Deck 17: Managing Information in a Global World

Question 1

Recalls are a fact of life for the food industry according to a senior vice-president of a large Canadian supermarket chain.What technology should this company use to identify the location of products in its warehouse that have been recalled?

A) RFID tags
B) bar codes
C) electronic scanners
D) data warehouse

Answer 1

A
RFID tags are most efficient because they can be read by a radio that has been tuned to a specific frequency.

Question 2

Chris was the first amongst the sales group to purchase a smartphone when they were introduced to the market.This gave Chris an upper hand on other sales staff as he could stay in closer touch with current and potential customers and respond to their needs more quickly.What upper hand did the smartphone give Chris?

A) first-mover advantage
B) lower profits
C) less market adaptability
D) increased synergy

Answer 2

A

Question 3

What are the two basic methods of capturing information?

A) systematic and unsystematic
B) planned and unplanned
C) continuous and intermittent
D) manual and electronic

Answer 3

D

Question 4

Which of the following generates ASCII text in the process of capturing information?

A) bar codes
B) electronic scanners
C) optical character recognition software
D) e-tools

Question 5

In 1921,realtor Billy Ingram closed his real-estate company and opened White Castle restaurants to sell hamburgers.In 1921,hamburgers were thought to be made from rotten beef and not fit for human consumption.Ingram ground fresh beef in front of customers to prove it was safe and was the first to successfully sell hamburgers to the middle class.Today,Ingram is credited as the founder of the fast-food industry.He could not,however,convert new information about social and cultural changes into his strategic plans.White Castle has 330 locations,and McDonald's has 25,000 stores.What technology difficulty did White Castle have vs other fast food chains that hindered its growth rate?

A) White Castle was unable to change raw data into useful information as well as its competitors could.
B) The competitive advantage White Castle achieved from being first was not sustainable.
C) White Castle lost its pioneering differential.
D) Product diffusion rates were slow.

Question 6

Which of the following best describes the manual capture of information?

A) fast
B) expensive
C) low labour requirements
D) highly accurate

Question 7

According to which of the following rules will the cost of computing drop by 50 percent as computer-processing power doubles every 18 months?

A) Moore's law
B) Gordon's law
C) the Peter principle
D) the rule of e-commerce

Question 8

Which term is best used to define pages listing all of the felony crimes perpetrated in New York during the last decade?

A) a resource allocation table
B) traditional knowledge
C) raw data
D) perceived knowledge

Question 9

Colin has been hired by a restaurant chain for a co-op term.The restaurant owner wants Colin to take the sales results from each day for each location and create organized reports.The owner wants to make decisions but at the moment does not have the results in a form he can understand.What form are the sales results in that Colin will use to create organized reports?

A) nonspecific information
B) processed data
C) raw data
D) perceived knowledge

Question 10

According to the resource-based view of information technology,what sustains competitive advantage?

A) simplified technology
B) continuous improvement from the use of raw data
C) similar technology across the entire firm
D) when information technology creates value

Question 11

Why is information strategically important for organizations?

A) Information can be used to obtain first-mover advantage.
B) Information is derived from perceived knowledge, which limits its availability.
C) Information cannot be used as a medium of exchange.
D) Information creates suboptimization opportunities.

Question 12

Which of the following terms is best used to define a table showing the order frequencies as well as the average dollar value of the orders of different segments of a catalogue retailer's market?

A) an MIS
B) perceived knowledge
C) raw data
D) information

Question 13

Peter used a photocopy of a sales report to capture the information into his computer so that he could make changes to the report using his word processing software.What enabled Peter do this?

A) electronic bar scanners
B) optical numerical readers
C) optical character recognition software
D) radio frequency analogue systems

Question 14

Ken owns a large financial planning and insurance company.He has records of over 1,000 clients and all of the purchase decisions.Ken wants to determine if a relationship exists between financial planning decisions and insurance purchases made by his customers.What technology will help Ken accomplish this?

A) information keystoning
B) data mining
C) data warehousing
D) data outsourcing

Question 15

Cassie is able to send images from a trade magazine via email from her office in Ottawa to a team member working in Japan.What is Cassie using to capture the images from the magazine?

A) electronic data interchange
B) electronic scanner
C) radio frequency information digitizer (RFID)
D) bar coding device

Question 16

According to the textbook,where is information derived from?

A) raw data
B) perceived knowledge
C) influential knowledge
D) competitive data

Question 17

In 1921,realtor Billy Ingram closed his real-estate company and opened White Castle restaurants to sell hamburgers.In 1921,hamburgers were thought to be made from rotten beef and not fit for human consumption.Ingram ground fresh beef in front of customers to prove it was safe and was the first to successfully sell hamburgers to the middle class.Today,Ingram is credited as the founder of the fast-food industry.Ingram understood that American Midwesterners wanted clean,convenient food when they were away from home.What did he do with this information?

A) He acquired a source of perceived knowledge.
B) He created a tactical advantage.
C) He created a first-mover advantage.
D) He pioneered sales in the consumer food industry.

Question 18

What is the key to sustaining a competitive advantage?

A) making use of faster computers with more memory to improve operational efficiency and reduce labour needs
B) using information technology to continuously improve and support the business's core functions
C) making use of the Internet's potential to reduce the reliance of managing and controlling internal data
D) engaging the ability of the managers to delegate so they can focus on environmental scanning and strategic planning

Question 19

Which question identifies a critical issue that companies need to address in order to sustain a competitive advantage through information technology?

A) Who will have access to the information technology?
B) Will the purchase of the information technology be viewed as an expense or as an investment?
C) Does the firm's use of the information technology violate any ethical standards?
D) Is the firm's use of information technology difficult for another company to create or buy?

Question 20

A large metropolitan hospital wished to keep track of wheelchairs,gurneys,and other expensive equipment that regularly disappeared from inventory because some hurried employee put it in a closet or elsewhere for safekeeping.What could the hospital use to locate and recover missing property?

A) radio frequency identification (RFID) tags
B) bar codes
C) radio scanning systems
D) electronic data interchanges

Question 21

What is the definition of data mining?

A) the automated, electronic capture of data
B) the process of hypothesis testing in large databases
C) the process of verifying known relationships in large amounts of data
D) the process of discovering unknown patterns and relationships in large amounts of data

Question 22

What are the two major types of data mining?

A) supervised and unsupervised
B) random and sequence
C) affinity and association
D) sequence and affinity

Question 23

What happens to create a data cluster?

A) Data clusters result from the use of internal data mining.
B) Data clusters occur when a statistical technique is used for trend analysis.
C) Data clusters result from samples used for statistical analyses.
D) Data clusters occur when three or more database elements occur together in a significant way.

Question 24

Anthony has been hired by Canada's border services to analyze the number of people that have crossed the border from Canada into the United States in 2013.Anthony is given records of all crossings.He takes the records and removes any duplicates so that a person that crosses the border multiple times is counted as just one person.He then runs the records through software to remove any mistakes.Where will all the records be stored once Anthony has finished?

A) Internet databases
B) competitive intelligence sources
C) data warehouses
D) data extractions

Question 25

Which patterns can unsupervised data mining be used to recognize?

A) association, affinity, and sequence
B) association, sequence, and predictive
C) affinity, predictive, and association
D) affinity, sequence, and predictive

Question 26

What occurs in data mining when two or more database elements occur together in a significant pattern,with one of the elements preceding the other?

A) data clusters
B) affinity patterns
C) association patterns
D) sequence patterns

Question 27

Which type of data mining usually begins with the user telling the data mining software to look and test for specific patterns and relationships in a data set?

A) supervised
B) specific
C) comprehensive
D) unsupervised

Question 28

In which type of data mining does the user simply tell the data mining software to uncover whatever patterns and relationships it can find in a data set?

A) supervised
B) specific
C) comprehensive
D) unsupervised

Question 29

Scott works in the internal audit department of a government ministry.Scott's primary role is to ensure the data collected for audit is accurate and can be easily retrieved by the audit software the department uses.Scott must also ensure that only audit personnel can access the data.What role does Scott fulfill for the internal audit department?

A) decryption
B) roadblocking
C) data insulation
D) protecting information

Question 30

By examining checkout data,supermarkets have learned that people who are buying non-alcoholic beer often also buy a bag of salty snacks.Which pattern did the use of data mining lead to the discovery of?

A) the sequential pattern
B) the affinity pattern
C) the predictive pattern
D) the adjacency pattern

Question 31

When you purchase a book or CD on Amazon.com,as soon as you put your selection in the shopping cart,you are offered a series of other items that people who made the same purchase as you did also bought.Which pattern of data mining is Amazon.com making use of?

A) sequence
B) association
C) predictive
D) adjacency

Question 32

For the purposes of data mining,which kind of pattern is the opposite of the association pattern?

A) sequence
B) adjacency
C) predictive
D) affinity

Question 33

By examining checkout data,supermarkets have learned that people who are buying non-alcoholic beer typically also buy a bag of salty snacks.As a result of this finding,supermarkets often place displays of non-alcoholic beer near the chips and pretzel aisle.Which of the following activities would help supermarkets with this strategy?

A) optical scanning
B) electronic data interchange
C) bar coding
D) data mining

Question 34

The U.S.Food and Drug Administration (FDA)could use data it has collected from millions of suspected drug-related adverse event reports and other electronic medical information to identify a pattern of adverse drug events in a specific population.The agency could then communicate this knowledge sooner to medical professionals and patients.Where would the data collected by the FDA be held?

A) Internet database
B) competitive intelligence source
C) data warehouse
D) data extraction

Question 35

Baseball management was trying to uncover matches and relationships in the data it had on first-time patrons who purchased box stadium seats.It discovered that its sales increased by almost 100 percent in those seasons when it held an open house prior to the opening game and allowed people to see the box seats and examine the view of the stadium from those seats.Which pattern did the management discover,in terms of data mining?

A) affinity
B) sequence
C) association
D) adjacency

Question 36

Where does data reside for data mining?

A) data room
B) data storage
C) data library
D) data warehouse

Question 37

Jim Rhoade thought he had a decent deal with State Farm for insurance coverage on his two cars and his home,but a friend gave him a tip about lower premiums at Allstate.After contacting his local Allstate agent,Rhoade had slashed his annual auto premiums by $400 and his homeowner's premium by the same amount.That's because,in addition to considering Rhoade's record,Allstate took into account seemingly unrelated information from his credit report,such as whether he pays bills on time (he does)and whether there had ever been a claim on his home (there hadn't).Allstate has discovered patterns that indicate that the better the credit report,the more likely the individual is to be a good risk for an insurer.Which type of pattern has Allstate discovered?

A) sequence
B) association
C) predictive
D) adjacency

Question 38

Which of the following is an example of a security problem that may threaten data and data networks?

A) screen printing
B) phishing
C) mouse flashing
D) mob flashing

Question 39

Kevin is hired by a fast food restaurant to determine why sales have started to decrease.Kevin finds that 30 percent of orders include something toasted.There is just one toaster that creates a bottleneck.Lines of cars build up at the drive thru service.Kevin sees potential customers driving in toward the restaurant turn away and go to a competing restaurant.What has Kevin discovered?

A) chaos clusters
B) non-sequential clusters
C) rational clusters
D) data clusters

Question 40

Tim is the IT security officer for an engineering firm.Tim must ensure customer records and pricing formulas are not accessible by anyone outside the company.However,the firm wants the public to be able to easily surf its website to learn what services they provide.What layer of security will Tim place between the firm and the public to prevent outside access to customer records and pricing formulas?

A) roadblocks
B) firewalls
C) hidden cameras
D) locks

Question 41

Which two critical steps are required to make sure that data can be accessed by authorized users and no one else?

A) authentication and authorization
B) authorization and empowerment
C) delegation and authentication
D) delegation and empowerment

Question 42

What is the goal of an executive information system (EIS)?

A) to replace the need for intuition in decision making
B) to create a link among authorized data and network users
C) to protect organizational data from hackers
D) to provide accurate, complete, relevant, and timely information to managers

Question 43

Why do companies use firewalls?

A) Firewalls are a way to protect hardware.
B) Firewalls are in the form of software only.
C) Firewalls prevent unauthorized use of data.
D) Firewalls sit between the computers in an internal organizational network and the organizations main frame hardware.

Question 44

Which of the following can public key encryption be used for?

A) protecting files sent over the Internet
B) eliminating hacking
C) erasing cookie files
D) setting up firewalls

Question 45

Although firewalls can protect personal computers and network services connected to the corporate network,people away from their offices who interact with their company networks via the Internet face a safety risk.Which of the following technologies has proven to be a viable solution to this problem?

A) safe software for logic (SSL) encryption
B) firewall re-engineering
C) secure sockets layer (SSL) encryption
D) secure logistical LAN (SLL) encryption

Question 46

Which of the following uses internal and external sources of data to provide managers and executives with the information they need to monitor and analyze organizational performance?

A) an executive information system
B) a managerial information service
C) an expert system
D) a decision support system

Question 47

Snyder's of Hanover is the world's second-biggest pretzel maker.A new development allows its more than 50 department heads and executive managers to use a Web browser to view sales results and distribution plans with a single click.It also helps executives size up cost-cutting opportunities on demand instead of waiting until the end of the quarter or year before ramping up production of a popular pretzel brand or paring distribution routes where necessary.What did Hanover develop?

A) corporate portal
B) extranet
C) SSL network
D) virtual private network

Question 48

The establishment of which of the following is an information security procedure that encrypts Internet data at both ends of the transmission process?

A) cookie manipulators
B) virtual private networks
C) cookie managers
D) firewall

Question 49

Why are intranets growing in popularity?

A) Intranets are expensive but easy to install and use.
B) Intranets require specially dedicated computer networks.
C) Intranets are intuitive and easy to use.
D) Intranets are costly but increase efficiencies.

Question 50

What is a hybrid of executive information systems and intranets?

A) a corporate portal
B) an extranet
C) an expert system
D) a virtual private network

Question 51

What is the term for a private company network that allows employees to easily access,share,and publish information using Internet software?

A) LAN portal
B) private company network (PCN)
C) intranet
D) electronic data sharing system

Question 52

Why do the large majority of companies now use intranets?

A) Intranets are expensive but intuitive and easy to use.
B) Intranets work across specific computers and operating systems.
C) Intranets are built on Web models that existed a decade ago.
D) Intranets help organizations retain staff.

Question 53

Although firewalls can protect personal computers and network services connected to the corporate network,people away from their offices who interact with their company networks via the Internet face a safety risk.Which of the following technologies has proven to be an inexpensive solution to this problem?

A) safe software for logic (SSL) encryption
B) virtual private networks
C) local area networks
D) firewall reassignment

Question 54

What are the three kinds of information technology used by executives,managers,and workers inside a company to access and share information?

A) executive information systems, portals, and intranets
B) local area networks, extranets, and management information systems
C) intranets, local area networks, and portals
D) expert systems, decision support system, and virtual private networks

Question 55

Through which of the following can a manufacturer of pharmaceuticals access information about its sales and share new product information with drug store chains?

A) electronic data interchange (EDI)
B) bar scanners
C) SSL interchanges
D) intranets

Question 56

Sarah sells advertising space for a fashion magazine.To schedule a client's advertisement,Sarah is able to access the company's media department when she is with the client.She can place the ad right into a magazine page so the client can see exactly what it will look like and where on the page it will be positioned.What technology does Sarah use to accomplish this?

A) corporate portals
B) extranets
C) expert systems
D) virtual private networks

Question 57

Why do companies use intranets?

A) Intranets require users to build a completely new network.
B) Intranets are Web based.
C) Intranets have inherent security features.
D) Intranets access internal corporate data only.

Question 58

Why do the large majority of companies now use intranets?

A) Intranets are easy to install, private to the company, and easily accessible by employees.
B) Since the crash of the dot.coms, experts on how to install and use intranets are available.
C) Intranets are not Web based.
D) Intranets do not use HTML.

Question 59

Some of the 30 employees of Del Rey Nut Co.were filling out phony time cards and cashing paycheques for hours they hadn't worked."We were paying for people who weren't there," says the owner of the Los Angeles food and promotional products company.Its owner didn't know what to do about it until he tried a system that requires employees to scan their thumbprints when punching in.Which term describes this newly added technology?

A) intangible cookies
B) biometrics
C) personal RFID tags
D) individual bar codes

Question 60

What are intranets?

A) doors that allow managers to access transactions as they occur
B) standardized protocols that are used to authenticate and authorize internal network users
C) public networks that are used only for business-to-business transactions
D) private company networks that allow employees to easily access, share, and publish information using Internet software

Question 61

Michelle is the owner of a large chain of successful department stores.One reason for her success comes from the supply chain system.When a customer purchases an item from a store,the supplier is able to know immediately if the safe stock level has been reached.If it has,a shipment of product is sent immediately and directly to the store.This allows Michelle to dedicate more space to retail and less space to storage.What technology enables Michelle to have such a supply chain system?

A) electronic data interchange
B) corporate portal
C) firewall
D) intranet

Question 62

What have companies that use electronic data interchange,extranets,and the Internet to gain a competitive advantage experienced?

A) decreased costs
B) lower productivity
C) worsening customer service
D) faster authentication

Question 63

Eckerd has automated its purchasing transactions and other e-commerce activities with its small- to mid-size suppliers.Thousands of Eckerd's suppliers have secure access to critical trading partner information and facilitated trading partner automation.Which term best describes what Eckerd built?

A) extranet
B) virtual portal
C) Web service
D) corporate portal

Question 64

Which of the following allows companies to exchange information and conduct transactions by purposely providing outsiders with direct,Web browser-based access to authorized parts of a company's intranet?

A) extranet
B) virtual portal
C) Web service
D) corporate portal

Question 65

Narrative 17-1
Internet research firm Jupiter Communications estimates that 47 percent of teens use the Net. In 1999, an entrepreneur developed Kibu.com as an online fashion magazine for girls between the ages of 13 and 18. The messages from Kibu's advertisers were tailored for, and intriguing to, a teenage audience. Revenue came from companies that sponsored various channels and features on the site, such as the Fashion Channel. Kibu had a loyalty program, the kPoints xChange, which gave site visitors an incentive to communicate with the site and its sponsors. Each time they did, they earned points that could be exchanged for merchandise, such as CDs, movie tickets, or beaded jewellery. Visitors who filled out surveys could win one of the 10,000 Kibu Boxes. Box recipients got still more points if they went to the Box Channel and filled out forms telling one to three of the participating companies how they liked the products inside. By September 2000, however, the site closed, and its founders returned remaining start-up capital to investors.
Refer to the Narrative 17-1.Kibu.com collected survey information for itself and its sponsors,and then looked for behaviour patterns that could provide useful market information for its advertisers.What was Kibu engaged in?

A) environmental scanning
B) prospect collecting
C) electronic scanning
D) data mining

Question 66

What benefit do companies receive from using a decision support system (DSS)?

A) It is broad in scope.
B) It speeds up and simplifies the acquisition of information.
C) It permits managers to retrieve all kinds of information.
D) It allows managers to better understand a problem and its potential solutions.

Question 67

Narrative 17-1
Internet research firm Jupiter Communications estimates that 47 percent of teens use the Net. In 1999, an entrepreneur developed Kibu.com as an online fashion magazine for girls between the ages of 13 and 18. The messages from Kibu's advertisers were tailored for, and intriguing to, a teenage audience. Revenue came from companies that sponsored various channels and features on the site, such as the Fashion Channel. Kibu had a loyalty program, the kPoints xChange, which gave site visitors an incentive to communicate with the site and its sponsors. Each time they did, they earned points that could be exchanged for merchandise, such as CDs, movie tickets, or beaded jewellery. Visitors who filled out surveys could win one of the 10,000 Kibu Boxes. Box recipients got still more points if they went to the Box Channel and filled out forms telling one to three of the participating companies how they liked the products inside. By September 2000, however, the site closed, and its founders returned remaining start-up capital to investors.
Refer to the Narrative 17-1.Where would the information Kibu.com collected be stored?

A) large mainframes
B) data warehouses
C) information mines
D) knowledge adjacencies

Question 68

What is the term for the direct electronic transmission of purchase and ordering information from one company's computer system to another company's computer system?

A) automated processing
B) electronic data interchange
C) transaction channelling
D) data manipulation

Question 69

Why is knowledge important?

A) Knowledge guarantees success.
B) Knowledge resides in information.
C) Knowledge is the understanding that one gains from information.
D) Knowledge is easier to acquire than data and information.

Question 70

Which of the following works by using a collection of "if-then" rules to sort through information and recommend a course of action?

A) an expert system
B) a decision support system
C) an executive information system
D) a RAID system

Question 71

Just a teaspoon too much or too little of a single ingredient can turn a great cake into a mediocre cake.The ability to know just how much to add,how long to stir,and how the cake should smell when cooked is a skill that a long-time baker would have.Which of the following can help others capture this specialized knowledge?

A) electronic data interchanges
B) pragmatic portals
C) data mining
D) expert systems

Question 72

The National Peanut Research Laboratory (NPRL)manages peanut irrigation and pest management decisions.Irrigation recommendations are based on more than 20 years of scientific research data and information.Growers input field data,including planting date,variety planted,previous crop,soil type,and irrigation capacity; then the software advises them if and how much to irrigate or when to check soil temperatures again.What did NPRL create to do this?

A) electronic data interchange
B) pragmatic portal
C) data mining
D) expert system

Question 73

Which of the following uses a standardized format to describe data from one company in such a way that those data can automatically be read,understood,and processed by different computer systems in another company?

A) extranets
B) intranets
C) electronic data interchange
D) corporate portals

Question 74

What is the term for an information system that helps managers understand problems and potential solutions by acquiring and analyzing information with sophisticated models and tools?

A) intranet
B) executive information system
C) expert system
D) decision support system

Question 75

Narrative 17-1
Internet research firm Jupiter Communications estimates that 47 percent of teens use the Net. In 1999, an entrepreneur developed Kibu.com as an online fashion magazine for girls between the ages of 13 and 18. The messages from Kibu's advertisers were tailored for, and intriguing to, a teenage audience. Revenue came from companies that sponsored various channels and features on the site, such as the Fashion Channel. Kibu had a loyalty program, the kPoints xChange, which gave site visitors an incentive to communicate with the site and its sponsors. Each time they did, they earned points that could be exchanged for merchandise, such as CDs, movie tickets, or beaded jewellery. Visitors who filled out surveys could win one of the 10,000 Kibu Boxes. Box recipients got still more points if they went to the Box Channel and filled out forms telling one to three of the participating companies how they liked the products inside. By September 2000, however, the site closed, and its founders returned remaining start-up capital to investors.
Refer to the Narrative 17-1.For which of the following would Kibu.com use firewalls?

A) to identify data patterns
B) to protect its internal organizational network from hackers
C) to offer security as one of its differential advantages
D) to prevent anyone except girls between the ages of 13 and 18 from visiting the site

Question 76

Narrative 17-2
For more than a century, the city of London, England, has had the worst traffic in Europe. Half the time is spent at a standstill, and the average speed is 9 mph, down from 12 mph in 1903 when traffic consisted of horses and carriages. To improve traffic, London's mayor has imposed a "Congestion Zone" fee of £5 per day for any vehicle that enters the eight square miles of central London between 7 a.m. and 6:30 p.m. on weekdays. Drivers who enter the zone but don't pay are fined from £50 to £125.
First, 688 cameras were used in 203 locations to take accurate pictures of vehicles entering the zone. In general, the cameras are only 90 percent accurate in reading the licence plate numbers on the cars. But with 688 cameras in total, multiple pictures are taken of each car, and partial pictures of licence plates are matched with complete pictures, with the former discarded and the latter retained.
Next, the pictures from the cameras are sent via a dedicated fibre-optic cable to an "image management store." An "image management store" is basically a huge farm of networked, redundant servers. If one server goes down, multiple backup servers run live with the same data. Doing this was needed because the city anticipated processing one million pictures a day.
Once the pictures are snapped, transported via fibre-optic cable, and placed in the "image management store," the next step is "reading" the licence plate in the picture, converting it to readable text, and matching licence plate records stored in government databases. Transport of London uses software that scans digitized documents into ASCII text and then matches and compares multiple pictures of the same licence plate. For example, imagine that a licence plate is 12345678 and that the congestion cameras get three partial pictures-12345, 34567, and 5678-and one complete picture, 12345678. The software has to interpret that all four pictures were of the same vehicle; then, it has to select the last picture, 12345678, not the partial pictures, when converting the picture to text. Finally, once the licence plate is converted to text, its number is then matched with an existing licence plate in a government database. At that point, "Congestion Zone" charges are linked with whoever owns the vehicle.
Refer to the Narrative 17-2.The City of London located 688 cameras in 203 locations to take accurate pictures of vehicles entering its "Congestion Zone." Multiple pictures are taken of each car,and partial pictures of licence plates are matched with complete pictures,with the former thrown out,and the latter retained.What would the cumulative store of all the photographs be classified as?

A) as information
B) as biometrics
C) as perceived knowledge
D) as raw data

Question 77

Narrative 17-1
Internet research firm Jupiter Communications estimates that 47 percent of teens use the Net. In 1999, an entrepreneur developed Kibu.com as an online fashion magazine for girls between the ages of 13 and 18. The messages from Kibu's advertisers were tailored for, and intriguing to, a teenage audience. Revenue came from companies that sponsored various channels and features on the site, such as the Fashion Channel. Kibu had a loyalty program, the kPoints xChange, which gave site visitors an incentive to communicate with the site and its sponsors. Each time they did, they earned points that could be exchanged for merchandise, such as CDs, movie tickets, or beaded jewellery. Visitors who filled out surveys could win one of the 10,000 Kibu Boxes. Box recipients got still more points if they went to the Box Channel and filled out forms telling one to three of the participating companies how they liked the products inside. By September 2000, however, the site closed, and its founders returned remaining start-up capital to investors.
Refer to the Narrative 17-1.The developer of Kibu and his investors created the first company to offer both content and chat rooms aimed at girls between the ages of 13 and 18.Which of the following were they most likely hoping to gain?

A) first-mover advantage
B) market aggregation
C) comparative promotional point
D) differential benefit

Question 78

Narrative 17-1
Internet research firm Jupiter Communications estimates that 47 percent of teens use the Net. In 1999, an entrepreneur developed Kibu.com as an online fashion magazine for girls between the ages of 13 and 18. The messages from Kibu's advertisers were tailored for, and intriguing to, a teenage audience. Revenue came from companies that sponsored various channels and features on the site, such as the Fashion Channel. Kibu had a loyalty program, the kPoints xChange, which gave site visitors an incentive to communicate with the site and its sponsors. Each time they did, they earned points that could be exchanged for merchandise, such as CDs, movie tickets, or beaded jewellery. Visitors who filled out surveys could win one of the 10,000 Kibu Boxes. Box recipients got still more points if they went to the Box Channel and filled out forms telling one to three of the participating companies how they liked the products inside. By September 2000, however, the site closed, and its founders returned remaining start-up capital to investors.
Refer to the Narrative 17-1.Which term can be used to describe an individual's unprocessed response to a Kibu survey?

A) information
B) knowledge
C) raw data
D) mining statistics

Question 79

A cosmetics manufacturer could learn from analyzing data that teenage girls who buy more than six bottles of nail polish monthly also like to dress up their pets to match their outfits.(The manufacturer might want to use this information to develop a line of pet nail polish.)Which kind of pattern would be identified by these survey results?

A) a sequence pattern
B) a cluster pattern
C) a stratified pattern
D) an association pattern

Question 80

Why would a company use a decision support system (DSS)?

A) It speeds up and simplifies the acquisition of information.
B) It only processes security data.
C) It helps managers understand problems and potential solutions with sophisticated models.
D) It can be used to replace all managerial decision making.