Chapter 14 Marketing in the Digital Age

GENERAL CONTENT: Multiple-Choice Questions 1. What is the name for the recent technology advances including the widespread use of the Internet? An old economy. Transformation. A new world. The digital age. B and C (Answer: d; p. 437; Easy) 2. _____ are networks that connect people within a company to each other and to the company network. Bits Bytes Intranets Extranets Internets (Answer: c; p. 437; Easy) 3. The _____ enables consumers and companies to access and share huge amounts of information with just a few mouse clicks. Analog age Digital age Internet extranet marketing mix (Answer: c; p. 437; Easy) 4. The flip side of e-marketing is _____, the buying side of e-commerce. e-purchasing e-commerce e-supply e-business none of the above (Answer: a; p. 438; Moderate)

a. b. c. d. e.

a. b. c. d. e.

a. b. c. d. e.

a. b. c. d. e.

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a. c. d. e.

5. All of the following are accurate descriptions of the benefits of Internet buying, except which one? Internet buying is convenient. b. The Internet offers buyers the benefit of comparative shopping with just the click of a mouse. The Internet seldom provides buyers with greater product access and selection. Online buying is interactive and immediate. Buying is easy and private. (Answer: c; p. 438; Moderate) 6. _____ is(are) a vast public web of computer networks that connect users of all types all around the world to each other. Intranets Extranets The Internet Bitstreams None of the above (Answer: c; p. 437; Easy) 7. Research suggests that the growth of Internet access among the worlds citizens will continue to _____. decline grow slowly stay the same explode grow mainly among the emerging economies (Answer: d; p. 437; Easy) 8. E-commerce includes _____ and _____. e-marketing; e-tailers e-business; e-marketing e-marketing; e-purchasing e-marketing; intranets the Internet; extranets (Answer: c; p. 438; Easy) 9. At first, what did the established brick-and-mortar firms do when the click-only firms began doing business? They dragged their feet, hoping the click-only firms would falter. They joined in right away, realizing it was a good thing. They completely ignored click-only firms. They reexamined how they served their markets. None of the above. (Answer: d; p. 437; Challenging)

a. b. c. d. e.

a. b. c. d. e.

a. b. c. d. e.

a. b. c. d. e.

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10. The popular press has paid the most attention to _____ e-commercethe online selling of goods and services to final consumers. B2C B2B C2C C2B global (Answer: a; p. 440; Moderate) 11. All of the following statements are accurate descriptions of the demographic profile of online consumers, except which one? Today, young, techy, upscale professionals heavily populate use of the Internet. Almost two-thirds of U.S. households surf the Internet. c. The Internet provides e-marketers with access to a broad range of demographic segments. Children and teens are going online more than any other age group. Web-surfing seniors tend to be well educated and well-off. (Answer: a; p. 440; Moderate) 12. _____ are huge e-marketspaces in which buyers and sellers find each other online, share information, and complete transactions efficiently. Private trading exchanges Open trading exchanges B2C Web sites C2C Web sites None of the above. (Answer: b; p. 442; Moderate) 13. The digital age will fundamentally change customers notions of convenience, speed, price, product information, and service. This new consumer thinking will affect _____. a few businesses every business established businesses starting up businesses global businesses only (Answer: b; p. 438; Easy) 14. _____ are trading networks that link a particular seller with its own trading partners. Open trading exchanges Private trading exchanges B2C Web sites C2C Web sites Global Web sites (Answer: b; p. 442; Easy)

a. b. d. e.

a. b. c. d. e.

a. b. c. d. e.

a. b. c. d. e.

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a. b. c. d. e. 16. a. b. c. d. e.

15. E-business involves the use of all but one of the following. Which is not associated with e-business? Intranets. Extranets. The Internet. Stamps. None of the above. (Answer: d; p. 438; Easy) Intranets are used to help _____. buying and selling processes business-to-business purchasing employees to communicate with each other customer relations none of the above (Answer: c; p. 438; Moderate) 17. Online exchange of goods and information between final consumers is called _____. B2C B2B C2C C2B marketing myopia (Answer: c; p. 443; Easy) 18. _____ consists of companies purchasing goods, services, and information from online suppliers. E-marketing E-purchasing E-privacy E-customerization E-learning (Answer: b; p. 438; Moderate) 19. What is one reason why Internet buying is not a benefit to the customer? Convenience. No need to find a parking space. Comparative shopping made easier. Mistrust. Shopping from home. (Answer: d; p. 438; Easy)

a. b. c. d. e.

a. b. c. d. e.

a. b. c. d. e.

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20. eBay and Amazon.com Auctions and other auction sites offer popular marketspaces for online exchange of goods and information. These online companies are examples of _____. B2C B2B C2C C2B global commerce (Answer: c; p. 443; Moderate) 21. Most of todays online customers exhibit a clear tendency toward _____, as they are able to create exact configurations of products desired. consumer control fickleness by nature and will flock to the next new idea indifference bad manners none of the above (Answer: a; p. 439; Moderate) 22. _____ e-commerce sites entail online exchanges in which consumers search out sellers, learn about their offers, and initiate purchases, sometimes even driving transaction terms. a. B2C b. B2B c. C2C d. C2B e. B2B or C2C (Answer: d; p. 444; Easy) 23.

a. b. c. d. e.

a. b. c. e.

Which one listed is not one of the four major Internet domains? B2C (business-to-consumer) B2D (business-to-door) B2B (business-to-business) d. C2C (consumer-to-consumer) They are all major Internet domains. (Answer: b; p. 440; Easy) 24. Search engines, portals, e-tailers and dot-coms are examples of _____, selling products and services directly to final buyers via the Internet. click-and-mortar E-marketers brick-and mortar retailers new-age businesses click-only marketers B2B marketers (Answer: d; p. 445; Moderate) 157

a. b. c. d. e.

a. b. c. d. e.

25. _____, such as AOL and Earthlink, are click-only companies that provide Internet and e-mail connections for a fee. Transaction sites Internet Service Providers (ISPs) Content sites Enabler sites C2B marketers (Answer: b; p. 445; Easy) 26. Huge e-marketspaces in which buyers and sellers find each other online, share information, and complete transactions efficiently are called _____. intranets channel conflicts open trading exchanges fidelity investments none of the above (Answer: c; p. 442; Challenging) 27. _____ link(s) a particular seller with its own trading partners. Open trading networks Private trading exchanges Internet profitability Digital Divide LANs (Answer: b; p. 442; Moderate) 28. _____ is the means by which consumers can buy or exchange goods or information directly with one another. C2C (consumer-to-consumer) B2B (business-to-business) C2B (consumer-to-business) OPT (open trading networks) None of the above (Answer: a; p. 443; Easy) 29. What is the term used for discussion groups located on commercial online services such as AOL and CompuServe? E-mail. Blogs. Chat rooms. Instant messaging. Focus groups. (Answer: b; p. 443; Moderate)

a. b. c. d. e.

a. b. c. d. e.

a. b. c. d. e.

a. b. c. d. e.

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30. What is the name of the e-commerce used when consumers can drive transactions with businesses, such as using Priceline.com? Blogs. B2S (banner-to-site). C2B (consumer-to-business). Webcasting. None of the above. (Answer: c; p. 444; Easy) 31. The Internet gave birth to a new species of e-markets, _____ that operate(s) only online. brick-and-mortar companies click-and-mortar companies old economy click-only dot-coms Web-and-mortar companies (Answer: d; p. 444; Easy) 32. Dot-coms failed for many reasons. What is one reason this happened? Some rushed into the market without proper research or planning. Some developed sound marketing strategies. Many did not rely on spin and hype. Many did not have much investment cash. All of the above. (Answer: a; p. 445; Moderate) Which one is the best description of channel conflict? a. There would be too many customers on a companys site at one time. b. If a company sells its products or services online, it would be competing with its offline retailers. c. It would be hard to find its business online. d. The online description of a product would not be convincing enough to close a sale. e. All of the above. (Answer: b; p. 446; Moderate) 34. Companies can conduct e-marketing in any of four ways. What is not one of these ways? Creating a Web site. Placing ads online. Calling their customers to do surveys. Setting up or participating in Web communities. B and D (Answer: c; p. 447; Easy)

a. b. c. d. e.

a. b. c. d. e. 33.

a. b. c. d. e.

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What is the main purpose for a corporate Web site? These sites are designed to sell the companys products directly. These sites are designed to build customer goodwill. These sites show a catalog and give shopping tips. These sites give out coupons and tell about sales events or contests. These sites explain competitors weaknesses. (Answer: b; p. 448; Challenging) 36. To attract new visitors and to encourage revisits, e-marketers should pay close attention to the seven Cs of effective Web site design. What is included in the seven Cs? Context: sites layout and design. Content: text, pictures, sounds, and video that the Web site contains. Commerce: sites ability to enable commercial transactions. A and C A, B, and C (Answer: e; p. 450; Easy)

a. b. c. d. e. 37. a. b. c. d. e.

Effective Web sites contain all of the following except _____. deep and useful information interactive tools that help buyers find products only brick-and-mortar companies changing promotional efforts A and B (Answer: c; p. 450; Easy) 38. From time to time a company needs to reassess its Web sites attractiveness and usefulness. What is one way that is not used to do this? To detect potential problems, it tracks hits and time spent on the site. It sends out forms in the mail to fill out and send back in to the business. It detects frequently visited pages and the sequence of pages the customer visits. It conducts quarterly phone surveys with customers. All of the above. (Answer: b; p. 450; Moderate)

a. b. c. d. e. 39. a. b. c. d. e.

What does the term viral marketing mean? It is the Internet version of word-of-mouth marketing. It is where problems occur with viruses online. It is another term for online privacy. It is another term for online security. It is where a customers inventory levels are accessible online by suppliers. (Answer: a; p. 453; Easy)

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What does the term Web communities not mean? A site that allows members to congregate online and exchange views. The cyberspace equivalent to a Starbucks coffeehouse. Part of the Internet that takes advantage of the B2B properties. A place where everybody knows your e-mail address. A and D (Answer: c; p. 454; Challenging) 41. The most ardent apostles of e-commerce envision a time when the Internet will replace all but which of the following? Magazines. Newspapers. Stores. Mail service. None of the above. (Answer: e; p. 458; Easy)

a. b. c. d. e. 42. a. b. c. d. e.

There are two major concerns about the darker side of the Web. What are they? Operating on analog information and digitalization. Internet profitability and legal and ethical issues. Using the old economy and the new economy. Problems with dot-coms and ISPs. None of the above. (Answer: b; p. 458; Challenging) 43. www.nytimes.com, espn.com, and Encyclopedia Britannica Online provide financial, research, and other information. They are called _____. . transaction sites content sites enabler sites ISPs click-and-mortar sites (Answer: b; p. 445; Moderate)

a. b. c. d. e. 44. a. b. c. d. e.

What is perhaps the number-one e-commerce concern? Cost of increasing speed and efficiency. Customerization. Online privacy. Forums. Pornography. (Answer: c; p. 459; Moderate)

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What happened as a result of personal information collected online from children? Children have no access to certain parts of the Internet. Congress passed the Childrens Online Privacy Protection Act. Children began to be targeted on their sites. This caused the Digital Divide. Very little has happened as a result. (Answer: b; p. 459; Moderate) All of the following define Internet fraud except for _____. brick-and-mortar firms identity theft investment fraud financial scams false advertising (Answer: a; p. 460; Easy) The term digital divide is defined as the _____. a. conflict between corporate Web sites and marketing Web sites b. gap between those who have access to the latest Internet technologies and those who do not c. difference between online advertising and banner ads d. conflict between C2B relations and e-commerce e. struggle of dot-com companies to survive (Answer: b; p. 460; Moderate) 48. One of the reasons dot-coms failed is because their primary goal was to launch _____ while the market was hot. an initial public offering (IPO) a glitzy Web site a new Web site more retail outlets none of the above (Answer: a; p. 445; Easy) 49. P&G feared that its retailers would drop their packaged goods brands if the company sold the same brands directly online. They worried that it would produce _____. vertical conflict horizontal conflict channel conflict customerization copycats (Answer: c; p. 446; Easy)

a. b. c. d. e.

a. b. c. d. e.

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a. b. c. d. e. 51. a. b. c. d. e. 52. a. b. c. d. e.

50. _____ includes all electronics-based information exchanges within or between companies and customers. E-commerce E-business The extranet The Internet E-marketing (Answer: b; p. 438; Moderate) B2B includes all of the following except _____. trading networks the Webs darker side auction sites online product catalogs B and C (Answer: b; p. 442; Easy) Which is not one of the four major e-commerce domains? E2B. B2C. B2B. C2C. C2B. (Answer: a; p. 440; Easy) 53. In _____ e-commerce, consumers can buy or exchange goods and information directly from or with one another. B2C C2C B2B C2B none of the above (Answer: b; p. 443; Easy) 54. Other forms of online marketing include all of the following except _____. content sponsorships microsites Web communities intranets alliances and affiliate programs (Answer: d; p. 451; Challenging)

a. b. c. d. e.

a. b. c. d. e.

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All of the following are challenges that e-commerce faces except _____. Web profitability ethical issues Digital Divide too many customers legal issues (Answer: d; p. 458; Challenging) 56. _____ is the term used to describe a company that does not offer its services on the Internet. a. Offline business Brick-and-mortar Click-and-mortar E-business Web community (Answer: b; p. 444; Moderate) 57. A recent study revealed that nearly half of all the B2B and B2C companies surveyed use _____ to reach consumers. e-commerce e-mail zip code the Internet the U.S. mail (Answer: b; p. 455; Easy)

b. c. d. e.

a. b. c. d. e. 58. a. b. c. d. e. 59. a. b. c. d. e.

What is an e-mail ad designed to do? Command your attention. Distant the readers attention from unwanted pop-ups. Exhibit more credibility than any other media option. Introduce products in the introductory stage of the PLC. Intimidate competitors. (Answer: a; p. 455; Moderate) Which of the following is not an appealing feature of modern e-mail ads? Animation. Interactive links. Color photos. Immediacy. None of the above. (Answer: e; p. 456; Moderate)

164

a. b. c. d. e.

60. For most companies, the first step in conducting e-marketing is to _____. place an ad online use online e-mail create a marketing Web site create Web communities A and D (Answer: c; p. 447; Moderate) 61. _____ are designed to build customer goodwill and to supplement other sales channels, rather than to sell the companys products directly. Marketing Web sites Corporate Web sites Small business Web sites Non-profit corporation web sites none of the above (Answer: b; p. 448; Moderate) 62. Connie Wright designs e-mail ads for her marketing department. Connie hopes to _____ with well-designed ads. command customer attention get customers to act achieve success A and B A, B, and C (Answer: e; p. 456; Moderate) 63. Permission e-mail campaigns typically achieve higher click-through rates than traditional direct mail. What is the average click-through rate? 2 to 3 percent 10 to 20 percent 50 percent 75 percent 90 percent (Answer: b; p. 456; Easy) 64. According to customer surveys, a disadvantage of permission-based e-mails is that _____. they can be annoying they can be seen as spam they are of poor quality construction A and B they contain little useful information (Answer: d; p. 457; Moderate)

a. b. c. d. e.

a. b. c. d. e.

a. b. c. d. e.

a. b. c. d. e.

165

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65. Even among consumers who opt in to the e-mail barrage, theres a fine line between legitimate marketing and _____. junk mail spam illegal marketing black marketing all of the above (Answer: b; p. 457; Easy) 66. _____ engage consumers in interactions that will move them closer to a direct purchase or other marketing outcome. Corporate Web sites Marketing Web sites Web communities Spam tends to all of the above (Answer: b; p. 448; Moderate) 67. _____ are banner ads that move across the computer screen while consumers are surfing the Web. Interstitials Skyscrapers Rectangles Tickers Squares (Answer: d; p. 451; Easy) 68. Those tall, skinny ads on the side of the Web page are called _____. interstitials rectangles tickers skyscrapers squares (Answer: d; p. 451; Easy) 69. The explosive worldwide growth in _____ usage forms the heart of the new digital age. extranet Internet intranet analog A and C (Answer: b; p. 437; Easy)

a. b. c. d. e.

a. b. c. d. e.

a. b. c. d. e.

a. b. c. d. e.

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a. b. c. d. e. 71. a. b. c. d. e. 72. a. b. c. d. e. 73. a. b. c. d. e. 74. a. b. c. d. e.

70. _____ are online ads that pop up between changes on a Web site. Rectangles Interstitials Tickers Skyscrapers None of the above (Answer: b; p. 451; Easy) E-business involves the use of _____ to conduct a companys business. intranets extranets the Internet A and C A, B, and C (Answer: e; p. 438; Easy) _____ is more specific than ____. E-commerce; e-business E-business; e-commerce E-commerce; e-marketing E-marketing; e-purchasing none of the above (Answer: a; p. 438; Easy) In which of the following ways does the Internet benefit sellers? The Internet is a tool for customer relationship building. Companies can increase customer value through ongoing Internet interaction. The Internet can reduce costs and increase efficiency. A and B All of the above. (Answer: e; p. 439; Moderate) E-commerce allows buyers a chance to _____. compare information about companies and products get immediate results have access to a vast product selection A, B, and C none of the above (Answer: d; p. 439; Moderate)

167

a. b. c. d. e.

75. According to the text, e-marketers should pay attention to the seven Cs of effective Web site design. _____ refers to the ways that the site enables user-to-user communication. Context Content Community Customization Cause (Answer: c; p. 450; Easy) True/False 76. Tickers are online ads that pop up between changes on a Web site. (False; p. 451; Easy) 77. Intranets are networks that connect a company with its suppliers, distributors, and other outside partners. (False; p. 437; Challenging) 78. Extranets connect people within a company to each other and to the company network. (False; p. 437; Challenging) 79. The Internet is a vast public web of computer networks that connect users to each other. (True; p. 437; Easy) 80. In the 1990s, the Internet was transformed from a mere communication tool into a revolutionary technology. (True; p. 437; Easy) 81. Recent studies have shown that consumers do not trust the Internet for gathering information about such things as choosing a school, finding a job, or dealing with illness. (False; p. 437; Moderate) 82. For most companies, the first step in conducting e-marketing is to place an ad online. (False; p. 447; Moderate) 83. Private trading exchanges are huge e-marketspaces in which buyers and sellers find each other online, share information, and complete transactions efficiently. (True; p. 442; Challenging)

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84. Unsolicited, unwanted commercial e-mail messages that clog up our emailboxes are called spam. (False; p. 456; Moderate) 85. E-commerce includes all electronics-based information exchanges within or between companies and customers. (False; p. 438; Challenging) 86. E-business involves the buying and selling process supported by electronic means, primarily the Internet. (False; p. 438; Challenging) 87. 88. 89. E-marketing is the buying side of e-commerce. (False; p. 438; Challenging) Brick-and-mortar companies avoid the expense of maintaining a store. (False; p. 444; Easy) B2C Web sites deal with exchanges between businesses and companies. (False; p. 440; Easy) 90. A blog may take the form of a library, a chat room, or even a classified ad directory. (True; p. 443; Moderate) 91. The new breed of e-mail ads is designed to command your attention through animation, interactive links, color photos, streaming video, and personalized audio messages. (True; p. 456; Challenging) 92. Transaction sites provide the hardware and software that enable Internet communication and commerce. (False; p. 445; Easy) 93. Permission-based methods allow customers to opt in or opt out to ensure that emails are sent to both current and prospective customers. (True; p. 457; Challenging) 94. Permission-based e-mail advertising allows marketers to send tailored messages to targeted customers who actually want to receive them. (True; p. 457; Easy) 95. E-commerce includes e-marketing and e-procurement. (True; p. 438; Easy) 169

96. 97.

Today, young, techy, upscale professionals heavily populate use of the Internet. (False; p. 440; Easy) In the consumers mind, there is a fine line between legitimate marketing and spam. (True; p. 457; Moderate) 98. Most people would say that well-designed e-mail ads command attention and get customers to act. (True; p. 456; Moderate)

99.

The popular press has paid the least attention to B2C e-commerce. (False; p. 440; Easy) 100. Internet consumers differ from traditional offline consumers in their approaches to buying. (True; p. 441; Easy)

101. 102. 103. 104. 105.

Sales via B2B e-commerce are expected to decrease in the next decade. (False; p. 442; Easy) Most B2B e-commerce takes place through open trading exchanges. (False; p. 442; Moderate) C2C e-commerce is facilitated by companies such as eBay and Amazon.com. (True; p. 443; Easy) Web logs, also known as blogs, are growing in popularity. (True; p. 443; Challenging) Consumers registering of complaints is a form of C2C e-commerce. (True; p. 444; Easy) Essay 106. Much of the worlds business today is carried out over networks that connect people and companies. Explain what intranets and extranets are. Intranets are networks that connect people within a company to each other and to the company network. Extranets connect a company with its suppliers, distributors, and other outside partners. (p. 437; Moderate)

170

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Provide five ways that the Internet benefits both final buyers and business buyers. It can be convenient. Buying is easy and private. There is greater product access and selection. Buyers have access to a wealth of comparative information. Online buying is interactive and immediate. (p. 438; Moderate)

108.

What do the letters of the four major Internet domains stand for? B2C (business-to-consumer), B2B (business-to-business), consumer), and C2B (consumer-to-business). (p. 440; Challenging) C2C (consumer-to-

109.

What are five reasons dot-coms failed? First, some rushed into the market without proper research or planning. Second, many relied on spin and hype instead of developing sound marketing strategies. Third, flushed with investors cash, the dot-coms spent lavishly offline on mass marketing in an effort to establish brand identities and attract customers to their sites. Fourth, many dot-coms failed because they had poor business models. Finally, the dot-com tended to devote too much effort to acquiring new customers instead of building loyalty. (p. 445; Challenging)

110.

What is a corporate Web site? Corporate Web sites are designed to build customer goodwill and to supplement other sales channels, rather than to sell the companys products directly. They offer a rich variety of information and other features in an effort to answer customer questions, build closer relationships, and generate excitement about the company. They provide information about the companys history, its mission, and its philosophy. (p. 448; Challenging) 111. To attract new visitors and to encourage revisits, e-marketers should pay close attention to the seven Cs of effective Web site design. What are these seven Cs? Context, content, community, customization, communication, connection, and commerce are the seven Cs. (p. 450; Moderate) 112. Internet marketing practices have raised a number of ethical and legal questions. Why is online privacy perhaps the number-one e-commerce concern?

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Web site activities provide extensive personal information. This may leave consumers open to information abuse if companies make unauthorized use of the information in marketing their products or exchanging databases with other companies. (p. 459; Easy) What goes into designing e-mail ads to command attention? The new breed of e-mail ad is designed to command your attention by being loaded with glitzy features such as animation, interactive links, color photos, streaming video, and personalized audio messages. (p. 456; Challenging)

114.

How does e-commerce benefit buyers and sellers? E-commerce benefits buyers by making buying convenient and private, providing greater product access and selection, and making available a wealth of product and buying information. It is interactive and immediate and gives the consumers a greater measure of control over the buying process. For sellers, e-commerce is a powerful tool for building customer relationships. It also increases the sellers speed and efficiency, helping to reduce selling costs. E-commerce also offers great flexibility and better access to global markets. (p. 438; Moderate)

115.

Overview the promise and challenges that e-commerce presents for the future. E-commerce continues to offer great promise for the future. For most companies, online marketing will become an important part of a fully integrated marketing mix. For others, it will be the major means by which they serve the market. Eventually, the e will fall away from e-business or e-marketing as companies become more adept at integrating e-commerce with their everyday strategy and tactics. However, e-commerce also faces many challenges. One challenge is Web profitabilitysurprisingly few companies are using the Web profitably. The other challenge concerns legal and ethical issuesissues of online privacy and security, Internet fraud, and the digital divide. Despite these challenges, companies large and small are quickly integrating online marketing into their marketing strategies and mixes. (p. 458; Challenging) APPLICATION CONTENT: Multiple-Choice Questions 116. As XYZ, Inc. ships a package to a customer, the accounting department is immediately notified to print and send an invoice. The information transferal between the shipping and accounting departments likely travels via _____. the Internet an extranet information repositories an intranet 172

a. b. c. d.

e.

an analog system (Answer: d; p. 437; Easy)

173

a. b. c. d. e. 118. a. b. c. d. e.

117. Borders, Inc. began as a brick-and-mortar firm. In recent years, many brick-and-mortar firms eventually became _____ in response to _____. click-only firms; click-and-mortar competitors actions click-and-mortar firms; brick-and-mortar competitors actions click-and-mortar firms; click-only competitors actions obsolete; a growing number of click-and-mortar competitors none of the above (Answer: c; p. 444; Challenging) As an e-business manager, you may be required to _____. convince competitors to lower prices set up a Web site focus more on products than services A and B none of the above (Answer: b; p. 447; Moderate) 119. Carina Dwyer, owner of Blooms Galore, engages in e-commerce. She is likely to see improved benefit from _____. receiving direct customer feedback learning more about specific customer needs reduced operating costs more efficient order processing all of the above (Answer: e; p. 439; Easy) 120. ABC Company sells directly to consumers. ABC Company avoids intermediaries. ABC Company caters to a broad group of demographic segments. This marketer falls under which e-marketing domain? B2C B2B C2C C2B A or C (Answer: a; p. 440; Easy) 121. Acorn Enterprises offers product information online, as well as online customer support services. Some of Acorns e-commerce takes place in open trading exchanges. Acorn falls under the _____ e-marketing domain, the largest e-marketing domain. B2C B2B C2C C2B none of the above (Answer: b; p. 442; Moderate)

a. b. c. d. e.

a. b. c. d. e.

a. b. c. d. e.

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a. b. c. d. e. 123.

122. Rasbaugh Farms benefits from a wide range of buyers. In addition, the firm is linked with its own trading partners via a private site. Rasbaugh Farms appears to be utilizing _____. an open trading exchange analog data a private trading exchange blogs C2C e-marketing (Answer: c; p. 442; Moderate Marketplace.com is an e-tailer. Which of the follower statements might be true? a. Marketplace.com sells products or services directly to final buyers via the Internet. b. Marketplace.com might be a click-only company. c. Marketplace.com began as a search engine and later added a storefront. d. A and B e. All of the above. (Answer: e; p. 444; Easy) 124. Company X began as a brick-and-mortar company. Which of the following statements must be true? a. By adding e-marketing options, Company X would be a click-and-mortar company. b. Company X is also considered a click-only dot-com. c. Company X is an enabler site. d. Company X is probably not making a profit. e. By adding e-marketing options, Company X became an ISP. (Answer: a; p. 444; Challenging)

125.

Company X is a dot-com company that failed. What can be accurately assumed? a. Company X rushed to market without proper planning. b. Company X relied too heavily on spin instead of developing a marketing strategy. c. Company X spent too much money trying to attract customers. d. Company X may have spent too much effort trying to attract customers instead of building customer loyalty. e. None of the above can be accurately assumed. (Answer: e; p. 445; Moderate)

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Which of the following does not represent channel conflict? a. Retailer dropping Hewlett-Packard computers if Hewlett-Packard sells the same product online. b. J.C. Penneys catalog sales decreasing while online sales of the same products increase c. A drop in Quarter Pounder sales when McDonalds offers a 2/$3 promotion for Big Mac. d. All of the above. e. None of the above. (Answer: c; p. 446; Moderate) 127. Office Depot is a click-and-mortar company. Such companies have an advantage. What might that include? Office Depot is a known name with greater financial resources. Office Depot has a large, established customer base. By offering online marketing, Office Depot offers customers more options. Unwanted goods purchased online can be returned to a nearby store. All of the above. (Answer: e; p. 447; Challenging) 128. Company B claims to currently be conducting e-marketing; therefore, Company B must be _____. involved in global business placing ads online avoiding the use of e-mail planning to create a Web site B and D (Answer: b; p. 447; Easy) 129. Oscar Aviation has a corporate Web site. Prospective customers are likely able to _____. learn about Oscars philosophy ask online questions enjoy entertainment features on the site A and C all of the above (Answer: e; p. 448; Easy) Adams Cutlery has an ineffective Web site. What might be missing? The site may not be updated. The site may not meet customer expectations. The site may lack important links. All of the above. None of the above. (Answer: d; p. 449; Easy)

a. b. c. d. e.

a. b. c. d. e.

a. b. c. d. e. 130. a. b. c. d. e.

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a. b. c. d. e.

131. In attempting to design an effective Web site, Company A tried to address all of the seven Cs. The site, however, has a weak layout and design. Which C does this represent? Customization. Content. Context. Connection. Community. (Answer: c; p. 450; Moderate) 132. You are looking up airline schedules on the Internet. A flashing bar appears at the top of the screen exclaiming, Stay at Holiday Inn and get a 25 percent discount! This is a(n) _____. banner skyscraper content sponsorship microsite interstitial (Answer: a; p. 451; Easy) 133. You have accessed fare information on Northwest Airlines Web site. You want to compare it with United Airlines fares. In between sites, an ad pops up from Alamo Car Rental. This is a(n) _____. banner skyscraper content sponsorship microsite interstitial (Answer: e; p. 451; Easy) You see a tall, skinny ad at the side of a Web page. This is a(n) _____. banner skyscraper content sponsorship microsite interstitial (Answer: b; p. 451; Easy)

a. b. c. d. e.

a. b. c. d. e. 134. a. b. c. d. e.

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135. Company C is an online marketer that uses viral marketing. John Yu, Web site coordinator, feels certain that viral marketing will be effective because _____. a. Company Cs newsletters have a button that allows recipients to easily forward the newsletter to friends. b. John has created fun and attractive e-mail messages that are very likely to be passed on. c. Company C has a large advertising budget. d. A and B e. All of the above. (Answer: d; p. 453; Moderate) Short Answer 136. What is an intranet? Intranets are networks that connect people within a company to each other and to the company network. (p. 437; Easy) 137. What is an extranet? An extranet connects a company with its suppliers, distributors, and other outside partners. (p. 437; Easy) 138. What is a brick-and-mortar firm? Brick-and-mortar firms are those companies that do not rely on e-business or e-marketing; instead, they rely on a traditional store location. (p. 437; Easy) 139. What is viral marketing? Viral marketing is the Internet version of word-of-mouth marketing. Viral marketing involves creating a Web site, e-mail message, or other event that is so infectious that customers will want to pass it along to their friends. (p. 453; Easy) 140. How is e-commerce more specific than e-business? E-business includes all electronics-based information exchanges within or between companies and customers; whereas, e-commerce involves buying and selling processes supported by electronic means, primarily the Internet. (p. 438; Moderate)

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How can the Internet provide benefits to buyers? Internet buying can be convenient; in addition, it is easy and private. Customers also encounter fewer buying hassles and do not have to face salespeople or open themselves up to persuasion and emotional pitches. Business buyers can also learn about and buy products and services without waiting for and tying up time with salespeople. (p. 438; Challenging)

142.

How can the Internet provide benefits to sellers? The Internet is a powerful tool for customer relationship building. Online customers can ask online questions and receive feedback. The Internet can also reduce costs and improve speed and efficiency. (p. 439; Moderate)

143.

How does e-marketing provide flexibility? E-marketing allows the marketer to make ongoing adjustments to its offers and programs. Online catalogs, if used, can be adjusted daily or even hourly if needed. Because the Internet is a global tool, it allows buyers and sellers to click from one country to another country in seconds. (p. 438; Challenging)

144.

How do Internet consumers differ from traditional online consumers? They differ in their approaches to buying and in their responses to marketing. The exchange process via the Internet has become more customer initiated and customer controlled. Traditional marketing targets a somewhat passive audience; e-marketing targets people who actively select which Web sites they will visit and what marketing information they will receive about which products and under what conditions. (p. 441; Challenging)

145.

What types of services do B2B marketers offer online? Most major B2B marketers now offer product information, customer purchasing, and customer support services online. (p. 442; Moderate)

146.

What is an open trading exchange? Open trading exchanges are huge e-marketspaces in which buyers and sellers find each other online, share information, and complete transactions efficiently. (p. 442; Easy)

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What is a private trading exchange? Online sellers are setting up their own private trading exchanges that link a particular seller with his or her own trading partners. (p. 442; Moderate)

148.

What types of information can be exchanged through a blog? A blog is a Web log, where daily scribblings can be posted about such narrow topics as baseball, politics, money, and so on. Blogs give everyday people a chance to discuss whatever they want to discuss. (p. 443; Moderate)

149.

Give three possible reasons why dot-coms failed. Some rushed into the market without proper planning. Many relied too heavily on spin and hype instead of developing sound marketing strategies. Some dot-coms spent lavishly offline on mass marketing in an effort establish brand identities and attract customers to their sites. Many dot-coms devoted too much effort to acquiring new customers rather than on building loyalty and purchase frequency among current customers. (p. 445; Challenging)

150.

How could e-commerce create channel conflict? Adding e-commerce poses a fear that selling certain products or services online might compete with offline retailers and agents. (p. 446; Moderate)

151.

What are click-and-mortar companies? A click-and-mortar company is one that likely began as a brick-and-mortar company then decided to add a touch of e-commerce. (p. 446; Easy)

152.

What are three elements of an effective Web site? Effective Web sites attract people. Some of the most effective Web sites are those with attractive text, sound, and animation. Web site effectiveness can be measured by looking at the seven Cs of effective Web design. (p. 449; Easy)

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What are the seven Cs of effective Web site design? The seven Cs include: context, content, community, customization, communication, connection, and commerce. (p. 450; Moderate) 154. What is involved with a content sponsorship?

Content sponsorships are a form of Internet promotion; many companies gain exposure on the Internet by sponsoring special content on various Web sites, such as news and financial information. Sponsorships are best placed in carefully targeted sites where they can offer relevant information or service to the audience. (p. 451; Moderate) 155. How can an e-marketer benefit from a microsite?

Microsites are limited areas on the Web managed and paid for by an external company. Information on a microsite is most likely connected to the information available on the host Web site. Internet companies can also develop alliances and affiliate programs in which they work with other online companies to advertise each other. (p. 451; Challenging) Scenario The Treble Clef offers a complete line of sheet music, musical instruments, and novelty gifts of a musical nature. In recent years, owner Gary Zahn has even served as the local representative of several musical instrument manufacturers, providing a contact person for three local school districts. If we dont have it, chances are excellent that we can get it for you, Gary tells all Treble Clef visitors and customers. Most walk-ins are particularly interested in a specific piece of sheet music from a particular era or just browsing among the hundreds of musical knick-knacks in the store. Gary spends most of his time making presentations to beginning music students at the local schools and making bi-weekly visits to the schools in order to deliver instruments, to make minor reports when possible, or to pick up instruments to ship to the manufacturer for more complicated repairs. After dragging his feet for quite some time, Gary was convinced that a Treble Clef Web site could benefit a variety of customers. He began with a simple site explaining store hours and depicting types of gifts and services available. The site received so much response that Gary added a question-and-answer option. Questions poured in, ranging from Where can I get the sheet music for Hello, Dolly? to Do you carry clarinet reeds? to My saxophone needs two new pads. When will you be at Elmhurst school to repair it? Eventually, customers found the capability of ordering musical novelties online with a credit card as well. A gift could now be wrapped and sent to the recipient at no extra charge.

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I dont know how we did it without our Web site, Gary admitted. It allows us to be so responsive. And our novelties sales have doubled! 156. How is The Treble Clef benefiting from the Internet? The Treble Clefs Web site allows a tremendously shorter response time to customer questions. In addition, novelties and sheet music can be ordered online for greater convenience, and basic information regarding store hours and available inventory can be accessed. (p. 437; Easy) 157. In what way(s) is The Treble Clef a click-and-mortar company? The Treble Clef began as a brick-and-mortar company but added Web access, becoming a click-and-mortar company with online sales and question-and-answer channels. (p. 437; Moderate) 158. How are The Treble Clefs buyers benefiting from the Internet? The customers appear to be extremely satisfied with the very short response time to orders and online questions. (p. 438; Easy) 159. In what way could this marketer engage in customer relationship building through the Internet? Customer relationship building has apparently already begun with The Treble Clefs Web site. Gary may consider sending follow-up messages after answering customers questions. Beginning music students at the local schools may appreciate occasional messages from The Treble Clef, asking about their progress or satisfaction with their instruments. (p. 439; Challenging) 160. In your opinion, what is the most critical element this marketer should include in the Web site? Answers will vary. Most will agree that the question-and-answer option is critical. Also, a schedule of school visits may be appreciated. Finally, because novelties sales have doubled, many students will recognize the importance of online ordering. (p. 449; Moderate)

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What types of online advertising might benefit The Treble Clef? Banners that move across the screen when music-related information is sought may be effective. Content sponsorships or microsites could possibly be arranged with the instrument manufacturers. (p. 451; Moderate)

162.

Would The Treble Clef benefit from viral marketing? Explain. The Treble Clef could benefit by viral marketing with newsletters sent to the schools band members and/or online customers. Customer testimonials could also be forwarded to targeted groups. (p. 453; Challenging) 163. In what way might this marketer want to provide continuous e-mail for which consumers can communicate? As already mentioned, follow-up comments or questions to previously asked and answered customer questions can be effective. Monthly newsletters to the schools band students, for example, may also be important, especially in relationship building. (p. 455; Moderate)

164.

How could spam harm this marketer? Because Gary Zahn is becoming very reliant on The Treble Clefs Web site and Internet technology for the success of his business, he will want to avoid any unnecessary Internet information that could somehow harm the efficiency and credibility of The Treble Clef. (p. 456; Challenging)

165.

In what area(s) might online privacy be important for this marketer? Customers have to feel secure in ordering online via a credit card. In addition, because so many customers are relying on the Internet to communicate with Gary, he has to assure them that their information is protected and not being supplied to other marketers. (p. 459; Challenging)

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