Quiz 3 MarketingQuestion 1According to Professor Bell, its never been easier to start a new business, and a product idea for a new business should do all of the following EXCEPT:Be easy to explain and describe Deliver exceptional value NOT require much capital to test and scale Address a large market Always be a completely new idea Question 2In regards to execution, Professor Bell names four changes that are affecting the way new businesses are coming about and growing. Which of the following is NOT one of these trends?Collaborative consumption Democratization in access Luxurification of mass market Value chain disruption Matching of supply and demand Question 3In recent years, several major cities have started offering bike-sharing programs. In New York there is Citi Bike, in London there is Barclays Cycle Hire, and in Paris there is Velib. What trend do these bike sharing programs represent?

Democratization in access Collaborative consumption Matching of supply and demand Value chain disruption Question 4Louisa wants to purchase a new watch and goes to her local jewelry store. She finds a watch that she likes, but its more expensive than she was hoping to spend. There is another watch store in the next town, which is 15 miles away and which may have some nice watches at better prices. She ultimately decides against checking out the inventory of the other store because she doesnt want to spend the time it would take to drive over. What type of friction has Louisa experienced?Search friction Travel friction Customer friction Geographic friction Selection friction Time friction Constraint friction Question 5Jeff decides to move from Houston, Texas to Toronto, Canada. While Toronto has many benefits that Houston does not, Jeff is disappointed to realize that he can no longer attend NFL football games, which is one of his favorite things to do. What type of friction has Sam experienced?Selection friction Time friction Constraint friction Geographic friction Customer friction Travel friction Search friction Question 6The virtual world is a _____ in larger places where we need to figure out what to do with our free time.Complement Substitute Question 7If you own a small bookstore in Philadelphia, are you more likely to sells books from the head or the long tail?The long tail The head Both Neither Question 8What is the supply-side hypothesis for the existence of the long tail?Its now possible for sellers to offer a lot more variety because the economics of distributing those products have changed dramatically. Peoples tastes are more varied because they have access to a greater variety of products. The internet has allowed many more people to become product suppliers. Big hits are becoming even more popular among internet users. Question 9The average level of satisfaction __________ as you go from the head to the long tail.Increases Stays constant Decreases Question 10The Lorenz curve below shows that:

http://www.economicsconcepts.com/lorenz_curve_and_gini_coefficient.htm Bottom 70% of the population holds 30% of all of the income Income is equally distributed in this population according to the Gini-coefficient Top 30% of the population holds 30% of all of the income 50% of the population holds 50% of all of the income Question 11Research has shown that internet channels follow _________ distribution, whereas catalogues follow _________ distribution. an 80-20; a long-tail sales a long-tail sales; a Gini-coefficient a long-tail sales; an 80-20 a Gini-coefficient; a long-tail sales Question 12There is a greater number of sales of niche products on the internet for all of the reasons below EXCEPT:Reviews High-quality images Non-directed search Directed search Question 13The long-tail phenomenon is dependent on the:Both Demand side Neither Supply side Question 14Please choose the best answer. In the context of marketing, the Law of Double Jeopardy states that:You cant be tried for the same crime twice Customers buy products and services that have been recommended by their peers People like to watch hits twice but usually no more than that Unfamiliar things are less well-liked Question 15People who dont read a lot of books tend to read best-sellers. What is this trend an example of?Product centricity Law of Natural Monopoly Long tail Gini-coefficient Question 16Research shows that more isolated customers are _________ to shop online.Less likely More likely Question 17You are the owner of a company that makes high-end kitchen equipment and your target customer group is wealthy, single adults between the ages of 26 and 40 years old. Which of the following markets is most likely to have the greatest online sales?Market B has 250 target customers and 750 non-target customers Market D has 300 target customers and 1000 non-target customers Market C has 300 target customers and 300 non-target customers Market A has 250 target customers and 250 non-target customers Question 18True or false: a portion of the value in global stock markets is attributable to the brand power of companies.True False Question 19Choose the best answer: from a marketing perspective, what is demonstrated by the following figures?

The importance of digital marketing The superiority of the Guinness brand The difference in taste between many beer brands today The importance of brand Question 20Professor Fader introduced us to the concept of CLV - customer lifetime value. Professor Bell continued the discussion of CLV this week and explained that in the digital environment, CLV needs to also incorporate RLV. What is RLV?Referral lifetime value Retail lifetime value Recent lifetime value Relative lifetime value