Q22. When evaluating channel performance, all of the following may serve as performance indicators, except:
a. resellers loyalty
b. customer satisfaction with reseller
c. exclusive dealing arrangements
d. reseller’s contribution to growth
e. quantitative indicators
Q23. In terms of evaluating investments in corporate philanthropy, which of the following would be considered a “demand condition”?
a. presence of sophisticated and demanding local customers
b. presence of resources used in production, such as infrastructure or human resources
c. presence of clusters instead of isolated industries
d. presence of educational facilities and related nonprofits
e. presence of regulations supporting a competitive marketplace
Q24. The paramount basis of competitive advantage in high-technology industries is:
a. promotion
b. price
c. location
d. intellectual property
e. facilities
Q25. While at work, 85 percent of employees use their companies’ Internet access for personal purposes roughly 3.7 hours per week. This would be an example of which technology paradox?
a. control/chaos
b. assimilation/isolation
c. efficiency/inefficiency
d. new/obsolete
e. social responsibility/irresponsibility
Q26. With respect to the legal issues involved in digital rights management, which of the following is true?
a. some legislation has had inconsistent messages for consumers, for example, the 1992 Audio Home Recording Act granted consumers the right to unlimited private use of legally purchased music, videos, books, and other media content, although the 1998 Digital Millennium Copyright Act made it a crime to circumvent copy protection
b. the Betamax case (between Sony and Universal Studios in 1984) has not been applicable to current cases involving file swapping because it is so old
c. the Recording Industry Association of America (the RIAA) was not successful in its lawsuit against Napster because it used a disaggregated approach to file sharing
d. although the entertainment companies may be successful in circumventing technological innovations that facilitate file sharing, they may actually be missing out on new opportunities to grow revenue
e. the RIAAs lawsuit against individual users (sued for copyright violations in using file-sharing services) showed a significant effect on limiting illegal music downloads
Q27. Derivative products:
a. are what remain after the platform product is built
b. include different models, brands, or versions of the platform product
c. are intended to fill performance gaps between platform products
d. a, b, and c
e. b and c
Q28. When matching the type of innovation with supply-chain functions, it is appropriate to match:
a. products with fairly predictable attributes to market mediation functions
b. an incremental innovation with a physical function
c. an incremental innovation with market mediation functions
d. a breakthrough innovation with a physical function
e. either type of innovation can be matched with the various supply-chain functions without creating inefficiencies in supply-chain management
Q29. Which of the following is not descriptive of the advertising and promotion pyramid?
a. the base of the pyramid has tools with a wider coverage of the target audience
b. the tools at the top of the pyramid have lower cost per contact than tools at the bottom
c. the pyramid implies a trade-off between coverage and cost per contact
d. the Internet can be used at all levels in the pyramid
e. the Internet as a communication tool in the pyramid is scalable and cost-efficient
Q30. ____________ customers need high levels of service, often with quick and reliable response times, and are willing to pay for the privilege.
a. basic needs
b. risk avoider
c. hand holder
d. intermediate needs
e. advanced needs
Q31. Which of the following is not one of the roles of the government in facilitating technology and innovation, as identified in the chapter?
a. providing financial support for research and development efforts
b. initiating legislation to ensure fair competition in technology-based industries
c. protecting the ability of large U.S. companies to compete in a global market
d. ensuring consumer welfare with respect to issues such as privacy, access, and so forth
e. facilitating development of industry standards, in some situations where industry players cannot agree
Q32. The 3 Cs of pricing (making up the three-legged stool) are:
a. costs, competition, creativity
b. cannibalization, costs, competition
c. cannibalization, competition, customers
d. costs, competition, customers
e. costs, company, customers
