chapter 10 MIS 500 – Flashcards

1. What is the difference between collaborative consumption firms Zilok and Chegg. a. Zilok has gone public, Chegg hasn't. b. Zilok is a service where a person comes to your home to complete a task, Chegg is a rental firm. c. Zilok provides inventory provided by participating 'citizen suppliers', Chegg owns its own inventory. d. Zilok is the European equivalent of Chegg. e. Zilok was purchased by Chegg underscoring the 'winner take all' dynamics of these markets.

1. Which of the following is *not* true regarding the competitive dynamics of most sharing economy marketplaces? a. Ratings represent a switching cost built over time by early participants in sharing economy marketplaces. b. Late-movers have a substantial advantage in this market since inventory should be cheaper to acquire for those firms that have entered markets more recently. c. Network effects should grow over time, favoring firms that got a successful, early start over rivals who arrived late doing the same thing. d. These are two-sided markets. e. None of the above - all statements are true.

1. Which of the following is *not* an example of larger, conventional firms working with sharing economy startups? a. Apple's purchase of Beats to give new musical artists more exposure. b. Condé Nast's investment in Rent the Runway. c. Google's investment in Uber. d. Walgreens' partnership with TaskRabbit. e. W Hotel partnering with Desks Near Me.

1. Which of the following statements is true about Airbnb's revenue model? a. Airbnb currently does not make money via transactions, only from advertising listings on its website. b. Airbnb only charges property owners who rent on the website. c. Airbnb only charges guests who rent on the website. d. Airbnb charges both property owners and guests as part of transactions on their website. e. Airbnb doesn't charge transactions for the three years after it enters a market, so as to generate two-sided network effects of property rents and guests searching for properties to stay in.

2. Entrepreneurs are scrappy in their quest to gather market intelligence and understand how customers respond to their offerings. How did Airbnb's CEO gather additional intelligence on how the firm was being used? a. He bought several apartments to rent out under Airbnb b. He became an Uber driver c. He lived out of Airbnb rentals full-time d. He became a bell hop at a San Francisco Hilton Hotel e. All of the above