E-Business International Edition 10th Edition by Gary Schneider - Test Bank

E-Business International Edition 10th Edition by Gary Schneider – Test Bank

 

Instant Download – Complete Test Bank With Answers

 

 

Sample Questions Are Posted Below

 

Chapter 5: Selling to Consumers Online

 

TRUE/FALSE

 

1. When creating a marketing strategy, managers must consider both the nature of their products and the nature of their potential customers.

 

ANS:  T                    PTS:   1

 

2. In the four Ps of marketing, the issue of place is the need to have products or services available in many different locations.

 

ANS:  T                    PTS:   1

 

3. In a virtual world, companies can convey a large part of their message by the way they construct buildings and design their floor space.

 

ANS:  F                    PTS:   1

 

4. Media selection can be critical for an online firm because it does not have a physical presence.

 

ANS:  T                    PTS:   1

 

5. Using the Web to communicate with potential customers offers many of the advantages of personal contact selling but none of the cost savings of mass media.

 

ANS:  F                    PTS:   1

 

6. Mass media offers the highest level of trust.

 

ANS:  F                    PTS:   1

 

7. On the Web, retailers can provide separate virtual spaces for different market segments.

 

ANS:  T                    PTS:   1

 

8. “Clickwords” is a term for words used to prompt a visitor to stay and investigate the products or services offered on a site.

 

ANS:  F                    PTS:   1

 

9. One goal of marketing is to create strong relationships between a company and its customers.

 

ANS:  T                    PTS:   1

 

10. The reason that one-to-one marketing and usage-based segmentation are so valuable is that they help to strengthen companies’ relationships with their customers.

 

ANS:  T                    PTS:   1

 

11. Good customer experiences can help create an intense feeling of loyalty toward the company and its products or services.

 

ANS:  T                    PTS:   1

 

12. Companies want to see customers move into the separation stage only if they are costing more to serve than they are worth.

 

ANS:  T                    PTS:   1

 

13. The benefits of acquiring new visitors are the same for Web businesses with different revenue models.

 

ANS:  F                    PTS:   1

 

14. The cost of acquiring a new customer is less than the cost of retaining one.

 

ANS:  F                    PTS:   1

 

15. A banner ad is a small rectangular object on a Web page that displays a stationary or moving graphic without a hyperlink to the advertiser.

 

ANS:  F                    PTS:   1

 

16. A key element in any e-mail marketing strategy is to obtain customers’ approvals before sending them any e-mail that includes a marketing or promotional message.

 

ANS:  T                    PTS:   1

 

17. Branded products are more difficult to advertise and promote.

 

ANS:  F                    PTS:   1

 

18. Product differentiation is the first condition that must be met to create a product service or brand.

 

ANS:  T                    PTS:   1

 

19. Rational branding relies on a broad emotional appeal.

 

ANS:  F                    PTS:   1

 

20. The Web expands the types of communication channels available.

 

ANS:  T                    PTS:   1

 

21. Web site designers can specify additional key words in the pages that are hidden from the view of Web site visitors, but are visible to spiders.

 

ANS:  T                    PTS:   1

 

 

22. The weighting of the factors that search engines use to decide which URLs appear first on searches for a particular search term is called search engine directory.

 

ANS:  F                    PTS:   1

 

23. Companies that have a well-established brand name or reputation in a particular line of business usually want the URLs for their Web sites to reflect that name or reputation.

 

ANS:  T                    PTS:   1

 

24. Obtaining identifiable names to use on the Web can be an important part of establishing a Web presence.

 

ANS:  T                    PTS:   1

 

25. The fees charged for domain name hosting are much higher than those for hosting an active Web site.

 

ANS:  F                    PTS:   1

 

MULTIPLE CHOICE

 

1. The four Ps of marketing include ____.

a.	product, principle, place, and price	c.	product, price, promotion, and place
b.	product, principle, promotion, and price	d.	principle, place, price, and promotion

 

 

ANS:  C                    PTS:   1

 

2. ____ uses product categories as a very strong organizing theme in the design of their Web sites.

a.	Staples	c.	MasterCard
b.	AltaVista	d.	WeddingChannel.com

 

 

ANS:  A                    PTS:   1

 

3. The Web is a(n) ____ step between mass media and personal contact.

a.	first	c.	virtual
b.	intermediate	d.	mandatory

 

 

ANS:  B                    PTS:   1

 

4. A ____ is the part of a Web site that keeps track of selected items for purchase and automates the purchasing process.

a.	trigger word	c.	marketspace
b.	shopping cart	d.	padlock

 

 

ANS:  B                    PTS:   1

 

5. One group of active Internet users, ____, are intensive users of chat rooms, instant messaging services, electronic greeting card sites, and Web-based e-mail.

a.	routiners	c.	sportsters
b.	surfers	d.	connectors

 

 

ANS:  D                    PTS:   1

 

6. Online and offline customer contact points are often called ____.

a.	page views	c.	trigger words
b.	touchpoints	d.	spiders

 

 

ANS:  B                    PTS:   1

 

7. Customers who return to the site one or more times after making their first purchases are called ____.

a.	sponsors	c.	shoppers
b.	retained customers	d.	crawlers

 

 

ANS:  B                    PTS:   1

 

8. Online advertising should always be coordinated with existing advertising efforts. For example, print ads should include the company’s ____.

a.	URL	c.	shipping address
b.	history	d.	business model

 

 

ANS:  A                    PTS:   1

 

9. A ____ coordinates ad sharing so that other sites run one company’s ad while that company’s site runs other exchange members’ ads.

a.	banner exchange network	c.	banner replacement network
b.	banner discount network	d.	banner link network

 

 

ANS:  A                    PTS:   1

 

10. ____ ads generate graphical activity that “floats” over the Web page itself instead of opening in a separate window.

a.	Interstitial	c.	Pop-up
b.	Active	d.	Passive

 

 

ANS:  B                    PTS:   1

 

11. A(n) ____ occurs when a visitor requests a page from the Web site.

a.	page load	c.	page access
b.	visit	d.	index

 

 

ANS:  B                    PTS:   1

 

12. The first time that a particular visitor loads a Web site page is called a ____.

a.	trial visit	c.	repeat visit
b.	fresh visit	d.	page visit

 

 

ANS:  A                    PTS:   1

 

13. Some Web pages have banner ads that continue to load and reload as long as the page is open in the visitor’s Web browser. Each time the banner ad loads is a(n) ____.

a.	view	c.	impression
b.	count	d.	click

 

 

ANS:  C                    PTS:   1

 

14. The marketing strategy that includes the practice of sending e-mail messages to people who have requested information on a particular topic or product is part of ____ marketing.

a.	active	c.	permission
b.	conversion	d.	passive

 

 

ANS:  C                    PTS:   1

 

15. The ____ rate of an advertising method is the percentage of recipients who respond to an ad or promotion.

a.	trigger	c.	retention
b.	click-through	d.	conversion

 

 

ANS:  D                    PTS:   1

 

16. The information that a Web site can gather about its visitors is called a(n) ____.

a.	clickstream	c.	marketing mix
b.	ad view	d.	occasion segmentation

 

 

ANS:  A                    PTS:   1

 

17. Technology-enabled relationship management is often called ____.

a.	relationship management
b.	customer relationship management
c.	automated relationship management
d.	domain name management

 

 

ANS:  B                    PTS:   1

 

18. Researchers Jeffrey Rayport and John Sviolka distinguish between commerce in the physical world, and commerce in the information world, which they term the ____.

a.	marketspace	c.	marketstore
b.	marketplace	d.	marketmall

 

 

ANS:  A                    PTS:   1

 

19. ____ is the first condition that must be met to create a product or service brand.

a.	Product differentiation	c.	Relevance
b.	Perceived value	d.	Permission marketing

 

 

ANS:  A                    PTS:   1

 

20. One of the key elements of a brand is ____.

a.	marketspace	c.	perceived value
b.	style	d.	micromarketing

 

 

ANS:  C                    PTS:   1

 

21. ____ is the degree to which the product offers utility to a potential customer.

a.	Differentiation	c.	Perceived value
b.	Relevance	d.	Brand

 

 

ANS:  B                    PTS:   1

 

22. According to Ted Leonhardt and Bill Faust, a ____ is an emotional shortcut between a company and its customer.

a.	marketing mix	c.	banner ad
b.	brand	d.	product

 

 

ANS:  B                    PTS:   1

 

23. Companies have traditionally used ____ appeals in their advertising and promotion efforts to establish and maintain brands.

a.	permitted	c.	rational
b.	perceived	d.	emotional

 

 

ANS:  D                    PTS:   1

 

24. A(n) ____ saves the expense of handling inventory, advertising and promoting the product, and processing the transaction.

a.	affiliate	c.	sponsor
b.	partner	d.	Web site

 

 

ANS:  A                    PTS:   1

 

25. In cause marketing, when visitors click a link on the affiliate’s Web page, a donation is made by a(n) ____ company.

a.	advertising	c.	not-for-profit
b.	marketing	d.	sponsoring

 

 

ANS:  D                    PTS:   1

 

COMPLETION

 

1. A(n) ____________________ mix is the combination of elements a company uses to achieve their goals for selling and promoting their products and services.

 

ANS:  marketing

 

PTS:   1

 

2. The total of all financial costs that the customer pays (including all transaction costs) to obtain the product, subtracted from the benefits that a customer derives from the product, yields the customer ____________________.

 

ANS:  value

 

PTS:   1

 

3. Identifying specific portions of a market and targeting them with specific advertising messages is called market ____________________.

 

ANS:  segmentation

 

PTS:   1

 

4. The highly customized approach to offering products and services that match the needs of a particular customer is called ____________________ marketing.

 

ANS:

one-to-one

1 to 1

one to one

1-1

 

PTS:   1

 

5. In general, the creation of a separate experience for customers based on their behavior is called ____________________.

 

ANS:  behavioral segmentation

 

PTS:   1

 

6. When based on things that happen at a specific time, behavioral segmentation is sometimes called ____________________ segmentation.

 

ANS:  occasion

 

PTS:   1

 

7. Of the six behavior-based categories of Internet users, ____________________ return to the same sites over and over again.

 

ANS:  routiners

 

PTS:   1

 

8. Of the six behavior-based categories of Internet users, ____________________ are in search of a good deal.

 

ANS:  bargainers

 

PTS:   1

 

9. In the ____________________ stage of customer loyalty, potential customers learn more about the company or its products.

 

ANS:  exploration

 

PTS:   1

 

10. Customers who have completed several transactions and are aware of the company’s policies regarding returns, credits, and pricing flexibility are in the ____________________ stage of their relationship with the company.

 

ANS:  familiarity

 

PTS:   1

 

11. Claritas built ____________________ to take advantage of people’s tendency to live near other people with similar tastes and preferences.

 

ANS:  PRIZM

 

PTS:   1

 

12. Using the five stages of customer loyalty to create groups of customers in each stage is called ____________________ segmentation.

 

ANS:

life-cycle

life cycle

 

PTS:   1

 

13. Conversion cost includes ____________________ cost.

 

ANS:  acquisition

 

PTS:   1

 

14. The ____________________ is a not-for-profit organization that promotes the use of Internet advertising and encourages effective Internet advertising.

 

ANS:

Interactive Advertising Bureau

IAB

Interactive Advertising Bureau (IAB)

IAB (Interactive Advertising Bureau)

 

PTS:   1

 

15. The standard banner sizes that most Web sites have voluntarily agreed to use are called ____________________ ad formats.

 

ANS:

interactive marketing unit

IMU

interactive marketing unit (IMU)

IMU (interactive marketing unit)

 

PTS:   1

 

16. A(n) ____________________ ad is an ad that appears in its own window when the user opens or closes a Web page.

 

ANS:

pop-up

pop up

 

PTS:   1

 

17. Users who object to pop-up ads have responded by using ____________________ software.

 

ANS:

ad-blocking

ad blocking

 

PTS:   1

 

18. The pricing metric in which payment is calculated on each thousand persons in the estimated audience is called ____________________.

 

ANS:

cost per thousand

CPM

cost per thousand (CPM)

CPM (cost per thousand)

 

PTS:   1

 

19. Each page loaded by a visitor to a Web site counts as a(n) ____________________.

 

ANS:  page view

 

PTS:   1

 

20. When measuring banner ad cost and effectiveness, if a visitor loads a page that contains an ad, the page load is called a(n) ____________________.

 

ANS:

ad view

advertisement view

 

PTS:   1

 

21. Commerce in the physical world is called marketplace, while commerce in the information world is called ____________________.

 

ANS:

marketspace

market space

 

PTS:   1

 

 

22. In a customer relationship management (CRM) system, the multiple sources of information about customers, their preferences, and their behavior is entered into a large database called a(n) ____________________.

 

ANS:  data warehouse

 

PTS:   1

 

23. A(n) ____________________ broker is a company that serves as a clearinghouse or marketplace for sites that run affiliate programs and sites that want to become affiliates.

 

ANS:  affiliate program

 

PTS:   1

 

24. A(n) ____________________ is a Web site that helps people find things on the Web.

 

ANS:  search engine

 

PTS:   1

 

25. Key words in an HTML document, which are visible to spiders, are enclosed in HTML tags called ____________________ tags.

 

ANS:

META

meta

 

PTS:   1

 

ESSAY

 

1. When would you use a product-based marketing strategy?

 

ANS:

When customers are likely to buy items from particular product categories, or are likely to think of their needs in terms of product categories, this type of product-based organization makes sense.

 

PTS:   1

 

2. A study conducted by McKinsey & Company examined the online behavior of 50,000 active Internet users and identified six different groups. Provide a brief description of the following categories: Simplifiers, Surfers, Connectors, and Sportsters.

 

ANS:

Simplifiers are users who like convenience. They are attracted by sites that make doing business easier, faster, or otherwise more efficient than is possible in the physical world.

Surfers use the Web to find information, explore new ideas, and shop. They like to be entertained, and they spend far more time on the Web than other people. Connectors use the Web to stay in touch with other people. They are intensive users of chat rooms, instant messaging services, electronic greeting card sites, and Web-based e-mail. Sportsters are similar to Routiners, but they tend to spend time on sports and entertainment sites rather than news and financial information sites.

 

PTS:   1

 

3. Identify and describe the three techniques used by companies to arrange for other Web sites to display their banner ads.

 

ANS:

The first is to use a banner exchange network. A banner exchange network coordinates ad sharing so that other sites run one company’s ad while that company’s site runs other exchange member’s ads. The second way that businesses can place their banner advertising is to find Web sites that appeal to one of the company’s market segments and then pay those sites to carry the ads. A third way to place banner advertising is to use a banner advertising network. A banner advertising network acts as a broker between advertisers and Web sites that carry ads.

 

PTS:   1

 

4. When does technology-enabled relationship management occur?

 

ANS:

Technology-enabled relationship management occurs when a firm obtains detailed information about a customer’s behavior, preferences, needs, and buying patterns, and uses that information to set prices, negotiate terms, tailor promotions, add product features, and otherwise customize its entire relationship with that customer.

 

PTS:   1

 

5. Brands can lose their value if the environment in which they have been successful changes. Show how this is possible by giving an example.

 

ANS:

For years, Digital Equipment Corporation (DEC) was a leading manufacturer of midrange computers. When the market for computing shifted to personal computers, DEC found that its branding did not transfer to the personal computers that it produced. The consumers in that market did not see the same perceived value or differentiation in DEC’s personal computers that the buyers of midrange computers had seen for years.

 

PTS:   1