a) Ones where you can learn all the important characteristics before buying
b) Ones where you can learn all the important characteristics by using the good
c) Ones where even using the good does not reveal important characteristics
d) None of the above
Answer: b) Ones where you can learn all the important characteristics by using the good
a) Customer information can be captured more directly and in greater quantities
b) New kinds of customer information, such as browsing patterns, can be captured and analyzed
c) 'On-the-fly' customization is possible
d) All of the above
Answer: D) all of the above
a) A product is an experience good and consumers need to be induced to try it out
b) Consumers have switching costs
c) A new product is introduced and consumers do not know its characteristics
d) All of the above
Answer: D) all of the above
a) Advertising that pulls in the customer
b) Advertising that exerts a strong appeal
c) Advertising that is pulled in by the consumer, i.e., provided in response to a specific query
d) All of the above
Answer: c) Advertising that is pulled in by the consumer, i.e., provided in response to a specific query
a) Paid listings with search services
b) E-mail to customers and prospects
c) TV infomercials
d) Classified advertising on Craigslist
Answer: C) TV infomercials
a) Free distribution of limited copyrighted content for promotional purposes
b) Lawsuits against possible copyright violators
c) Technologies to prevent copying
d) All of the above
Answer: D) all of the above
a) Bundling
b) Quantity discounts
c) Versioning
d) Any of the above
Answer: D) any of the above
a) The willingness to pay for bundles is less dispersed than the willingness to pay for components
b) It increases switching costs for existing buyers
c) It increases selling costs
d) Only a) and b) above
Answer: D) only A) and B) above
a) One version is not unanimously considered to be better than another, but rather the ranking of products depends on the subjective tastes of the customer
b) Users are unanimous in their ranking of products or services based on the gross value
c) Products are bundled
d) Products are homogeneous
Answer: b) Users are unanimous in their ranking of products or services based on the gross value
a) Matching consumer tastes better
b) Supporting open standards
c) Supporting price discrimination
d) Making the demand for your products less elastic
Answer: b) Supporting open standards
a) Lower transaction costs
b) Greater interactivity between buyers and sellers
c) Guaranteed higher profit margins
d) Better matching of buyers and sellers
Answer: c) Guaranteed higher profit margins
a) Financial claims are essentially just information, and are natural candidates for digitization
b) Much of the back office infrastructure was already electronic
c) Deregulation of financial services made new entry easier
d) All of the above
Answer: D) all of the above
a) Benefiting from complementarity of productive assets
b) Outsourcing some tasks or functions
c) Protecting proprietary knowledge
d) Economies of scope in coordinating provision of different services
Answer: b) Outsourcing some tasks or functions
a) Information is a shareable or non-rival good
b) Digital products are very durable
c) Automation based on information technology converts some variable costs of products to fixed costs
d) All of the above
Answer: D) all of the above
a) Customization
b) Interactivity
c) Currency or timeliness
d) Cupidity
Answer: D) Cupidity
a) Be shareable
b) Be non-excludable
c) Be easy to customize, leading to product differentiation
d) All of the above
Answer: D) all of the above
a) Content
b) Tokens of exchange
c) Processes and services
d) All of the above
Answer: D) all of the above
a) Trademark law
b) Trade secret law
c) Patent law
d) Copyright law
Answer: A) trademark law
a) The costs of transmitting information are lower
b) Communications with customers can be more integrated with internal business processes such as order processing and inventory management
c) Consumers can easily identify false statements on the Internet
d) Both a) and b)
Answer: D) both a) and b)
a) Economies of scope
b) Economies of scale
c) Economies of specialization
d) All of the above
Answer: D) all of the above