Although sometimes referred to as "rental," Netflix's model is really a substitute good for conventional use-based media rental Answer: true
The high degree of customer satisfaction that Netflix enjoyed is tightly linked with the firm's sized-based advantages. Answer: true
The...
Although sometimes referred to as "rental," Netflix's model is really a substitute good for conventional
use-based media rental Answer: true
The high degree of customer satisfaction that Netflix enjoyed is tightly linked with the firm's sized-based
advantages. Answer: true
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. Answer: true
At Netflix, the marginal cost for digital goods is zero for all licensees. Answer: false
The data a firm can leverage is a true strategic asset when it is imperfectly imitable. Answer: true
Advantages based on capabilities and data that others can acquire are long-lived. Answer: false
Total Rewards is an opt-out loyalty program at Caesars. Answer: false
Which of the following represents an advantage enjoyed by the Netflix DVD-by-mail business over
traditional video stores?
Lower technology overhead
Lower shipping expenses
, Larger entertainment selection
Higher energy costs
Higher churn rates Answer: Larger entertainment selection
While the size of the tail in the long tail phenomenon is disputable, one fact that is critical to remain
above this debate is that: Answer: customers are attracted to the stores which offer a larger
selection of titles.
Collaborative filtering is a classification of software that: Answer: monitors trends among customers
to personalize an individual customer's experience.
A low _____ is usually key to a firm's profitability because acquiring a customer is more expensive than
keeping one.
subscription fee Answer: churn rate
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: Answer: Netflix's first-mover
advantage.
Crowdsourcing is: Answer: 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.
Which of the following is true about the Netflix streaming business?
Its marginal cost for title acquisition is zero as it is currently focusing on distributing digital content.
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