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 ENTRANTS
11. When consumers incur expense to move from one product or service to another.
SWITCHING COSTS
12. 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. Commodities are products or services that vary across multiple vendors. FALSE
18. 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. TRUE
21.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. TRUE
23.Changes that impact one industry do not necessarily impact other industries in the same
way. TRUE
24. Which of the following is one of porter's 5 force? THREAT OF NEW ENTRANTS
25.Which of the following represents one of the primary components of the value chain?
MARKETING AND SALES
26. 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 COSTS
30. Network externalities exist when a product or service becomes more valuable as more
people use it. TRUE
30b. Network externalities exist when a product or service becomes LESS valuable as more
people use it. FALSE
31. Political shock, and social and demographic changes can all play a role in altering the
competitive landscape. TRUE
32. Businesses benefit from economies of scale when the cost of an investment can be:
SPREAD ACROSS INCREASING UNITS OF PRODUCTION/FALSE
33. 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.
TRUE
34. 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 PRODUCTS
36. 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? VALUABLE
37. Technology-centered businesses offer low barriers to entry. TRUE
38. 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 DIFFERENT
40. 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 ARMS
43. Leveraging consumers to promote a product or service. VIRAL MARKETING
44. Third parties that promote a product. AFFILIATES
45. 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 4
1. 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. TRUE
4.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. FALSE
6.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. FALSE
10. 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. TRUE
12. By shifting to a streaming model, Netflix stands to eliminate shipping and handling costs.
TRUE
13. 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. TRUE
17. 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 BITS
20.Marginal cost : ARE ASSOCIATED WITH EACH ADDITIONAL UNIT
PRODUCED
21. 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 EFFORTS
22. 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 has relentlessly built will be rendered worthless. TRUE
24. 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 ADVANTAGE
27. An initial public stock offering (IPO) refers to the FIRST TIME A FIRM SELLS
STOCK TO THE PUBLIC
28. In exchange for a percentage of the subscription revenue for every disk sent
out by Netflix, 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 SCALABLE
30. 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 COSTS
33.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 MATCH
34. Firms target high churn rates to boost their profitability. FALSE
35. 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. FALSE
37. The collaborative filtering software developed by Netflix is not a source of competitive
advantage to the firm. TRUE
38. 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. FALSE
40. the long tail is a phenomenon whereby firms can make money by OFFERING A NEAR
LIMITLESS SELECTION OF PRODUCTS OR SERVICES
41. 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. FALSE
43. When firms enjoy economies of scale they: LEVERAGE THE COST OF AN
INVESTMENT ACROSS INCREASING UNITS OF PRODUCTION.



CHAPTER 6
1). 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. FALSE
3). In a market influenced by network effects, the winning product or service is determined
by its technical support. FALSE
4). 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 BASE
5). Which of the following factors represents one of the sources of value derived from
network effects?
STAYING POWER
6) 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.
CONVERGENCE
8) Every product or service subject to the network effects fosters some kind of
exchange.TRUE
9). Almost all networks derive most of their value firm single class of users. FALSE
10). 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 EXTERNALITIES
12) 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. TRUE
14) Which of the following term is used as an alternative to switching cost LOCK-IN
15) 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. TRUE
17) 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 EFFECTS
19) 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 PARTNERS
20) Envelopment is a management strategy where a dominant firm acquires all the layers in
its value chain to increase profitability.
FALSE
21) 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 CAPABILITIES
23) A market dominated by a small number of powerful sellers is known as, OLIGOPOLY
24) High switching costs serve to weaken the value of network effects as a value asset.
FALSE
25) 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. TRUE
27) Firms that constantly innovate do so to develop open standards for competitors to become
compatible. FALSE
28) 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
29) Blue ocean strategy often works best when combined with operational
effectiveness.FALSE
30) 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 COMPATIBILITY
32) 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 STANDARD
34) 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 CUSTOMERS
34) _____ 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 LEAPFROGGING
35) Firms that constantly innovate do so to develop open standards for competitors to become
compatibleFALSE
36) Network effects do not influence all consumer products or services TRUE
38) Which of the following is an example of a one-sided market? CELLPHONE
NETWORK PROVIDERS
39) In the context of network effects, the term network refers to wireless systems that
connect pieces of electronics FALSE
40) 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- TRUE
42)Viral promotion involves: LEVERAGING A FIRMS CUSTOMERS TO PROMOTE
A PRODUCT OR SERVICE
43)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. TRUE
47) In a market influenced by network effects, the winning product or service is determined
by its technical superiority. FALSE
48) _____ are products or services that add additional value to the primary product or service
that makes up a network. COMPLEMENTARY BENEFIT
49)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. TRUE
51)In the absence of network effects, the value of a product or service increases as the
number of users grow- FALSE

CHAPTER 7
1. Peer production and social media fall under the web 1.0 umbrella. FALSE
2. The term wiki refers to a(n): WEB SITE THAT CAN BE MODIFIED BY
PERMITTED USERS, FROM DIRECTLY WITHIN A WEB BROWSER
3. 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-UP
5. Feeds are potentially controversial with instances of feed mismanagement causing user
discontent, public relations problems, and the possibility of legal action. TRUE
6. 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 MANAGEMENT
8. The use of public social networks within private organizations is growing, and many
organizations are implementing their own, private, social networks. TRUE
9. As with other types of social media, content flows in social networks are easy to
control.FALSE
10. The Folksonomy approach uses classification schemes that are created by users
themselves. TRUE
11. 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. FALSE
13. Blog posts are listed in forward order of creation, making it easy to see most recent
content. FALSE
14. 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: APIs
16. 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. TRUE
20. 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 DISGRUNTLED
22.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 NETWORK
24. Web 2.0 is often used to refer to Web sites and Internet services that foster social media
or other sorts of peer production. TRUE
25. Peer-produced services like Skype and BitTorrent leverage central IT resource instead of
users' computers to forward phone calls and video. FALSE
26.RSS is an acronym that stands for really simple syndication. TRUE
27. A necessary criterion for a crowd to be smart is that it should be homogenous to reduce
incidence of polarized insights. FALSE
28. 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.
FALSE
30. Most organizations have been able to successfully commercialize their forays into virtual
world services, such as Second Life. TRUE
31.The value of any particular blog derives from a combination of technical and social
features. TRUE
32.What advantage do folksonomies have over the specialized lexicon of experts
classification schemes are created by users, who understand them best
33. 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. TRUE
36.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. FALSE
40. Just as the wisdom of crowds keeps Wikipedia accurate, a blogger's errors of fact or logic
are exposed by COMMENT THREADS
41. 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
CORRECTED
42.The unstructured nature of wikis is both a source of strength and weakness. TRUE
43.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? SYNDICATION
45. 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. TRUE
48. . RSS enables users to SCAN HEADLINES AND CLICK TO ACCESS RELEVANT
NEWS AND INFORMATION
49. 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- TWITTER
51. 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.
FALSE
56. 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. FALSE
57. Blogs do not hold any attraction for corporations because they hinder immediate and
unfiltered distribution of ideas . FALSE
58. 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 MEDIA
62.The controversial nature of feeds is because of: PRIVACY CONCERNS
63. 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
64. 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. FALSE
3. A firm can mix and match components, linking software the firm has written with modules
purchased from different enterprise software vendors. TRUE
4. 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. FALSE
6. 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 ORGANIZATIONS
8. 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. FALSE
10. 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 FIRMWARE
12. Information systems development projects fail at a startlingly high rate.TRUE
13. 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 TRACKING
16. 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. FALSE
18. Salesforce.com offers systems that organize, automate, and synchronize activities related
to sales, marketing, and client support. These serve the purpose of: CUSTOMER
RELATIONSHIP MANAGEMENT
19. The mechanism through which people interact with a computing device is known as the
USER INTERFACE
20. Which of the following is an example of computer hardware? NETWORK CABLE
21. 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. TRUE
27. Achieving Success In A Project Rarely Lies In The Strength Of Technology Alone.
TRUE
28. SOFTWARE is a term that refers to a precise set of instructions that tells the computer
hardware what to do
29. Android is a software product developed by google (and IOS is similarly developed by
Apple for the iPhone) that allows cellphone... OPERATING SYSTEM
30. 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 COMPLIANCE
32. A company doesn't have to install all of the modules of an ERP suite, but it might add
functions over time. TRUE
33. 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 FALSE
35. Which of the following is an example of a user interface? TOUCH SCREEN
36. The rise of the Internet and distributed computing has led to an explosion in security
losses by organizations worldwide. TRUE
37. 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 WORD
40. The maintenance of information systems is usually simple, and inexpensive. FALSE

CHAPTER 10:
1. Cloud computing refers to replacing computing resources with services provided over the
Internet
2. 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;

Data
simple raw facts and figures
Info
Data that can answer a question and support decision making
Knowledge
insight from experience and expertise
Database
simply a list (or several related list) of data
Database management systems (DBMS)
programs that create maintain and manipulate databases
-most popular = Oracle
Structured Query Language (SQL)
Most common language for creating and manipulating databases
Database administrator (DBM)
Database programmer
Table or file
List of data
Database
either one table or a set of tables
Column or Field
defines data a table can hold
Row or record
represents a single instance of whatever the table keeps track of
Key
Field used to relate tables in database
Relational Database
Multiple tables are related based on common keys
Transaction Processing System (TPS)
Fountain of potentially insightful data
Transaction
Some kind of business exchange
Loyalty Card
allows retailers to tie cash transactions to the customer
Customer Relationship Management (CRM)
empower employees to track and record data at nearly every point of customer contact
Supply Chain Management System
SCM
Enterprise resource planning system
ERP
Legacy Systems
Outdated info systems that were not designed to share data
Data Warehouse
Set of databases designed to support decision making in an organization
-fast online queries and exploration
Data mart
Database focused on addressing a specific problem or business unit
E-discovery
identifying and retrieving relevant electronic info to support litigation efforts
Canned Reports
summaries of info in a predetermined form
Ad hoc reporting tools
allows users to create own reports, selecting fields, ranges, and other parameters to
build reports on the fly
Dashboard
Heads up display of critical indicators gives managers a graphical glance at key
performance methods
OLAP
Sourced from standard relational database but calculated and summarized in advance,
across multi dimensions
Data cube
Where OLAP dat is stored
Data mining
using computers to identify hidden patterns and to build models from large data sets
Customer Segmentation
which customers are most valuable
Marketing and Promotion Targeting
Which customers will respond to what price at what time
Market basket analysis
Which products customers buy together
Collaborative Filtering
Personalizing one customers experience based on a similar customers
Customer Chain
Determining which customers are likely to leave, and what can help avoid unwanted
defections
Fraud Detection
uncovering criminal activity patterns
Neural Networks
Programs that mimic or improve upon functions of the human brain
Expert Systems
perform task in ways that mimic human expertise
Genetic Algorithms
where computers examine many potential solutions to a problem, modifying various
mathematical models