IB: Chap 6 Digital Business and Big Data

Question 1

Which of the following is NOT a benefit of digital business?
A) Improved customer engagement
B) Increased manual errors
C) Enhanced decision-making
D) Reduced operational costs

Answer 1

B) Increased manual errors

Question 1

What is digital business primarily focused on?
A) Traditional marketing
B) Combining physical and digital operations
C) Reducing employee numbers
D) Increasing manual processes

Answer 1

B) Combining physical and digital operations

Question 2

What does the term “Big Data” refer to?
A) Small datasets
B) Large collections of data
C) Data that cannot be analyzed
D) Only financial data

Answer 2

B) Large collections of data

Question 2

Which of the following is a characteristic of Big Data?
A) Low volume
B) Variety of data types
C) Limited sources
D) Static data

Answer 2

B) Variety of data types

Question 3

Which digital business model involves selling products directly to online customers?
A) Marketplace model
B) E-commerce model
C) On-demand model
D) Free model

Answer 3

B) E-commerce model

Question 4

What is the primary purpose of digitalization in businesses?
A) To maintain traditional practices
B) To generate higher revenue and create new opportunities
C) To reduce technology use
D) To eliminate customer feedback

Answer 4

B) To generate higher revenue and create new opportunities

Question 5

Which technology is NOT commonly associated with digital business?
A) Artificial Intelligence
B) Virtual Reality
C) Manual bookkeeping
D) Internet of Things (IoT)

Answer 5

C) Manual bookkeeping

Question 6

In the context of Big Data, what does “velocity” refer to?
A) The accuracy of data
B) The speed at which data is generated and processed
C) The amount of data collected
D) The variety of data types

Answer 6

B) The speed at which data is generated and processed

Question 7

Which company is known for using algorithms to predict viewer preferences?
A) Amazon
B) Netflix
C) Uber
D) Facebook

Answer 7

B) Netflix

Question 8

What does the “Free Model” in digital business typically offer?
A) Paid subscriptions only
B) Free services with targeted advertising
C) No services at all
D) Only free trials with no further options

Answer 8

B) Free services with targeted advertising

Question 9

Big Data analytics primarily involves which of the following?
A) Ignoring large datasets
B) Collecting, processing, and analyzing large datasets
C) Storing data without analysis
D) Only focusing on financial transactions

Answer 9

B) Collecting, processing, and analyzing large datasets

Question 9

What is an example of an on-demand digital business model?
A) Online retail stores
B) Streaming services like Netflix
C) Social media platforms
D) Email services

Answer 9

B) Streaming services like Netflix

Question 9

Which characteristic of Big Data refers to its accuracy and truthfulness?
A) Volume
B) Variety
C) Velocity
D) Veracity

Answer 9

D) Veracity

Question 10

What is the first step in the Big Data analytics process?
A) Analyze
B) Scrub
C) Collect
D) Process

Answer 10

C) Collect

Question 11

Which of the following describes a marketplace model?
A) Selling products directly to consumers
B) Providing free services to users
C) Allowing buyers and sellers to exchange goods on a platform
D) Offering on-demand video content

Answer 11

C) Allowing buyers and sellers to exchange goods on a platform

Question 12

In the DIKW pyramid, what does ‘Knowledge’ represent?
A) Raw data collected from sources
B) Information analyzed for patterns and trends
C) Insights used for decision-making
D) None of the above

Answer 12

C) Insights used for decision-making

Question 12

What type of data can be considered ‘transactional’?
A) Social media posts
B) Sensor readings from machines
C) Purchase records from sales transactions
D) Video content from streaming services

Answer 12

C) Purchase records from sales transactions

Question 12

Which technology helps businesses automate processes to increase productivity?
A) Manual tracking systems
B) Robotic Process Automation (RPA)
C) Paper-based systems
D) Traditional marketing methods

Answer 12

B) Robotic Process Automation (RPA)

Question 13

Which company uses customer behavior data for personalized marketing?
A) Uber
B ) Facebook
C ) Amazon
D ) Netflix

Answer 13

C ) Amazon

Question 14

What does ‘Value’ in the context of Big Data refer to?
– A ) The cost of collecting data
– B ) The potential insights gained from analyzing data
– C ) The amount of storage needed for data sets
– D ) The number of users interacting with data

Answer 14

B ) The potential insights gained from analyzing data
Short Scenario Questions

Question 15

Scenario: A company has noticed a decline in customer engagement through its website.
Question: What digital strategies could they implement to improve customer engagement?

Answer 15

They could enhance their website’s user experience, utilize social media for interaction, implement personalized email marketing, or use chatbots for immediate customer service.

Question 16

Scenario: An e-commerce store wants to understand why certain products are not selling well.
Question: How can big data help them analyze this issue?

Answer 16

They can analyze customer reviews, purchase patterns, website traffic, and competitor pricing using big data analytics tools to identify trends and reasons for low sales.

Question 16

Scenario: A restaurant uses an app for online orders but receives complaints about delivery times.
Question: What steps can they take using digital tools to address this issue?

Answer 16

They can analyze order patterns, optimize delivery routes using GPS technology, implement real-time tracking for customers, and adjust staffing based on peak order times.

Question 16

Scenario: A soft drink manufacturer wants to launch a new flavor but is unsure about its potential success.
Question: How can big data assist in their decision-making process?

Answer 16

They can analyze market trends, consumer preferences through surveys or social media, and past sales data for similar flavors to gauge potential interest.

Question 17

Scenario: An online marketplace has seen a rise in fraudulent transactions. Question: What measures can they implement using technology to combat this issue?

Answer 17

Answer: They could employ machine learning algorithms to detect unusual transaction patterns, implement two-factor authentication, and monitor user behavior for red flags.

Question 18

Scenario: An educational platform wants to improve its course offerings based on student feedback. Question: How should they utilize big data analytics?

Answer 18

They can analyze course completion rates, student feedback surveys, and engagement metrics to identify popular topics and areas needing improvement.

Question 19

Scenario: A clothing retailer wants to personalize shopping experiences for customers. Question: What strategies could they employ using digital technologies?

Answer 19

They could use AI algorithms to analyze purchase history and browsing behavior to recommend items tailored to individual preferences.

Question 20

They could use analytics platforms like Google Analytics or Mixpanel to track user interactions within the app and gather insights on user behavior.

Answer 20

They could introduce chatbots for instant assistance, mobile apps for real-time updates, and personalized offers based on travel history.

Question 20

Scenario: An app development company wants to track user engagement metrics. Question: Which big data tools could they use?

Answer 20

They could use analytics platforms like Google Analytics or Mixpanel to track user interactions within the app and gather insights on user behavior.

Question 20

A local grocery store aims to optimize inventory management. Question: How can big data assist them?

Answer 20

By analyzing sales trends and seasonal demand through historical sales data, they can optimize stock levels and reduce waste.

Question 21

Scenario: An online streaming service like Netflix wants to expand its library based on viewer preferences. Question: Describe how they would use big data analytics throughout this process.

Answer 21

Netflix would collect viewing habits from users (data), such as what shows are watched most frequently or abandoned mid-way (information). By analyzing this information further, they would identify trends in genre preferences or demographic interests (knowledge). Finally, they would use these insights to make informed decisions about which types of shows or movies to produce next (wisdom).

Question 22

Scenario: An e-commerce platform has multiple sellers but faces challenges with product quality control. Question: Discuss how implementing a digital quality assurance system could help resolve these issues.

Answer 22

The platform could utilize big data analytics tools to monitor seller performance metrics such as return rates or customer reviews (data). By aggregating this information into dashboards (information), they could identify sellers consistently receiving low ratings (knowledge). This insight would allow them to enforce quality standards or provide training resources (wisdom), ultimately improving overall product quality.

Question 22

Scenario: A fitness app collects user activity data but struggles with user retention. Question: Explain how they might leverage big data analytics to improve user engagement.

Answer 22

The app could analyze usage patterns such as frequency of logins or popular features used (data). By identifying trends in user behavior (information), they might discover that users prefer personalized workout plans over generic ones (knowledge). Using this knowledge, they could enhance their offerings by introducing tailored fitness programs based on individual goals (wisdom), thereby increasing user retention.

Question 22

Scenario: An automotive company wants to introduce smart vehicles that communicate with each other. Question: Outline how big data plays a role in developing this technology.

Answer 22

The company would collect vast amounts of sensor-generated vehicle performance and traffic condition data (data). By processing this information in real-time (information), engineers could identify patterns related to traffic flow or accident hotspots (knowledge). This understanding would inform the design features needed for smart vehicles that enhance safety and efficiency on roads (wisdom).

Question 23

Scenario: An airline uses customer feedback but still receives complaints about flight delays. Question: Describe how big data analytics can help improve operational efficiency in this context.

Answer 23

By collecting historical flight delay records alongside weather conditions and air traffic patterns (data), the airline can analyze these factors' impact on scheduling (information). Identifying correlations between specific routes or times leading to delays (knowledge), they could adjust flight schedules proactively or allocate resources more effectively during peak times (wisdom).