OIM 210 Exam 3
Same-side exchange benefits
(One-sided market)
Mediate
(customer & community dialog)
Magnet
(inbound from customer)
Monitor
(outbound listening to customers, competitors, and 'best practice' role models)
Megaphone
(outbound to customer)
Wikis
- A website that anyone can edit directly from within the browser
Messaging apps
- exchange messages or images with individuals or groups permanently or ephemerally, attributed or anonymously
Collaborative filtering
A classification of software that monitors trends among customers and uses this data to personalize an individual customer's experience
Sock puppet
A fake online persona created to promote a particular point of view, often in praise of a firm, product, or individual
Wisdom of crowds
A group of individuals, consisting of mostly untrained amateurs, has more insight than a single/small group of trained professionals
Pivot
A lot of firms start as something and pivot to something else... youtube was a dating website then sharing videos, Slack was a gaming company, Twitter was a podcasting cite. Then they all switched
Oligopy
A market dominated by a small number of powerful sellers
One-sided market
A market that derives most of its value from a single class of users
Monopoly
A market where there are many buyers but only one dominant seller
A/B testing
A randomized group of experiments used to collect data and compare performance among two options studied (A and B). Often used in refining the design of technology products, and are particularly easy to run over the internet on a firm's website
Wikis
A website that anyone can edit directly from within the browser
Network effects
AKA Metcalfe's Law Network Externalities When a product/service becomes more valuable as its installed base expands...more users = more value
Blogs
An online journal that keeps a running chronology of entries.
APIs
Application Program Interface, list of commands for example: telling a computer to send doc to printer
Same-side exchange benefits
Benefits derived by interaction among members of a single class of participant
Seven keys to Facebook's competitive advantage
Brand Scale Network effects Switching Costs Differentiation Distribution Channels Data Collection
Two-sided markets :
Buying stuff from amazon, attracting people to buy and attracting people to sell stuff
Uber, Task rabbit, care.com, lyft, dogvacay,feastly
Citizen services examples
Social media
Content that is created, shared, and commented on by a broader community of users
Mediate
Customer & community dialog
Liquidity problems
Firms that can't generate cash quickly enough or convert assets to cash
Congestion effect
Increasing numbers of users lowers the value of a product or service
Some challenges for the sharing economy
Insurance issues Neighbors & tenant/owner-associations Tax challenges Governments and well-funded lobbies resisting change Bias & discrimination
Congestion effects
Internet is overcrowded; Simcity and Twitter
Staying power
Long-term viability of a product or service
4 M's of Social Media
Magnet, Megaphone, Monitor, Mediate
4 M's of social media
Magnet, megaphone, monitor, mediate
Data collecting
Measures how goods/services supplied by a company meet or surpass a customer's expectations
One sided market
Messaging applications (whats app) Using it all your friends will use it attracting the same type of users
Network effects are also known as
Metcalfe's law
Account Payable
Money owed for products and services purchased on credit
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)
Social Networks
Online community that allows users to establish a personal profile and communicate with others
Social Networks
Online community that allows users to establish a personal profile and communicate with others Twitter/microblogging - public/private messaging in 140 characters max.
Monitor
Outbound listening to customers, competitors, and 'best practice' role models
Megaphone
Outbound to customer
Kickstarter.com, lendingclub, gofundme, kiva, prosper
Peer finance examples
The two Complementary benefits - hard to switch
Platforms and API's
Demand Pricing:
Pricing that fluctuates based on user interest and available supply
Dynamic pricing
Pricing that shifts over time, usually based on conditions that change demand. This is a form of pricing that Uber uses
API's
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 provides application programming interfaces (APIs) to let developers write their own applications and websites that can send the firm orders.
AWS's
Provides industrial strength computing capacity on an as needed basis
RelayRides, Boatbound, Zilok, airbnb
Rent assets examples
Rent the Runway Pivot model
Rent the Runway used the Netflix model to rent a wide variety of high- fashion dresses from multiple designers
Rent the Runway Product/Market fit
RtR conducted three experiments to see if their idea was worth pursuing and how best to set it up. (Asked women if they would rent dresses they couldn't see, and if they would return them in good condition)
Zipcar, RenttheRunway, and Chegg
Shared Inventory examples
Social Proof
Something becomes more credible because others are doing it. (riding with a stranger - yes it works word of mouth spreading it) It is possible because others have done it and others have said that it works
Peer Production
Subset of Social Media. When users work, often collaboratively, to create content and provide services.
Crowdsourcing
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
What does the concept "wisdom of crowds" state? Select one: a. The wisdom of a large group is never greater than the wisdom of a small group of trained professionals. b. A group of individuals collectively has equal insight when compared with a single trained professional. c. A group of individuals, consisting of mostly untrained amateurs, has more insight than a single/small group of trained professionals. d. None of the above.
The correct answer is: A group of individuals, consisting of mostly untrained amateurs, has more insight than a single/small group of trained professionals.
An example of social proof is: Select one: a. Getting rides from a stranger is not scary! b. Staying at someone else's apartment is ok c. Finding someone online to care for your children is not a bad idea d. It is ok for a stranger to walk your pet e. All of the above
The correct answer is: All of the above
Products or services that add additional value to the network are known as _______________. Select one: a. Complimentary Benefits b. Offerings c. Resource tools d. Subsidized adoption
The correct answer is: Complimentary Benefits
A post shared 1 million times is an example of ______________, which is considered as the most valuable type of media. Select one: a. Paid Media b. Earned Media c. Group Media d. Owned Media
The correct answer is: Earned Media
Firms classified as being part of the sharing economy and collaborative consumption are still considered too risky to attract substantial venture capital investment. Select one: a. True b. False
The correct answer is: False
Network Effects are physical wires or wireless system that connects pieces of electronics Select one: a. True b. False
The correct answer is: False
What is crowdsourcing? Select one: a. 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. b. It is the act of moving a job from a group of ineffective employees to an efficient employee. c. It is the process of selling products to people in the guise of conducting marketing research. d. It is the act where a group of people moves from one country to another while looking out for better work opportunities. e. It is the movement of employees from one department to another with the aim of improving their skill sets.
The correct answer is: 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.
What is Social Proof? Select one: a. Proof that society judges new ideas negatively b. Proof that new ideas do not need to be tested out c. Positive influence created when someone finds out that others are doing something. d. Positive influence created when someone finds out that no one else is doing something. e. All of the above
The correct answer is: Positive influence created when someone finds out that others are doing something.
The term ______________________ conveys the degree to which a product satisfies market demand. Successful efforts should be desired by customers, and scale into large, profitable businesses. Select one: a. Customer lifetime value b. Net Present Value c. Product/Market Fit d. Minimum viable product
The correct answer is: Product/Market Fit
Not all crowdsourcing efforts are financially motivated. Select one: a. True b. False
The correct answer is: True
The term Minimum Viable Product is often used in entrepreneurship and new product development and refers to a bare-bones offering that allows entrepreneurs and product developers to collect customer feedback and to validate concepts and assumptions that underlie a business idea. Select one: a. Market Shares b. False c. True
The correct answer is: True
A prediction market involves: Select one: 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.
The correct answer is: polling a diverse crowd and aggregating opinions to form a forecast of an eventual outcome.
Peer production refers to: Select one: a. the process of tracking and responding to online mentions of a product, organization, or individual. b. graphical editing tools, such as those found in a wiki, page layout program, or other design tool. c. programming hooks, or guidelines published by firms that tell other programs how to get a service to perform a task such as send or receive data. d. content that is more complex than simple text or photos and includes animation, audio, and video. e. users collaboratively working to create content, products, and services.
The correct answer is: users collaboratively working to create content, products, and services.
Cash conversion cycle
The firm's period between shelling out cash and collecting funds associated with a given operation
Inventory turns
The number of times inventory is sold or used during a specific period. Higher number means products are sold more quickly
Minimum viable product in Rent the Runway
They started with only 100 dresses and tried it out on just Harvard students
Facebook's relationship with Snapchat
They tried to buy Snapchat and now are trying to imitate Snapchat.
Not every product or service is subject to exchange True/False?
True
Cross-side exchange benefits
Two-sided market - Buying on amazon and seeing something you own but do not use * You think why don't I sell this book*
Peer production
Users collaboratively working to create content, products, and services
The Osbourne Effect
When a firm preannounces a forthcoming product or service and experiences a sharp and detrimental drop in sales of current offerings as users wait for the new item
Cross-side exchange benefits
When an increase in the number of users on one side of the market (ex. console owners) creates a rise in the other side (ex. software developers)
What is Network effects?
When products or services become more valuable as its installed base expands
Agile Development:
a systems development technique that leverages cross-functional, self-organizing teams designed to rapidly leverage business knowledge and software development skills
The Osborne effect
announcing product too early, the iPhone7 just comes out and the iPhone8 is announced to come out in the summer
Owned media
communication channels that an organization controls. Includes firm-run blogs and Web sites, apps, and organization accounts on social media such as Twitter, Facebook, Pinterest, YouTube, and Instagram.
Social Media
content that is created, shared, and commented on by a broader community of users.
Paid media
efforts where an organization pays to leverage a channel or promote a message. Paid media efforts include things such as advertisement and sponsorships.
Messaging apps
exchange messages or images with individuals or groups permanently or ephemerally, attributed or anonymously
Inbound marketing
leveraging online channels to draw consumers to the firm with compelling content rather than conventional forms of promotion such as advertising, e-mail marketing, traditional mailings, and sales calls.
more users =
more users = more value
Platforms
product that allows the development of another product (iPhone allows you to have snap chat or Instagram)
Earned media
promotions that grow organically from customer efforts or other favorable publicity. Social media can be a key driver of earned media (think positive tweets, referring Facebook posts, and pins on Pinterest).
Twitter/microblogging
public/private messaging in 140 characters max.
Continuous Deployment:
releasing products when ready rather than on longer, pre-set distribution cycles.
Exchange opportunities:
some kind of exchange happening
Staying power
switching costs importance? Nook vs Kindle why would you choose the Nook vs the Kindle? We will use Amazon because it will be there in the market for a longer time
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.
Peer Production (subset)
when users work, often collaboratively, to create content and provide services.
Prediction Markets
where a diverse crowd is polled and opinions aggregated to form a forecast of an eventual outcome.
