1. The theft of intellectual property in the software and digital entertainment industries is called:

a. fraud
b. piracy
c. deception
d. bootlegging
e. bootstrapping

2. All of the following are solutions to the technology paradox except:

a. keep costs falling faster than prices
b. mass customization
c. find new uses for products
d. develop long-term relationships with customers
e. price controls

3. The approach by a firm to give away a base product and make money on the complementary products required to make the base product useful is called:

a. installed base pricing
b. no alternative pricing
c. captive product pricing
d. monopolistic pricing
e. predatory pricing

4. The steps in customer oriented pricing are beneficial in that they:

a. help distinguish between "carriage trade" and "bargain basement" customers
b. serve as a decision-making framework for pricing in the high-tech environment
c. allow the marketer to make a quick and easy pricing decision
d. provide the marketer with a greater understanding of the customer's cost limitation
e. ensure profitability based on cost versus price

5. The term "digital divide" refers to:

a. the transition in the entertainment industry from analog content/formats to digital content/formats
b. differences with respect to government policy with respect to phone lines, electricity grids, interstate highways, and access to computer technology
c. the use of technology to build necessary firewalls (or security barriers) between different companies' computer systems
d. the disparity in access to technology between different groups of people in society
e. the negative impacts of some types of technology (i.e., spam) arising from technological developments (e-mail technologies)

6. The paramount basis of competitive advantage in high-technology industries is:

a. promotion
b. price
c. location
d. intellectual property
e. facilities

7. What is the difference between vertical hubs and horizontal hubs?

a. vertical hubs are two-way networks, although horizontal hubs are one-way networks
b. vertical hubs are one-way networks, although horizontal hubs are two-way networks
c. vertical hubs focus on operating inputs such as maintenance, repair, and operating goods, although horizontal hubs focus on integrating suppliers, customers, manufacturers, and competitors through strategic partnerships
d. vertical hubs focus on integrating suppliers, customers, and manufacturers within a particular industry, although horizontal hubs focus on inputs used across industries.
e. vertical hubs cut across industry boundaries, although horizontal hubs are industry-specific

8. While at work, 85 percent of employees use their companies' Internet access for personal purposes roughly 3.7 hours per week. This would be an example of which technology paradox?

a. control/chaos
b. assimilation/isolation
c. efficiency/inefficiency
d. new/obsolete
e. social responsibility/irresponsibility

9. What is at the heart of the argument between technology providers and the entertainment companies?

a. entertainment companies do not want technology companies to develop innovations that allow digitization of content
b. the inability of the two parties to agree on what an end-to-end solution for delivering digital content will be
c. innovations by high-tech companies enable consumers to reproduce and distribute copyrighted works that the entertainment companies would rather control the access to
d. although the technology companies sued peer-to-peer file swapping, the entertainment companies supported them as a new source of revenue
e. there is no argument between technology and entertainment companies, as they are partners in creating and distributing content through best-practices inventions

10. Which of the following is not a step in the framework for addressing ethical dilemmas?

a. identify all stakeholders who are affected by the decision
b. identify each stakeholders needs and concerns from both sides of the ethical dilemma
c. prioritize the stakeholder groups and perspectives
d. stimulate a thorough debate over people versus profits
e. make and implement/communicate the decision

11. "Influencing the influencers" refers to:

a. cobranding with an already established, reputable company
b. employing personal selling methods when brand is weak
c. giving products away to influential people and opinion leaders who will in turn influence the masses
d. viral marketing
e. paying for Internet space in a similar fashion to shelf space