Question 1

Motivation bias and survivor bias are most common in which of the following?

Accepted Answer

A)  Input based scorecards 
B)  Process based scorecards 
C)  Scorecards on horizontally differentiated products 
D)  Scorecards on vertically differentiated products 
E)  Low cost products 
A)  Input based scorecards 
B)  Process based scorecards 
C)  Scorecards on horizontally differentiated products 
D)  Scorecards on vertically differentiated products 
E)  Low cost products C

Question 2

When consumers learn about many products at once,it is known as a :

Accepted Answer

A)  Simultaneous search 
B)  Parallel search 
C)  Serial search 
D)  Sequential search 
E)  Divided search 
A)  Simultaneous search 
B)  Parallel search 
C)  Serial search 
D)  Sequential search 
E)  Divided search A

Question 3

Products for which consumers cannot easily compare product characteristics and value information from others are called:

Accepted Answer

A)  Experience goods 
B)  Search goods 
C)  Retail goods 
D)  Consumer goods 
E)  Credence Goods 
A)  Experience goods 
B)  Search goods 
C)  Retail goods 
D)  Consumer goods 
E)  Credence Goods A

Question 4

Which of the following best describes the consumer's shopping problem?

Accepted Answer

A)  Having enough money to purchase all necessary goods and services 
B)  Finding the seller that offers the highest value of B - P 
C)  Determining the quality of products 
D)  Locating sellers that provide the required products 
E)  Selecting between brand products and non-brand products. 
A)  Having enough money to purchase all necessary goods and services 
B)  Finding the seller that offers the highest value of B - P 
C)  Determining the quality of products 
D)  Locating sellers that provide the required products 
E)  Selecting between brand products and non-brand products.

Question 5

Which of the following terms describes when firms with high scores tend to have more than their share of luck in rankings?

Accepted Answer

A)  Measurement bias 
B)  Process error 
C)  Mean regression 
D)  Multitasking 
E)  Mean reversion 
A)  Measurement bias 
B)  Process error 
C)  Mean regression 
D)  Multitasking 
E)  Mean reversion

Question 6

High quality certification in horizontally differentiated goods is aided by which of the following?

Accepted Answer

A)  Outcome based scorecards 
B)  Internet firms like Google and Yahoo 
C)  Risk adjustment 
D)  Mean reversion 
E)  Firms paying for more scorecards 
A)  Outcome based scorecards 
B)  Internet firms like Google and Yahoo 
C)  Risk adjustment 
D)  Mean reversion 
E)  Firms paying for more scorecards

Question 7

Which of the following is measured by a report card that assesses product performance?

Accepted Answer

A)  Process 
B)  Inputs 
C)  Warrantees 
D)  Outcomes 
E)  Longevity 
A)  Process 
B)  Inputs 
C)  Warrantees 
D)  Outcomes 
E)  Longevity

Question 8

When is a signal informative?

Accepted Answer

A)  When it is lightly advertised by the firm 
B)  When it is more profitable for the high quality firm to offer it 
C)  When there are many firms advertising substitute products 
D)  When it is offered by the low quality firm 
E)  When the first firm that signals is the low quality firm 
A)  When it is lightly advertised by the firm 
B)  When it is more profitable for the high quality firm to offer it 
C)  When there are many firms advertising substitute products 
D)  When it is offered by the low quality firm 
E)  When the first firm that signals is the low quality firm

Question 9

Why do consumers tend to gravitate towards non-profit firms when evaluating credence goods?

Accepted Answer

A)  Consumers like giving to charities 
B)  Non-profit firms charge lower prices 
C)  Consumers can deduct some or all of the purchase price for tax purposes 
D)  Non-profit firms offer goods and services not offered by for profit firms 
E)  Consumers believe non-profit sllers will be less likely to skimp on quality for profit. 
A)  Consumers like giving to charities 
B)  Non-profit firms charge lower prices 
C)  Consumers can deduct some or all of the purchase price for tax purposes 
D)  Non-profit firms offer goods and services not offered by for profit firms 
E)  Consumers believe non-profit sllers will be less likely to skimp on quality for profit.

Question 10

Which of the following is measured by a report card that assesses the components of a product?

Accepted Answer

A)  Process 
B)  Inputs 
C)  Warrantees 
D)  Outcomes 
E)  Longevity 
A)  Process 
B)  Inputs 
C)  Warrantees 
D)  Outcomes 
E)  Longevity

Question 11

When consumers learn about one seller at a time it is known as a :

Accepted Answer

A)  Simultaneous search 
B)  Parallel search 
C)  Serial search 
D)  Sequential search 
E)  Divided search 
A)  Simultaneous search 
B)  Parallel search 
C)  Serial search 
D)  Sequential search 
E)  Divided search

Question 12

Why would a report card that measures inputs possibly lead to multitasking?

Accepted Answer

A)  Sellers would raise the price of goods with low quality inputs 
B)  Consumers would only know the "ingredients" in a production process 
C)  The cost of the report card would be passed on in lower product quality 
D)  Sellers may invest only in reported inputs but scale back on unreported inputs 
E)  Firms will not disclose poor report card scores 
A)  Sellers would raise the price of goods with low quality inputs 
B)  Consumers would only know the "ingredients" in a production process 
C)  The cost of the report card would be passed on in lower product quality 
D)  Sellers may invest only in reported inputs but scale back on unreported inputs 
E)  Firms will not disclose poor report card scores

Question 13

Products for which consumers cannot easily evaluate quality even after purchasing and using the product are called:

Accepted Answer

A)  Experience goods 
B)  Search goods 
C)  Retail goods 
D)  Consumer goods 
E)  Credence Goods 
A)  Experience goods 
B)  Search goods 
C)  Retail goods 
D)  Consumer goods 
E)  Credence Goods

Question 14

Which of the following would make an outcome report card difficult to produce?

Accepted Answer

A)  Large sample of outcome measures 
B)  Small sample of outcome measures 
C)  Many outcomes from one product 
D)  Many sellers produce similar products 
E)  Consumers purchase high quantities of the product 
A)  Large sample of outcome measures 
B)  Small sample of outcome measures 
C)  Many outcomes from one product 
D)  Many sellers produce similar products 
E)  Consumers purchase high quantities of the product

Question 15

Which of the following is a source for horizontal differentiation?

Accepted Answer

A)  Price 
B)  Quality 
C)  Advertising 
D)  Location 
E)  Availability of substitutes 
A)  Price 
B)  Quality 
C)  Advertising 
D)  Location 
E)  Availability of substitutes

Question 16

Which of the following is not a reason for customer survey bias in quality measures?

Accepted Answer

A)  Different customers may use different measurement criteria 
B)  Customers may have an incentive to inflate ratings to influence the average score 
C)  Customers often lie in consumer surveys 
D)  Customers are reluctant to leave negative feedback 
E)  Consumer feedback is unverifiable. 
A)  Different customers may use different measurement criteria 
B)  Customers may have an incentive to inflate ratings to influence the average score 
C)  Customers often lie in consumer surveys 
D)  Customers are reluctant to leave negative feedback 
E)  Consumer feedback is unverifiable.

Question 17

Unraveling is an economic theory that describes which of the following?

Accepted Answer

A)  Low quality products will be quickly discovered and abandoned by buyers 
B)  High seller concentration leads to the development of many substitute products 
C)  Few sellers improve product quality once they have scale in production 
D)  Even low quality sellers will disclose their product quality 
E)  Consumers ultimately switch products regardless of quality 
A)  Low quality products will be quickly discovered and abandoned by buyers 
B)  High seller concentration leads to the development of many substitute products 
C)  Few sellers improve product quality once they have scale in production 
D)  Even low quality sellers will disclose their product quality 
E)  Consumers ultimately switch products regardless of quality

Question 18

Which of the following terms describes when efforts to promote improvements on one dimension of performance are confounded by changes in other dimensions of performance?

Accepted Answer

A)  Multitasking 
B)  Co-linearity 
C)  Test bias 
D)  Dimension bias 
E)  Linking 
A)  Multitasking 
B)  Co-linearity 
C)  Test bias 
D)  Dimension bias 
E)  Linking

Question 19

Which of the following is a statistical process in which raw outcome measures are adjusted for factors that are beyond the control of the seller?

Accepted Answer

A)  Risk adjustment 
B)  Mean reversion 
C)  Score adjustment 
D)  Noise limiting 
E)  Outcome adjustment 
A)  Risk adjustment 
B)  Mean reversion 
C)  Score adjustment 
D)  Noise limiting 
E)  Outcome adjustment

Question 20

Which of the following would not reduce gaming of report cards?

Accepted Answer

A)  Reporting scores using simple graphics 
B)  Using simple composite scores 
C)  Making firms pay for report card results 
D)  Measure quality at the most aggregate level 
E)  risk adjust report card scores 
A)  Reporting scores using simple graphics 
B)  Using simple composite scores 
C)  Making firms pay for report card results 
D)  Measure quality at the most aggregate level 
E)  risk adjust report card scores

Motivation bias and survivor bias are most common in which of the following?

When consumers learn about many products at once,it is known as a :

Products for which consumers cannot easily compare product characteristics and value information from others are called:

Which of the following best describes the consumer's shopping problem?

Which of the following terms describes when firms with high scores tend to have more than their share of luck in rankings?

High quality certification in horizontally differentiated goods is aided by which of the following?

Which of the following is measured by a report card that assesses product performance?

When is a signal informative?

Why do consumers tend to gravitate towards non-profit firms when evaluating credence goods?

Which of the following is measured by a report card that assesses the components of a product?

When consumers learn about one seller at a time it is known as a :

Why would a report card that measures inputs possibly lead to multitasking?

Products for which consumers cannot easily evaluate quality even after purchasing and using the product are called:

Which of the following would make an outcome report card difficult to produce?

Which of the following is a source for horizontal differentiation?

Which of the following is not a reason for customer survey bias in quality measures?

Unraveling is an economic theory that describes which of the following?

Which of the following terms describes when efforts to promote improvements on one dimension of performance are confounded by changes in other dimensions of performance?

Which of the following is a statistical process in which raw outcome measures are adjusted for factors that are beyond the control of the seller?

Which of the following would not reduce gaming of report cards?

The Power of Principles: an Historical Perspective

Economies of Scale and Scope

The Vertical Boundaries of the Firm

Integration and Its Alternatives

Competitors and Competition

Entry and Exit

The Dynamics Competing Across Time

Industry Analysis

Strategic Positioning for Competitive Advantage

Sustaining Competitive Advantage

Performance Measurement and Incentives

Strategy and Structure

Environment, power, and Culture

Filters

Exam 10: Information and Value Creation

Motivation bias and survivor bias are most common in which of the following?

When consumers learn about many products at once,it is known as a :

Products for which consumers cannot easily compare product characteristics and value information from others are called:

Which of the following best describes the consumer's shopping problem?

Which of the following terms describes when firms with high scores tend to have more than their share of luck in rankings?

High quality certification in horizontally differentiated goods is aided by which of the following?

Which of the following is measured by a report card that assesses product performance?

When is a signal informative?

Why do consumers tend to gravitate towards non-profit firms when evaluating credence goods?

Which of the following is measured by a report card that assesses the components of a product?

When consumers learn about one seller at a time it is known as a :

Why would a report card that measures inputs possibly lead to multitasking?

Products for which consumers cannot easily evaluate quality even after purchasing and using the product are called:

Which of the following would make an outcome report card difficult to produce?

Which of the following is a source for horizontal differentiation?

Which of the following is not a reason for customer survey bias in quality measures?

Unraveling is an economic theory that describes which of the following?

Which of the following terms describes when efforts to promote improvements on one dimension of performance are confounded by changes in other dimensions of performance?

Which of the following is a statistical process in which raw outcome measures are adjusted for factors that are beyond the control of the seller?

Which of the following would not reduce gaming of report cards?

The Power of Principles: an Historical Perspective

Economies of Scale and Scope

The Vertical Boundaries of the Firm

Integration and Its Alternatives

Competitors and Competition

Entry and Exit

The Dynamics Competing Across Time

Industry Analysis

Strategic Positioning for Competitive Advantage

Sustaining Competitive Advantage

Performance Measurement and Incentives

Strategy and Structure

Environment, power, and Culture

Filters