Illinois State University MQM 385 CH

Illinois State University

MQM 385

CH. 3

1)In the context of the Netflix case,______refers to an extremely large selection of content or products.

2. Marginal costs:
3. 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:
4. How does Cinematch offer Netflix additional operational advantages for the DVD­by­mail business?
5. 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:

6. Which of the following represents an advantage enjoyed by the Netflix DVD­ by­mail business over traditional video stores?
7. Netflix has used the long tail in the DVD­by­mail business to its advantage, crafting a business model that creates close ties with film studios. What do film studios stand to gain from taking advantage of the Netflix model targeted at increasing the firm’s long­tail offerings?

8.                  refers to removing an organization from a firm’s distribution channel.

9. A low                      is usually key to a firm’s profitability because acquiring a customer is more expensive than keeping one.

10. Why is the “First­Sale Doctrine,” including understanding when it does and doesn’t apply, relevant to Netflix?

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

12. An internal team at Netflix developed a prototype set top box to enable the direct streaming of content to customers’ television sets. However, the idea of offering it to Netflix customers was dropped because: