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Chapter 8
Social Media Information Systems
True/False Questions
1) Social media is the use of information technology to support the sharing of content among
networks of users.
Answer: True
Rationale:
This statement accurately defines social media as a technological platform that facilitates the
exchange and sharing of content among interconnected users or groups.
2) SM communities are formed based on mutual interests and transcend familial, geographic,
and organizational boundaries.
Answer: True
Rationale:
Social media communities typically revolve around shared interests or affiliations rather than
familial, geographic, or organizational ties. They bring together individuals with similar
interests, regardless of their background or location.
3) A viral hook is something that induces people to share a message with others.
Answer: True
Rationale:
A viral hook is indeed a mechanism or element within a message or content that prompts
people to share it with others, contributing to its viral spread across social media platforms.
4) Social media sponsors are the companies that operate the SM sites.
Answer: False
Rationale:
Social media sponsors are not the companies that operate the sites; they are entities or
individuals who promote or financially support certain content or activities within social
media platforms.

5) Social media application providers are companies and other organizations that choose to
support a presence on one or more SM sites.
Answer: False
Rationale:
Social media application providers are the companies or organizations that develop and
maintain the social media platforms or applications themselves, such as Facebook, Twitter,
LinkedIn, and Google.
6) Facebook, Twitter, LinkedIn, and Google are all SM application providers.
Answer: True
Rationale:
Facebook, Twitter, LinkedIn, and Google are indeed examples of social media application
providers, as they operate popular social media platforms used by millions of users
worldwide.
7) Both community users and employees of SM sponsors process SM sites using
communications devices.
Answer: True
Rationale:
Users and employees of social media sponsors alike access social media sites using various
communication devices, including smartphones, tablets, laptops, and desktop computers.
8) Users employ browsers and client applications to read and submit data and to add and
remove connections to communities and other users.
Answer: True
Rationale:
Users typically utilize web browsers or dedicated client applications to access social media
platforms, where they can read and submit content, as well as manage their connections with
other users or communities.

9) SM sponsors contribute to the site via browsers or by using specialized sponsor
applications provided by the SM application provider.
Answer: True
Rationale:
Social media sponsors can contribute to the platform either through standard web browsers or
by utilizing specialized sponsor applications provided by the social media application
provider to manage and promote their content or activities.
10) Content data is data and responses to data that are contributed by users and SM sponsors.
Answer: True
Rationale:
Content data encompasses the information, messages, posts, and responses contributed by
both users and social media sponsors within the social media platform.
11) Content data differentiates SMIS from Web site applications.
Answer: False
Rationale:
Content data is not a differentiating factor between social media information systems (SMIS)
and website applications. Both SMIS and websites can contain content data, although the
nature and purpose of the content may vary.
12) Only social networking sites present user and responder content, but both Web sites and
social networking applications store and process connection data.
Answer: False
Rationale:
Both social networking sites and websites can present user-generated content, and they may
also store and process connection data. The distinction between the two lies more in their
primary functionalities and the nature of user interactions.
13) Social networking procedures are more informal for SM sponsors than they are for social
networking users.

Answer: False
Rationale:
Social networking procedures, including those followed by sponsors, can vary in formality
depending on the context and goals. Sponsors often have structured procedures for managing
their social media presence, which may not necessarily be less formal than those followed by
regular users.
14) Before initiating a social networking presence, organizations must develop procedures for
creating content, managing user responses, removing obsolete or objectionable content, and
extracting value from content.
Answer: True
Rationale:
Establishing procedures for content creation, user engagement, content moderation, and
content analysis is essential for organizations to effectively manage their social media
presence and derive value from their interactions on social networking platforms.
15) Defenders of belief are communities that share a common belief and form their hive
around that belief.
Answer: True
Rationale:
Defenders of belief communities are formed around shared beliefs, values, or causes.
Members of these communities come together to support and defend their shared beliefs,
often forming tight-knit groups with a strong sense of identity.
16) Defenders-of-belief communities are highly effective for activities that involve
innovation or problem solving.
Answer: False
Rationale:
Defenders-of-belief communities are typically focused on defending and promoting shared
beliefs rather than engaging in activities like innovation or problem-solving. While they can

be effective for mobilizing around causes, their focus may not align with activities requiring
innovation or problem-solving.
17) Seekers-of-the-truth communities facilitate activities like sales and marketing.
Answer: False
Rationale:
Seekers-of-the-truth communities are oriented towards seeking and sharing information or
knowledge rather than engaging in commercial activities like sales and marketing. These
communities may focus on topics such as research, education, or investigative journalism.
18) Social CRM is a dynamic, SM-based CRM process.
Answer: True
Rationale:
Social CRM (Customer Relationship Management) involves leveraging social media
platforms and data to enhance customer relationships and interactions. It is a dynamic process
that integrates social media channels into CRM strategies to better understand and engage
with customers.
19) Social CRM is centered on lifetime value; customers that are likely to generate the most
business get the most attention and have the most effect on the organization.
Answer: False
Rationale:
While Social CRM aims to improve customer relationships, it does not necessarily prioritize
customers based solely on their potential lifetime value. Instead, it focuses on understanding
and meeting the needs of customers across various segments and stages of the customer
lifecycle.
20) The primary risk of peer-to-peer support is loss of control.
Answer: True
Rationale:

One of the primary risks associated with peer-to-peer support, where customers provide
assistance to each other, is the potential loss of control over the information exchanged.
While peer-to-peer support can be valuable, organizations must carefully manage it to ensure
accurate information and maintain brand reputation.
21) Seekers of the truth will seek the truth, even if that means recommending another
vendor's product over yours.
Answer: True
Rationale:
Seekers of the truth prioritize the pursuit of accurate information and knowledge, even if it
leads them to recommend products or solutions offered by other vendors. Their commitment
to truth-seeking often overrides loyalty to specific brands or products.
22) Defenders-of-belief communities provide better and faster problem solutions to complex
supply chain problems.
Answer: False
Rationale:
Defenders-of-belief communities are typically focused on defending and promoting shared
beliefs or causes, rather than problem-solving related to supply chain issues. While they may
offer support and solidarity within their community, they are not necessarily specialized in
providing solutions to complex supply chain problems.
23) Outsourcing is the dynamic social media process of employing users to participate in
product design or product redesign.
Answer: False
Rationale:
Outsourcing refers to the practice of contracting tasks or functions to external parties, often to
reduce costs or gain access to specialized skills. It is not inherently related to social media
processes involving user participation in product design or redesign.
24) Enterprise 2.0 is the application of social media to facilitate the cooperative work of
people inside organizations.

Answer: True
Rationale:
Enterprise 2.0 refers to the use of social media tools and platforms within organizational
contexts to enhance collaboration, communication, and knowledge sharing among
employees. It aims to leverage social technologies to improve internal processes and
productivity.
25) A folksonomy is content structure that has emerged from the processing of many user
tags.
Answer: True
Rationale:
A folksonomy is a system of classification or categorization of content that emerges from the
collective tagging efforts of users. It relies on user-generated metadata, such as tags or
keywords, to organize and describe content in a way that reflects the users' perspectives and
preferences.
26) Human capital is the investment in social relations with the expectation of returns in the
marketplace.
Answer: False
Rationale:
Human capital refers to the knowledge, skills, experience, and abilities possessed by
individuals, rather than investments in social relations. It encompasses factors such as
education, training, and expertise that contribute to an individual's productivity and economic
value.
27) When you attend a business function for the purpose of meeting people and reinforcing
relationships, you are investing in your social capital.
Answer: True
Rationale:
Social capital refers to the resources and benefits that individuals or groups accrue from their
social networks and relationships. Attending business functions to network and strengthen

relationships can enhance one's social capital by expanding their network, fostering trust, and
facilitating cooperation.
28) According to Henk Flap, the value of social capital is determined by the number of
relationships in a social network, by the strength of those relationships, and by the resources
controlled by those related.
Answer: True
Rationale:
Henk Flap's definition of social capital emphasizes three key elements: the quantity (number)
of relationships, the quality (strength) of those relationships, and the resources (such as
information, support, or influence) available within the network. These factors collectively
contribute to the value of social capital.
29) Unlike humans, organizations do not have social capital.
Answer: False
Rationale:
Organizations can indeed possess social capital, which is derived from the relationships,
networks, and connections they establish with other entities, such as employees, customers,
suppliers, and partners. Strong relationships and networks within an organization can provide
strategic advantages and valuable resources.
30) An organization has a strong relationship with you if you buy its products and write
positive reviews about it.
Answer: True
Rationale:
Positive purchasing behavior and favorable reviews can indicate a strong relationship
between an individual and an organization. These actions demonstrate satisfaction, trust, and
loyalty towards the organization's products or services, which contribute to building a robust
customer relationship.
31) Social capital does not depreciate.
Answer: False

Rationale:
Social capital, like any form of capital, can depreciate over time if relationships weaken, trust
diminishes, or networks become less active. Changes in circumstances, such as organizational
restructuring or shifts in social dynamics, can also impact the value of social capital.
32) The multiplicative nature of social capital means that a huge network of relationships to
people who have few resources may be lower than that of a smaller network with people with
substantial resources.
Answer: True
Rationale:
The multiplicative nature of social capital implies that the value of relationships is not solely
determined by quantity but also by the quality and resources associated with those
relationships. A smaller network with individuals possessing substantial resources may have
greater overall value than a larger network with individuals who have fewer resources.
33) A hyper-social organization is an organization that uses social media to transform its
interactions with customers, employees, and partners into mutually satisfying relationships
with them and their communities.
Answer: True
Rationale:
A hyper-social organization leverages social media platforms to foster meaningful and
mutually beneficial relationships with customers, employees, and partners. By actively
engaging with stakeholders through social channels, these organizations aim to create value
and build strong connections within their communities.
34) According to Gossieaux and Moran's model of the hyper-social organization, channels
transmit knowledge, whereas networks transmit data.
Answer: False
Rationale:
In Gossieaux and Moran's model, channels represent the means by which individuals
communicate and share information, including both data and knowledge. Networks, on the

other hand, refer to the interconnected relationships and interactions among individuals
within a community or social structure.
35) Key users submit ideas and responses to nonkey users for publication in communities.
Answer: False
Rationale:
In most social media communities, key users often play a role in moderating discussions,
facilitating engagement, and providing valuable contributions. However, they typically do not
submit ideas or responses to nonkey users for publication. Instead, key users may help curate
content and foster community growth through their active participation.
36) An active lurker is someone who reads, consumes, and observes activity in one social
medium and then broadcasts it in some other medium.
Answer: True
Rationale:
Active lurkers are individuals who engage with content on social media platforms by
consuming information, observing interactions, and participating in discussions, but they may
not actively contribute original content. They may share or broadcast interesting findings or
discussions from one medium to another, thereby amplifying the content's reach.
37) Someone who sees an interesting feature in an SM presence and sends a link to that
feature to friends can be called an active lurker.
Answer: True
Rationale:
Active lurkers are not passive observers but rather actively engage with content by sharing
interesting findings or features with others. By distributing links or content to their social
networks, they contribute to the dissemination of information and participate in the social
media ecosystem, albeit indirectly.
38) Web 2.0 includes Web-delivered services and content that are paid for by users.
Answer: False
Rationale:

Web 2.0 refers to the second generation of the World Wide Web, characterized by usergenerated content, interactive platforms, and collaboration tools. While users may pay for
certain services or content on the web, the defining feature of Web 2.0 is the participatory
nature of online interactions, rather than paid delivery.
39) Web 2.0 applications are characterized by frequent releases of thick-client applications.
Answer: False
Rationale:
Web 2.0 applications are typically characterized by lightweight, web-based interfaces that can
be accessed through a standard web browser. They emphasize simplicity, accessibility, and
interoperability across various devices and platforms. Thick-client applications, which
require installation and run locally on users' devices, are less common in the Web 2.0
paradigm.
40) The term use increases value means that the value of a web site is indirectly proportional
to the number of people using it.
Answer: False
Rationale:
The term "use increases value" suggests that the value of a website or online platform often
increases with the number of active users and the level of engagement they exhibit. More
users and higher levels of activity can lead to network effects, enhanced content quality, and
greater opportunities for collaboration, thereby increasing the overall value proposition of the
site.
41) A characteristic of Web 2.0 is that the value of a site increases with users and use.
Answer: True
Rationale:
Web 2.0 platforms thrive on user participation and engagement, and as more users contribute
content, interact with each other, and use the site's features, the overall value of the platform
tends to increase. This is often referred to as the network effect, where the utility of the
platform grows with its user base and activity levels.

42) Web 2.0 does not allow mashups, which occur when the output from two or more Web
sites is combined into a single user experience.
Answer: False
Rationale:
Mashups are a common feature of Web 2.0, allowing users to combine data or functionality
from multiple sources to create new and innovative applications or experiences. Web 2.0
platforms often provide APIs and tools to facilitate mashup creation, encouraging
collaboration and customization.
43) Google publishes Google Maps and provides tools for users to make custom
modifications to those maps, which is an example of mashup.
Answer: True
Rationale:
Google Maps is a prime example of a platform that enables mashups. Users can overlay their
own data, such as locations, routes, or points of interest, onto the base map provided by
Google, creating personalized and customized maps tailored to their needs or interests.
44) When a business participates in a social network or opens its site to UGC, it protects itself
from misguided people who post junk unrelated to the site's purpose.
Answer: False
Rationale:
Participating in social networks or allowing user-generated content (UGC) does not guarantee
protection against irrelevant or inappropriate content. Businesses must implement moderation
and content management strategies to address issues such as spam, off-topic posts, or harmful
content, regardless of their participation in social media.
45) User-generated content (UGC) is the essence of SM relationships.
Answer: True
Rationale:
User-generated content (UGC) forms the foundation of social media (SM) relationships,
driving engagement, interaction, and community building. UGC encompasses various forms

of content created by users, including posts, comments, reviews, images, videos, and other
contributions, which play a central role in shaping the dynamic and participatory nature of
social media platforms.
46) One of the major sources of UGC problems is inappropriate content.
Answer: True
Rationale:
Inappropriate content, such as offensive language, hate speech, explicit imagery, or
misinformation, is a significant challenge associated with user-generated content (UGC). It
can lead to reputational damage, legal issues, and negative user experiences if not effectively
managed or moderated by platform administrators.
47) The first task in managing social networking risk is to know the sources of potential
problems and to monitor sites for problematic content.
Answer: True
Rationale:
Effective risk management in social networking involves proactive monitoring and
identification of potential issues or threats, such as inappropriate content, privacy breaches, or
brand-related controversies. By understanding the sources of risk and actively monitoring
social media channels, organizations can mitigate negative impacts and respond promptly to
emerging challenges.
48) If a reasoned, nondefensive response generates continued and unreasonable UGC from
that same source, it is best to respond to the problematic content.
Answer: False
Rationale:
Continuously engaging with unreasonable or hostile user-generated content (UGC) from the
same source may perpetuate negative interactions and escalate conflicts. In such cases, it may
be more prudent to limit further engagement and focus on moderation strategies to address
the underlying issue, rather than prolonging unproductive exchanges.
49) Deleting content on user-generated content sites should be reserved for contributions that
criticize a firm's products or services.

Answer: False
Rationale:
Deleting user-generated content (UGC) should be done judiciously and in accordance with
platform policies and community guidelines. While content that violates terms of service,
contains hate speech, or poses legal risks may warrant removal, deleting contributions solely
based on criticism of products or services can undermine transparency, trust, and freedom of
expression within the community.
50) In the context of CRM, hyper-social means that the vendor gains control of the customer
relationship.
Answer: False
Rationale:
In the context of customer relationship management (CRM), hyper-social refers to leveraging
social media and collaborative technologies to enhance customer engagement, build
relationships, and foster brand advocacy. It does not imply vendor control but rather
emphasizes customer-centric approaches that empower customers to participate in brand
conversations and co-create value.
51) Emergence in the context of management means loss of control of employees.
Answer: True
Rationale:
Emergence in management refers to the phenomenon where complex patterns, behaviors, or
outcomes arise from the interactions of individual agents or components within a system,
without centralized control or coordination. In emergent systems, behaviors or structures at
the macro level cannot be entirely predicted or controlled by understanding the behavior of
individual components alone. This can lead to a perceived loss of control over specific
outcomes or processes within the organization, as they arise organically from the interactions
of various factors.
Multiple Choice Questions
1) ________ is the use of information technology to support the sharing of content among
networks of users.

A) Social media
B) Content publishing
C) Networking
D) Programming
Answer: A
Rationale:
Social media refers to the use of digital platforms and technologies to facilitate the sharing,
creation, and exchange of user-generated content within virtual communities and networks.
2) A(n) ________ is an information system that supports the sharing of content among
networks of users.
A) DSS
B) SMIS
C) ERP
D) TPS
Answer: B
Rationale:
An SMIS (Social Media Information System) is specifically designed to support the sharing
of content among networks of users, providing platforms for interaction, communication, and
collaboration.
3) SM communities differ from communities in the past because SM communities are
________.
A) formed based on family relationships
B) limited by geographic location
C) formed based on mutual interests
D) limited by organizational boundaries
Answer: C

Rationale:
Social media communities are formed based on mutual interests rather than familial,
geographic, or organizational boundaries, allowing individuals with similar interests to
connect and interact irrespective of physical location or organizational affiliation.
4) A ________ is an inducement for passing the message along through the tiers.
A) motif
B) viral hook
C) folksonomy
D) protocol
Answer: B
Rationale:
A viral hook is an incentive or element within a message or content that encourages users to
share it with others, thereby propagating it through various tiers or layers of social networks.
5) Social media ________ are companies and other organizations that choose to support a
presence on one or more SM sites.
A) application providers
B) sponsors
C) blogs
D) users
Answer: B
Rationale:
Social media sponsors are entities that operate and maintain a presence on social media
platforms, engaging with users and contributing content to promote their brands, products, or
services.
6) ________ are the companies that operate the SM sites.
A) SM application providers

B) SM sponsors
C) SM client servers
D) SM consultants
Answer: A
Rationale:
SM application providers are the companies or organizations that develop, manage, and
operate social media platforms where users can interact, share content, and engage with each
other.
7) Which of the following is an SM application provider?
A) Oracle
B) SAP
C) McAfee
D) LinkedIn
Answer: D
Rationale:
LinkedIn is an example of an SM application provider, offering a social media platform
specifically designed for professional networking and career development.
8) Most SM applications earn revenue ________.
A) by selling the license to their applications
B) through merchandising
C) through a type of advertising model
D) through viral marketing
Answer: C
Rationale:

Most social media applications generate revenue through advertising models, where
advertisers pay to display targeted ads to users based on their demographics, interests, and
online behavior.
9) ________ is data and responses to data that are contributed by users and SM sponsors.
A) Networking data
B) Content data
C) Connection data
D) User-generated data
Answer: B
Rationale:
Content data in social media refers to the information, messages, posts, comments, images,
videos, and other content contributed by users and sponsors on social media platforms.
10) ________ differentiates SMIS from Web site applications.
A) Networking data
B) Content data
C) Connection data
D) User-generated data
Answer: C
Rationale:
Connection data, which includes information about relationships, interactions, and
associations among users and entities within a social media platform, differentiates SMIS
from traditional website applications. Social media platforms focus on facilitating and
analyzing connections between users rather than simply presenting content.
11) A group considers Google+ to be far superior to Facebook and attempts to convince
others that this is true. When confronted with contrary evidence, the group members do not
change their opinion. According to Gossieaux and Moran, this is an example of a ________
community.

A) defenders-of-belief
B) seekers-of-the-truth
C) heterogeneous
D) cloud
Answer: A
Rationale:
Defenders-of-belief communities are characterized by members who strongly adhere to a
particular belief or viewpoint and seek to convince others of its validity. They tend to resist
changing their beliefs even when presented with contradictory evidence.
12) Defenders-of-belief communities facilitate activities like ________.
A) customer service
B) manufacturing and operations
C) inbound logistics
D) sales and marketing
Answer: D
Rationale:
Defenders-of-belief communities are highly effective for activities like sales and marketing,
as members passionately advocate for their beliefs and attempt to influence others to adopt
similar viewpoints.
13) Which of the following statements is true of defenders-of-belief communities?
A) They are open to changing their belief when confronted with contrary evidence.
B) They are very effective for activities that involve innovation or problem solving.
C) They are useful in customer service activities.
D) They seek conformity and want to convince others of the wisdom of their belief.
Answer: D

Rationale:
Defenders-of-belief communities seek conformity and aim to convince others of the validity
of their beliefs. They often resist changing their beliefs, even when presented with
contradictory evidence.
14) According to Gossieaux and Moran, ________ share a common desire to learn
something, solve a problem, or make something happen.
A) defenders of belief
B) advocates of philosophy
C) supporters of fidelity
D) seekers of the truth
Answer: D
Rationale:
Seekers of the truth are individuals or groups who share a common goal of seeking
knowledge, solving problems, or achieving specific objectives through collaborative efforts.
15) Which of the following activities would seekers of the truth facilitate?
A) human resources
B) operations
C) marketing
D) sales
Answer: B
Rationale:
Seekers of the truth would facilitate activities related to operations, such as problem-solving,
process improvement, and knowledge sharing to enhance operational efficiency.
16) Which of the following statements is true of social CRM?
A) Customers that are likely to generate the most business get the most attention and have the
most effect on the organization.

B) The relationships between organizations and customers emerge in a structured process as
only the organization creates and processes content.
C) Each customer crafts his or her own relationship with the company.
D) Though relationships emerge from joint activity, companies have a lot more control than
the customers.
Answer: C
Rationale:
In social CRM, each customer has the opportunity to craft their own relationship with the
company through their interactions and engagements on social media platforms. Customers
have more control over their engagement and relationship-building process.
17) The primary risk of peer-to-peer support is ________.
A) loss of control
B) loss of credibility
C) lack of privacy
D) increase in expenses
Answer: A
Rationale:
The primary risk of peer-to-peer support is the loss of control, as organizations may struggle
to manage the quality and accuracy of information exchanged between peers without direct
oversight.
18) Which of the following is a significant risk of using social media for inbound and
outbound logistics?
A) loss of control
B) loss of credibility
C) loss of privacy
D) loss of effectiveness

Answer: C
Rationale:
A significant risk of using social media for inbound and outbound logistics is the loss of
privacy, as sensitive information related to logistics operations may be exposed or
compromised through social media channels.
19) ________ is the dynamic social media process of employing users to participate in
product design or product redesign.
A) Crowdsourcing
B) Blogging
C) Publishing
D) Tweeting
Answer: A
Rationale:
Crowdsourcing involves leveraging the collective intelligence and contributions of users to
participate in various tasks, such as product design, idea generation, problem-solving, and
innovation initiatives.
20) ________ is the application of social media to facilitate the cooperative work of people
inside organizations.
A) Enterprise 2.0
B) Enterprise resource planning
C) Enterprise application integration
D) Enterprise architecture
Answer: A
Rationale:
Enterprise 2.0 refers to the application of social media technologies and principles within
organizations to facilitate collaboration, communication, knowledge sharing, and innovation
among employees.

21) In McAfee's SLATES Enterprise 2.0 model, "L" is for ________.
A) LAN
B) links
C) language
D) leader
Answer: B
Rationale:
In McAfee's SLATES model, "L" stands for "Links." This refers to the ability of Enterprise
2.0 tools to facilitate linking and connecting users to relevant content, resources, and
individuals within the organizational network.
22) In McAfee's SLATES Enterprise 2.0 model, "A" is for ________.
A) avatar
B) Ajax
C) authoring
D) affiliation
Answer: C
Rationale:
In McAfee's SLATES model, "A" stands for "Authoring." This represents the capability of
Enterprise 2.0 tools for users to create, contribute, and edit content collaboratively, fostering
knowledge sharing and content generation.
23) A ________ is content structure that has emerged from the processing of many user tags.
A) mashup
B) taxonomy
C) folksonomy
D) microblog

Answer: C
Rationale:
A folksonomy is a content structure that emerges from user-generated tags or keywords
associated with content. It reflects the collective organization and categorization of
information by users, rather than a predefined taxonomy.
24) According to McAfee, pushing enterprise content to users based on subscriptions and
alerts is part of the ________ component.
A) signals
B) search
C) links
D) authoring
Answer: A
Rationale:
According to McAfee's SLATES model, "Signals" refers to the component involving the push
mechanism of enterprise content to users based on subscriptions, alerts, notifications, or
updates tailored to their preferences and interests.
25) Enterprise 2.0 workers want applications to enable them to rate tagged content and to use
the tags to predict content that will be of interest to them, a process McAfee refers to as
________.
A) links
B) authoring
C) signals
D) extensions
Answer: D
Rationale:

McAfee refers to the process of enabling users to rate tagged content and predict relevant
content based on tags as "Extensions." This aspect of Enterprise 2.0 tools enhances user
engagement, content discovery, and relevance customization.
26) Which of the following is a risk associated with human resources using social media to
form conclusions about candidate evaluation?
A) loss of privacy
B) loss of control
C) decrease in efficiency
D) possibility of error
Answer: D
Rationale:
The possibility of error is a significant risk associated with human resources using social
media for candidate evaluation. Biases, misinterpretations, or inaccurate conclusions drawn
from social media profiles can lead to erroneous hiring decisions.
27) A student invests money and time in taking a business administration course. In this
example, the student invests in ________.
A) human capital
B) social capital
C) functional capital
D) mechanical capital
Answer: A
Rationale:
The investment of money and time in acquiring skills, knowledge, and expertise through
education or training represents an investment in human capital, which refers to the skills,
abilities, and knowledge possessed by individuals.
28) When a student attends a business function for the purpose of meeting people and
reinforcing relationships, he is investing in ________ capital.

A) human
B) technical
C) social
D) mechanical
Answer: C
Rationale:
Attending a business function to network and strengthen relationships represents an
investment in social capital, which encompasses the value derived from social relationships,
networks, and connections.
29) According to Nan Lin, which of the following types of capital adds value through
information, influence, and personal reinforcement?
A) social capital
B) human capital
C) industrial capital
D) mechanical capital
Answer: A
Rationale:
According to Nan Lin's social capital theory, social capital adds value through access to
information, influence, support, and reinforcement derived from social networks and
relationships.
30) Being linked to a network of highly regarded contacts is a form of ________.
A) social credential
B) viral marketing
C) crowdsourcing
D) human capital
Answer: A

Rationale:
Being connected to a network of highly regarded contacts enhances one's social credibility
and reputation, making it a form of social credential. This network can provide access to
valuable resources, opportunities, and information.
31) According to Henk Flap, the ________ is determined by the number of relationships in a
social network, by the strength of those relationships, and by the resources controlled by
those related.
A) strength of a viral hook
B) value of social capital
C) curse of dimensionality
D) social media policy
Answer: B
Rationale:
Henk Flap's concept of social capital emphasizes that its value is determined by three factors:
the number of relationships in a social network, the strength of those relationships, and the
resources controlled by those involved. This comprehensive view underscores the
multifaceted nature of social capital and its significance in various contexts.
32) To an organization, the ________ is the likelihood that an entity in the relationship will
do something that benefits the organization.
A) principle of relationship
B) strength of a relationship
C) customer relations
D) customer lifetime value
Answer: B
Rationale:
The strength of a relationship, in the context of an organization, refers to the likelihood that
the entity involved in the relationship will take actions beneficial to the organization.

Stronger relationships typically correlate with higher levels of engagement, trust, and
cooperation, leading to mutually beneficial outcomes.
33) Social capital depreciates, but such depreciation can be ameliorated by ________.
A) dropping older relationships
B) reducing the level of investment in relationships
C) adding something of value to the interaction
D) increasing one's human capital
Answer: C
Rationale:
While social capital can depreciate over time due to changes in relationships or
circumstances, this depreciation can be mitigated by adding value to interactions. By
enhancing the quality, relevance, or benefits of social interactions, individuals or
organizations can maintain or even strengthen their social capital.
34) Which of the following best represents the value of social capital?
A) Number of Relationships × Relationship Strength × Entity Resources
B) Entity Resources - (Number of Relationships + Relationship Strength)
C) Number of Relationships - Relationship Strength - Entity Resources
D) (Number of Relationships × Relationship Strength) / Entity Resources
Answer: A
Rationale:
The value of social capital is best represented by the formula: Number of Relationships ×
Relationship Strength × Entity Resources. This formula considers the quantity of
relationships, the strength or quality of those relationships, and the resources controlled by
those involved, providing a comprehensive measure of social capital's value.
35) Which of the following observations is true?
A) A huge network of relationships to people who have few resources is of greater value than
a smaller network with people with substantial resources.

B) Most organizations today ignore the value of entity assets and simply try to connect to
more people with stronger relationships.
C) Social capital depreciates and such depreciation cannot be ameliorated by adding
something of value to the interaction.
D) The value of social capital is best expressed as the summation of the number of
relationships in a social network and the resources controlled by those related.
Answer: B
Rationale:
The observation that most organizations today ignore the value of entity assets and focus on
expanding networks with stronger relationships highlights a common misconception.
Organizations often prioritize quantity over quality in social interactions, overlooking the
potential value of diverse resources and connections.
36) Which of the following is true of the model of social media developed by Gossieaux and
Moran?
A) It is an economic perspective on social media rather than a sociological one.
B) It states that using social media to send messages that attempt to manage, influence, and
control customers, employees, and partners is effective.
C) It advocates the use of social media in an old-style, organization-centric manner.
D) It advocates using social media to interact with customers, employees, and partners in a
more humane, relationship-oriented way.
Answer: D
Rationale:
The model of social media developed by Gossieaux and Moran advocates using social media
to interact with customers, employees, and partners in a more humane and relationshiporiented manner. It emphasizes the importance of building mutually satisfying relationships
rather than controlling or managing interactions.

37) A(n) ________ organization is an organization that uses social media to transform its
interactions with customers, employees, and partners into mutually satisfying relationships
with them and their communities.
A) social capitalistic
B) hypersocial
C) employee-centric
D) commercial media
Answer: B
Rationale:
A hypersocial organization is characterized by its use of social media to transform
interactions with stakeholders into mutually satisfying relationships. This approach prioritizes
relationship-building and community engagement over traditional transactional interactions.
38) Which of the following observations is true about a hypersocial organization?
A) It uses social media in an organization-centric manner.
B) It creates relationships in which both parties perceive and gain value.
C) It is an organization that has made a transformation of thinking from tribes to market
segments.
D) It is an organization that has made a transition from a dynamic process to a structured one.
Answer: B
Rationale:
A hypersocial organization creates relationships in which both parties perceive and gain
value. It fosters collaborative and mutually beneficial interactions with stakeholders through
social media, leading to enhanced engagement and satisfaction for all parties involved.
39) Which of the following describes the meaning of "sense" activity, in the SEAMS dynamic
process?
A) the communities which are important to a person
B) connecting communities to one's internal value chains and processes

C) one's success in terms of social capital
D) publicizing community successes
Answer: A
Rationale:
In the SEAMS dynamic process, "sense" activity refers to understanding and identifying the
communities that hold significance to an individual. This involves recognizing the
importance of various social groups and networks within one's environment, thus option A is
correct.
40) A(n) ________ is a person who reads, consumes, and observes activity in one social
medium and then broadcasts it in some other medium.
A) active lurker
B) active user
C) key user
D) SM sponsor
Answer: A
Rationale:
An "active lurker" fits the description of someone who observes and consumes content within
a social medium and then shares or broadcasts that content in a different medium. This term
encapsulates the behavior of individuals who may not directly participate in discussions but
still play a role in disseminating information across different platforms, thus option A is
correct.
41) Which of the following is one of the main principles used by companies implementing
Web 2.0 to attract viewers?
A) controlled releases
B) fixed product value
C) free content
D) fixed interface

Answer: C
Rationale:
One of the primary principles used by companies implementing Web 2.0 is to offer free
content. This strategy attracts viewers by providing access to valuable content without
requiring payment upfront. Free content encourages user engagement and interaction, driving
traffic to the platform.
42) The Web 2.0 business model relies on ________ for revenue.
A) advertising
B) software license fees
C) venture capital
D) controlled, fixed interface
Answer: A
Rationale:
The Web 2.0 business model relies heavily on advertising for revenue generation. Companies
offering Web 2.0 services often provide free content or services to users and generate revenue
through targeted advertising, sponsored content, or pay-per-click models.
43) ________ is a term that came to be used when companies such as Google offered thinclient email such as Gmail for free, as a service.
A) Platform as a service
B) Software as a service
C) Infrastructure as a service
D) Cloud as a service
Answer: B
Rationale:
The term "Software as a Service" (SaaS) is used to describe the delivery of software
applications over the internet on a subscription basis. Companies like Google offering

services such as Gmail for free fall under this category, providing software functionality
without the need for users to install or maintain software locally.
44) Which of the following revenue model is followed by companies providing Web 2.0
services?
A) traditional marketing
B) pay per click
C) user participation
D) venture capital
Answer: B
Rationale:
Companies providing Web 2.0 services often follow the pay-per-click revenue model. In this
model, advertisers pay a fee each time a user clicks on their advertisement, providing revenue
to the platform hosting the ads.
45) Web 2.0 companies provide software ________.
A) as a licensed product with hefty fees
B) with controlled releases
C) as a non-installable product
D) as a free service
Answer: D
Rationale:
Web 2.0 companies typically provide software as a free service. Instead of charging hefty
licensing fees, these companies offer their software applications as free services accessible
via the internet. This approach allows for widespread adoption and user engagement.
46) Web 2.0 as Web-delivered services and content that are paid for by ________.
A) SM sponsors
B) users

C) advertising
D) investors
Answer: C
Rationale:
Web 2.0 services and content are primarily paid for by advertising. Companies offering Web
2.0 services generate revenue through advertising revenue streams, leveraging user traffic and
engagement to attract advertisers.
47) A characteristic of Web 2.0 is that the value of a Web site increases ________.
A) over time
B) in a linear fashion
C) with the number of users
D) as the amount of capital invested in it increases
Answer: C
Rationale:
In Web 2.0, the value of a website typically increases with the number of users. More users
mean more engagement, interaction, and data, which can lead to increased opportunities for
monetization through advertising, subscriptions, or other revenue streams.
48) Web 2.0 encourages ________, which occur when the output from two or more Web sites
is combined into a single user experience.
A) viral hooks
B) mashups
C) conversion rates
D) fixed interfaces
Answer: B
Rationale:

Web 2.0 encourages mashups, which involve combining the output from multiple websites
into a single user experience. Mashups allow users to integrate diverse content and
functionalities, creating customized and enriched experiences beyond what individual
websites offer.
49) Google's ________ is an excellent mashup example.
A) MyMaps
B) Chrome
C) Android
D) AdSense
Answer: A
Rationale:
Google's MyMaps is an excellent example of a mashup. It allows users to create custom maps
by combining various layers of information, such as geographic data, user-generated content,
and third-party services like location-based recommendations or traffic updates.
50) Highest advertising revenue is generated from ________.
A) mobile users
B) desktop users
C) laptop users
D) Xbox users
Answer: A
Rationale:
The highest advertising revenue is typically generated from mobile users. With the increasing
use of smartphones and tablets, advertisers target mobile platforms to reach users with
relevant and personalized ads, contributing significantly to advertising revenue.
51) ________ measures the frequency that someone who clicks on an ad makes a purchase,
Likes a site, or takes some other action desired by the advertiser.
A) AdWords

B) Conversion rate
C) Ad entity
D) Conversion protocol
Answer: B
Rationale:
The conversion rate measures the effectiveness of an advertising campaign by tracking the
frequency at which users who click on an ad complete a desired action, such as making a
purchase or liking a site. A higher conversion rate indicates that the ad is successfully driving
user engagement and fulfilling the advertiser's objectives.
52) The first step that any hypersocial organization should take is to develop and publicize
a(n) ________ policy.
A) foreign
B) insurance
C) corporate responsibility
D) social media
Answer: D
Rationale:
The first step for a hypersocial organization is to develop and publicize a social media policy.
This policy outlines guidelines and expectations for employees regarding their use of social
media platforms, helping to ensure responsible and effective engagement with online
communities.
53) A social media policy is a statement ________.
A) that delineates employees' rights and responsibilities
B) that lists a firm's products and services
C) that lists the social and environmental effects of a company's economic actions
D) that defines the type of medium and channel that must be used for social media

Answer: A
Rationale:
A social media policy is a statement that delineates employees' rights and responsibilities
regarding the use of social media platforms. It provides guidelines on appropriate behavior,
confidentiality, content sharing, and engagement with online communities to ensure
alignment with organizational goals and values.
54) ________ is the essence of SM relationships.
A) User-generated content
B) Social capital
C) Human capital
D) Cultural values
Answer: A
Rationale:
User-generated content is the essence of social media relationships. It represents the
contributions and interactions of users within online communities, including posts,
comments, reviews, and other content generated by individuals, which forms the basis of
engagement and collaboration in social media environments.
55) If the problematic content posted on a social networking site represents reasonable
criticism of the organization's products or services, the best response would be to ________.
A) leave it
B) edit it
C) delete it
D) report it
Answer: A
Rationale:
If the problematic content represents reasonable criticism of the organization's products or
services, the best response would be to leave it. Deleting or editing such content may be

perceived as censorship and could escalate the situation. Leaving it allows for transparency
and demonstrates openness to feedback and dialogue.
56) Responding to problematic content on social networking sites is best reserved for when
________.
A) the problematic content is truthful and legitimate
B) the problematic content is obscene and contributed by crackpots
C) the problematic content represents reasonable criticism of the organization's products or
services
D) the problematic content has caused the organization to do something positive as a result
Answer: D
Rationale:
Responding to problematic content on social networking sites is best reserved for when the
problematic content has caused the organization to do something positive as a result. This
demonstrates responsiveness and a commitment to addressing concerns raised by the
community, potentially turning a negative situation into a positive outcome.
57) Deleting problematic content on social networking sites is best reserved for when
________.
A) the content has grammatical errors
B) the content is contributed by a layperson
C) the content is legitimate, but negative
D) the content is obscene and inappropriate
Answer: D
Rationale:
Deleting problematic content on social networking sites is best reserved for when the content
is obscene and inappropriate. Content that violates community guidelines, contains hate
speech, or is otherwise offensive should be promptly removed to maintain a respectful and
safe online environment.

58) Emergence in the context of management means loss of control of ________.
A) finances
B) customers
C) sales
D) employees
Answer: D
Rationale:
Emergence in the context of management refers to the phenomenon where control over
organizational processes or outcomes shifts from centralized authority to decentralized
entities or individuals within the organization. This loss of control typically applies to
employees, who may exhibit autonomous behavior or self-organize to achieve objectives.
Essay Questions
1) Define social media and social media information systems. Name the three SMIS
organizational roles.
Answer: Social media (SM) is the use of information technology to support the sharing of
content among networks of users. A social media information system (SMIS) is an
information system that supports the sharing of content among networks of users.
The three fundamental SMIS organizational roles are:
• User communities
• Social media sponsors
• Social media application providers
2) Describe social media sponsors and social media application providers.
Answer: Social media sponsors are companies and other organizations that choose to support
a presence on one or more SM sites. Social media application providers are the companies
that operate the SM sites. Facebook, Twitter, LinkedIn, and Google are all SM application
providers. These providers create the features and functions of the site, and they compete
with one another for the attention of user communities and SM sponsors. Social media have

evolved in such a way that users expect to use SM applications without paying a license fee
or other charge. Sponsors may or may not pay a fee, depending on the application and on
what they do with it. On Facebook, for example, creating a company page is free, but
Facebook charges a fee to advertise to communities that Like that page. Most SM
applications earn revenue through some type of advertising model.
3) Explain the terms "defenders of belief" and "seekers of the truth." How do the goals of
each type of community differ?
Answer: Gossieaux and Moran, creators of the hypersocial organization theory, identified two
kinds of communities that were important to commerce:
• Defenders of belief
• Seekers of the truth
Defenders of belief share a common belief and form their hive around that belief. They seek
conformity and want to convince others of the wisdom of their belief. When confronted with
contrary evidence, they do not change their opinion, but become more firmly convinced in
their belief. Defenders-of-belief communities facilitate activities like sales and marketing.
They are not effective for activities that involve innovation or problem solving. Such groups
can form strong bonds and allegiance to an organization.
Seekers of the truth share a common desire to learn something, solve a problem, or make
something happen. Such tribes are incredible problem solvers and excel at innovation. They
can be useful in customer service activity, as long as they don't conclude that the best way to
solve a product problem is to use another company's product, something they might do
because such groups seldom form a strong bond to an organization.
4) Explain each element in the SLATES model.
Answer: McAfee defined six characteristics of Enterprise 2.0 that he refers to with the
acronym SLATES: Search, Links, Authoring, Tags, Extensions, and Signals. Workers want to
be able to "search" for content inside the organization just like they do on the Web. Most
workers find that searching is more effective than navigating content structures such as lists
and tables of content. Workers want to access organizational content by "link," just as they do
on the Web. They also want to "author" organizational content using blogs, wikis, discussion
groups, published presentations, and so on. Enterprise 2.0 content is "tagged," just like

content on the Web, and tags are organized into structures. These structures organize tags as a
taxonomy does, but, unlike taxonomies, they are not preplanned; they emerge. Additionally,
Enterprise 2.0 workers want applications to enable them to rate tagged content and to use the
tags to predict content that will be of interest to them, a process McAfee refers to as
"extensions." Finally, Enterprise 2.0 workers want relevant content pushed to them; they want
to be "signaled" when something of interest to them happens in organizational content.
5) Define the three types of capitals listed in business literature. According to Nan Lin, how
does social capital add value?
Answer: Business literature defines three types of capital. Karl Marx defined capital as the
investment of resources for future profit. This traditional definition refers to investments into
resources such as factories, machines, manufacturing equipment, and the like. Human capital
is the investment in human knowledge and skills for future profit. According to Nan Lin,
social capital is the investment in social relations with the expectation of returns in the
marketplace. According to Lin, social capital adds value in four ways:
• Information
• Influence
• Social credentials
• Personal reinforcement
6) Describe the hypersocial organization. Name the four pillars of a hypersocial organization.
Answer: Gossieaux and Moran developed a sociological model called the hypersocial
organization. According to this model, using social media in an old-style, organization-centric
manner is ineffective. The true value of social media can only be achieved when
organizations use social media to interact with customers, employees, and partners in a more
humane, relationship-oriented way. Rather than sending messages that attempt to manage,
influence, and control, hypersocial organizations create relationships in which both parties
perceive and gain value. Thus, a hypersocial organization is an organization that uses social
media to transform its interactions with customers, employees, and partners into mutually
satisfying relationships with them and their communities. In particular, a hypersocial
organization is one that has made the four transitions, called pillars. They are:
Consumers → Humans

Market Segments → Tribes
Channels → Networks
Structure & Control→ Messiness
7) Explain the nature of sensing in SEAMS activities.
Answer: Sensing involves two functions: (1) determining what the communities you care
about are saying about you and (2) identifying the structure, goals, and dynamic of
communities with which you want to relate. For the first, many organizations hire reputation
management services like those provided by Reputation.com and others. These services can
be expensive because they must be staffed by human beings who read, comprehend, filter,
and synthesize SM conversations about your organization. An organization can also do its
own reputation management.
The second function is to identify communities with which you wish to engage and determine
their type (defender of belief or seeker of truth), their structure, their key contributors, their
goals and objectives, and their willingness to engage with organizations like yours. Given
that data, you can then craft the best way of engaging those communities.
8) Describe the difference between Web 2.0 processing and traditional processing.
Answer: The essential characteristics of Web 2.0 are:
• Software as a (Free) Service
• Frequent releases of thin-client applications
• Business model relies on advertising
• Product value increases with use and users
• Organic interfaces, mashups encouraged
• Participation
• Not all rights are reserved
On the other hand, traditional processing has the following characteristics:
• Software as product
• Infrequent, controlled releases

• Business model relies on sale of software licenses
• Extensive advertising
• Product value fixed
• Controlled, fixed interface
• Publishing
• All rights reserved
9) Summarize Intel's guiding principles for SM policies.
Answer: Intel Corporation has pioneered open and employee-trusting SM policies, policies
that continue to evolve as they gain more experience with employee written social media. The
three key pillars of their policy in 2012 are:
• Disclose
Be transparent—use your real name and employer
Be truthful—point out if you have a vested interest
Be yourself—stick to your expertise and write what you know
• Protect
Don't tell secrets
Don't slam the competition
Don't overshare
• Use Common Sense
Add value—make your contribution worthwhile
Keep it cool—don't inflame or respond to every criticism
Admit mistakes—be upfront and quick with corrections
10) List the major risks for businesses that indulge in commercial applications of social
networking. Discuss any one of them briefly.
Answer: Some of the major risks are:

• Junk and crackpot contributions
• Inappropriate content
• Unfavorable reviews
• Mutinous movements
When a business participates in a social network or opens its site to UGC, it faces the risk of
unfavorable reviews. Research indicates that customers are sophisticated enough to know that
few, if any, products are perfect. Most customers want to know the disadvantages of a product
before purchasing it so they can determine if those disadvantages are important for their
application. However, if every review is bad, then the company is using social media to
publish its problems. In this case, some action must be taken.
11) How should organizations respond to social networking problems? Which one of them is
a dangerous approach and why?
Answer: Organizations may respond to social networking problems in one of three ways:
• Leave it
• Respond to it
• Delete it
Responding to the problematic content is, however, dangerous. If the response could be
construed, in any way, as patronizing or insulting to the content contributor, the response can
enrage the user community and generate a strong backlash. Also, if the response appears
defensive, it can become a strong public relations negative. In most cases, responses are best
reserved for when the problematic content has caused the organization to do something
positive as a result.
12) Explain the meaning of hypersocial in the context of CRM and emergence in the context
of management.
Answer: In the context of CRM, hypersocial means that the vendor loses control of the
customer relationship. Customers use all the touch points they can find with the vendor to
craft their own relationships. Emergence in the context of management means loss of control
of employees. Employees craft their own relationships with their employers. It means a loss
of control, one that is readily made public, to the world.

Test Bank for Using MIS
David M. Kroenke, Randall J. Boyle
9780133029673, 9780135191767, 9780134106786, 9780138132484, 9780136100751, 9780134606996

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