Question 1

Costs that do not vary according to production volume are called _____.

Accepted Answer

A)  total costs 
B)  marginal costs 
C)  switching costs 
D)  variable costs 
E)  fixed costs 
A)  total costs 
B)  marginal costs 
C)  switching costs 
D)  variable costs 
E)  fixed costs

Question 2

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 is known as _____.

Accepted Answer

The answer of The act of taking a job traditionally...

Question 3

The yearly cost to run a Netflix-comparable nationwide delivery infrastructure is about $300 million.

Accepted Answer

A) True 
 B)False

Question 4

Physical retailers are limited by shelf space and geography (meaning the density of customers around a particular location).

Accepted Answer

A) True 
 B)False

Question 5

Brands are built through _____.

Accepted Answer

A)  customer awareness 
B)  data assets 
C)  excessive advertising 
D)  customer profiling 
E)  customer experience 
A)  customer awareness 
B)  data assets 
C)  excessive advertising 
D)  customer profiling 
E)  customer experience

Question 6

Marginal costs:

Accepted Answer

A)  are minor, insignificant costs. 
B)  are associated with each additional unit produced. 
C)  are the costs incurred as a result of choosing one option over another. 
D)  are constant and do not vary according to production volume. 
E)  are also known as overhead. 
A)  are minor, insignificant costs. 
B)  are associated with each additional unit produced. 
C)  are the costs incurred as a result of choosing one option over another. 
D)  are constant and do not vary according to production volume. 
E)  are also known as overhead.

Question 7

Original content is an investment in allowing a firm to provide differentiated goods, a way to entice and retain customers with exclusive programming not available anywhere else.

Accepted Answer

A) True 
 B)False

Question 8

Explain the long tail phenomenon at Netflix.

Accepted Answer

The long tail is a phenomenon whereby fi

Question 9

How does Cinematch offer Netflix additional operational advantages for the DVD-by-mail business?

Accepted Answer

A)  Cinematch offers alternate recommendations of movies based on critical acclaim and box office performance parameters. 
B)  Cinematch is linked to warehouses and recommends movies that are likely to be in stock. 
C)  Cinematch is often used by movie studios to plan movie scripts based on user preferences. 
D)  Cinematch is a source of additional revenue to Netflix as a marketing tool for recommending newly-released movies. 
E)  Netflix leases the Cinematch collaborative filtering software to smaller firms at a fee, withholding the valuable user ratings. 
A)  Cinematch offers alternate recommendations of movies based on critical acclaim and box office performance parameters. 
B)  Cinematch is linked to warehouses and recommends movies that are likely to be in stock. 
C)  Cinematch is often used by movie studios to plan movie scripts based on user preferences. 
D)  Cinematch is a source of additional revenue to Netflix as a marketing tool for recommending newly-released movies. 
E)  Netflix leases the Cinematch collaborative filtering software to smaller firms at a fee, withholding the valuable user ratings.

Question 10

Provide a brief description of the basics of the Netflix DVD-by-mail business model.

Accepted Answer

Netflix was started as a DVD-by-mail ser

Question 11

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 to:

Accepted Answer

A)  Netflix's specialized focus on advertising and marketing. 
B)  Netflix's first-mover advantage. 
C)  Netflix going public to generate funds for expansion. 
D)  Netflix's effective and aggressive pricing strategy. 
E)  the bargaining clout it exercises over movie studios and the government. 
A)  Netflix's specialized focus on advertising and marketing. 
B)  Netflix's first-mover advantage. 
C)  Netflix going public to generate funds for expansion. 
D)  Netflix's effective and aggressive pricing strategy. 
E)  the bargaining clout it exercises over movie studios and the government.

Question 12

___________ refers to the rate at which customers leave a product or service

Accepted Answer

The answer of ___________ refers to the rate at which...

Question 13

For traditional retailers selling physical goods, _____ is the biggest constraint limiting a firm's ability to offer customers what they want and when they want it.

Accepted Answer

A)  shelf space 
B)  video piracy 
C)  shipping costs 
D)  distribution rights 
E)  disintermediation 
A)  shelf space 
B)  video piracy 
C)  shipping costs 
D)  distribution rights 
E)  disintermediation

Question 14

Collaborative filtering is a technology that allows customers to meet and select titles for viewing parties.

Accepted Answer

A) True 
 B)False

Question 15

Crowdsourcing is:

Accepted Answer

A)  a phenomenon whereby firms can make money by offering a near-limitless selection. 
B)  the act of taking a job traditionally performed by a designated agent and contracting it out to an undefined generally large group of people in the form of an open call. 
C)  a classification of software that monitors trends among customers and uses this data to personalize an individual customer's experience. 
D)  the removal of an organization from a firm's distribution channel. 
E)  an industry practice whereby content is available to a given distribution channel for a specified time period or 'window,' usually under a different revenue model. 
A)  a phenomenon whereby firms can make money by offering a near-limitless selection. 
B)  the act of taking a job traditionally performed by a designated agent and contracting it out to an undefined generally large group of people in the form of an open call. 
C)  a classification of software that monitors trends among customers and uses this data to personalize an individual customer's experience. 
D)  the removal of an organization from a firm's distribution channel. 
E)  an industry practice whereby content is available to a given distribution channel for a specified time period or 'window,' usually under a different revenue model.

Question 16

How does Netflix use collaborative filtering software to match movie titles with customer tastes? In what ways does this software help Netflix garner sustainable competitive advantage?

Accepted Answer

Netflix has proved that there is both de

Question 17

Some 75 to 80 percent of what people watch on the service comes from Netflix _________

Accepted Answer

A)  searches 
B)  original content 
C)  DVD viewer suggestions 
D)  recommendations 
E)  all of the above 
A)  searches 
B)  original content 
C)  DVD viewer suggestions 
D)  recommendations 
E)  all of the above

Question 18

Why is bargaining power shifting to content providers as the video content industry shifts from atoms to bits?

Accepted Answer

Video content is perfectly differentiate

Question 19

The Netflix customer experience was always weaker than the in-store experience of DVD rental firms, which had human staff. However, consumers were willing to overlook their dissatisfaction given Netflix's other benefits.

Accepted Answer

A) True 
 B)False

Question 20

Netflix is said to have accounted for a 50 percent decline in network TV viewership during 2015. HYPERLINK "" \l "ftn.fn-36"

Accepted Answer

A) True 
 B)False

Costs that do not vary according to production volume are called _____.

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 is known as _____.

The yearly cost to run a Netflix-comparable nationwide delivery infrastructure is about $300 million.

Physical retailers are limited by shelf space and geography (meaning the density of customers around a particular location).

Brands are built through _____.

Marginal costs:

Original content is an investment in allowing a firm to provide differentiated goods, a way to entice and retain customers with exclusive programming not available anywhere else.

Explain the long tail phenomenon at Netflix.

How does Cinematch offer Netflix additional operational advantages for the DVD-by-mail business?

Provide a brief description of the basics of the Netflix DVD-by-mail business model.

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 to:

___________ refers to the rate at which customers leave a product or service

For traditional retailers selling physical goods, _____ is the biggest constraint limiting a firm's ability to offer customers what they want and when they want it.

Collaborative filtering is a technology that allows customers to meet and select titles for viewing parties.

Crowdsourcing is:

How does Netflix use collaborative filtering software to match movie titles with customer tastes? In what ways does this software help Netflix garner sustainable competitive advantage?

Some 75 to 80 percent of what people watch on the service comes from Netflix _________

Why is bargaining power shifting to content providers as the video content industry shifts from atoms to bits?

The Netflix customer experience was always weaker than the in-store experience of DVD rental firms, which had human staff. However, consumers were willing to overlook their dissatisfaction given Netflix's other benefits.

Netflix is said to have accounted for a 50 percent decline in network TV viewership during 2015. HYPERLINK "" \l "ftn.fn-36"

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Exam 4: Netflix in Two Acts: the Making of an E-Commerce Giant and the Uncertain Future of Atoms to Bits

Costs that do not vary according to production volume are called _____.

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 is known as _____.

The yearly cost to run a Netflix-comparable nationwide delivery infrastructure is about $300 million.

Physical retailers are limited by shelf space and geography (meaning the density of customers around a particular location).

Brands are built through _____.

Marginal costs:

Original content is an investment in allowing a firm to provide differentiated goods, a way to entice and retain customers with exclusive programming not available anywhere else.

Explain the long tail phenomenon at Netflix.

How does Cinematch offer Netflix additional operational advantages for the DVD-by-mail business?

Provide a brief description of the basics of the Netflix DVD-by-mail business model.

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 to:

___________ refers to the rate at which customers leave a product or service

For traditional retailers selling physical goods, _____ is the biggest constraint limiting a firm's ability to offer customers what they want and when they want it.

Collaborative filtering is a technology that allows customers to meet and select titles for viewing parties.

Crowdsourcing is:

How does Netflix use collaborative filtering software to match movie titles with customer tastes? In what ways does this software help Netflix garner sustainable competitive advantage?

Some 75 to 80 percent of what people watch on the service comes from Netflix _________

Why is bargaining power shifting to content providers as the video content industry shifts from atoms to bits?

The Netflix customer experience was always weaker than the in-store experience of DVD rental firms, which had human staff. However, consumers were willing to overlook their dissatisfaction given Netflix's other benefits.

Netflix is said to have accounted for a 50 percent decline in network TV viewership during 2015. HYPERLINK "" \l "ftn.fn-36"

Setting the Stage: Technology and the Modern Enterprise

Strategy and Technology: Concepts and Frameworks for Understanding What Separates Winners From Losers

Zara: Fast Fashion From Savvy Systems

Moores Law and More: Fast, Cheap Computing and What This Means for the Manager

Disruptive Technologies: Understanding the Giant Killers and Considerations for Avoiding Extinction

Amazoncom: an Empire Stretching From Cardboard Box to Kindle to Cloud

Understanding Network Effects: Strategies for Competing in a Platform-Centric, Winner-Take-All World

Social Media, Peer Production, and Web 20

The Sharing Economy, Collaborative Consumption, and Creating More Efficient Markets Through Technology

Facebook: a Billion-Plus Users, the High-Stakes Move to Mobile, and Big Business From the Social Graph

Rent the Runway: Entrepreneurs Expanding an Industry

Understanding Software: a Primer for Managers

Software in Flux: Open Source, Cloud, Vittualized and App-Driven Shifts

The Data Asset: Databases, Business Intelligence, Analytics, Big Data, and Competitive Advantage

A Managers Guide to the Internet and Telecommunications

Information Security: Barbarians at the Gateway and Just About Everywhere Else

Google in Three Parts: Search, Online Advertising, and an Alphabet of Opportunity

Filters