Chapter 8 (Test 2) MIS
Deleting content on user-generated content sites should be reserved for contributions that criticize a firm's products or services.
FALSE
Information, influence, social credentials, and personal reinforcement add value to human capital.
FALSE
Social CRM is more structured and controlled than traditional CRM.
FALSE
Social CRM supports those customers who are likely to generate the most business.
FALSE
Social media is static in nature and its process flow can be designed initially by the organizations.
FALSE
Social networking procedures are more informal for social media (SM) sponsors than they are for social networking users.
FALSE
The distributed revenue model offers users a basic service for free and then charges a premium for upgrades or advanced features.
FALSE
The first step in developing an SMIS (social media information system) for an organization is to identify the target audience.
FALSE
The number of second- and first-tier community members on a social media site reduces exponentially.
FALSE
The primary risk of peer-to-peer support in social media and customer service is loss of privacy.
FALSE
The three roles of organizational units in social media information system are users, testers, and developers.
FALSE
Unlike humans organizations do not have social capital.
FALSE
Which of the following is an example of an analytical tool?
Facebook Page Insights
Social media communities are formed based on mutual interests and transcend familial, geographic, and organizational boundaries.
TRUE
Social media has been widely used in businesses-to-consumer (B2C) relationships to market product to end users.
TRUE
The primary risk of peer-to-peer support is loss of control.
TRUE
When a person attends a business function for the purpose of meeting people and reinforcing relationships he or she is investing in his or her social capital.
TRUE
________ which refers to the matter on a social media (SM) site that is contributed by users, is the essence of SM relationships.
User-generated content
In the context of CRM, which of the following statements is true about the foreseen changes and developments by the year 2026?
Vendors might lose control of customer relationship.
Social ________ provide platforms that enable the creation of social networks or social relationships among people with common interests.
media providers
Pablo's Burgers is a new fast food brand that has opened restaurants in twenty cities. Its current goal is to measure brand awareness among its customers based on the input received from social media. Which of the following will help Pablo's measure its brand awareness?
metrics
The more technical an organization the ________ the social policies.
more lenient
Deleting problematic content on social networking sites is best reserved for content that is ________.
obscene and inappropriate
Which of the following revenue models for social media is most likely followed by companies providing Web 2.0 services?
pay-per-click
The Jackson College of Arts displays its ads for free on a number of Web sites popular among students. However every time a student clicks on the ads, it pays $0.30 to the site. Which of the following revenue models is Jackson College utilizing?
pay-per-click model
Social CRM is a(n) ________ process.
unstructured and uncontrolled
The term ________ means the more people use a site the more value it has, and the more people will visit.
use increases value
According to Henk Flap, the ________ is determined by the number of relationships in a social network, by the strength of those relationships, and by the resources controlled by those related.
value of social capital
Metrics that don't improve one's decision-making skills are commonly referred to as ________ metrics.
vanity
A(n) ________ is an inducement to social media users for passing communications along through different tiers of communities in social media.
viral hook
One of the major sources of user-generated content (UGC) problems is inappropriate content.
TRUE
According to Nan Lin how does social capital add value?
According to Lin, social capital adds value in four ways: 1. Information 2. Influence 3. Social credentials 4. Personal reinforcement First, relationships in social networks can provide information about opportunities, alternatives, problems, and other factors important to business professionals. Second, relationships provide an opportunity to influence decision makers at your employer or in other organizations who are critical to your success. Third, being linked to a network of highly regarded contacts is a form of social credential. Finally, being linked into social networks reinforces a professional's identity, image, and position in an organization or industry.
Define the three types of capital listed in business literature.
Business literature defines three types of capital: traditional capital, human capital, and social capital. Karl Marx defined capital as the investment of resources for future profit. This traditional definition refers to investments into resources such as factories, machines, manufacturing equipment, and the like. Human capital is the investment in human knowledge and skills for future profit. According to Nan Lin, social capital is the investment in social relations with the expectation of returns in the marketplace.
________ measures the frequency that someone who clicks on an ad makes a purchase "Likes" a site, or takes some other action desired by the advertiser.
Conversion rate
Which of the following statements is true about social CRM?
Each customer crafts his or her own relationship with the company.
________ is the application of social media to facilitate the cooperative work of people inside organizations.
Enterprise 2.0
Social media (SM) communities may provide better and faster problem solutions to complex supply chain problems.
TRUE
Which of the following is a social media (SM) application provider?
Explain each element in the SLATES model.
McAfee defined six characteristics of Enterprise 2.0 that he refers to with the acronym SLATES: Search, Links, Authoring, Tags, Extensions, and Signals. Workers want to be able to "search" for content inside the organization just like they do on the Web. Most workers find that searching is more effective than navigating content structures such as lists and tables of content. Workers want to access organizational content by "link," just as they do on the Web. They also want to "author" organizational content using blogs, wikis, discussion groups, published presentations, and so on. Enterprise 2.0 content is "tagged," just like content on the Web, and tags are organized into structures. These structures organize tags as a taxonomy does, but, unlike taxonomies, they are not preplanned; they emerge. Additionally, Enterprise 2.0 workers want applications to enable them to rate tagged content and to use the tags to predict content that will be of interest to them, a process McAfee refers to as "extensions." Finally, Enterprise 2.0 workers want relevant content pushed to them; they want to be "signaled" when something of interest to them happens in organizational content.
Which of the following is true of online ad revenue?
Most ads on social media generate revenue only when customers click on them.
________ are an extension of bad reviews.
Mutinous movements
Which of the following best represents the value of social capital?
Number of Relationships × Relationship Strength × Entity Resources
________ activities are supported by structured process.
Operations and manufacturing
How should organizations respond to social networking problems? Which one of them is a dangerous approach and why?
Organizations may respond to social networking problems in one of three ways: 1. Leave it 2. Respond to it 3. Delete it. Responding to the problematic content is dangerous. If the response could be construed in any way as patronizing or insulting to the content contributor, it can enrage the user community and generate a strong backlash. Also, if the response appears defensive, it can become public relations negative. In most cases, responses are best reserved for when the problematic content has caused the organization to do something positive as a result. Deleting legitimate negative comments can also result in a strong user backlash.
Social media (SM) providers mostly host their SM presence using elastic servers in the cloud.
TRUE
Explain how social media (SM) can aid inbound and outbound logistics.
SM communities may provide better and faster problem solutions to complex supply chain problems. Social media is designed to foster content creation and feedback among networks of users, and that characteristic facilitates the iteration and feedback needed for problem solving. Companies whose profitability depends on the efficiency of their supply chain have long used information systems to improve both the effectiveness and efficiency of structured supply chain processes. Because supply chains are tightly integrated into structured manufacturing processes, there is less tolerance for the unpredictability of dynamic, adaptive processes. Solving problems is an exception; social media can be used to provide numerous solution ideas and rapid evaluation of them.
Explain the types of data in social media.
SM data falls into two categories: content and connections. Content data is data and responses to data that are contributed by users. Connection data is data about relationships. Connection data differentiates SMIS from Web site applications. Both Web sites and social networking sites present user and responder content, but only social networking applications store and process connection data. SM providers store and retrieve SM data on behalf of users. They must do so in the presence of network and server failures, and they must do so rapidly. The problem is made somewhat easier, however, because SM content and connection data have a relatively simple structure.
Explain the use of social CRM in sales and marketing activities.
Social CRM is a dynamic, SM-based CRM process. The relationships between organizations and customers emerge in a dynamic process as both parties create and process content. In addition to the traditional forms of promotion, employees in the organization create wikis, blogs, discussion lists, frequently asked questions, sites for user reviews and commentary, and other dynamic content. Customers search this content, contribute reviews and commentary, ask more questions, create user groups, and so forth. With social CRM, each customer crafts his or her own relationship with the company.
________ is the investment in social relations with the expectation of returns in the marketplace.
Social capital
Which of the following observations regarding the value of social capital is true?
Social capital depreciates and such depreciation can be ameliorated by adding something of value to interactions.
________ is the use of information technology to support the sharing of content among networks of users.
Social media
Define social media and social media information systems. Name the three SMIS organizational roles.
Social media (SM) is the use of information technology to support the sharing of content among networks of users. A social media information system (SMIS) is an information system that supports the sharing of content among networks of users. The three fundamental SMIS organizational roles are: 1. User communities 2. Social media sponsors 3. Social media application providers
Describe the roles of social media application providers.
Social media application providers are companies that operate SM sites. Facebook, Twitter, LinkedIn, and Google are all SM application providers. These providers create the features and functions of the site and compete with one another for the attention of user communities and SM sponsors. On Facebook, for example, creating a company page is free, but Facebook charges a fee to advertise to communities that "Like" that page. Most SM applications earn revenue through some type of advertising model.
Explain the role of social media (SM) in human resources.
Social media is used for finding employee prospects, for recruiting candidates, and—in some organizations—for candidate evaluation. Organizations use social media sites like LinkedIn to hire the best people more quickly and at a lower cost. For about $750 a month, recruiters can search through 350 million LinkedIn members to find the perfect candidate. Social media is also used for employee communications, using internal personnel sites such as MySite and MyProfile in SharePoint or other similar enterprise systems. When employees are looking for an internal expert, they can search SharePoint for people who have posted the desired expertise.
List the major risks for businesses that indulge in commercial applications of social networking. Discuss any one of them briefly.
Some of the major risks for businesses that indulge in commercial applications of social networking are: 1. Junk and crackpot contributions 2. Inappropriate content 3. Unfavorable reviews 4. Mutinous movements When a business participates in a social network or opens its site to UGC it is prone to the risk of unfavorable reviews. Research indicates that customers are sophisticated enough to know that few, if any, products are perfect. Most customers want to know the disadvantages of a product before purchasing it so they can determine if those disadvantages are important for their application. However, if every review is bad, then the company is using social media to publish its problems. In this case, suitable action must be taken.
________ metrics keep track of goals achieved by an organization.
Success
A folksonomy is a content structure that has emerged from the processing of many user tags.
TRUE
Advertising and charging for premium services are the two most common ways by which social media companies generate revenue.
TRUE
An enterprise social network (ESN) is a software platform that uses social media to facilitate cooperative work of people within an organization.
TRUE
Connection data is data about relationships.
TRUE
Facebook, Twitter, LinkedIn, and Google are all social media application providers.
TRUE
In social CRM, the relationships between organizations and customers emerge in a dynamic process as both parties create and process content.,
TRUE
Explain the steps to develop an organization's social media information systems (SMIS).
The first step in developing an SMIS is to clearly define what the organization wants to achieve with SM. Goals must be clear, deliberate, and aligned with the organization's competitive strategy. The next step is to identify metrics that will indicate when the goals are achieved. These are referred to as success metrics or key performance indicators (KPI). Metrics are simply measurements used to track performance. Every organization has different metrics for success. The next step in creating an effective SMIS is to clearly identify the target audience. After identifying the target audience, define the value to be provided to the audience. The next step is to make personal connections by using social media to interact with customers, employees, and partners in a more personal, humane, relationship-oriented way. The last step is to gather the right amount of data to make the most informed decision possible. Analytical tools like Google Analytics, Facebook Page Insights, etc. can be used to measure the success metrics defined earlier.
What are the major sources of user-generated content (UGC) problems?
The major sources of UGC problems are: 1. Junk and crackpot contributions 2. Inappropriate content 3. Unfavorable reviews 4. Mutinous movements. When a business participates in a social network or opens its site to UGC, it opens itself to misguided people who post junk unrelated to the site's purpose. Crackpots may also use the network or UGC site as a way of expressing passionately held views about unrelated topics. Unfavorable reviews are another risk. Most customers want to know the disadvantages of a product before purchasing it. However, if every review is bad, if the product is rated 1 star out of 5, then the company is using social media to publish its problems. Mutinous movements are an extension of bad reviews.
How do companies earn revenue from social media?
The two most common ways SM companies generate revenue are advertising and charging for premium services. On Facebook, for example, creating a company page is free, but Facebook charges a fee to advertise to communities that like that page. Most SM companies earn revenue through advertising. Advertisers like digital ads because, unlike traditional media such as newspapers, users can respond directly to Web ads by clicking on them. The pay-per-click revenue model enables advertisers to display ads to potential customers for free and pay only when the customer clicks. The freemium revenue model offers users a basic service for free, and then charges a premium for upgrades or advanced features. Other ways of generating revenue on SM sites include the sale of apps and virtual goods, affiliate commissions, and donations.
Explain the advantage of using social networks to connect to those with more resources.
The value of the resources controlled by those in relationships is a measure of the value of social capital. An organization's social capital is partly a function of the social capital of those to whom it relates. The most visible measure is the number of relationships. Someone with 1,000 loyal Twitter followers is usually more valuable than someone with 10. There is no formula for computing social capital, but the three factors would seem to be more multiplicative than additive. Or, stated in other terms, the value of social capital is more in the form of Social Capital = Number of Relationships × Relationship Strength × Entity Resources. This multiplicative nature of social capital means that a huge network of relationships with people who have few resources may be of less value than a smaller network of relationships with people who have substantial resources. Furthermore, those resources must be relevant to the organization.
The ________ revenue model successfully emerged on PC devices where there is plenty of space for lots of ads.
ad click
Most social media companies rely on ________ for revenue.
advertising
Which of the following components of McAfee's Enterprise 2.0 Model involves the creation of enterprise content via blogs wikis, discussion groups, presentations, and other social media platforms?
author
The characteristics of McAfee's Enterprise 2.0 model are given by the acronym SLATES; A in SLATES stands for ________.
authoring
Which of the following terms refers to the investment of resources for future profit?
capital
The ________ revenue model offers users a basic service for free and then charges a premium for upgrades or advanced features.,
freemium
The storage of ________ differentiates social media information systems (SMIS) from Web site applications.
connection data
After years of hard work and rigorous research Carol completed her PhD in microbiology. She posted the news of her achievement on Facebook, and a number of her friends left congratulatory messages on her Facebook wall. Carol's post and her friends' comments are an example of ________.
content data
Worn-In Shoes is planning to launch its new range of trekking shoes. It has invited customers and trekking enthusiasts on its Facebook page to give suggestions about the features of the new product. The suggested features would then be used to manufacture customized trekking shoes. In this scenario, Worn-In Shoes is practicing ________
crowdsourcing
The first step in developing a social media information system (SMIS) is to ________.
define the goals of the organization
A social media policy used by an organization is a statement that ________.
delineates employees' rights and responsibilities
Social media (SM) providers host the SM presence using ________ in the cloud.
elastic servers
A(n) ________ is a software platform that uses social media to facilitate cooperative work of people within an organization.
enterprise social network (ESN)
Enterprise 2.0 workers want applications to enable them to rate tagged content and to use the tags to predict content that will be of interest to them a process McAfee refers to as ________.
extensions
A ________ is content structure that has emerged from the processing of many user tags in social media.
folksonomy
Social media (SM) communities differ from communities in the past because SM communities are ________.
formed based on mutual interests
Responding to problematic content on social networking sites is best reserved for when the problematic content ________.
has caused an organization to do something positive as a result
A student invests money and time in a business administration course. In this example, the student invests in ________.
human capital
According to Nan Lin social networks provide four forms of value: information, social credentials, personal reinforcement, and ________.
influence
Success metrics are also known as ________.
key performance indicators (KPI)
Stanley Courier Services faced major criticism on Twitter for misplacing important customer documents on multiple occasions especially when a single customer's negative feedback snowballed into a wave of condemnation within days. Which of the following actions should the courier service take in this scenario?
leave it
The characteristics of McAfee's Enterprise 2.0 model are given by the acronym SLATES; L in SLATES stands for ________.
links
Marco recently bought a smartphone from Bluetex, a leading electronics company. He was very disappointed with the low battery backup of the phone and posted his reviews on Facebook. Steve, one of Marco's friends, had had a similar experience with Bluetex, and he added to Marco's negative comments about the product. The primary risk Bluetex faces in this situation is the ________.
loss of control
In 2025, emergence in the context of management would most likely mean a(n) ________.
loss of control over employees
Which of the following is a significant risk of using social media for inbound and outbound logistics?
loss of privacy
Which of the following is a risk associated with using social media in human resources to form conclusions about employees?
possibility of error on the site
According to McAfee pushing enterprise content to users based on subscriptions and alerts is a characteristic of the ________ component of Enterprise 2.0.
signals
Which of the following is a dynamic social media-based CRM process?
social CRM
According to Nan Lin which of the following types of capital adds value through information, influence, and personal reinforcement?
social capital
Ben is in his final term of college and he plans to start working as soon as he graduates. He believes it will be beneficial for his career if he accompanies his dad on one of his business functions and gets acquainted with people in the corporate world. In this scenario, Ben is investing in his ________.
social capital
Being linked to a network of highly regarded contacts is a form of ________.
social credential
The first step that any organization should take to manage the risk of employee communication is to develop and publicize a(n) ________ policy.
social media
A ________ is an information system that supports the sharing of content among networks of users.
social media information system (SMIS)
To an organization, the ________ is the likelihood that an entity in a relationship will do something that benefits the organization.
strength of a relationship