Question 1

Brands are built through _____.

Accepted Answer

A)   customer awareness
B)   data assets
C)   excessive advertising
D)   customer profiling
E)   customer experienceF) None of the above
G) All of the above

Question 2

Netflix enjoys the triple scale advantage of the largest customer base, the largest selection, and the largest network of distribution centers. This can be attributed to:

Accepted Answer

A)   Netflix's specialized focus on advertising and marketing.
B)   Netflix's first-mover advantage.
C)   Netflix going public to generate funds for expansion.
D)   Netflix's effective and aggressive pricing strategy.
E)   the bargaining clout it exercises over movie studios and the government.F) A) and B)
G) A) and C)

Question 3

Netflix competitors in streaming are small and mostly unprofitable.

Accepted Answer

A) True 
 B)False

Question 4

The business of streaming video is radically different from DVD-by-mail in several key ways, including content costs, content availability, revenue opportunities, rivals and their motivation.

Accepted Answer

A) True 
 B)False

Question 5

Netflix, the one-time "dot-com" upstart managed to achieve scale economies despite the fact that it faced two massive rivals: Blockbuster, a name synonymous with home video rental, and Walmart, not just a large firm, Fortune One, the largest firm in the US ranked by revenues. In what ways did Netflix offer size advantages over these rivals?

Accepted Answer

Netflix's scale in DVD-by-mail is based ...

Question 6

Netflix offered its subscribers a selection of over one hundred thousand DVD-by-mail titles, while other video rental firms can only offer as much as three thousand. This presents a significant _____ for Netflix over its rivals.

Accepted Answer

A)   marginal cost
B)   price advantage
C)   variable cost
D)   studio preference
E)   scale advantageF) B) and E)
G) A) and D)

Question 7

In the context of the Netflix case, _____ refers to an extremely large selection of content or products.

Accepted Answer

The answer of In the context of the Netflix case,...

Question 8

In exchange for a percentage of the DVD-by-mail subscription revenue for every disk sent out by Netflix, movie studios offer Netflix:

Accepted Answer

A)   online streaming rights free of cost.
B)   higher fees for marketing less-popular movies.
C)   DVD titles at a discounted or wholesale price.
D)   distribution rights to certain movies free of cost.
E)   strong bargaining power in negotiations for digital distribution rights.F) A) and B)
G) B) and D)

Question 9

The long tail is a phenomenon whereby firms can make money by:

Accepted Answer

A)   selling the same product at different prices with only minor tweaks in their design.
B)   leveraging customers to promote their products or services.
C)   reselling multiple versions of a single product under different brand names.
D)   offering a selection of products or services vastly greater than conventional retailers.
E)   sell the same product to virtually every customer the Internet can reach.F) A) and C)
G) C) and E)

Question 10

Netflix can send out any DVD it buys because of a Supreme Court ruling known as the _____.

Accepted Answer

A)   clickwrap agreement
B)   Betamax ruling
C)   fair use law
D)   First Sale Doctrine
E)   Copyright DirectiveF) A) and D)
G) C) and D)

Question 11

Within the DVD-by-mail segment, Netflix remained bigger than both Wal-Mart and Blockbuster.

Accepted Answer

A) True 
 B)False

Question 12

Durable brands are built through customer experience.

Accepted Answer

A) True 
 B)False

Question 13

The marginal cost of digital goods is typically considered to be _____________

Accepted Answer

The answer of The marginal cost of digital goods is...

Question 14

Once Netflix became a public company, the firm was required to disclose its financial position and reveal it was on a profit march.

Accepted Answer

A) True 
 B)False  True

Question 15

Internet retailers serve a larger geographic area with comparably smaller infrastructure and staff. This fact suggests that Internet businesses are more _____.

Accepted Answer

A)   churn-prone
B)   asymptotic
C)   capitalized
D)   vertically integrated
E)   scalableF) A) and E)
G) A) and D)

Question 16

By shifting to a streaming model, Netflix stands to eliminate shipping and handling costs.

Accepted Answer

A) True 
 B)False

Question 17

Although sometimes referred to as "rental," Netflix's model is really a substitute good for conventional use-based media rental.

Accepted Answer

A) True 
 B)False

Question 18

How does Cinematch offer Netflix additional operational advantages for the DVD-by-mail business?

Accepted Answer

A)   Cinematch offers alternate recommendations of movies based on critical acclaim and box office performance parameters.
B)   Cinematch is linked to warehouses and recommends movies that are likely to be in stock.
C)   Cinematch is often used by movie studios to plan movie scripts based on user preferences.
D)   Cinematch is a source of additional revenue to Netflix as a marketing tool for recommending newly-released movies.
E)   Netflix leases the Cinematch collaborative filtering software to smaller firms at a fee, withholding the valuable user ratings.F) A) and E)
G) B) and E) B

Question 19

Crowdsourcing is:

Accepted Answer

A)   a phenomenon whereby firms can make money by offering a near-limitless selection.
B)   the act of taking a job traditionally performed by a designated agent and contracting it out to an undefined generally large group of people in the form of an open call.
C)   a classification of software that monitors trends among customers and uses this data to personalize an individual customer's experience.
D)   the removal of an organization from a firm's distribution channel.
E)   an industry practice whereby content is available to a given distribution channel for a specified time period or 'window,' usually under a different revenue model.F) A) and B)
G) C) and D) B

Question 20

When firms enjoy economies of scale they:

Accepted Answer

A)   have a greater share of liquid assets than rivals.
B)   have bigger production facilities than their competitors.
C)   have a wider employee base than their competitors.
D)   leverage the cost of an investment across increasing units of production.
E)   leverage investment costs to decrease their subscriber acquisition costs.F) A) and D)
G) A) and B)

Exam 4: Netflix in Two Acts: the Making of an E-Commerce Giant and the Uncertain Future of Atoms to Bits

Brands are built through _____.

Correct Answer
verified

Netflix enjoys the triple scale advantage of the largest customer base, the largest selection, and the largest network of distribution centers. This can be attributed to:

Correct Answer
verified

Netflix competitors in streaming are small and mostly unprofitable.

Correct Answer
verified

The business of streaming video is radically different from DVD-by-mail in several key ways, including content costs, content availability, revenue opportunities, rivals and their motivation.

Correct Answer
verified

Correct Answer
verified
Netflix's scale in DVD-by-mail is based ...
View Answer

Netflix offered its subscribers a selection of over one hundred thousand DVD-by-mail titles, while other video rental firms can only offer as much as three thousand. This presents a significant _____ for Netflix over its rivals.

Correct Answer
verified

In the context of the Netflix case, _____ refers to an extremely large selection of content or products.

Correct Answer
verified

In exchange for a percentage of the DVD-by-mail subscription revenue for every disk sent out by Netflix, movie studios offer Netflix:

Correct Answer
verified

The long tail is a phenomenon whereby firms can make money by:

Correct Answer
verified

Netflix can send out any DVD it buys because of a Supreme Court ruling known as the _____.

Correct Answer
verified

Within the DVD-by-mail segment, Netflix remained bigger than both Wal-Mart and Blockbuster.

Correct Answer
verified

Durable brands are built through customer experience.

Correct Answer
verified

The marginal cost of digital goods is typically considered to be _____________

Correct Answer
verified

Once Netflix became a public company, the firm was required to disclose its financial position and reveal it was on a profit march.

Correct Answer
verified
True

Internet retailers serve a larger geographic area with comparably smaller infrastructure and staff. This fact suggests that Internet businesses are more _____.

Correct Answer
verified

By shifting to a streaming model, Netflix stands to eliminate shipping and handling costs.

Correct Answer
verified

Although sometimes referred to as "rental," Netflix's model is really a substitute good for conventional use-based media rental.

Correct Answer
verified

How does Cinematch offer Netflix additional operational advantages for the DVD-by-mail business?

Correct Answer
verified
B

Crowdsourcing is:

Correct Answer
verified
B

When firms enjoy economies of scale they:

Correct Answer
verified

Exam 4: Netflix in Two Acts: the Making of an E-Commerce Giant and the Uncertain Future of Atoms to Bits

Brands are built through _____.

Correct AnswerverifiedShow Answer

Netflix enjoys the triple scale advantage of the largest customer base, the largest selection, and the largest network of distribution centers. This can be attributed to:

Correct AnswerverifiedShow Answer

Netflix competitors in streaming are small and mostly unprofitable.

Correct AnswerverifiedShow Answer

The business of streaming video is radically different from DVD-by-mail in several key ways, including content costs, content availability, revenue opportunities, rivals and their motivation.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedNetflix's scale in DVD-by-mail is based ...View AnswerShow Answer

Netflix offered its subscribers a selection of over one hundred thousand DVD-by-mail titles, while other video rental firms can only offer as much as three thousand. This presents a significant _____ for Netflix over its rivals.

Correct AnswerverifiedShow Answer

In the context of the Netflix case, _____ refers to an extremely large selection of content or products.

Correct AnswerverifiedShow Answer

In exchange for a percentage of the DVD-by-mail subscription revenue for every disk sent out by Netflix, movie studios offer Netflix:

Correct AnswerverifiedShow Answer

The long tail is a phenomenon whereby firms can make money by:

Correct AnswerverifiedShow Answer

Netflix can send out any DVD it buys because of a Supreme Court ruling known as the _____.

Correct AnswerverifiedShow Answer

Within the DVD-by-mail segment, Netflix remained bigger than both Wal-Mart and Blockbuster.

Correct AnswerverifiedShow Answer

Durable brands are built through customer experience.

Correct AnswerverifiedShow Answer

The marginal cost of digital goods is typically considered to be _____________

Correct AnswerverifiedShow Answer

Once Netflix became a public company, the firm was required to disclose its financial position and reveal it was on a profit march.

Correct AnswerverifiedTrue

Internet retailers serve a larger geographic area with comparably smaller infrastructure and staff. This fact suggests that Internet businesses are more _____.

Correct AnswerverifiedShow Answer

By shifting to a streaming model, Netflix stands to eliminate shipping and handling costs.

Correct AnswerverifiedShow Answer

Although sometimes referred to as "rental," Netflix's model is really a substitute good for conventional use-based media rental.

Correct AnswerverifiedShow Answer

How does Cinematch offer Netflix additional operational advantages for the DVD-by-mail business?

Correct AnswerverifiedB

Crowdsourcing is:

Correct AnswerverifiedB

When firms enjoy economies of scale they:

Correct AnswerverifiedShow Answer

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Netflix's scale in DVD-by-mail is based ...
View Answer

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Correct Answer
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Correct Answer
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True

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B

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B

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