MIS CH 11

colossal walled garden

A closed network or single set of services controlled by one dominant firm.

cloud

A collection of resources available for access over the Internet.

envelopment

A strategy whereby a firm with a significant customer base adds a feature to an existing product or service and eliminates the need for any rival, stand-alone platforms. Think Apple adding video to cameras, crushing the market for the Flip cam.

When taken together, these features enlist websites to serve as vassal states in the Facebook empire.

API to integrate Facebook logon, likes, and other open graph features into other sites

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

False

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

False

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

False

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

False

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

False

In 2018, a research firm, Cambridge Analytica, detailed a surreptitious campaign to harvest user data on a wide scale—unleashing a big firestorm for Facebook.

True

In a significant "big data" play for more accurate consumer targeting, Facebook now allows advertisers to combine externally collected data with Facebook's insights.

True

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

True

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

True

To become the Web's leading photo-sharing service, Facebook didn't acquire anyone. The site simply turned on a substandard photo-sharing feature and quickly became the biggest photo-sharing site on the Web.

True

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

True

acqui-hire

referring to "acquiring" a firm as a way to "hire" talent.

Facebook acquired Instagram for $ ___________.

1 billion

Facebook has been used by over _________ different advertisers, and many of these are small businesses using the firm's self-service ad platform.

1 million

Facebook's mobile ads now bring in more than ____ percent of the firm's ad revenue.

90

localization

Adapting products and services for different languages and regional differences.

Which additional factors favor the competitive dynamics of smartphone apps over browser-based desktop services?

All of the above

Which of the following is true about Facebook Messenger?

All of the above

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.

Many leading content outlets use Facebook Instant Articles feature because:

Articles load faster, increasing the likelihood that they'll be read (and ads will be served)

content adjacency

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

_____ is the concern that an advertisement will run near offensive material, embarrassing an advertiser and degrading their brands.

Content adjacency

_____ refer(s) to systems distributed throughout the Internet that help to improve the delivery speeds of Web pages and other media, typically by spreading access across multiple sites located closer to users.

Content delivery networks

CPM

Cost per thousand impressions—the amount charged every time an ad appears 1,000 times (M is the roman numeral for 1,000).

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

False

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

False

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

False

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

False

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

Feeds

IPO

Initial public stock offering, the first time a firm makes shares available via a public stock exchange, also known as "going public."

deep Web

Internet content that can't be indexed by Google and other search engines.

A key advance of the Oculus Rift was:

It didn't make users puke.

What was the biggest problem with the rollout of Facebook's Beacon platform?

It was an "opt out" program.

What feature of Facebook helps new applications gain visibility among users?

News feeds

One of the reasons behind Beacon's failure is a common one: managers failed to completely consider the components and interplay among elements in an information system. Which of the following is not a component of an information system (IS)?

None of the above, all of the above are components of IS

APIs

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. For example, Amazon.com provides APIs to let developers write their own applications and websites that can send the firm orders.

Among the many ad products Facebook offers are "___________," which increase the reach of an item that a firm shares.

Promoted Posts

_____ is an attempt to profit from a falling stock price.

Short selling

short

Short selling is an attempt to profit from a falling stock price. Short sellers sell shares they don't own with an obligation of later repayment. They do so in the hope that the price of sold shares will fall. They then repay share debt with shares purchased at a lower price and pocket the difference (spread) between initial share price and repayment price.

Why is it potentially easier for services delivered over mobile apps to recreate a social graph than it is for users of a browser-based service?

Smartphones can access a user's address book

open source software (OSS)

Software that is free and whose code can be accessed and potentially modified by anyone.

content delivery networks (CDN)

Systems distributed throughout the Internet (or other network) that help to improve the delivery (and hence loading) speeds of Web pages and other media, typically by spreading access across multiple sites located closer to users. Akamai is the largest CDN, helping firms like CNN and MTV quickly deliver photos, video, and other media worldwide.

crowdsourcing

The act of taking a job traditionally performed by a designated agent (usually an employee) and outsourcing it to an undefined, generally large group of people in the form of an open call.

switching costs

The cost a consumer incurs when moving from one product to another. It can involve actual money spent (e.g., buying a new product) as well as investments in time, any data loss, and so forth.

_____ occur(s) when others take advantage of a user or service without providing any sort of reciprocal benefits.

The free rider problem

social graph

The global mapping of users and organizations and how they are connected.

What reason did Mark Zuckerberg give for acquiring Oculus VR?

To start building what Zuckerberg hopes is the next major computing platform that will come after mobile.

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

True

By mid-2018, Instagram and WhatsApp Story features were larger than all of Snapchat's daily active user base.

True

China's WeChat's 2016 payment processing volume is roughly two times greater than all of PayPal's 2015 volume?

True

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

True

Facebook actually cut back on ads in news feeds, resulting in higher profits.

True

Facebook allows any developer to add a Facebook "Like" button to their site with just a few lines of HTML code. What advantage do websites leverage by integrating this feature?

Viral distribution

Which of the following statements is true about Facebook's acquisition of WhatsApp?

WhatsApp's share of the global mobile messaging market was so much greater than Facebook's, Zuckerberg saw WhatsApp as the best way for Facebook to remain relevant in this marke

free rider problem

When others take advantage of a user or service without providing any sort of reciprocal benefit.

The bulk of Facebook's revenue is earned through:

advertising.

Programming hooks, or guidelines published by firms that tell other programs how to get a service to perform a task such as send or receive data, are known as _____.

application programming interfaces

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

impression

The term _____ refers to a collection of computing resources available for access over the Internet.

cloud

Relating the Facebook platform to sources of value from network effects, developers creating applications create ___________________ that have the potential to add value to Facebook beyond what the firm itself provides to its users.

complementary benefits

Facebook's _______________ effort, where users were asked to look at Facebook phrases and offer translation suggestions for their local language, helped the firm rapidly deploy versions in dozens of markets.

crowdsourcing localization

Sites that cannot be indexed by Google and other search engines are referred to as the _____.

deep Web

Open source software refers to:

free software whose source code is available for modification by anyone.

The phrase _____ refers to the global mapping of users, organizations, and how they are connected.

social graph

The cost a consumer incurs when moving from one product to another is known as _____.

switching costs

Facebook has offered a system where website operators can choose to accept a user's Facebook credentials for logging in. Users appreciate this feature because:

they can access content without having to create a new account.

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

venture capital firms

From the privacy and user-content fiascos faced by Facebook, managers can learn that:

violation of public trust can lead to intense public scrutiny and regulatory consequences