BMGT 301 Final

Netflix has been able to rapidly add the streaming business with similar cost economics and product offerings because the fundamentals of this business are very similar to the firm's DVD-by-mail business, just streamed over the Internet. True or False

False

OLAP technology is primarily used for transaction processing. T/F

False

SaaS offerings usually work well when the bulk of computing happens at the client end of a distributed system. T/F

False

Sites like weather.com provide free weather forecasts. They are free because they are non-excludable

False

Some examples of attributes are: eye_color, weight, student_id, STUDENT

False

Startup firms that find new markets attractive but do not yet have products ready for delivery preannounce efforts causing potential adaptors to delay a purchasing decision until the new effort rolls out. T/F

False

Technology experts in the area of user-interface design specialize in technology for competitive advantage.

False

The Netflix DVD-by-mail allowed users to pay per movie, akin to rental but with the efficiencies of an Internet business with inventory delivered via the mail. True or False

False

The United States holds the number one ranking in home broadband access.

False

The natural state of a market where network effects are present is for there to be intense competition between several rivals that come to an equilibrium where their respective marker shares are roughly identical. T/F

False

The natural state of a market where network effects are present is for there to be intense competition between several rivals that come to an equilibrium where their respective market shares are roughly identical

False

The wisdom of crowds concept is based on the belief a group of experts is always correct in its assessment of a problem. T/F

False

Long tail

Firms can make money offereing a near-limitless selection. While traditional retailers stock their shelves with the most popular items, it turns out there's actually more money to be made selling obscure stuff (the stretched-out, but larger area right-side of the curve) if you can reach the greater customer base provided by the internet.

Adobe gives away the Acrobat Reader to building a market for the sale of software that creates Acrobat files. This is an example of

Firms giving away product for half a two-sided market to seed the market

__ refers to a ruling states that a firm can distribute physical copies of legally acquired copyright-protected products. This enables services such as libraries and video rental, but this right does not apply to streaming digital copies.

First-sale doctrine

Which of the following factors has helped Facebook build up trust among its users?

mutual and reciprocal approval of friend requests

While some debate the size of the "long tail," one fact that is critical to keep above this debate is that:

selection attracts customers and the Internet allows large-selection inventory efficiencies that offline firms can't match.

An industry practice whereby content is available to a given distribution channel for a specified time period, usually under a different revenue model is known as _____.

windowing

The "First-Sale Doctrine" refers to an over-100-year-old U.S. Supreme Court ruling that allows Netflix to stream a nearly unlimited catalog of movies and television programs. True or False

False

Transitioning the Netflix to a future where Internet streaming dominates and DVDs go away resulted in a smooth transition and record profits. True or False

False

Unlike Facebook friending, Twitter's default setting allows for symmetrical following. T/F

False

Wal-Mart supplements it's huge data assets with additional data provided by information brokers like Information Resources and ACNielden

False

Web 2.0 services are targeted at creating resources and sharing information based on transaction-focused storefront models. T/F

False

While spreadsheets are popular tools, they cannot effectively be used for "what-if" analysis

False

Your firm had better lawyer up! Studies have shown that patents are the single most-important factor for enabling a firm to profit from innovations. True or False

False

Zara's dominance in the fashion industry is due to its horizontally integrated structure accompanied by a globally dispersed production model. T/F

False

E-discovery

Identifying and retrieving relevant electronic information to supposed litigation efforts

How does the Internet typically impact price transparency and information asymmetry?

Price transparency increases while information asymmetry decreases

Consumers buying commodities are highly __ since they have so many similar choices

Price-focused

The higher the value of a user's overall investment, the more they are likely to consider the staying power of any offering before choosing to adopt it. T/F

True

The shift from atoms to bits is realigning nearly every media industry.

True

Timing and technology alone will not yield sustainable competitive advantage l.

True

Uber is an example of a business model that has strengthened the bargaining power of suppliers (cab drivers) with respect to middlemen who took a cut of their services (cab companies). T/F

True

Uber is an example of a business model that has strengthened the bargaining power of suppliers (cab drivers) with respect to middlemen who took a cut of their services (e.g. cab companies).

True

Within the DVD-by-mail segment, Netflix remained bigger than both Wal-Mary and Blockbuster.

True

Relate your understanding of Netflix dominance in the DVD-by-mail business to what you learned in the Strategy and Technology chapter: what three resources for competitive advantage did Netflix create in this market that rivals Blockbuster and Walmart couldn't match?

brand, scale, data asset

Artificial intelligence

class of computer software that seeks to reproduce or mimic human thought, decision making, or brain functions

When firms find themselves in situations where they are both competitors and partners, the situation is called _____.

coopetition

The phrase __________ refers to the number of times inventory is sold or used during the course of a year:

inventory turns

Over __ percent of new Netflix customers coming from outside the United States.

80

The term "content adjacency" refers to

A concern that an advertisement will run near offensive material, embarrassing an advertiser and/or degrading their products or brands

In database terminology, a record represents

A single instance of whatever the table keeps track of

The three sources of scale advantage which the Netflix DVD-by-mail business had over rivals imitating its effort were:

A warehouse network, customer base, and long tail selection

Sellers competing for your business on eBay is an example of: A. negative direct network externalities B. positive direct network externalities C. negative indirect network externalities D. positive indirect network externalities

A. negative direct network externalities

The term _________________ refers to leveraging consumers to promote a product or service: A. viral marketing B. network effects C. social sharing D. the collaboration economy

A. viral marketing

__ refers to the rare at which customers leave a product or service.

Churn rate

_____ is a marketing term referring to the rate at which customers leave a product or service.

Churn rate

Which of the following statements about cloud computing is true?

Cloud computing has led to decreased hardware and software sales at many firms, while increasing service expenses

__ are products or services that add additional value to the primary product or service that makes up a network

Complementary benefits

You are at a packed stadium for the big game and you want to upload a photo of your team's touchdown using Instagram. Your mobile phone shows five bars of service, but you still can't access the Internet. This is likely an example of ___.

Congestion effects

29. Advantages related to a firm's size are referred to as _____. A. growth advantages B. location advantages C. switching advantages D. absolute advantages E. scale advantages

E. scale advantages

__ is the biggest photo-sharing sure on the Web, taking in around three billion each month

Facebook

Technology firms that were founded by people in their twenties or younger

Facebook Google Yahoo YouTube Amazon DropBox Box Spotify

ERP systems and enterprise software programs should be ideally configured to use different database systems to avoid the possibility of data redundancy. T/F

False

Facebook can be completely indexed by search engines, like Google and Bing, being able to index all of Facebook content

False

Facebook's "no-beta" culture seldom tolerated mistakes on the road to progress

False

Fast-growing Groupon was able to dissuade rivals from entering its market because the firm's technology was so difficult to replicate

False

France and China demonstrate that Netflix will have an even easier time expanding internationally than in the US, as these nations have less restrictive laws as a result of not having Hollywood-sized domestic media industries. True or False

False

High switching costs serve to weaken the value of network effects as a value asset

False

High switching costs serve to weaken the value of network effects as a value asset. T/F

False

In database systems, a table is also known as a __.

File

Which of the following is a source of bargaining power of buyers?

Greater choice of products

The __ department in an organization not only ensures that systems get built and keep running but also take on strategic roles targeted at proposing solutions for how technology can give the firm a competitive edge.

Information systems

Credence goods

Like insurance coverage, consumers may rarely learn value of products with certainty

Whathat is Wal-Mart's motivation for sharing data with its supply partners?

Lowering prices of products

If a customer pays a retailer in cash, he is likely to remain a mystery to the retailer because his name is not attached to the money. Retailers can tie the customer to cash transactions and track the customer's activity if they can convince the customer to use a __

Loyalty card

__ 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.

Michael Dell

According to TechCrunch, Facebook's development mantra, formerly as "Move Fast and Break Things" should now be"__."

Move Last and Take Things

Shawn Fanning's ___ was widely criticized as a piracy playground.

Napster

A market is said to be __ if it derives most of its value from a single class of users

One-sided

Which of the following is not considered an advantage of Hadoop? A. Flexibility B. Rational structure C. Scalability D. Cost effectiveness E. Fault tolerance

Rational structure

Thomas Edison electrocuted an elephant in order to

To promote his DC electricity standard

Critics of Internet.org 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 gardens. T/F

True

Data are raw facts that must be turned into information in order to be useful and valuable

True

Data becomes information when it is presented in a context so that it can answer a question or support decision making. T/F

True

Data obtained from outside sources, when combined with a firm's proprietary internal data assets, can give the firm a competitive edge. T/F

True

Schema-less

systems that can absorb any type of data, structured or not

Data warehouse

A set of databases designed to support decision making in an organization.

Aggregation across users is known as: A. Subscriptions B. Site Licensing C. Bundling D. None of the above

B. Site Licensing

Column/field

Column in a database table, represents each category of data contained in a record

Despite the rise of messaging apps and other forms of social media, these efforts are focused on consumer efforts, with corporations yet to find a viable way to leverage these services in an organizational setting. T/F

False

Maintaining large inventories is highly essential for the viability of the fashion industry. T/F

False

Most successful firms typically leverage a single key resource for competitive advantage to create lasting, above-average industry profits. True or False

False

OpenTable's network effects are due entirely to the large number of consumers who use the service. True or False

False

SEO and SEM are key tech industry acronyms that have become vital parts of the accounting professional's operating toolkit. T/F

False

Row/record

Row in a database table, represents a single instance of the data in the table

When offerings are roughly the same, they are more commodity than differentiated. True or False?

True

Search good

any product whose quality is readily observable prior to purchase

Credence good

products and services, such as vitamins or oil changes, whose value can never really be known with certainty

_____ are products or services that are nearly identically offered from multiple vendors: A. Complementary goods B. Commodities C. Luxury goods D. Giffen goods E. Veblen goods

B. Commodities

Table/file

List of data, arranged in columns or fields and rows or records

Structure query language (SQL)

Most common language for creating and manipulating databases

Information Good

commodity whose market value is derived from information it contains. Examples include CDs containing pieces of music, DVDs containing movie content, and books containing short stories. Typically low marginal costs, often high (sometimes sunk) fixed costs. Expensive to produce, cheap to reproduce

_____ refer(s) to the payments made by suppliers to retailers for prime shelf space: A. Acquisition fees B. Slotting fees C. Royalty D. Skimming price E. Franchisee fees

B. Slotting Fees

_____ refers to attempts by an organization to occupy more than one position while failing to match the benefits of a more efficient, singularly focused rival: A. Segmenting B. Straddling C. Branding D. Slotting E. Merging

B. Straddling

Aggregation across time is: A. Bundling B. Subscriptions C. Site Licensing D. None of the above

B. Subscriptions

Moving first pays off when the time lead is used to create: A. the latest technology at a firm's production plant B. high stock value to generate funds for expansion C. operational effectiveness to harness maximum profitability D. critical resources for competitive advantage E. market entry to ensure sustainable competitive advantage

D. critical resources for competitive advantage

For bundling (band vs orchestra prices is the example)

Individual cost = what one loves Combo = total preferred

Nonexcludable public good

It is costly to exclude people who do not pay from consuming the good

Value Chain (definition)

Set of activities through which a product or service is created and delivered to customers.

Cross-side exchange benefit

When an increase in the number of users on one side of the market (console owners, for example) creates a rise in the other side (software developers).

Value Chain (key frameworks)

1. Firms may have a critical competitive asset when they have an imitation-resistant value chain 2. Can be used to consider a firm's differences compared to rivals 3. Can reveal operational weaknesses 4. Firms can buy softwares - SCM, CRM, and ERP 5. Potential danger - adopting software that changes a unique process into a generic one

Demand-side economies of scale

1. More units consumed = higher value per unit 2. Most commonly caused by network effects

Supply-side economies of scale

1. More units produced = lower average cost per unit 2. Spreading fixed costs across more units 3. Manufacturing efficiencies, learning by doing

Not all crowdsourcing efforts are financially motivated. T/F

True

Some of the radical changes brought about by new technology include:

The creation of an unprecedented set of security and espionage threats.

Knowledge is defined as

The insight derived from experience and expertise

Much of the infrastructure used by Netflix to deliver streaming is actually provided by Amazon. True or False

True

Netflix doesn't actually own full, worldwide rights to many "Netflix Original" titles like House of Cards. True or False

True

Netflix doesn't just see growth as a way to advance profitability; it sees it as a vital competitive asset to keep competitors at bay. True or False

True

Palmer Luckey, the founder of Oculus, was able to get early funding for his product via Kickstarter, exceeding the fundraising goal set by his campaign without giving up a share of equity from this campaign.

True

Participation in a relationship may be optional or mandatory

True

Regional anti-trust authorities may consider bundling by dominant firms to be anticompetitive. T/F

True

Social media refers to content that is peer produced and shared online

True

Social networking feeds are at times controversial with instances of feed mismanagement causing user discontent, public relations problems, and the possibility of legal action. T/F

True

Systems that can absorb any type of data, structured or not, from any type of source are often called schema-less

True

Systems that can absorb any type of data, structured or not, from any type of source are often called scheme-less

True

The E-R model is used to contruct a conceptual model

True

The higher the value of a user's overall investment, the more they are likely to consider the staying power of any offering before choosing to adapt it. T/F

True

To avoid the hardware cost of getting it's content to the television. The firm developed a software platform and makes this available to manufacturers seeking to include Netflix access in their devices. True or False

True

Today's job seekers are writing resumes with keywords in mind, aware that the first cut is likely made by a database search program, not a human being.

True

While it may be possible for rivals to match technology, the true exploitable resource created and leveraged through collaborative filtering technology is the data asset.

True

RFID

a technology that is often used to tag objects and inventory items so that they can announce their presence as they make their way along an organization's value chain

The category of enterprise software known as ___ is implemented in modules, offering the potential of automating an organization's entire value chain

Enterprise resource planning

A person's name, birthday, and SS number are all examples of:

attributes

Advertising can build _____, but brands are built through _____.

awareness; customer experience

Streaming content has increased a viewing habit of consumer multiple episodes or whole seasons of programing, known as:

binge watching

Removing an organization from a firm's distribution channel thereby collapsing the path between supplier and customer is known as

disintermediation

The resource-based view of competitive advantage states that for a firm to maintain sustainable competitive advantage it must control a set of exploitable resources that have four critical characteristics. What are these characteristics?

value, rareness, imperfect imitability, non substitutability (VRIN)

Investor groups that provide funding in exchange for an ownership stake in the firm are called __.

venture capitalists

A student can attend five classes, each with a different professor. Each professor has 30 students. The relationship of students to professors is a __ relationship. A. One-to-Many B. Many-to-Many C. One-to-One D. strong

C. One-to-One

What did Waze offer Google?

Better maps through crowdsourcing

A(n) __ is the symbolic embodiment of all the information connected with a product or service

Brand

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 offer cross connectivity for users across several social networking sites C. They are innovative and Facebook is the only social network to offer the feature D. They are effective in protecting a user's personal information from others E. They ensure that a single post will reach all friends and fans

A. It fosters the virality of information sharing vital to delivering value from the social graph

Which of the following statements is true of the term "cloud"? A. It refers to a collection of computing resources available for access over the Internet B. It refers to a closed network or a single set of services controlled by one dominant firm C. It refers to a situation when others take advantage of a user or service without providing any sort of reciprocal benefit D. It refers to a situation when the value of a product or service increases as the number of its users expands E. It refers to the phenomenon of adapting products and services for different languages and regional differences.

A. It refers to a collection of computing resources available for access over the Internet

Which of the following is one of the characteristics of using SaaS model? A. Scalable systems B. Heightened financial risk C. Longer deployment times D. Higher maintenance costs E. Fixed operating expenses

A. Scalable systems

Two distinctly separate markets are said to undergo convergence when they: A. begin to offer similar features and capabilities B. derive most of their value from two distinct categories of participants C. are characterized by many buyers, but a single, dominant seller D. are dominated by a small group of powerful sellers E. offer products and services designed to target a specific industry

A. begin to offer similar features and capabilities

The scalability of a product is defined as the:

Ability to be easily expanded to manage workload increases

A firm can spend no money and time, yet expect to enhance its offerings, by

Allowing other firms to contribute to its platform

Which term refers to a classification of software that monitors trends among customers and uses this data to personalize an individual customer's experience? A. Crowdsourcing B. Cloud computing C. Collaborative filtering D. Data warehousing E. The long tail

C. Collaborative filtering

API

Application Peogeamming Interface

Marginal costs

Are associated with each additional unit produced

Demand-side economies of scale means

As more units are consumed, a higher value materializes

The shift from physical to digital product offerings is often described as a shift from.

Atoms to bits

A property or characteristic of an entity type that is of interest to the organization is called

Attribute

Which of the following is one of Porter's five forces? A. Eliminating competition B. Bargaining power of buyers C. Brand recognition D. Value chain E. Marketing segmentation

B. Bargaining power of buyers

Which of the following observations is true? A. Barring a few exceptions, most established offline firms have caught up with today's Internet leaders. B. Internet businesses have relatively low barriers to entry. C. The barriers to entry for most firms that compete on technology-alone are always extremely high. D. Timing and technology are sufficient to yield sustainable competitive advantages. E. Low entry barriers nearly guarantee the success of Web-based business models.

B. Internet businesses have relatively low barriers to entry.

The logical representation of an organization's data is called a: A. database model B. entity-relationship model C. database system D. relationship system design

B. entity-relationship model

Smoking in public among your friends is an example of: A. negative network externality for your friends B. negative externality for your friends C. all of the above D. none of the above

B. negative externality for your friends

In the last 15 years, the stock of Visa, the consortium that issues Visa credit cards, has performed better than the stock of Google or Microsoft. This is due to: A. negative direct network externalities B. positive indirect network externalities C. positive direct network externalities D. negative indirect network effects E. strategic advantage of IT

B. positive indirect network externalities

Customers who owned Nintendo's 8-bit video game console were unable to play the same games on the firm's new 16-but Super Nintendo system. There was little incentive for existing Nintendo fans to stick with the firm. In this case, Nintendo's new offering suffered from a lack of

Backward compatibility

_____ refer(s) to a limit imposed by the Internet service provider on the total amount of traffic that a given subscriber can consume.

Bandwidth caps

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?

By going public, Netflix was required to disclose its financial position.

What is the most common function performed by electronic data interchanges? A. App store downloads and the serving of other types of rich media B. Integrating various electronic functions of a business, such as accounting, finance, and human resources C. Sending electronic equivalents of structured documents between different organizations D. Providing electronic reporting and analysis for organizational decision making E. Housing and serving business logic for use and reuse by multiple electronic applications

C. Sending electronic equivalents of structured documents between different organizations

A firm can spend no money and time, yet expect to enhance its offerings by: A. going public through an IPO B. adopting an envelopment strategy C. allowing other firms to contribute to its platform D. preannouncing a forthcoming product to lower sales of current offerings E. outsourcing critical processes to third parties

C. allowing other firms to contribute to its platform

A property or characteristic of an entity type that is of interest to the organization is called a: A. co-existing entity B. relationship C. attribute D. cross-function

C. attribute

A firm's__________is the symbolic embodiment of all the information connected with a product or service: A. strategy B. marketing C. brand D. vision

C. brand

Which of the following issues raises advertiser concerns on promoting products and services in social networking sites?

Content adjacency

Netflix uses its substantial data asset to: A. Recommend movies B. Drive software redesign and improve the user experience C. None of the above D. All of the above E. Evaluate potential licensing deals F. Tailor promotions of existing content

D. All of the above

___ is a set of standards for exchanging messages containing formatted data between computer applications A. DBMS B. CPM C. SCM D. EDI E. ERP

D. EDI

Which of the following factors can weaken buyer bargaining power? A. Multiple suppliers B. Weak network effects C. Availability of substitute technologies D. High switching costs E. Small customer base

D. High switching costs

Uber and Paypal used similar strategies when trying to jumpstart network effects that were vital in creating their dominance. What did each do? A. Preannounced their products, discouraging rivals from entering with competing offerings B. Created services that were backward-compatible with rivals, reducing switching costs for anyone interested in leaving incumbents for their services C. Operated in "Blue Ocean" that, to this day, remains free of competitors D. Leveraged viral customer promotions by giving incentives to consumers who helped recruit friends to their service

D. Leveraged viral customer promotions by giving incentives to consumers who helped recruit friends to their service

Which of the following is a significant advantage of the long tail model on which Netflix is based? A. Absolute advantage B. High bargaining power C. Scope advantage D. Scale advantage E. Zero competition

D. Scale advantage

8. Which of the following was responsible for luring firms such as Wal-Mart and Blockbuster into direct competition with Netflix? A. The concept of crowdsourcing B. The popularity of the blu-ray disc C. The ease of acquiring digital distribution rights D. The Netflix IPO E. The low costs associated with streaming content online

D. The Netflix IPO

Economists often consider the marginal costs of digital goods: A. are increasing B. are infinite C. are valuable, rare, imperfectly imitable, and non-substitutable D. are effectively zero E. are decreasing

D. are effectively zero

Firmware refers to: A. computer hardware elements visible to the human eye B. computer hardware elements invisible to the human eye C. control software stored on hard drives D. control software stored on nonvolatile memory chips E. control software stored on removable discs

D. control software stored on nonvolatile memory chips

Viral promotion involves: A. sending a pre-written set of messages to customers or prospects over time B. emphasizing customer retention and satisfaction, rather a dominant focus on sales transactions C. paying celebrities to use a product visibly to lure customers into unwittingly buying the product D. leveraging a firm's customers to promote a product or service E. offering rebates and incentives to customers for adopting a product or service

D. leveraging a firm's customers to promote a product or service

Firms enjoy _____ when they are able to leverage the cost of an investment across increasing units of production: A. complementary benefits B. absolute advantage C. economies of scope D. scale economies E. high stock market valuations

D. scale economies

The phenomenon whereby firms can make money by selling a near-limitless selection of less popular products is known as: A. economies of scale B. the grey market C. economies of scope D. the long tail E. the product lifecycle

D. the long tail

Thomas Edison electrocuted an elephant in order to: A. to promote his new video camera equipment B. to promote safety by pointing out the dangers of his new electricity invention C. to promote a new way of effectively administering a death sentence through electricity D. to promote his DC electricity standard

D. to promote his DC electricity standard

__ refers to software for creating, maintaining, and manipulating data

DBMS

A(n) __ refers to a heads-up display of critical indicators that allow managers to get a graphical glance at key performance metrics

Dashboard

__ is the term used to describe raw facts and figures

Data

Most transactional databases are not set up to be simultaneously accessed for reporting and analysis. As a consequence

Data is not efficiently transformed into information

__ refers to a job title focused on directing, performing, or overseeing activities with a database or set of databases

Database administrator

Changing pricing based on demand conditions is known as __.

Dynamic pricing

___ performs the work that users and firms are directly interested in accomplishing and can be thought of as places where a user's real work is done. A. Operating systems B. Emulators C. Platforms D. Embedded systems E. Applications

E. Applications

While Sony and Microsoft focused on the graphics and raw processing power favored by hardcore male gamers, Nintendo chose to develop a machine to appeal to families, women, and age groups that normally shunned video games. The strategy adopted by Nintendo in this example is the __ strategy. A. Straddling B. Convergence C. Customer engagement D. Mass customization E. Blue ocean

E. Blue ocean

__ refers to a software package that integrates the many functions of a business, such as accounting, finance, inventory management, and human resources. A. Database management systems B. Supply chain management C. Desktop softare D. Customer relationship management E. Enterprise resource planning

E. Enterprise resource planning

Which of the following factors shifts bargaining power to the suppliers of streaming video content? A. a small number of suppliers controls content, creating an oligopoly. B. streaming goods are licensed for a fixed time period vs. DVDs that can be used as long as they are owned. C. a growing number of buyers increases demand. D. the content is most often unique and highly differentiated. E. all of the above

E. all of the above

A decision situation where one party has more or better information than its counterparty is known as _____: A. information overload B. data hoarding C. market manipulation D. price transparency E. information asymmetry

E. information asymmetry

A __ is an application that includes an editor, a debugger, and a compiler, among other tools A. operating system B. enterprise resource planning system C. extensible markup language D. programming language E. integrated development environment

E. integrated development environment

A Blue Ocean strategy often works best when combined with operational effectiveness

False

A firm's financial performance that consistent outperforms its industry's peers is known as operational effectiveness

False

A necessary criterion for a crowd to be "smart" is that it should be homogeneous to reduce incidence of polarized insights. T/F

False

A necessary criterion for s crowd to be "smart" is that it should be homogenous to reduce incidence of polarized insights

False

A trademark is the symbolic embodiment of all the information connected with a product or service of a firm

False

Almost all networks derive most of their value from a single class of users. T/F

False

Blogs do not hold any attraction for corporations because they hinder immediate and unfiltered distribution

False

In database systems, a column is also known as a key

False

In the absence of network effects, the value of a product or service increases as the number of its users grows. T/F

False

Market entry is the same as building a sustainable business

False

Metcalfe's Law is used to explain the concept of switching costs.

False

Netflix gets to retain the entire subscription revenue for every disc sent out to a customer.

False

Startup firms can struggle to gain lower prices from rivals, but FreshDirect seems to have found several ways to gain lower supplier prices. FreshDirect buys direct from suppliers, eliminating any markup from a middleman. In addition to this, the firm employs other methods to get lower prices from suppliers. Which of the following is NOT a way FreshDirect helps suppliers in exchange for supplier agreement to offer it better pricing terms?

FreshDirect shares warehouse space with farmers and livestock producers

Why did Hastings regret going public as early as he did?

Going public required the firm to reveal financial results, sharing its success with the world and attracting rivals

The open-source project known as __ was created to analyze massive amounts of raw information better than traditional, highly structured database

Hadoop

__ represent a method for organizing tweets where keywords are preceded by the # character

Hash tags

__ refers to the ratio of a company's annual sales to its inventory

Inventory turnover ratio

What is crowdsourcing?

It is the act of taking a job traditionally performed by a designated agent and outsourcing it to an undefined generally large group of people in the form of an open call

Sellers competing for your business on eBay is an example of

Negative direct network externalities

Smoking in public among your friends is an example of a

Negative externality for your friends

__ exist when a product or service becomes more valuable as more people use it.

Network effects

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

Network effects. Late-arriving Cisco could not compete against the dominance of existing, incompatible standards created by early-moving incumbents

A(n) __ is an AI system that examines data and hunts down and exposes patterns, in order to build models to exploit findings

Neural network

Department has/works in employee

One-to-many relationship

A student can attend five classes, each with a different professor. Each professor has 30 students. The relationship of students to professors is a __ relationship

One-to-one

__ is a method of querying and reporting that takes data from standard relational databases, calculates and summarizes the data, and then stores the data in a special database called a data cube

Online analytical processing (OLAP)

In the last 15 years, the stock of Visa, the consortium that issued Visa credit cards, has performed better than the stock of Google or Microsoft. This is due to

Positive indirect network externalities

Large firms often find new markets attractive, but might not have products ready for delivery. What strategy do such firms use to get potential adopters to delay their purchasing decisions?

Preannounce forthcoming efforts

For providers of commodity products, how does the Internet typically impact price transparency and information asymmetry?

Price transparency increases while information asymmetry decreases

__ are the most common standard for expressing databases, whereby tables (files) are related based on common keys

Relational databases

Many telecom firms began digging up the ground and laying webs of fiberglass to meet the growing demand for internet connectivity. However, rivals and startups began to imitate these firms and soon these new assets were not so rare andneach day they seemed to be less valuable. It can be inferred from this example that:

Resource-based thinking can help avoid the trap of carelessly entering markets simply because growth is spotted

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?

Roll back

The __ is a piece of U.S. legislation that raises executive and board responsibility and tries criminal penalties to certain accounting and financial violations.

Sarbanes-Oxley Act

Aggregation across users is known as

Site licensing

Which of the following products or services is not subject to network effects? A. Bank services B. Snack chip manufacturing C. Video game consoles D. Social networks E. Cell phone services

Snack chip manufacturing

Which of the following factors represents one of the sources of value derived from network effects?

Staying power

Aggregation across time is

Subscriptions

In some instances, firms supplement operational data with additional input from __ and __.

Surveys; focus groups

A firm's financial performance that consistently outperforms its industry's peers is known as __.

Sustainable competitive advantage

__ exists when consumers incur an expense to move from one product or service to another

Switching costs

Marketing managers need to understand key assets they need for the digital age. What key asset did Netflix embarrassingly fail to secure when rebranding the DVD-by-mail business as Qwikster?

The Twitter account.

Although Netflix had a larger distribution network than rivals, other firms could build a similarly large warehouse network. What additional advantage made this more profitable for Netflix than newcomers?

The size of the firm's customer base, which enabled economies of scale.

Which of the following statements is true about microblogging?

Their key use is to distribute time-sensitive information, share opinions, virally spread ideas, run contests and promotions, solicit feedback, provide customer support, track commentary on firms/products/issues, and organize protests

Systems that record a transaction (some form of business-related exchange), such as a cash register sale, ATM withdrawal, or product return are referred to as __.

Transaction processing systems (TPS)

The number of US patent applications awaiting approval has ___ in the past decade.

Tripled

9 of the world's top 10 brands have engaged in some soft of crowdsourcing. T/F

True

A larger number of skilled workers who can use a given technology exists as a result of network effects. True or False

True

A vigorous community of commenters would help keep a blogger honest as they will quickly expose a blogger's errors of fact or logic

True

According to research, only 4% of be male population in the US are 6'2" or taller. But they make 30% of all CEOs in the US.

True

According to research, only 4% of the male population in the US are 6'2 or taller. But they make 30% of all CEOs in the US. T/F

True

All SQL databases are relational databases. T/F

True

An instant-messaging standard is an example of a one-sided market. T/F

True

Any data-centric effort should involve input not only from business and technical staff, but from the firm's legal team, as well

True

Bitcoin is not an information good

True

By lowering the cost to access powerful systems and software, barriers to entry also decrease. T/F

True

Every eighteen months, employees are required to leave their teams and work on something different for at least a month

True

Every product or service subject to network effects fosters some kind of exchange. T/F

True

Facebook founder and CEO Mark Zuckerberg maintains a majority of voting rights in the public company, virtually guaranteeing that his control of the firm continues, regardless of what investors say

True

Firms that grow quickly may seem less risky/more likely to succeed; therefore fast growth may help an entrepreneur extract better ownership terms from potential investors

True

For years, Netflix was known for best-in-class service, regularly and repeatedly ranking atop multiple customer satisfaction surveys. True or False

True

Having too much inventory or insufficient inventory is known as a retailer's "twin nightmares."

True

Many firms attempt to enhance their network effects by creating a platform for the development of third-party products and services that enhance the primary offering. T/F

True

Leveraging consumers to promote a product or serving is known as __.

Viral marketing

Similar to a flu, __ has a compounding effect. A consumer tells five to ten people, then those tell another five to ten people, and so on.

Viral marketing

Cable subscribers who drop premium cable channels are referred to as _____.

cord shavers

Banner ads are often billed based on

cost per thousand impressions

The term __________________________________ refers to taking a job traditionally performed by a designated agent and contracting it out to an undefined generally large group of people in the form of an open call

crowdsourcing

Customers, cars, and parts are examples of:

entities

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:

envelopment

Streaming licensing fees have become an important part of studio profitability, and an increase in Netflix __________ offers the firm even more leverage.

streaming scale

Vendors who use open source as part of their product offerings can expect to bring new products to the market faster because:

they can skip whole segments of the software development process

A product review is: A. credence good B. information good C. credence good D. all of the above E. none of the above

B. information good

Technology that super-imposes content, such as images and animation on top of real world images is called: A. alternative imaging B. strategic design C. illustration editing D. augmented reality E. product placement

D. augmented reality

The degree to which complete information is available is known as __. A. information assurance B. data proximity C. operational alertness D. price transparency E. data consolidation

D. price transparency

Bitcoin is an information good. T/F

False

Database

Single table or a collection of related tables

Data mart

A database or databases focused on addressing the concerns of a specific problem (e.g., increasing customer retention, improving product quality) or business unit (e.g., marketing, engineering).

One-sided market

A market that derives most of its value from a single class of users (e.g., instant messaging).

Which of the following describes the relationship between Apple's iOS and Google Maps? A. Apple's control of iOS gave it control of the distribution channel to reach its users, kicking Google out as the default mapping app and capturing the majority of user engagement. B. Apple was able to leverage the success of Apple Maps to create a successful mapping product on Android, rivaling Google's in reach. C. Apple's initially poor map offering caused many users to delete Apple Maps, leading to Google's dominance of mapping on iOS. D. Google's dominance of apps and its offering mapping before Apple's market entry has helped keep it the dominant mapping option on iOS.

A. Apple's control of iOS gave it control of the distribution channel to reach its users, kicking Google out as the default mapping app and capturing the majority of user engagement.

Zara's staff members regularly collect data from customers at its stores. This data is used to: A. inform designers on customer preferences and staff on store sales results B. determine the in-store soundtrack and layout C. decide the designs and styles of Zara's products for the next few seasons D. identify the products that customers would like to buy through discounted sales E. determine where future Zara stores should be located

A. inform designers on customer preferences and staff on store sales results

The over the air digital TV signal allows users to watch major network channels without a subscription to cable TV or satellite TV. This is because: A. society decided that we should all have access to critical information about politics, economy and local developments B. there is no business model for such a small set of channels C. it is not possible to prevent people from receiving the signal D. all of the above E. none of the above

A. society decided that we should all have access to critical information about politics, economy and local developments

Expert systems

AI systems that leverage rules or examples to perform a task in a way that mimics applied human expertise

Porter's 5 Forces

Also known as Industry and Competitive Analysis. A framework considering the interplay between (1) the intensity of rivalry among existing competitors, (2) the threat of new entrants, (3) the threat of substitute goods or services, (4) the bargaining power of buyers, and (5) the bargaining power of suppliers.

Metcalfe's Law/network effects

Also known as Metcalfe's Law, or network externalities. When the value of a product or service increases as its number of users expands.

Database management systems (DBMS)

Also known as database software, Software for creating, maintaining, and manipulating data

Social networks are a hothouse for "__" media, where enthusiast consumers can help spread the word about products and services. A. Paid B. Earned C. Owned D. Mainstream

B. Earned

The phenomenon of _________________________ exists when the value of a product or service increases along with a growing number of users: A. traddling B. switching costs C. scale economies D. strategic positioning E. network effects

E. network effects

___ refers to performing different tasks than rivals or the same tasks in a different way A. operational effectiveness B. straddling C. scale advantage D. vertical intergration E. strategic positioning

E. strategic positioning

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

__ exist when consumers incur an expense to move from one product or service to another. A. network effects B. switching costs C. economies of scale D. competitive advantages E. profit margins

B. switching costs

The __________is the set of activities through which a product or service is created and delivered to customers: A. product plan B. value chain C. sales goal D. brand value

B. value chain

Same-side exchange benefits

Benefits derived by interaction among members of a single class of participant (e.g., the exchange value when increasing numbers of IM users gain the ability to message each other).

Aggregation across goods is also known as: A. Subscriptions B. Site Licensing C. Bundling D. None of the above

C. Bundling

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

Technology experts in the area of process design: A. work to make sure systems are easy to use B. provide direction on technology-related security issues C. leverage technology to make firms more efficient D. specialize in technology for competitive advantage E. focus on systems dealing with critical business data

C. leverage technology to make firms more efficient

Users who edit Wikipedia content in a manner that is biased and opinionated are said to be violating Wikipedia's stated policy of: A. what you see is what you get B. political correctness C. neutral point of view D. public disclosure E. respect for universal human rights

C. neutral point of view

The e-commerce strategy that blends online and offline sales is called ___. A. sales channel B. betterline C. omnichannel D. omniline E. blended sales

C. omnichannel

Business intelligence

Combines aspects of reporting, data exploration, and ad hoc queries, and sophisticated data modeling and analysis

Experience goods

Consumers cannot tell their quality/value before consuming them

FreshDirect should be safe from competition with traditional grocery stores (since they would be straddling two models instead of getting FreshDirect's singular efficiency), and new startups are likely going to struggle to match FreshDirect's scale and brand. However, Amazon presents a particularly strong challenger to FreshDirect. Why? A. Amazon and Google have partnered to create a joint venture combining their strengths to create an online grocery powerhouse B. Amazon's drones will offer faster delivery than FreshDirect trucks C. Amazon's president, Jeff Bezos, grew up on a farm and has deep knowledge and personal relationships that will help implement a farm-to-table rival D. Amazon has deep pockets and is aggressively seeking to expand into groceries

D. Amazon has deep pockets and is aggressively seeking to expand into groceries

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

D. Open source software

_____ are costs that customers incur when moving from one product to another: A. Variable costs B. Marginal costs C. Loyalty costs D. Fixed costs E. Switching costs

E. Switching costs

Key

Field or fields used to uniquely identify a record, and to relate separate tables in a database, like a social security number

______ is financial performance that consistently outperforms the industry average: A. Operational effectiveness B. Superior value chain analysis C. Relative cost advantage D. Sustainable competitive advantage E. Strategic positioning

D. Sustainable competitive advantage

The __ problem exists when rivals watch a pioneer's efforts, learn from their successes and missteps, and then enter the market quickly with a comparable or superior product at a lower cost. A. late entrant B. early starter C. first mover D. intellectual property E. fast follower

E. fast follower

__ are model building techniques where computers examine many potential solutions to a problem, iteratively modifying various mathematical models, and comparing the mutated models to search for a best alternative A. expert systems B. ad hoc reporting tools C. iterative mutations D. sampled alliterations E. genetic algorithms

E. genetic algorithms

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. cloud computing C. open source software D. dense wave division multiplexing (DWDM)

D. dense wave division multiplexing (DWDM)

Performing the same tasks better than how rivals perform them is known as ______: A. strategic effectiveness B. strategic positioning C. operational positioning D. operational effectiveness E. network effects

D. operational effectiveness

Non-Practicing Entities(NPEs), more commonly known as _________, hold intellectual property not with the goal of bringing novel innovations to market but instead in hopes that they can sue or extort large settlements from others: A. Market holders B. start-up stoppers C. exploiters D. patent trolls

D. patent trolls

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

The controversial nature of feeds is because of: A. phishing concerns B. bandwidth concerns C. congestion concerns D. privacy concerns E. propriety concerns

D. privacy concerns

A strong brand can be an exceptionally powerful resource for competitive advantage by lowering ___, proxying __, and inspiring ___. A. expenses, marketing, respect B. switching costs, quantity, performance C. price, strategy, innovation D. search costs, quality, trust E. customer concern, investment, profits

D. search costs, quality, trust

3 Strategies to achieve competitive advantage

Differentiation, cost leadership, focus

Analytics

Driving decisions and actions through extensive use of data, statistical and quantitative analysis, explanatory and predictive models, and fact-based management

A firm's financial performance that consistently outperforms its industry's peers is known as operational effectiveness. T/F

False

A trademark is the symbolic embodiment of all the information connected with a product or service of a firm. T/F

False

Businesses benefit from economies of scale when the cost of an investment can be spread across increasing units of operational effectiveness or in serving a small supplier base. True or False

False

Facebook leads social media innovation and rarely imitates products from competitors. True or False

False

FreshDirect's tech-efficient model actually leads to lower margins than its traditional grocery peers, but the firm makes this up with a greater sales volume. True or False

False

Technology means FreshDirect's labor costs are higher than rivals', but the firm makes up for this in other ways. True or False?

False

Turning data into useable information is hindered by transactional databases set up to be simultaneously accessed for reporting and analysis. T/F

False

Database administrator

Job focused on directing, performing, or overseeing activities associated with a database or set of databases. This includes database design and creation, implementation, maintenance, backup and recovery, policy setting and enforcement, and security

Machine learning

Leverages massive amounts of data so that computers can act and improve on their own without additional programming

Relational database

Most common standard for expressing databases, tables or files are related based on common keys

Two-sided market

Network markets that comprise two distinct categories of participant, both of which that are needed to deliver value for the network to work (e.g., video game console owners and developers of video games).

Nonrival public good

One person's consumption doesn't diminish the amount available to another

Value Chain (components)

Primary: Inbound logistics, Operations, Outbound logistics, Marketing and sales, and Service Secondary: Infrastructure, Human Resources, Technology, and Procurement

Channel conflict is when firms see distribution partners as potential rivals. True or False

True

Data are raw facts that must be turned into information in order to be useful and valuable. T/F

True

Internet and tech-leveraging businesses are said to be highly scalable when profit margins often improve as firms leverage their infrastructure base across a growing number of customers. True or False

True

The Apple Store represents a key distribution channel for the firm and the single most successful retail chain as defined by sales per square foot in the United States. True or False

True

Economies of scale

When costs can be spread across increasing units of production or in serving multiple customers. Businesses that have favorable economies of scale (like many Internet firms) are sometimes referred to as being highly scalable

Public good

a commodity or service that is provided without profit to all members of a society, either by the government or a private individual or organization. Examples are light house, national defense, tv/radio broadcast