Question 2. Read the case below about Square, Inc. and answer t multiple choice question. .In October 2015, amid rising fears about the security of credit card transactions, financial institutions and businesses made the transition to using chip cards. Unlike the quick swipe of a magnetic stripe on the back of traditional credit and debit cards, chip cards have to be left inside the terminal while the embedded chip verifies the transaction. While there is no consistent method for measuring transaction speed, news agencies report average chip speeds of anywhere from 8 seconds to 13 seconds. The switch to chip readers was precarious, with many businesses taping over the chip card slots in the terminals until the kinks were worked out. Even after a year, some businesses still could not process chips and continued to utilize the magnetic stripe for transactions. Financial institutions thought the additional security benefits of the chips would overshadow the added wait times. Yet a survey conducted by Harbortouch in 2016 showed that nearly four times as many consumers prefer speedy transactions over the additional security.“Consumers and business owners alike loathe waiting for chip cards to process,” said Jesse Dorogusker, Square’s Hardware Lead said in a blog post.Founded in 2009 and headquartered in San Francisco, California, Square started with the simple idea that all businesses, regardless of size, should be able to accept credit cards. They offer cohesive products to run an entire business, including point-of-sale service tools for accepting credit cards, tracking inventory, real-time analytics, and invoicing. Square also offers sellers financial and marketing services. Square Cash is an additional service available for businesses and individuals to send and receive money. In response to customer inconvenience at the slow chip readers, in September 2016, Square announced that it had reduced the speed of their chip card reader by 25 percent, from 5.7 seconds to 4.2 seconds (measured from when a card is inserted to when payment is complete). They also announced a goal of around 3 seconds for the final transaction time. “We’re committed to saving time for our sellers and the customers they serve. Conversations with business owners should be about the delicious cheeseburger you ate or the new haircut you just stopped in for, not the amount of time it takes to pay for them,” said Dorogusker.Square was able to tackle the problem of speed better than others because they designed both the hardware and the software used in the payment operation. So engineers had the opportunity to optimize the entire system to work better together and faster. Over 75 percent of cards processed on Square now contain a chip, up from 40 percent a year ago. Square released a $49 contactless payment and chip reader terminal with a simple design and a compact feel. In addition to quickly accepting chip cards, it takes contactless payments like Apple Pay and Android Pay. Over half a million of the new readers have been ordered by sellers from Santa Fe to St. Louis. Square is not alone in their efforts to reduce chip card transaction times. Visa debuted Quick Chip in 2016, claiming it would make the checkout experience comparable to magnetic stripe transactions. A. Square offers which type of business product? a. major equipment (installations) b. accessory equipment c. raw materials d. component partse. processed materials B. The release of the new $49 contactless payment and chip reader terminal creates which buying situation? a. new buy b. modified rebuy c. straight rebuy C. Which of the following is NOT an example of business marketing? a. the sale of a personal computer to a college or university b. the sale of printers to an office supply store c. the sale of a Square POS terminal to a coffee shop d. the sale of a tablet to a college student D. Which way do B-to-B companies use the Internet as a sales and promotion platform? a. to facilitate communication and orders b. to increase brand awareness c. for digital marketing, primarily content marketing d. All of thesee. None of these E. Many vendors at fairs and conventions use Square POS terminals to accept credit card payments. If their sales decrease, the demand for the improved POS terminal will also decrease because of __________ demand. a. derived b. inelastic c. joint d. fluctuating

Question 2. Read the case below about Square, Inc. and answer t multiple choice question. .In October 2015, amid rising fears about the security of credit card transactions, financial institutions and businesses made the transition to using chip cards. Unlike the quick swipe of a magnetic stripe on the back of traditional credit and debit cards, chip cards have to be left inside the terminal while the embedded chip verifies the transaction. While there is no consistent method for measuring transaction speed, news agencies report average chip speeds of anywhere from 8 seconds to 13 seconds. The switch to chip readers was precarious, with many businesses taping over the chip card slots in the terminals until the kinks were worked out. Even after a year, some businesses still could not process chips and continued to utilize the magnetic stripe for transactions. Financial institutions thought the additional security benefits of the chips would overshadow the added wait times. Yet a survey conducted by Harbortouch in 2016 showed that nearly four times as many consumers prefer speedy transactions over the additional security.“Consumers and business owners alike loathe waiting for chip cards to process,” said Jesse Dorogusker, Square’s Hardware Lead said in a blog post.Founded in 2009 and headquartered in San Francisco, California, Square started with the simple idea that all businesses, regardless of size, should be able to accept credit cards. They offer cohesive products to run an entire business, including point-of-sale service tools for accepting credit cards, tracking inventory, real-time analytics, and invoicing. Square also offers sellers financial and marketing services. Square Cash is an additional service available for businesses and individuals to send and receive money. In response to customer inconvenience at the slow chip readers, in September 2016, Square announced that it had reduced the speed of their chip card reader by 25 percent, from 5.7 seconds to 4.2 seconds (measured from when a card is inserted to when payment is complete). They also announced a goal of around 3 seconds for the final transaction time. “We’re committed to saving time for our sellers and the customers they serve. Conversations with business owners should be about the delicious cheeseburger you ate or the new haircut you just stopped in for, not the amount of time it takes to pay for them,” said Dorogusker.Square was able to tackle the problem of speed better than others because they designed both the hardware and the software used in the payment operation. So engineers had the opportunity to optimize the entire system to work better together and faster. Over 75 percent of cards processed on Square now contain a chip, up from 40 percent a year ago. Square released a $49 contactless payment and chip reader terminal with a simple design and a compact feel. In addition to quickly accepting chip cards, it takes contactless payments like Apple Pay and Android Pay. Over half a million of the new readers have been ordered by sellers from Santa Fe to St. Louis. Square is not alone in their efforts to reduce chip card transaction times. Visa debuted Quick Chip in 2016, claiming it would make the checkout experience comparable to magnetic stripe transactions. A. Square offers which type of business product? a. major equipment (installations) b. accessory equipment c. raw materials d. component partse. processed materials B. The release of the new $49 contactless payment and chip reader terminal creates which buying situation? a. new buy b. modified rebuy c. straight rebuy C. Which of the following is NOT an example of business marketing? a. the sale of a personal computer to a college or university b. the sale of printers to an office supply store c. the sale of a Square POS terminal to a coffee shop d. the sale of a tablet to a college student D. Which way do B-to-B companies use the Internet as a sales and promotion platform? a. to facilitate communication and orders b. to increase brand awareness c. for digital marketing, primarily content marketing d. All of thesee. None of these E. Many vendors at fairs and conventions use Square POS terminals to accept credit card payments. If their sales decrease, the demand for the improved POS terminal will also decrease because of __________ demand. a. derived b. inelastic c. joint d. fluctuating

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question 2. Read the case below about Square, Inc. and answer t multiple choice question.

.In October 2015, amid rising fears about the security of credit card transactions, financial institutions and businesses made the transition to using chip cards. Unlike the quick swipe of a magnetic stripe on the back of traditional credit and debit cards, chip cards have to be left inside the terminal while the embedded chip verifies the transaction. While there is no consistent method for measuring transaction speed, news agencies report average chip speeds of anywhere from 8 seconds to 13 seconds. The switch to chip readers was precarious, with many businesses taping over the chip card slots in the terminals until the kinks were worked out. Even after a year, some businesses still could not process chips and continued to utilize the magnetic stripe for transactions. Financial institutions thought the additional security benefits of the chips would overshadow the added wait times. Yet a survey conducted by Harbortouch in 2016 showed that nearly four times as many consumers prefer speedy transactions over the additional security.“Consumers and business owners alike loathe waiting for chip cards to process,” said Jesse Dorogusker, Square’s Hardware Lead said in a blog post.Founded in 2009 and headquartered in San Francisco, California, Square started with the simple idea that all businesses, regardless of size, should be able to accept credit cards. They offer cohesive products to run an entire business, including point-of-sale service tools for

accepting credit cards, tracking inventory, real-time analytics, and invoicing. Square also offers sellers financial and marketing services. Square Cash is an additional service available for businesses and individuals to send and receive money. In response to customer inconvenience at the slow chip readers, in September 2016, Square announced that it had reduced the speed of their chip card reader by 25 percent, from 5.7 seconds to 4.2 seconds (measured from when a card is inserted to when payment is complete). They also announced a goal of around 3 seconds for the final transaction time. “We’re committed to saving time for our sellers and the customers they serve. Conversations with business owners should be about the delicious cheeseburger you ate or the new haircut you just stopped in for, not the amount of time it takes to pay for them,” said Dorogusker.Square was able to tackle the problem of speed better than others because they designed both the hardware and the software used in the payment operation. So engineers had the opportunity to optimize the entire system to work better together and faster. Over 75 percent of cards processed on Square now contain a chip, up from 40 percent a year ago. Square released a $49 contactless payment and chip reader terminal with a simple design and a compact feel. In addition to quickly accepting chip cards, it takes contactless payments like Apple Pay and Android Pay. Over half a million of the new readers have been ordered by sellers from Santa Fe to St. Louis. Square is not alone in their efforts to reduce chip card transaction times. Visa debuted Quick Chip in 2016, claiming it would make the checkout experience comparable to magnetic stripe transactions.

A. Square offers which type of business product?

a. major equipment (installations)

b. accessory equipment

c. raw materials

d. component partse. processed materials

B. The release of the new $49 contactless payment and chip reader terminal creates which buying situation?

a. new buy

b. modified rebuy

c. straight rebuy

C. Which of the following is NOT an example of business marketing?

a. the sale of a personal computer to a college or university

b. the sale of printers to an office supply store

c. the sale of a Square POS terminal to a coffee shop

d. the sale of a tablet to a college student

D. Which way do B-to-B companies use the Internet as a sales and promotion platform?

a. to facilitate communication and orders

b. to increase brand awareness

c. for digital marketing, primarily content marketing

d. All of thesee. None of these

E. Many vendors at fairs and conventions use Square POS terminals to accept credit card payments. If their sales decrease, the demand for the improved POS terminal will also decrease because of __________ demand.

a. derived

b. inelastic

c. joint

d. fluctuating

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