Question 1

When Palm Computing worked to get developers to write software for its operating system, they were attempting to create indirect network effects.

Accepted Answer

A) True 
 B)False

Question 2

Network externalities that come from the direct interaction of users are called:

Accepted Answer

A)  complementary products 
B)  substitute products 
C)  direct network effects 
D)  indirect network effects 
A)  complementary products 
B)  substitute products 
C)  direct network effects 
D)  indirect network effects

Question 3

What is Hewlett-Packard using when they sell their printers at a loss in order to make a profit on the sale of ink cartridges?

Accepted Answer

A)  bundling 
B)  customer lock in 
C)  razor-razor blade pricing 
D)  penetration pricing 
A)  bundling 
B)  customer lock in 
C)  razor-razor blade pricing 
D)  penetration pricing

Question 4

Facebook.com had more viewers in May 2006 than any other social networking site.

Accepted Answer

A) True 
 B)False

Question 5

The use of bundling is particularly helpful in building your installed base if the bundled products are not complementary.

Accepted Answer

A) True 
 B)False

Question 6

Indirect network effects are network externalities that come from the direct interaction of users.

Accepted Answer

A) True 
 B)False

Question 7

What method of increasing the installed base did PayPal use when they gave $10 to all new customers?

Accepted Answer

A)  penetration pricing 
B)  bundling 
C)  targeting the mass market 
D)  customer lock in 
A)  penetration pricing 
B)  bundling 
C)  targeting the mass market 
D)  customer lock in

Question 8

How do complementary products increase a focal products value?

Accepted Answer

A)  because the product is less useful if the complement is not present 
B)  because the product is less useful if the complement is present 
C)  because the product is more useful if the complement is not present 
D)  because the product is more useful if the complement is present 
A)  because the product is less useful if the complement is not present 
B)  because the product is less useful if the complement is present 
C)  because the product is more useful if the complement is not present 
D)  because the product is more useful if the complement is present

Question 9

What is most likely to occur in an industry based on decreasing returns?

Accepted Answer

A)  what you earn on your marginal product declines as volume of output increases 
B)  what you earn on your marginal product increases as volume of output increases 
C)  what you earn on your marginal product declines as network externalities increase 
D)  what you earn on your marginal product increase as network externalities increase 
A)  what you earn on your marginal product declines as volume of output increases 
B)  what you earn on your marginal product increases as volume of output increases 
C)  what you earn on your marginal product declines as network externalities increase 
D)  what you earn on your marginal product increase as network externalities increase

Question 10

Network externalities exist when the purchase of a product by a new customer creates additional value for existing customers.

Accepted Answer

A) True 
 B)False

Question 11

What strategic action to exploit network effects was exemplified by Microsoft overtaking RealNetworks' lead in the streaming media market by bundling its media player with its PC operating system?

Accepted Answer

A)  maintenance of the network 
B)  competition that occurs outside the network 
C)  the possibility of sustaining more than one network 
D)  use of strategic action to exploit network effects 
A)  maintenance of the network 
B)  competition that occurs outside the network 
C)  the possibility of sustaining more than one network 
D)  use of strategic action to exploit network effects

When Palm Computing worked to get developers to write software for its operating system, they were attempting to create indirect network effects.

Network externalities that come from the direct interaction of users are called:

What is Hewlett-Packard using when they sell their printers at a loss in order to make a profit on the sale of ink cartridges?

Facebook.com had more viewers in May 2006 than any other social networking site.

The use of bundling is particularly helpful in building your installed base if the bundled products are not complementary.

Indirect network effects are network externalities that come from the direct interaction of users.

What method of increasing the installed base did PayPal use when they gave $10 to all new customers?

How do complementary products increase a focal products value?

What is most likely to occur in an industry based on decreasing returns?

Network externalities exist when the purchase of a product by a new customer creates additional value for existing customers.

What strategic action to exploit network effects was exemplified by Microsoft overtaking RealNetworks' lead in the streaming media market by bundling its media player with its PC operating system?

Introduction

Technology Evolution

Technology Adoption and Diffusion

Sources of Innovation

Selecting Innovation Projects

Customer Needs

Product Development

Patents

Trade Secrets, Trademarks, and Copyrights

Capturing Value From Innovation

Competitive Advantage in High-Tech Industries

Technical Standards

Collaboration Strategies

Strategic Human Resource Management of Technical Professionals

Organization Structure for Technology Strategy

Filters

Exam 13: Strategy in Networked Industries

When Palm Computing worked to get developers to write software for its operating system, they were attempting to create indirect network effects.

Network externalities that come from the direct interaction of users are called:

What is Hewlett-Packard using when they sell their printers at a loss in order to make a profit on the sale of ink cartridges?

Facebook.com had more viewers in May 2006 than any other social networking site.

The use of bundling is particularly helpful in building your installed base if the bundled products are not complementary.

Indirect network effects are network externalities that come from the direct interaction of users.

What method of increasing the installed base did PayPal use when they gave $10 to all new customers?

How do complementary products increase a focal products value?

What is most likely to occur in an industry based on decreasing returns?

Network externalities exist when the purchase of a product by a new customer creates additional value for existing customers.

What strategic action to exploit network effects was exemplified by Microsoft overtaking RealNetworks' lead in the streaming media market by bundling its media player with its PC operating system?

Introduction

Technology Evolution

Technology Adoption and Diffusion

Sources of Innovation

Selecting Innovation Projects

Customer Needs

Product Development

Patents

Trade Secrets, Trademarks, and Copyrights

Capturing Value From Innovation

Competitive Advantage in High-Tech Industries

Technical Standards

Collaboration Strategies

Strategic Human Resource Management of Technical Professionals

Organization Structure for Technology Strategy

Filters