1. The FAST FOLLOWER 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.

2. Consumers buying commodities are highly PRICE FOCUSED since they have so many similar choices.

3. Netscape, which once controlled more than 80 percent of the market share in Web browsers, lost its dominant position when customers migrated to Internet Explorer, Microsoft's Web browser. Internet Explorer was easy to install and had no significant differences in terms of usability. This example serves to illustrate that: SWITCHING COSTS CAN BE EASILY AND RAPIDLY OVERTAKEN

4. High switching costs of firms weaken buyer bargaining power . TRUE

5. 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 and each 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 MARKETING SIMPLY BECAUSE GROWTH IS SPOTTED.

6. When technology can be matched quickly, it is rarely a source of competitive advantage TRUE

7. The scale of technology investment required to run a business can act as a barrier to entry by discouraging new, smaller competitors. TRUE

9. functions that support the whole firm, including general management, planning, IS, and finance. FIRM INFRASTRUCTURE

10. One of Porter's five forces? THREAT OF NEW ENTRANTS11. When consumers incur expense to move from one product or service to another. SWITCHING COSTS12. According to Michael Porter, the reason so many firms suffer aggressive, margin-eroding competition is because they have defined themselves according to strategic positioning rather than operational effectiveness. FALSE

13. Performing the same tasks better than rivals perform them. OPERATIONAL EFFECTIVENESS

14. critical resources for competitive advantage. MOVING FIRST PAYS OFF WHEN THE TIME LEAD IS USED TO CREATE

15. Apples dominance of smartphone and tablet markets has allowed the firm to lock up 60 percent of the worlds supply of advanced touch-screen displays, and to do so with better pricing than would be available to smaller rivals. BARGAINING POWER WITH ITS SUPPLIERS OR BUYERS.16. Dominant firms with low switching costs can be rapidly overtaken by strong rivals. TRUE

17. Commoditiesare products or services that vary across multiple vendors. FALSE18. The path through which products or services get to customers. DISTRIBUTION CHANNELS

19. Kathy has access to the Internet and is able to search and compare the price and quality of the products she wants to purchase. However, Martin does not have access to the Internet and stays in a remote town where he is not able to get such details regarding the product or service he wants to purchase. Such a decision situation where Kathy has more or better knowledge about products or services than Martin is known as INFORMATION ASYMMETRY

20. Timing and technology alone will not yield sustainable competitive advantage. TRUE21.The set of activities through which a product or service is created and delivered to customers is known as a(n) VALUE CHAIN.22. Firms that build an imitation-resistant value chain develop a way of doing business that others struggle to replicate. TRUE23.Changes that impact one industry do not necessarily impact other industries in the same way. TRUE24. Which of the following is one of porter's 5 force? THREAT OF NEW ENTRANTS25.Which of the following represents one of the primary components of the value chain? MARKETING AND SALES26. Dell has traditionally focused on streamlining its supply chain to cut manufacturing costs. However, competitors have started replicating Dell's technique, thereby cutting into Dell's market share. The model followed by Dell is an example of: OPERATIONAL EFFECTIVENESS 27.Performing different activities from those of rivals or the same activities in a different way. STRATEGIC POSITIONING 28.Once the difficult phase of market entry is achieved,tech-centric business can be reasonably assured of survival. FALSE.29. New entrants to a market must ensure that the value they offer exceeds the incumbents' value in addition to any perceived: CUSTOMER SWITCHING COSTS30. Network externalities exist when a product or service becomes more valuable as more people use it. TRUE30b. Network externalities exist when a product or service becomes LESS valuable as more people use it. FALSE31. Political shock, and social and demographic changes can all play a role in altering the competitive landscape. TRUE32. Businesses benefit from economies of scale when the cost of an investment can be: SPREAD ACROSS INCREASING UNITS OF PRODUCTION/FALSE33. According to the resource-based view of competitive advantage, if a firm is to maintain a sustainable competitive advantage, it must control a set of resources that have valuable. TRUE34. FIRM INFRASTRUCTURE involves functions that support the whole firm, including general management, planning, information systems, and finance.35. Which of the following is a source of bargaining power for buyers? GREATER CHOICE OF PRODUCTS36. According to the resource-based view of competitive advantage, if a firm is to maintain a sustainable competitive advantage, it must control a set of resources that have four critical characteristics. Which of the following is one of those characteristics? VALUABLE37. Technology-centered businesses offer low barriers to entry. TRUE38. A firm is said to be STRADDLING when it attempts to match the benefits of a successful position while maintaining its existing position.39. According to Porter, strategy is fundamentally about being DIFFERENT40. Dell, previously the world's number one PC manufacturer, has seen its market share shrink because of rivals copying its value chain and reducing the price advantage it enjoyed over rivals. Dell's present struggles: UNDERSCORE THE IMPORTANCE OF CONTINUALLY ASSESSING A FIRM?S STRATEGIC POSITION AMONG CHANGING MARKET CONDITIONS.41.Operational effectiveness is usually not enough to yield sustainable competitive advantage because: TECHNOLOGY CAN BE EASILY DUPLICATED.42. Which of the following statements about technology is true? TECHNOLOGICAL IMPROVEMENTS CAN BE COPIED BY RIVALS LEADING TO A PROFIT-ERODING ARMS43. Leveraging consumers to promote a product or service. VIRAL MARKETING44. Third parties that promote a product. AFFILIATES45. financial performance that consistently outperforms industry averages. SUSTAINABLE COMPETITIVE ADVANTAGE

46. Advantages related to size. SCALE ADVANTAGES

47. As one of the primary components of the value chain, operations involves: TURNING INPUTS INTO PRODUCTS OR SERVICES.48. A strong brand can be an exceptionally powerful resource for competitive advantage by proxying QUALITY and inspiring TRUST.CHAPTER 41. At traditional brick and mortar retailers, SHELF SPACE is the biggest constraint limiting a firm's ability to offer customers what they want when they want it.2. What solution has Netflix come up with to address the need to deliver content to customers' televisions? NETFLIX PROVIDES A SOFTWARE PLATFORM TO FIRMS SEEKING TO BUILD NETFLIX ACCESS INTO THEIR DEVICES.3.Physical retailers are limited by shelf space and geography. TRUE4.Which of the following is true about Netflix? IT HAS ATTEMPTED TO COUNTER RIVALS WITH EXCLUSIVE CONTENT BY SECURING EXCLUSIVE STREAMING RIGHTS FOR SEVERAL POPULAR SHOWS.5. The costs associated with streaming digital content largely remain fixed. FALSE6.The term AUDIENCE FINDING refers to matching content with customers.7. Priceline.com is a company and a commercial website that helps users obtain discount rates for travel-related purchases such as airline tickets and hotel stays. The company facilitates the provision of travel services by its suppliers to its customers. People can directly access a complete array of schedules and fares. This process has, to a great extent, eliminated the travel agency as a middle man. This is an example of:DISINTERMEDIATION.8. Which of the following will be rendered worthless for Netflix when the inevitable shift from atoms to bits takes place? IT'S HIGH-TECH SHIPPING AND HANDLING INFRASTRUCTURE.9. The shift from atoms to bits does not stand to impact content creators, middlemen, and retailers. FALSE10. How does Cinematch offer Netflix additional operational advantages? CINEMATCH IS LINKED TO WAREHOUSES AND RECOMMENDS MOVIES THAT ARE LIKELY TO BE IN STOCK.11. Netflix was forced to increase advertising due to price wars with Wal-Mart and Blockbuster. TRUE12. By shifting to a streaming model, Netflix stands to eliminate shipping and handling costs. TRUE13. Collaborative filtering is a classification of software that: MONITORS TRENDS AMONG CUSTOMERS TO PERSONALIZE AN INDIVIDUAL CUSTOMER'S EXPERIENCE.14. DISINTERMEDIATION refers to removing an organization from a firm's distribution channel.15. Netflix has used the long tail to its advantage, crafting a business model that creates close ties with film studios. What do film studios stand to gain from these ties with Netflix? A CUT OF THE SUBSCRIPTION REVENUE FROM EVERY DISK SENT OUT BY NETFLIX.16. Although sometimes referred to as rental, the model is really a substitute good for conventional use-based media rental. TRUE17. During Netflix's high-growth period, the DVD-by mail business enjoyed lower marketing costs due to the:WORD-OF-MOUTH PUBLICITY GENERATED BY ITS USERS.18. PENETRATION RATE is a term that can be used to refer to the extent to which recommended titles form a part of the content users place in their queues.19. The idea that many media products are digital files of ones and zeros sold in physical containers, is known as: ATOMS TO BITS20.Marginal cost : ARE ASSOCIATED WITH EACH ADDITIONAL UNIT PRODUCED21. How do Netflix's scale economies affect competition from established firms? ESTABLISHED FIRMS THAT CHALLENGE NETFLIX STRADDLE MARKETS, UNABLE TO GAIN FULL EFFICIENCIES FROM THEIR EFFORTS22. By paying attention to process improvements and designing technology to smooth operations, Netflix has slashed THE NUMBER OF CUSTOMER REPRESENTATIVES even as subscriptions ballooned.23. With the death of the DVD, the high-tech shipping and handling infrastructure that Netflix hasrelentlessly built will be rendered worthless. TRUE24. With the entry of Wal-Mart and Blockbuster into the DVD-by-mail market, Netflix was forced to: CUT PRICES AND INCREASE SPENDING ON ADVERTISING.25. Churn rate is a term that refers to the: RATE AT WHICH CUSTOMERS LEAVE A PRODUCT OR SERVICE.26. Netflix enjoys the triple scale advantage of the largest customer base, the largest selection, and the largest network of distribution centers. This can be attributed NETFLIX'S FIRST-MOVER ADVANTAGE27. An initial public stock offering (IPO) refers to the FIRST TIME A FIRM SELLS STOCK TO THE PUBLIC28. In exchange for a percentage of the subscription revenue for every disk sent outbyNetflix, Movie studios offer Netflix: GETS DVDS AT A VERY LOW COST.29. Internet retailers serve a larger geographic area with comparably smaller infrastructure and staff. This fact suggests that Internet businesses are more SCALABLE30. A low CHURN RATE usually key to a firm's profitability because acquiring a customer is more expensive than keeping one.31. Offering a nearly limitless selection results in an interesting phenomenon where: MORE MONEY IS MADE SELLING OBSCURE GOODS THAN POPULAR ONES.32. Costs that do not vary according to production volume are called FIXED COSTS33.How is the collaborative filtering software used by Netflix advantageous to the firm? THE SOFTWARE HAS CREATED AN ENORMOUS DATA ADVANTAGE, THAT IS VALUABLE, RESULTS YIELDING, AND IMPOSSIBLE FOR RIVALS TO MATCH34. Firms target high churn rates to boost their profitability. FALSE35. Netflix offers its subscribers a selection of over one hundred thousand titles, while other rental firms can only offer as much as three thousand. This presents a significant SCALE ADVANTAGE for Netflix over its rivals.36. The costs associated with streaming digital content largely remain fixed. FALSE37. The collaborative filtering software developed by Netflix is not a source of competitive advantage to the firm. TRUE38. One of the benefits of disintermediation in the video industry is that: STUDIOS GET TO RETAIN ALL THE MONEY GENERATED THROUGH NEW WINDOWS.39. As Netflix is concerned with digital distribution, its marginal cost is zero. FALSE40. the long tail is a phenomenon whereby firms can make money by OFFERING A NEAR LIMITLESS SELECTION OF PRODUCTS OR SERVICES41. Even if Netflix gave Cinematch away to its rivals, they would still not be able to make the same kind of accurate recommendations as Netflix. This is because of the DATA ADVANTAGE enjoyed by Netflix.42. "For Netflix, the cost to stock and ship an obscure foreign film is greater than that for sending out the latest blockbuster movie. FALSE43. When firms enjoy economies of scale they: LEVERAGE THE COST OF AN INVESTMENT ACROSS INCREASING UNITS OF PRODUCTION.

CHAPTER 61). Staying power refers to the :LONG TERM VIABILITY OF A PRODUCT OR SERVICE.2). In the context of network effect the term network refers to the wireless system that connects pieces of electronics. FALSE3). In a market influenced by network effects, the winning product or service is determined by its technical support. FALSE4). The video game console market is a network market in which Sony's PlayStation 2 (PS2) dominated over Microsoft's Xbox offering. This has been possible due to:GAME DEVELOPERS FAVORING PS2 FOR ITS LARGER USER BASE5). Which of the following factors represents one of the sources of value derived from network effects?STAYING POWER6) which of the following product or service is not subject to network effect LAUNDRY SERVICE 7). Apple is known around the world as a major PC manufacturer and maker of digital music players (iPods). With the introduction of the iTunes effort, Apple now boasts a 75 percent share in digital music sales, in direct competition with the four major record labels in the music industry. This has been possible due to the _____ of Apple's hardware business and the digital music market. CONVERGENCE8) Every product or service subject to the network effects fosters some kind of exchange.TRUE9). Almost all networks derive most of their value firm single class of users. FALSE10). The video game business is said to be a two-sided market. Customers buy a video game console largely based on the number of really great games available for the system. Software developers write games based on: THEIR ABILITY TO REACH THE GREATEST NUMBER OF PAYING CUSTOMERS. 11) Metcalfes law is also known as NETWORK EXTERNALITIES12) A market is said to be ONE-SIDED if it derives most of its value from a single class of users.13) Moving first plays a significant role in markets influenced by network effects. TRUE14) Which of the following term is used as an alternative to switching cost LOCK-IN15) While Sony and Microsoft focused on the graphics and raw processing power favored by hard-core male gamers, Nintendo chose to develop a machine to appeal to families, women, and age groups that normally shunned violent games. The strategy adopted by Nintendo in the above example is the BLUE OCEAN strategy.16) The higher the value of users overall investment, the more they are likely to consider the staying power of any offering before choosing to adopt it. TRUE17) Profitability of online auctions is derived mainly from selling: DIFFERENTIATED GOODS.18) Worldwide auction leader eBay started operations in Japan just five months after Yahoo! launched its Japanese auction service. But eBay was never able to mount a credible threat and ended up pulling out of the market. This example shows that: ITS IMPERATIVE TO MOVE FIRST IN MARKETS INFLUENCED BY NETWORK EFFECTS19) Apple, which controls over 75 percent of digital music sales, was able to dictate song pricing for years, despite the tremendous protests of the record labels. This implies that: FIRMS WITH STRONG NETWORK EFFECTS ENJOY SUBSTANTIAL BARGAINING POWER OVER PARTNERS20) Envelopment is a management strategy where a dominant firm acquires all the layers in its value chain to increase profitability. FALSE21) Windows OS, iPhones, the Wii, and Facebook's application programming interfaces allow for the development and integration of complementary goods by third-parties. Based on this evidence, all these products or services can be said to be PLATFORMS.22) Markets are said to undergo convergence when: THEY BEGIN TO OFFER SIMILAR FEATURES AND CAPABILITIES23) A market dominated by a small number of powerful sellers is known as, OLIGOPOLY24) High switching costs serve to weaken the value of network effects as a value asset. FALSE25) Adobe gives away the Acrobat reader to build a market for the sale of software that creates Acrobat files. This is an example of: FIRMS GIVING AWAY PRODUCTS FOR HALF OF A TWO SIDED MARKET TO SEED THE MARKET 26) Network effects that attract too many users result in service being overwhelmed it becomes unusable. TRUE27) Firms that constantly innovate do so to develop open standards for competitors to become compatible. FALSE28) 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: ENVELOPMENT29) Blue ocean strategy often works best when combined with operational effectiveness.FALSE30) CONGESTION EFFECTS occur(s) when increasing number of users lower the value of a product or service.31) Customers who owned Nintendo's 8-bit video game console were unable to play the same games on the firm's new 16-bit S.N.E.S. 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 COMPATIBILITY32) A(n) APPLE'S ITUNES THAT ALLOWS DEVELOPERS TO SELL THEIR PRODUCTS ONLINE is a product that allows. Which of the following is an example of a measure taken by a firm to encourage the development of complementary goods?33) Microsoft's Live Maps and Virtual Earth 3D was a late entrant to the Internet mapping game. Users had already put in countless hours building resources that meshed with Google Maps and Google Earth. However, by adopting the same keyhole markup language (KML) standard used by Google, any work done by users for Google in KML could be used by Microsoft. What strategy of Microsoft's allowed it to catch up with Google? MAKING A NEW PRODUCT COMPATIBLE WITH THE LEADING STANDARD34) eBay auctions more books over its portal than any of its rivals. Similarly, Second Life has more virtual storefronts than its rivals. This is because: THEY OFFER GREATER MARKET REACH AND BENEFITS TO CUSTOMERS34) _____ is said to occur when one market attempts to conquer a new market by making it a subset, component, or feature of its primary offering. MARKET LEAPFROGGING35) Firms that constantly innovate do so to develop open standards for competitors to become compatibleFALSE36) Network effects do not influence all consumer products or services TRUE38) Which of the following is an example of a one-sided market? CELLPHONE NETWORK PROVIDERS39) In the context of network effects, the term network refers to wireless systems that connect pieces of electronics FALSE40) A firm can spend no extra money and time, if it has the technical capacity, yet expect to enhance its offerings, by ALLOWING OTHER FIRMS TO CONTRIBUTE TO ITS PLATFORM.41)Firms that leverage proprietary standards for market dominance do not necessarily inhibit innovation- TRUE42)Viral promotion involves: LEVERAGING A FIRMS CUSTOMERS TO PROMOTE A PRODUCT OR SERVICE43)American Express, a credit card firm, provides services to consumers that include plastic cards, individual accounts, and phone-based customer service. It also provides merchants with services, such as terminals for authorizing transactions and procedures for submitting charges. Based on the above facts, American Express is said to be in a TWO SIDED market.44)The video game business is said to be a two-sided market. Customers buy a video game console largely based on the number of really great games available for the system. Software developers write games based on: THEIR ABILITY TO REACH THE GREATEST NUMBER OF PAYING CUSTOMERS.45) Alpha Systems, a market leader in high-end video games, has designed its products such that it is difficult for the consumers to migrate to a rival. Which of the following is true about this scenario? ALPHA SYSTEMS HAS CREATED CUSTOMERS WHO ARE BARNACLES.46) Firms that leverage proprietary standards for market dominance do not necessarily inhibit innovation. TRUE47) In a market influenced by network effects, the winning product or service is determined by its technical superiority. FALSE48) _____ are products or services that add additional value to the primary product or service that makes up a network. COMPLEMENTARY BENEFIT49)Network effects occur when: THE VALUE OF A PRODUCT OR SERVICE INCREASES AS ITS NUMBER OF USERS EXPANDS.50)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. TRUE51)In the absence of network effects, the value of a product or service increases as the number of users grow- FALSE

CHAPTER 71. Peer production and social media fall under the web 1.0 umbrella. FALSE2. The term wiki refers to a(n): WEB SITE THAT CAN BE MODIFIED BY PERMITTED USERS, FROM DIRECTLY WITHIN A WEB BROWSER3. FOLKSONOMIES allows users to collaboratively tag and curate online media, making it easy for others to find useful content.4. The combination of two or more technologies or data feeds into a single, integrated tool MASH-UP5. Feeds are potentially controversial with instances of feed mismanagement causing user discontent, public relations problems, and the possibility of legal action. TRUE6. Which of the following statements holds true for micro blogging. 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.7. The process of tracking and responding to online mentions of a product, organization, or individual ONLINE REPUTATION MANAGEMENT8. The use of public social networks within private organizations is growing, and many organizations are implementing their own, private, social networks. TRUE9. As with other types of social media, content flows in social networks are easy to control.FALSE10. The Folksonomy approach uses classification schemes that are created by users themselves. TRUE11. Which of the following represents potential ethical challenges associated with prediction markets? INSIDER TRADING 12. Web 2.0 services are targeted at creating resources and sharing information based on transaction focused storefront models. FALSE13. Blog posts are listed in forward order of creation, making it easy to see most recent content. FALSE14. Rich media refers to CONTENT MORE COMPLEX THAN SIMPLE TEXTS OR PHOTOS.15. Amazon.com publishes guidelines that tell others how to get a service to perform a task such as call one another, or share data. These guidelines allow developers to write their own applications and Web sites that can send Amazon orders. These guidelines are called: APIs16. Which of the following statements holds true with respect to blogs? TOP BLOGS OPERATING ON SHOESTRING BUDGETS CAN SNARE SEVERAL HUNDRED THOUSAND DOLLARS A MONTH IN AD REVENUE.17. Peer production refers to: USERS COLLABORATIVELY WORKING TO CREATE CONTENT, PRODUCTS, AND SERVICES.18. Which of the following statements holds true for electronic social network? THEIR KEY USE IS TO DISCOVER AND REINFORCE AFFILIATIONS, IDENTIFY EXPERTS, MESSAGE INDIVIDUALS OR GROUPS, AND VIRALLY SHARE MEDIA.19. The wisdom of crowds concept is based on the belief that a diverse group of individuals is always correct in its assessment of a problem, as compared to a group of qualified individuals. TRUE20. The inherently VIRAL nature of feeds allows individuals to rapidly blast their activities to their contacts or "friends".21. Which of the following statements about blogging is true? BLOG COMMENTS CAN BE A HOTHOUSE FOR SPAM AND THE DISGRUNTLED22.LONG TAIL refers to a phenomenon whereby firms can make money by offering a near-limitless selection.23. Friendster is an online service that allows members to establish contact with other members, consolidate those contacts, and share online information with those contacts. Friendster is an example of a: SOCIAL NETWORK24. Web 2.0 is often used to refer to Web sites and Internet services that foster social media or other sorts of peer production. TRUE25. Peer-produced services like Skype and BitTorrentleverage central IT resource instead of users' computers to forward phone calls and video. FALSE26.RSS is an acronym that stands for really simple syndication. TRUE27. A necessary criterion for a crowd to be smart is that it should be homogenous to reduce incidence of polarized insights. FALSE28. GPS is a system of orbiting satellites that can determine the location of any devices equipped with a suitable receiver.29. Blogs are used to collaborate on common tasks or to create a common knowledge base. FALSE30. Most organizations have been able to successfully commercialize their forays into virtual world services, such as Second Life. TRUE31.The value of any particular blog derives from a combination of technical and social features. TRUE32.What advantage do folksonomies have over the specialized lexicon of experts classification schemes are created by users, who understand them best33. The process of tracking and responding to online mentions of a product, organization, or individual is known as: ONLINE REPUTATION MANAGEMENT.34. BLOGOSPHERE is a term referring to the collective community of bloggers, as well as those who read and comment on blogs.35.A vigorous community of commenters may help keep a blogger honest as they could quickly expose a bloggers errors of fact or logic. TRUE36.PODCASTS is a term that refers to digital audio or video files served as a series of programs or a multimedia blog.37. A BLOG ROLL refers to a list of a blogger's favourite sites, often displayed on the right or left column of a blog's main page.38. The long tail nature of the blogging phenomenon is demonstrated by: THE NICHE CONTENT THAT IS AVAILABLE IN THE MORE THAN ONE HUNDRED MILLION TRACKED PUBLIC BLOGS.39. Web 2.0 services are targeted at creating resources and sharing information based on transaction- focused storefront models. FALSE40. Just as the wisdom of crowds keeps Wikipedia accurate, a blogger's errors of fact or logic are exposed by COMMENT THREADS41. What is the likely implication of a large and active wiki community? IT BECOMES MORE LIKELY THAT CONTENT IS UP-TO-DATE AND ERRORS ARE QUICKLY CORRECTED42.The unstructured nature of wikis is both a source of strength and weakness. TRUE43.Salesforce.coms Chatter, SocialText Signals, and Yammer are all examples of:CORPORATE MICROBLOGGING SERVICES.44. Which of the following services come under the Web 2.0 umbrella? SYNDICATION45. Which of the following statements holds true for Wikis? THEIR KEY USE IS TO COLLABORATE ON COMMON TASKS OR TO CREATE A COMMON KNOWLEDGE BASE.46. How are Web 1.0 services different from those that come under Web 2.0? WEB 2.0 SERVICES FOSTER COLLABORATION AND INFORMATION SHARING, AS OPPOSED TO STATIC, TRANSACTION-ORIENTED WEB 1.0 EFFORTS.47. Unstructured nature of wikis are also both a strength and weakness. TRUE48. . RSS enables users to SCAN HEADLINES AND CLICK TO ACCESS RELEVANT NEWS AND INFORMATION49. Which of the following statements is true about corporations and blogging CEOS USE BLOGS FOR PURPOSES THAT INCLUDE A COMBINATION OF MARKETING, SHARING IDEAS, PRESS RESPONSE, IMAGE SHAPING, AND REACHING CONSUMERS DIRECTLY.50. Complete the analogy: web1.0-instant messaging; web2.0- TWITTER51. How are Web 1.0 services different from those that come under Web 2.0? E) NOT SURE.52. FREE RIDER PROBLEM is a term used to describe others taking advantage of a user or service without providing any sort of reciprocal benefit. 53. Blogs refer to: ONLINE JOURNAL ENTRIES, USUALLY MADE IN A REVERSE CHRONOLOGICAL ORDER. 54. A(n) VIRTUAL WORLD is a computer-generated environment where users present themselves in the form of an avatar, or animated character. 55. Blogs are used to collaborate on common tasks or to create a common knowledge base. FALSE56. Outsourcing the management of a firms social media presence to a third party agency is generally considered an effective management practice as internal staff can focus on performance. FALSE57. Blogs do not hold any attraction for corporations because they hinder immediate and unfiltered distribution of ideas . FALSE58. Gourmet food trucks, popular in many American cities, are using Twitter to share location and create hipster buzz. Starbucks uses Twitter to run contests, and spread free samples of new products. These examples demonstrate the use of Twitter as a(n): LEGITIMATE BUSINESS TOOL.59. Which of the following is one of the downsides of blogging? BOGUS PRAISE POSTS CAN BE POSTED BY CORPORATE EMPLOYEES TO TALK UP THEIR FIRMS.60. WIKIMASTERS are individuals often employed by organizations to review community content in order to delete excessive posts, move commentary to the best location, and edit as necessary.61. Newspapers, radio, and television are components of: MAINSTREAM MEDIA62.The controversial nature of feeds is because of: PRIVACY CONCERNS63. 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 BACK64. A prediction market involves: POLLING A DIVERSE CROWD AND AGGREGATING OPINIONS TO FORM A FORECAST OF AN EVENTUAL OUTCOME.65. Which of the following statements holds true for blogs? THEIR KEY USE IS TO SHARE IDEAS, OBTAIN FEEDBACK, AND MOBILIZE A COMMUNITY.66. Which of the following statements about Web 2.0 is true? PEER PRODUCTION IS ALSO LEVERAGED TO CREATE MUCH OF THE OPEN SOURCE SOFTWARE THAT SUPPORTS MANY OF THE WEB 2.0 EFFORTS.CHAPTER 9:1. EMBEDDED SYSTEMS refer (s) to special-purpose software designed and included inside physical products.2. Some firms write their own enterprise software from scratch as it can save time and reduce development costs. FALSE3. A firm can mix and match components, linking software the firm has written with modules purchased from different enterprise software vendors. TRUE4. PROGRAMMING LANGUAGES provide the standards, syntax, statements, and instructions for writing computer software.5.The varied and heterogeneous look, feel, and functionality that operating systems enforce across various programs help make it easier for users to learn new software. FALSE6. ENTERPRISE RESOURCE PLANNING refers to a software package that integrates the many functions of a business, such as accounting, finance, inventory management and human resources.7. What is the most common function performed by electronic data interchanges? SENDING ELECTRONIC EQUIVALENTS OF STRUCTURED DOCUMENTS BETWEEN DIFFERENT ORGANIZATIONS8. Amazon, the online retailer, has built a robust set of Web services around its processes and procedures, such as forming a transaction layer to handle online business applications and shielding the retailer's databases. On this evidence, Amazon is said to have SERVICE-ORIENTED ARCHITECTURE in place.9. Standardizing business processes in software that others can buy means that those functions are difficult for competitors to match. FALSE10. Which of the following functions of embedded systems help make a device smarter?THEY DIAGNOSE PROBLEMS WITH COMPUTER HARDWARE, AND PROVIDE ALERTS FOR MAINTENANCE.11. Control programs stored on nonvolatile chips are sometimes referred to as FIRMWARE12. Information systems development projects fail at a startlingly high rate.TRUE13. Which of the following is one of the reasons for the failure of technology projects? INADEQUATE TESTING OF SYSTEMS BEFORE DEPLOYMENT 14. An application server is software that: HOUSES AND SERVES BUSINESS LOGIC FOR USE BY MULTIPLE APPLICATIONS.15. Which of the following functions is likely to be performed by enterprise software?INVENTORY TRACKING16. Nintendo's Wii OS provides Wii programmers with a set of common standards to use access the Wiimmote, play sounds, draw graphics, save files, and more. Without this, games would: COST MORE.17. Communication between people results in fewer errors, time savings, and cost reductions as compared to communication between computers. FALSE18. Salesforce.com offers systems that organize, automate, and synchronize activities related to sales, marketing, and client support. These serve the purpose of: CUSTOMER RELATIONSHIP MANAGEMENT19. The mechanism through which people interact with a computing device is known as the USER INTERFACE20. Which of the following is an example of computer hardware? NETWORK CABLE21. edi refers to: SYSTEMS IN DIFFERENT LOCATIONS COMMUNICATING AND COLLABORATING TO COMPLETE A TASK.22. What are the implications for firms without common database systems with consistent formats across their enterprise? THEY STRUGGLE TO MANAGE THEIR VALUE CHAIN EFFICIENTLY.23. Computer hardware refers to: THE PHYSICAL COMPONENTS OF INFORMATION TECHNOLOGY.24. Which of the following statement is true about information systems? FIRMS NEED TO VIGILANTLY MANAGE THE MOVING TARGET OF COMPUTER SECURITY ISSUES.25. Systems that use data created by other systems to provide reporting and analysis for organizational decision making are called BUSINESS INTELLIGENCE systems.26. Most firms spend a major portion of percent of their information systems (IS) budgets just to keep their systems running. TRUE27. Achieving Success In A Project Rarely Lies In The Strength Of Technology Alone. TRUE28. SOFTWAREis a term that refers to a precise set of instructions that tells the computer hardware what to do29. Android is a software product developed by google (and IOS is similarly developed by Apple for the iPhone) that allows cellphone... OPERATING SYSTEM30. DBMS is software that stores and retrieves the data that an application creates and uses. 31. Ensuring that an organization's system operating within required legal constraints and industry and organizational obligations results in COMPLIANCE32. Acompany doesn't havetoinstall allof themodulesof anERP suite,butitmight add functions over time. TRUE33. Which of the following technologies is being used to replace the older electronic data interchange (EDI) for specifying data standards? EXTENSIBLE MARKUP LANGUAGE (XML)34. ERP systems and enterprise software programs should be ideally configured to use different database systems to avoid the possibility of data redundancy FALSE35. Which of the following is an example of a user interface? TOUCH SCREEN36. The rise of the Internet and distributed computing has led to an explosion in security losses by organizations worldwide. TRUE37. ENTERPRISE RESOURCE PLANNING refers to a software package that integrates the many functions of a business, such as accounting, finance, inventory management, and human resources.38. As defined by the World Wide Web consortium, WEB SERVICES are software systems designed to support interoperable machine-to-machine interaction over a network.39. Which of the following is an example of application software? MS WORD40. The maintenance of information systems is usually simple, and inexpensive. FALSE

CHAPTER 10:1. Cloud computing refers to replacing computing resources withservices provided over the Internet2. Multicore Processors Using Old Software : USED ONLY ONE CORE AT A TIME

1. In the context of network effects, the term network refers to wireless systems that connect pieces of electronics. False; 2. In the absence of network effects, the value of a product or service increases as the number of users grows. False; 3. Network effects do not influence all consumer products or services. True; 4. Every product or service subject to network effects fosters some kind of exchange. True; 5. High switching costs serve to weaken the value of network effects as a value asset. False; 6. The higher the value of a users overall investment, the more they are likely to consider the staying power of any offering before choosing to adopt it. True; 7. 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. True; 8. Almost all networks derive most of their value from a single class of users. False; 9. An instant messaging network is an example of a one-sided market. True; 10. Cross-side benefits arise due to interaction among members of a single class of participant. False; 11. The natural state of a market where network effects are present is for there to be intense competition between several rivals. False; 12. In a market influenced by network effects, the winning product or service is determined by its technical superiority. False; 13. Firms that leverage proprietary standards for market dominance do not necessarily inhibit innovation. True; 14. Moving first plays a significant role in markets influenced by network effects. True; 15. Blue ocean strategy often works best when combined with operational effectiveness. False; 16. Envelopment is a management strategy where a dominant firm acquires all the layers in its value chain to increase profitability. False; 17. Regional anti-trust authorities may consider product bundling by dominant firms to be anticompetitive. True; 18. Firms that constantly innovate do so to develop open standards for competitors to become compatible. False; 19. 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. False; 20. Network effects that attract too many users result in a service being so overwhelmed it becomes unusable. True;

Datasimple raw facts and figuresInfoData that can answer a question and support decision makingKnowledgeinsight from experience and expertiseDatabasesimply a list (or several related list) of dataDatabase management systems (DBMS)programs that create maintain and manipulate databases-most popular = OracleStructured Query Language (SQL)Most common language for creating and manipulating databasesDatabase administrator (DBM)Database programmerTable or fileList of dataDatabaseeither one table or a set of tablesColumn or Fielddefines data a table can holdRow or recordrepresents a single instance of whatever the table keeps track ofKeyField used to relate tables in databaseRelational DatabaseMultiple tables are related based on common keysTransaction Processing System (TPS)Fountain of potentially insightful dataTransactionSome kind of business exchangeLoyalty Cardallows retailers to tie cash transactions to the customerCustomer Relationship Management (CRM)empower employees to track and record data at nearly every point of customer contactSupply Chain Management SystemSCMEnterprise resource planning systemERPLegacy SystemsOutdated info systems that were not designed to share dataData WarehouseSet of databases designed to support decision making in an organization-fast online queries and explorationData martDatabase focused on addressing a specific problem or business unitE-discoveryidentifying and retrieving relevant electronic info to support litigation effortsCanned Reportssummaries of info in a predetermined formAd hoc reporting toolsallows users to create own reports, selecting fields, ranges, and other parameters to build reports on the flyDashboardHeads up display of critical indicators gives managers a graphical glance at key performance methodsOLAPSourced from standard relational database but calculated and summarized in advance, across multi dimensionsData cubeWhere OLAP dat is storedData miningusing computers to identify hidden patterns and to build models from large data setsCustomer Segmentationwhich customers are most valuableMarketing and Promotion TargetingWhich customers will respond to what price at what timeMarket basket analysisWhich products customers buy togetherCollaborative FilteringPersonalizing one customers experience based on a similar customersCustomer ChainDetermining which customers are likely to leave, and what can help avoid unwanted defectionsFraud Detectionuncovering criminal activity patternsNeural NetworksPrograms that mimic or improve upon functions of the human brainExpert Systemsperform task in ways that mimic human expertiseGenetic Algorithmswhere computers examine many potential solutions to a problem, modifying various mathematical models