Bus401 s07 sena quiz7 - O\O(o Bus 401 Quiz 7 Student fig...

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Unformatted text preview: / O \O/(o Bus 401 Quiz 7 Student: . fig This test is open book, open notes. Please submit your test answers directly to your instructor at the beginning of the next class. Please do NOT submit them in electronic form —- either via the digital drop box in blackboard or by email. Chapter 8 1. Digital technologies and lnternet-based capabilities are rarely sources of competitive disruption. True or. 2. The Internet provides an electronic “staging area” for several forms of digital communications. -r False 3. The Internet has created a new climate for business in which the traditional principles 0 trategic management are less important. True 0 ‘w 4. In most industries, new entrants will be a bigger threat because the Internet lo 3 entry barriers. fir False 5. New entrants who use the lnternet to launch their businesses can use overall low cost and/or differentiation strategies to compete. ® False 6. The lnternet and digital technologies suppress the bargaining power of buyers by providing them with more information to make buying decisions. True or. 7. Because a large amount of consumer information is available via the Internet, end users typically have greater bargaining power. rue r False 8. An end user's switching costs are potentially much higher because of the Internet. True oCEalse > 9. The bargaining power of distribution channel buyers may decrease because of the lnternet. @r False 10. Because of the lnternet and digital technologies, it is very difficult for suppliers to create pu - . ' 9 techniques that lower switching costs. True Bus 401 Quiz 7 Page 1 11. The process known as disintermediation occurs when “middlemen” are removed fr . supply chain or distribution channel. ‘r False 12. The Internet heightens the threat of substitutes because it creates new ways to plish the same tasks. @Er False 13. Business models can be defined as methods companies use to create value and : ». ~ profits in a competitive environment. @ . r False 14. A commission—based business model, when applied to the Internet, is similar to the broadcast television model in which viewers watch shows produced with revenue -~ commission fees. True [email protected] 15. One way the Internet and digital technologies are creating opportunities for firms . u ‘ differentiation strategies is by enabling mass customization. @ or False 16. The Internet offers few advantages for focusers because niche players and small companies cannot implement Internet capabilities as effectively as their larger competit- - True 0 a \ 17. The greatest danger to the success of many Internet start-ups is that the service r ca ability they offer can easily be imitated. r e r False 18. Personalization and customization features always add value to the websites of differenti a that use them. True or $ 19. The Internet has provided a small subset of companies with greater tools for managin ts True or Ease? 20. The Interne makes it possible for firms that want to expand internationally to “leapfrog” the usual path(s) of international development because the technology . . vv firms to directly reach customers from around the globe. fir r False 21. The only technology ever adopted by consumers more rapidly than the Internet was A) the telephone. B) television. C the automobile. one of the above. Bus 401 Quiz 7 Page 2 22. All of the following factors are likely to be impediments to growth in Internet use except A) speed and extent of Internet connectivity. B) international standards for wireless communications. C institutional and regulatory barriers. advances in wireless technology. 23. Because the Internet lowers barriers to entry in most industries, it A decreases the threat of new entrants. B increases the threat of new entrants. ) makes it easier to build customer loyalty. D) increases supplier power. 24. Scale economies may be less important for new entrants that launch Web-based businesses because A) it is relatively more expensive for an incumbent firm to create an impressive Web appearance than a new entrant. B) larger, older companies will have the same Internet expenses as new entrants. C new entrants do not derive any benefit from making volume purchases. the Web makes it possible for new entrants to enter a market with relatively lower capital costs. 25. Which of the following is not one of the reasons why the bargaining power of buyers is increasing because of the Internet? A) the Internet makes it easier for consumers to obtain the information needed to compare prices and make buying decisions. B) Internet technologies are making the cost of switching products or services lower. the Internet isolates customers, which makes differential pricing possible. Internet purchasing practices are shifting emphasis to price competition, which is making consumers less loyal. Bus 401 Quiz 7 Page 3 ...
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