ISOM 2010 Midterm Review || All Answers are Flawless.
What is the cost structure of digital goods? correct answers High fixed cost at start but low
marginal cost --> cheap reproduction
Implications of digital goods' cost structure correct answers Better to sell in bulk where you can
offset expenses
Compete with "free" goods
What are the consumption characteristics of information? correct answers 1) Experience goods
2) information overload
What are the implications of having
1) experience goods and 2) information overload? correct answers 1) show previews, trials
(selling strategy)
2) grab consumers' attention with personalized recommendations and "search and filter"
What are the functions of technology? correct answers Store, retrieve, filter, manipulate, view,
transmit, and receive information
How does technology add value to information? correct answers 1) provides accessibility to info
(real-time)
2) enriches info (filter)
3) facilitates exchange of info
What are the roles of IS/IT in businesses? correct answers 1) Support and enhance business
process
2) Support and enable decision making
3) Support and entrench competitive advantage
, What types of IT are strategic? correct answers Optimizing operational effectiveness
ones that separate you from competitors (think VRIN)
What types of IT aren't strategic? correct answers Ones that don't optimize operational
effectiveness nor separate you from competitors (not VRIN)
What does 'strategic' mean? correct answers distinguishing firm from competitors and having a
competitive edge/advantage
How do we evaluate the strategic value of technology to a firm? correct answers Valuable
Rare
Inimitable
Non-substitutable
(creates competitive advantage)
How does IT affect marketing activities? correct answers Affects the four P's
How does IT affect price? correct answers Price discrimination
What are the three types of price discrimination? correct answers personalized pricing
versioning
group pricing
Price discrimination: Selling items @ premium to HKUST students b/c isolated and not as
convenient to obtain correct answers personalized pricing
Price discrimination: LinkedIn has three account types w/ different pricing options and
capabilities correct answers versioning
What is the cost structure of digital goods? correct answers High fixed cost at start but low
marginal cost --> cheap reproduction
Implications of digital goods' cost structure correct answers Better to sell in bulk where you can
offset expenses
Compete with "free" goods
What are the consumption characteristics of information? correct answers 1) Experience goods
2) information overload
What are the implications of having
1) experience goods and 2) information overload? correct answers 1) show previews, trials
(selling strategy)
2) grab consumers' attention with personalized recommendations and "search and filter"
What are the functions of technology? correct answers Store, retrieve, filter, manipulate, view,
transmit, and receive information
How does technology add value to information? correct answers 1) provides accessibility to info
(real-time)
2) enriches info (filter)
3) facilitates exchange of info
What are the roles of IS/IT in businesses? correct answers 1) Support and enhance business
process
2) Support and enable decision making
3) Support and entrench competitive advantage
, What types of IT are strategic? correct answers Optimizing operational effectiveness
ones that separate you from competitors (think VRIN)
What types of IT aren't strategic? correct answers Ones that don't optimize operational
effectiveness nor separate you from competitors (not VRIN)
What does 'strategic' mean? correct answers distinguishing firm from competitors and having a
competitive edge/advantage
How do we evaluate the strategic value of technology to a firm? correct answers Valuable
Rare
Inimitable
Non-substitutable
(creates competitive advantage)
How does IT affect marketing activities? correct answers Affects the four P's
How does IT affect price? correct answers Price discrimination
What are the three types of price discrimination? correct answers personalized pricing
versioning
group pricing
Price discrimination: Selling items @ premium to HKUST students b/c isolated and not as
convenient to obtain correct answers personalized pricing
Price discrimination: LinkedIn has three account types w/ different pricing options and
capabilities correct answers versioning
