issues.
A) work to make sure systems are intuitive and easy to use.
A(n) _____ refers to an Internet vandal and mischief-maker. A) avatar B) troll C) sock puppet D) Poltergeist E) gadfly
B) troll
Netflix has used the long tail in the DVD-by-mail business to its advantage, crafting a business model that creates close ties with film studios. What do film studios stand to gain from taking advantage of the Netflix model targeted at increasing the firm's long-tail offerings? A) Discounted fees for marketing some of the less-popular titles from the studios B) A cut of the subscription revenue from every disk sent out by Netflix C) Greater bargaining power with movie rental firms such as Netflix, Blockbuster, and Wal-Mart D) Lower costs related to screening movies in cinemas by releasing them straight on DVD E) An equal share of revenue from the digital distribution model through online streaming
B) A cut of the subscription revenue from every disk sent out by Netflix
Firms are increasingly shifting spending from the Web to other media such as print, radio, and television as these are often easier to track and analyze. A) True B) False
B) False
Initially, Amazon adopted the domain of a non-profit organization. A) True B) False
B) False
Social media and noble phone users are decreasing expectations for corporate ethics and customer service A) True B) False
B) False
The United States holds the number one ranking in home broadband access. A) True B) False
B) False
Which of the following statements is true of localization? A) It refers to a collection of resources available for access over the Internet. B) It refers to adapting products and services for different languages and regional differences. C) It refers to a situation when the value of a product or a service increases as the number of its users expands. D) It refers to a situation when others take advantage of a user or a service without providing any sort of reciprocal benefit. E) It refers to a closed network or a single set of services controlled by one dominant firm.
B) It refers to adapting products and services for different languages and regional differences.
Which statement best describes the relationship between network effects and innovation? A) Network effects decrease innovation within a standard but increase the number of innovative offerings that compete against a strongly established standard. B) Network effects increase innovation within a standard but decrease the number of innovative offerings that compete against a strongly established standard. C) More often than not, network effects foster innovation D) More often than not, network effects limit innovation
B) Network effects increase innovation within a standard but decrease the number of innovative offerings that compete against a strongly established standard.
Which of the following refers to a feature of wikis that allows the restoring of earlier work in the event of a posting error, inaccuracy, or vandalism? A) What you see is what you get B) Roll back C) Neutral point of view D) Organizing tagging scheme E) Track back
B) Roll back
CPM refers to: A) each instance of an advertisement being viewed by a user. B) cost per thousand impressions. C) a concept where advertisers do not pay unless someone clicks on their ad. D) the maximum amounts of money advertisers are willing to pay for each click on their ads. E) the number of users who clicked an ad divided by the number of times the ad was delivered.
B) cost per thousand impressions.
Sometimes technology can sound geeky and so technical that executives might think that it doesn't require managerial or investor attention. However many investing in the telecom sector suffered from a lack of insight on how a key technology was impacting their industry. Telecom firms failed to anticipate the impact of a technology known as ____________, which enabled existing fiber to carry more transmissions than ever before. A) radio frequency identification (RFID) B) dense wave division multiplexing (DWDM) C) cloud computing D) open source software
B) dense wave division multiplexing (DWDM)
Based on the author's take on e-waste management, a manager would do well to learn that: A) dealing with e-waste at home can be ten times cheaper than sending it abroad. B) disposal and recycling partners must be audited with the same vigor as suppliers and other partners. C) environmentalists target only the big firms as they can afford to compensate for any environmental damage wrought by their practices. D) it is simple enough for firms to monitor and track e-waste management through international agencies such as Fair Factories Clearinghouse. E) appointing environmentalists like Al Gore to the firm's board of directors helps avoid legal action and brand tarnishing due to bad e-waste management practices.
B) disposal and recycling partners must be audited with the same vigor as suppliers and other partners.
The video game console market offers important lessons for the strategist. The video game console market is a network market in which Sony's PlayStation 2 (PS2) dominated over Microsoft's Xbox offering. This has been possible due to: A) the low pricing of Xbox which eroded users' confidence in the product. B) game developers favoring PS2 for its larger user base obtained because the PS2 was launched months before the Xbox. C) the presence of several cheap, rival imitations which ate into Xbox's market share. D) PS2's technical superiority over the Xbox. E) the straddling strategy adopted by Microsoft to expand in both video game and DVD player markets.
B) game developers favoring PS2 for its larger user base obtained because the PS2 was launched months before the Xbox.
A firm is said to be _____ when it attempts to match the benefits of a successful position while maintaining its existing position. A) switching B) straddling C) dovetailing D) streamlining E) vertically integrating
B) straddling
The long tail nature of the blogging phenomenon is demonstrated by: A) many blogs, which are more popular than most mainstream media publications. B) the niche content that is discoverable through search engines and that is often shared via other types of social media. C) most popular blogs offering cutting-edge news and commentary on a wide range of political, social, and economic topics. D) the higher valuation of many top-ranked blogs, compared to that of publicly traded papers. E) top blogs operating on shoestring budgets, yet snaring several hundred thousand dollars a month in ad revenue.
B) the niche content that is discoverable through search engines and that is often shared via other types of social media.
While Sony and Microsoft focused on the graphics and raw processing power favored by hard-core male gamers, Nintendo chose to develop a machine to appeal to families, women, and age groups that normally shunned violent games. The strategy adopted by Nintendo in this example is the _____ strategy. A) straddling B) customer engagement C) Blue Ocean D) mass customization E) convergence
C) Blue Ocean
What is Facebook's motivation for offering new features under an opt-out scheme? A) It gives users a sense of control of their online activities. B) It is easier for users to manage, as opposed to complex opt-in programs. C) It ensures a larger audience, and helps enhance network effects and data advantages. D) Internet laws stipulate that all new features offered by social networks should be based on an opt-out format. E) Users are seldom bothered about managing their personal data and tracking of their online activities.
C) It ensures a larger audience, and helps enhance network effects and data advantages.
Which of the following represents an advantage enjoyed by the Netflix DVD-by-mail business over traditional video stores? A) Lower technology overhead B) Lower shipping expenses C) Larger entertainment selection D) Higher energy costs E) Higher churn rates
C) Larger entertainment selection
__________ was just a sophomore when he began building computers in his dorm room at the University of Texas. His firm would one day claim the top spot among PC manufacturers worldwide. A) Bill Gates B) Steve Jobs C) Michael Dell D) Shawn Fanning E) Mark Zuckerberg
C) Michael Dell
How does the Internet typically impact price transparency and information asymmetry? A) Both price transparency and information asymmetry increase B)Both price transparency and information asymmetry decrease C) Price transparency increases while information asymmetry decreases D) Price transparency decreases while information asymmetry increases
C) Price transparency increases while information asymmetry decreases
Which of the following statements holds true for electronic social networks? A) Their key use is to anonymously share ideas in an unattributed manner. B) Their key use is to share access to products and services as an alternative to ownership.. C) Their key use is to discover and reinforce affiliations, identify experts, message individuals or groups, and virally share media. D) Their key use is to poll a diverse crowd and aggregate opinions to form a forecast of an eventual outcome. E) Their key use is to collaborate on common tasks or to create a common knowledge base.
C) Their key use is to discover and reinforce affiliations, identify experts, message individuals or groups, and virally share media.
Users of Google and other search engines are said to be on a hunt because they: A) are acquiring profiling data which acts as ammunition to improve their search results. B) want to explore and look around. C) are there to seek information to drive a specific action. D) allocate time for activities such as looking for news and friend updates. E) are unwilling to leave the Web page when they are having conversations.
C) are there to seek information to drive a specific action.
A low _____ is usually key to a firm's profitability because acquiring a customer is more expensive than keeping one. A) subscription fee B) inventory size C) churn rate D) switching cost E) opportunity cost
C) churn rate
Moving first pays off when the time lead is used to create: A) the latest technology at a firm's production plant. B) operational effectiveness to harness maximum profitability. C) critical resources for competitive advantage. D) high stock value to generate funds for expansion. E) market entry to ensure sustainable competitive advantage.
C) critical resources for competitive advantage.
One of the implications of price elasticity of technology products is that: A) the cost of a semiconductor chip fabrication plant doubles every four years. B) the magnetic disk areal storage density doubles annually. C) customers not only buy more products as they become cheaper, but whole new markets employing new technology open up. D) the value of chips in semiconductor-based devices appreciates every six months. E) firms stock up on tech products and sell them once their prices increase.
C) customers not only buy more products as they become cheaper, but whole new markets employing new technology open up.
Solid state components are less likely to fail because they: A) are driven by precise sets of software instructions. B) have the capability to both enable and inhibit the flow of electricity. C) have no moving parts. D) are composed of germanium instead of silicon. E) contain storage that retains data even when powered down.
C) have no moving parts.
Sony, a firm once synonymous with portable music, has ceded its market dominance to Apple because: A) it did not provide tracks from Sony Music artists to the Apple iTunes store. B) its technology offerings were too futuristic and out of sync with the waves of computing to appeal to customers. C) it failed to take advantage of opportunities presented by Moore's Law. D) its music players contradicted the price/performance phenomenon predicted by Moore's Law. E) it attempted to straddle the twin markets of online music retail and electronic music players, and could not capitalize on either.
C) it failed to take advantage of opportunities presented by Moore's Law.
While the size of the tail in the long tail phenomenon is disputable, one fact that is critical to remain above this debate is that: A) traditional brick and mortar retailers offer selections that cannot be rivaled by Internet pure-plays. B) energy costs and worker wages drive up the costs of running stores like Netflix. C) selection attracts customers, and the Internet allows large-selection inventory efficiencies that offline firms can't match. D) the turnover rate of obscure titles in traditional video rental stores is only slightly higher than those for Internet pure-plays. E) the cost of store maintenance and real estate makes stores such as Netflix unattractive.
C) selection attracts customers, and the Internet allows large-selection inventory efficiencies that offline firms can't match.
A(n) _____ is a fake online persona created to promote a particular point of view, often in praise of a firm, product, or individual. A) avatar B) troll C) sock puppet D) poltergeist E) gadfly
C) sock puppet
The advertising acronym CPM is defined as _______________.
Cost Per Thousand Impression
Funding projects via online efforts such as Kickstarter are referred to by the term __________.
Crowdsourcing
Which of the following is the most liquid asset? A) Plant machinery B) Retail locations C) Goodwill D) Cash E) Office furniture
D) Cash
Which of the following criteria, according to James Surowiecki, is necessary for a crowd to be "smart"? A) Strongly opinionated B) Homogeneous C) Offer a wide range of verdicts D) Decentralized E) Intellectually proximate
D) Decentralized
Netflix can send out any DVD it buys because of a Supreme Court ruling known as the _____. A) clickwrap agreement B) Betamax ruling C) fair use law D) First Sale Doctrine E) Copyright Directive
D) First Sale Doctrine
Tech impact is reaching even beyond the confines of Earth itself. According to an example in your chapter, how was a tool on the International Space Station recently acquired? A) It was purchased via China's Alibaba—showing global sourcing extends to the extraterrestrial B) It was delivered to the launch site when summoned from Space using the FedEx app C) It was an out-of-print product that an Etsy producer was able to craft and deliver for the next resupply flight D) It was printed on-demand using 3D printing technology
D) It was printed on-demand using 3D printing technology
_____ is a technique in which computers are designed with many microprocessors that work together, simultaneously, to solve problems. A) Nanocomputing B) Quantum computing C) Grid computing D) Massively parallel processing E) Cloud computing
D) Massively parallel processing
What is the purpose of Amazon Dash? A) To speed items throughout Amazon's warehouse. B) To rapidly restock Amazon's fulfillment center shelves. C) To speed delivery to consumers using drones. D) To allow consumers to rapidly place orders with Amazon. E) To deliver products using autonomous, driverless cars.
D) To allow consumers to rapidly place orders with Amazon.
The term wiki refers to a(n): A) record of online journal entries, usually made in a reverse chronological order. B) link in a blog post that refers readers back to cited sources. C) online community that allows users to establish personal profiles and communicate with others. D) Web site that can be modified by permitted users, from directly within a Web browser. E) type of short-message blogging, often made via mobile device and designed to provide rapid notification to their readership.
D) Web site that can be modified by permitted users, from directly within a Web browser.
Steve Chen and Chad Hurley are credited as the founders of: A) Google. B) Zappos. C) Facebook. D) YouTube E) Yahoo!
D) YouTube.
The term "content adjacency" refers to: A) placing advertisements to reach consumers based on various traits such as demographics and purchase history. B) a technique used by online publishers to increase the effectiveness of their campaigns. C) advertisements that are targeted based on a user's query. D) a concern that an advertisement will run near offensive material, embarrassing an advertiser and/or degrading their products or brands. E) problems associated with advertisements that run before a user arrives at the home page of a website.
D) a concern that an advertisement will run near offensive material, embarrassing an advertiser and/or degrading their products or brands.
Apple's dominance of smartphone and tablet markets has allowed the firm to lock up 60 percent of the world's supply of advanced touch-screen displays, and to do so with better pricing than would be available to smaller rivals. This is an example of: A) network externalities that make Apple valuable. B) high switching costs for suppliers. C) a complex tech product establishing itself as a killer brand. D) a growing firm gaining bargaining power with its suppliers. E) low search costs associated with a famous brand.
D) a growing firm gaining bargaining power with its suppliers.
Even if Netflix gave Cinematch away to its rivals, they would still not be able to make the same kind of accurate recommendations as Netflix. This is because of Netflix's _____. A) technological superiority B) customer loyalty C) movie expertise D) data advantage E) large inventory
D) data advatage
The patent system is often considered to be unfairly stacked against start-ups because: A) bigger multinational firms enjoy patent protection in all countries as opposed to start-ups, which are domestic firms that do not get such protection for the most part. B) the intellectual property laws are not adequate to protect the interests of smaller firms from infringements. C) the patent system grants patents for innovations on a differential basis, with bigger firms getting precedence over start-ups. D) high litigation costs coupled with a few months of litigation can sink an early stage firm. E) patents are granted by the patent system on an ad hoc basis wherein firms that have been in business longer get patent protection for longer periods of time.
D) high litigation costs coupled with a few months of litigation can sink an early stage firm.
The long tail is a phenomenon whereby firms can make money by: A) selling the same product at different prices with only minor tweaks in their design. B) leveraging customers to promote their products or services. C) reselling multiple versions of a single product under different brand names. D) offering a selection of products or services vastly greater than conventional retailers. E) sell the same product to virtually every customer the Internet can reach.
D) offering a selection of products or services vastly greater than conventional retailers.
A market is said to be _____ if it derives most of its value from a single class of users. A) a pure play B) a long tail C) core competent D) one-sided E) convergent
D) one-sided
Windows OS, the iPhone, the Wii, and Facebook's application programming interfaces allow for the development and integration of complementary goods by third parties. Based on this evidence, all these products or services are said to be _____. A) pure plays B) coopetitors C) adaptors D) platforms E) venture capitalists
D) platforms
A prediction market involves: A) leveraging customers to virally promote a firm's products or services. B) aggregating the opinions of a specialized group of experts who analyze a problem and suggest solutions. C) making calculated estimates on the prices of goods and services based on the speculation of a group of experts. D) polling a diverse crowd and aggregating opinions to form a forecast of an eventual outcome. E) trading on essential goods and services with a view of making a profit by hiking prices at a time of high demand.
D) polling a diverse crowd and aggregating opinions to form a forecast of an eventual outcome.
Price elasticity refers to the: A) change in the demand for a good in response to a change in income. B) rate at which product prices vary in response to changes in customer demand. C) range of production costs that change as a direct function of the availability of raw materials. D) rate at which demand for a product or service fluctuates with price change. E) numerical measure of the responsiveness of the supply of a product to a change in its production cost.
D) rate at which demand for a product or service fluctuates with price change.
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? A) Selection attracts consumers. B) A network effect competitive advantage is created where more buyers attract more sellers, giving Amazon an advantage over any rival attempting to create a similar marketplace. C) Although products are sold by third parties, Amazon gains valuable data on things such as customer browsing habits and sales. D) Amazon's brand is reinforced as a first-choice shopping destination. E) All of the above.
E) All of the above.
Which of the following statements is true? A) The concept of accounts payable is applicable only when a customer buys from a retailer. B) The Amazon Associates program is the second largest affiliate marketing program in the world. C) Amazon does not allow third-party sellers to sell products through its website. D) Amazon has always sold products to customers using middlemen. E) It is not uncommon for a big retailer like Amazon to be able to hold products for a month or longer without having to pay for them.
E) It is not uncommon for a big retailer like Amazon to be able to hold products for a month or longer without having to pay for them.
Which of the following statements is a valid reason for chip manufacturers to carry minimal inventory? A) Rising transportation costs greatly increase the costs of manufacturing and make moving inventory between locations highly expensive. B) Chip manufacturers maintain low inventories to hedge the move of semiconductor technology away from silicon-based chips. C) The potential physical and electronic damage to silicon chips if left unused for extended periods of time deters manufacturers from maintaining higher inventories. D) Chip manufacturers leverage the higher costs of chip-based products to their advantage by keeping supply low compared to demand. E) Products with a significant chip-based component rapidly fall in value and can cause huge losses when overproduced.
E) Products with a significant chip-based component rapidly fall in value and can cause huge losses when overproduced.
Managers looking for advice on properly dealing with obsolete technology hardware can: A) consult the e-Stewards program B) seek advice from the International Association of Electronics Recyclers C) look for partners with ISO 9001 and ISO 14001 certifications D) investigate resources provided by the Basel Action Network E) all of the above F) none of the above
E) all of the above
Two distinctly separate markets are said to undergo convergence when they: A) are dominated by a small group of powerful sellers. B) derive most of their value from two distinct categories of participants. C) offer products and services designed to target a specific industry. D) are characterized by many buyers, but a single, dominant seller. E) begin to offer similar features and capabilities.
E) begin to offer similar features and capabilities.
Costs that do not vary according to production volume are called _____. A) total costs B) marginal costs C) switching costs D) variable costs E) fixed costs
E) fixed costs
Software that is free and whose code can be accessed and potentially modified by anyone is referred to as _____. A) shared source files B) proprietary software C) available files D) licensed documents E) open source software
E) open source software
The phrase inventory turns refers to: A) the stock of inventory returned to a manufacturer due to poor quality. B) also known as gross-profit margin turnover. C) the number of times an inventory item moves within a warehouse. D) the time it takes a product to be replaced by a newer model or upgraded product. E) the number of times inventory is sold or used during a specific period.
E) the number of times inventory is sold or used during a specific period.
Peer production refers to: A) the process of tracking and responding to online mentions of a product, organization, or individual. B) graphical editing tools, such as those found in a wiki, page layout program, or other design tool. C) 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. D) content that is more complex than simple text or photos and includes animation, audio, and video. E) users collaboratively working to create content, products, and services.
E) users collaboratively working to create content, products, and services.
Leveraging consumers to promote a product or service is known as _____. A) straddling B) affiliating C) long tailing D) crowdsourcing E) viral marketing
E) viral marketing
The phrase __________ is often used to describe the trend of putting "smarts" (meaning computing and telecommunications technology) putting into everyday products such as lamps, watches, thermostats, and door locks; as well as embedding tehbinto industrial goods.
Internet of Things
__________ problems are problems that arise when organizations cannot easily convert assets to cash.
Liquidity
________ when a product or service becomes more valuable as more people use it.
Network Effect
In the context of the Netflix case, _________ refers to an extremely large selection of content or products.
long tail
