Deck 11: Operating in a Digital Marketing and Social Networking

Question 1

If a college student is making a purchasing decision, it is unlikely that he or should would be interested in this type of product.

A)digital-based products
B)technology-based products
C)entertainment-based products that have been around for many years
D)products that connect one electronic device to another

Answer 1

C

Question 2

Which of following is true about Palmer Luckey?

A)He built and marketed several unsuccessful products before he came out with the Oculus Rift
B)His obsession with video games lead to his interest in virtual reality
C)He raised more than $5 million from his Kickstarter campaign
D)He was unwilling to share the prototype of the Oculus Rift with anyone before he brought it to market

Answer 2

C

Question 3

College students desire digital applications.What is false about companies that come out with new apps?

A)most become very rich
B)many experience little or no success
C)the education market makes up only a small slice of the app industry
D)their digital application must compete with close to 3 million apps currently available

Answer 3

A

Question 4

Why would Mark Zuckerberg (CEO of Facebook) pay $3 billion for Oculus?

A)The Oculus Rift competes with Facebook product/services
B)Because Facebook had plenty of cash and could spend it
C)Zuckerberg believed virtual reality is the future and was "awesome"
D)Facebook's users were getting older and he was looking for the next big thing

Question 5

It is no longer true that products must fill an unmet customer need.

Question 6

Students use mobile applications primarily for educational purposes.

Question 7

Which of the following about apps is not true?

A)owners of companies that come out with a super successful app become very rich
B)companies coming out with a new app have to compete with close to 3 million apps currently available
C)The Oculus Rift is an app which is used mainly for entertainment
D)the education market makes up only a small slice of the app industry

Question 8

With a few exceptions, companies that do not recognize the importance of offering technology-based, digital-based products will find themselves with few customers.

Question 9

The 9,500 backers who contributed money to Palmer Luckey's Kickstarter campaign were beneficial in all of the following ways except:

A)provided valuable feedback to the Oculus team
B)enjoyed communicating with each other in an Oculus forum
C)loaned the company money as needed
D)became cheerleaders for the company promoting the product and building brand awareness

Question 10

Explain why companies that do not recognize the importance of designing, manufacturing and selling technology-based, digital-based products could easily find themselves with few customers.

Question 11

Palmer Luckey, Founder of Oculus, launched his product on the crowd funding platform, Kickstarter.Which of the following helps explain Oculus Rift's initial success?

A)The large amount of money he raised on the Kickstarter campaign
B)The engaged group of 9,500 backers who sent in money
C)The reputation he raised on his earlier products
D)The experienced individuals who showed an interest in working for the company

Question 12

Do you think Mark Zuckerberg made a good decision when he paid $3 million for Oculus? Why/why not.

Question 13

Palmer Luckey's backers were early adopters who enjoyed becoming part of the development process.

Question 14

Scenario-Based
When Mark Zuckerberg (founder of Facebook) tried the Oculus Rift designed by Palmer Luckey, he was convinced that the virtual reality headset was "the future." He was wearing the headset in a FaceBook office, but he felt as if he was in another universe.He imagined that he was in an abandoned castle in the mountains with snowflakes falling on him.He turned his head and found himself staring at an ugly human or animal figure sprouting lava.His comment was, "Wow, that was pretty awesome."
How much did Mark Zuckerberg (founder of Facebook) pay for Oculus?

A)Nothing; he backed out of the sale
B)$10 million
C)$3 million
D)$20 million

Question 15

Which of the following is not true of Palmer Luckey?

A)He did not sell the Oculus Rift in stores; instead he sold the headset exclusively on the company's website.
B)His obsession with video games lead to his interest in virtual reality
C)He named his business Oculus and launched his project on the crowd funding platform, Kickstarter
D)He set his funding goal on Kickstarter at $250,000 but ended up raising $2.4 million.

Question 16

The desire for connectivity by college students requires companies to focus on which of the following product characteristics?

A)It has been around for more than ten years
B)Product can connect to a student's smart phone or tablet
C)product is innovative
D)product is similar to competitor's products

Question 17

Palmer Luckey offered the prototype of his Oculus Rift as a "do-it-yourself" kit so others could make a similar system.

Question 18

The missing piece of the puzzle that helps explain Oculus Rift's success was the 9,500 bankers who enjoyed communicating with each other.

Question 19

The most important outcome of Palmer Luckey's Kickstarter campaign was receiving $2.4 million in funding.

Question 20

Which of following is not a reason Palmer Luckey offered his "do-it-yourself" kit to 9,500 Kickstarter Campaign backers:

A)To let them assemble the virtual reality headgear themselves
B)To bring in a steady stream of needed-cash
C)To solicit feedback from them
D)To engage them as cheerleaders for the company, promoting the product and building brand awareness

Question 21

A company using dynamic pricing considers only two factors: consumer demand and alternative products.

Question 22

After Facebook purchased Oculus (and Palmer Luckey was no longer connected with the product) the Oculus team decided to use penetration pricing.

Question 23

Scenario-Based
The practice of using dynamic pricing was started in the 1980's by American Airlines as an effort to compete with a now out-of-business discounter airline, People's Express.Dynamic pricing then moved to other industries, including hotels and car rental companies, but only became popular when e-commerce arrived.
You are a consultant to a number of different organizations that use dynamic pricing, including American Airlines, St.Louis Cardinals, Coca Cola, and Marriott International.You are advising your clients of the use of dynamic pricing.Here are some questions that they have raised:
What is dynamic pricing?

A)A pricing approach that uses analytics software to improve demand forecasting
B)A pricing approach in which the price of an item changes based on the demographics of individual customers
C)A pricing approach that adjusts prices based solely on fluctuations in competitor's prices
D)A pricing approach where the price of an item changes frequently based on complex algorithms

Question 24

A company using cost-based pricing determines the cost of making a product and then sets a price by adding a profit to the cost.

Question 25

Which short-term pricing approach did Facebook (owner of Oculus) follow when the company first sold the Oculus Rift?

A)penetration
B)skimming
C)cost-based
D)emand-based

Question 26

A revenue optimization system can set a "hurdle" rate - a rate above which the hotel will not price the room.

Question 27

An empty hotel room brings in no revenue.Then why wouldn't a hotel manager at a luxury hotel or resort offer a very low, last-minute rate for an unfilled room?

A)it would reduce the manager's bonus which is based on total revenue
B)it would result in a price war with similar hotels or resorts
C)it is likely the person getting the discount rate will cancel
D)to avoid "cheapening" the reputation of the luxury hotel

Question 28

Using dynamic pricing a company monitors price changes on a constant basis and adjusts its prices effortlessly.

Question 29

Which of the following statements about dynamic pricing is false?

A)A Revenue Optimization System is an industry example of dynamic pricing
B)Dynamic pricing is a pricing strategy where the price of a product changes frequently based on complex algorithms
C)Prices can go down as well as up
D)Using dynamic pricing, sellers and service providers monitor changes in prices of competitors' goods

Question 30

Dynamic pricing is used in all of the following industries except ________.

A)airline industry
B)subways
C)car rental industry
D)professional sporting events industry

Question 31

You are making plane reservations on the phone and see an attractive rate.But, before you can finish booking your reservations, the rate increases.Why has this happened?

A)the airline is using demand-based pricing
B)he airline has reached its hurdle rate
C)the airline is using dynamic pricing
D)the airline is using artificial intelligence

Question 32

A pricing strategy where the price of an item fluctuates frequently based on complicated algorithms is called________.

A)artificial intelligence
B)competitive pricing
C)dynamic pricing
D)promotional pricing

Question 33

Over time, artificial intelligence will be used to set room prices in large hotel chains, such as Marriott hotels and resorts.

Question 34

Which of the following is false about dynamic pricing?

A)It has been used by the St.Louis Cardinals to price tickets to its games
B)Revenue optimization is an example of dynamic pricing
C)In setting a price using dynamic pricing, a seller considers consumer demand and interest in alternative products
D)All consumers are happy with dynamic pricing

Question 35

The theory and development of computer systems able to perform tasks that normally require human intelligence is called________.

A)dynamic pricing
B)artificial intelligence
C)revenue optimization
D)hurdle rate calculation

Question 36

Dynamic pricing has been used to price tickets to professional sporting events.

Question 37

Which pricing approach calculates the amount that can be spent to make a product by determining how much consumers are willing to pay and then subtracting a reasonable profit?

A)skimming
B)cost-based pricing
C)target costing
D)demand-based pricing

Question 38

Skimming pricing is a long-term pricing approach in which a company charges a low price for a new product to keep out competition and grab market share.

Question 39

A hotel's hurdle rate is ________

A)lowest rate a hotel will offer for a particular room
B)highest rate a hotel will charge for a particular room
C)average profit per room
D)range of prices charged for similar rooms

Question 40

Hotels sometimes use a revenue optimization system to improve demand forecasting and update prices of its rooms from minute to minute.

Question 41

The testing site for Amazon's drone delivery system is Arizona.

Question 42

What is true about Amazon Prime Air?

A)Using drones, packages can be delivered in 15 minutes or less
B)The drones can fly in any weather, including rain, high wind, snow, ice.
C)The drones can transport packages up to 25 pounds
D)The drones cannot fly at night

Question 43

Product marketing is not about "what you sell", it's about "what you stand for."

Question 44

Explain what a Revenue Optimization System accomplishes.

Question 45

When the Internet became easy to navigate in the early 1990's, Jeff Bezos recognized the potential for selling online and founded Amazon in the mid 1990's.As sales in traditional stores dropped, Amazon grew at a rapid pace.The company now takes in more than 40% of all online sales.

Question 46

Wireless technologies and cloud computing are improving supply chain management.

Question 47

Identify an advantage and a disadvantage of using dynamic pricing.

Question 48

More than half of all adults in the U.S.have not shopped online.

Question 49

Amazon's drones can carry packages weighing up to 15 pounds and deliver them in 20 minutes.

Question 50

Describe the advantages and disadvantages of selling online.
:
Can reach potential customers from all geographical locations in the U.S.and from many foreign countries.
Setting up an online store is less expense than setting up a brick-and-mortar business.
Better able to capture valuable information on your customers, including their preferences.
Some potential customers feel uncomfortable buying online.
Some customers do not want to buy a product they have not seen.
New online stores face a lot of competition, especially from Amazon.
ESSAY DISCUSSION

Question 51

Amazon's has more than 70% of the online sales in the U.S.

Question 52

Which of following statements about RFID (radio-frequency identification) tags is false?

A)The popularity of RFID has increased
B)An RFID tag attached to a product can be used to trace the product
C)The use of RFID tags increase supply chain member's costs
D)RFID tags can capture data giving managers real-time, up-to-date information

Question 53

A study by the Pew Research Center found that 8 out of 10 Americans do at least some online shopping.

Question 54

Which of following steps is not part of a typical manufacturer's supply chain purchase of raw materials?

A)manufacture of a product
B)advertise product
C)purchase of product by a customer
D)shipment of product to a store

Question 55

Which of following is not true about selling online?

A)Amazon has more than 40% of online sales in the U.S.
B)Despite the success of Amazon, other online sellers are doing well
C)Relative to setting up a brick-and-mortar business, setting up an online business is relatively inexpensive
D)Revenues for both online sales and department store sales are increasing

Question 56

A disadvantage of digital ads from the viewpoint of the seller is that it is difficult to measure the effectiveness of a digital ad.

Question 57

Some potential customers are unwilling to buy online because ____________.

A)they cannot see the product itself
B)online prices are higher than department store prices
C)buying online is inconvenient
D)good bought online cannot be returned

Question 58

An online store is better able to capture data on its customers and their preferences than is a brick-and-mortar store.

Question 59

Which of the following is an advantage of setting up an online store (rather than a brick-and-mortar store) ________

A)Online stores are better able to capture data on its customers and their preferences
B)Amazon controls a large share of the online market, so it is tough for new online businesses to get noticed
C)Some potential customers feel uncomfortable buying online
D)Some customers want to be able to see the actual product

Question 60

The use of RFID (radio-frequency identification) tags attached to an item can be used to collect data on customers.

Question 61

Social media marketing is an interesting form of product marketing.

Question 62

Explain how sellers identify products of interest to you and then run ads that match your shopping habits.

Question 63

Content marketing creates attention-grabbing content and distributes this content to customers and others through social media.

Question 64

Big Data used by a particular company has to be collected internally by that company.

Question 65

A disadvantage of content marketing is that it is fairly expensive.

Question 66

How does content marketing attract potential customers?

A)produces interesting, customer-focused content
B)let's customers control when and where they receive their messages
C)uses social marketing to disseminate content that consumers are interested in and want to hear about
D)all of the above

Question 67

Which statement about content marketing is false?

A)If you write a blog as part of a content marketing campaign, you can be sure it will be read.
B)Many of the most popular content marketing strategies are usually fairly inexpensive relative to product marketing strategies
C)Content marketing campaigns can create lasting value
D)content marketing builds brand awareness and fosters strong relationships with customers

Question 68

Content marketing is intended to attract potential buyers by building a strong brand reputation through online content, including:

A)blogs
B)TV commercials
C)electronic billboards
D)direct mail

Question 69

______________ focuses on selling a product to a specific demographic through a traditional outreach, such as paid advertisements, television commercials, and directmail.

A)Content marketing
B)Product marketing
C)Traditional marketing
D)Consumer marketing

Question 70

Which of the following is not a reason for advertising online?

A)90% of young adults (ages 18 to 29) engage in social media (which places them online).
B)The average consumer spends more time online than watching TV and reading print media combined.
C)Companies can collect personal information from those using their websites and possibly sell this information to others
D)By capturing information on customers shopping online, marketers can send relevant ads that match a customer's shopping habits.

Question 71

Which of the following statements is not true about the Chatbooks content marketing campaign?

A)The video produced for the campaign incorporates simple directions on how to use the new product
B)The interesting video highlights a super-efficient mother creating a beautiful book of pictures of her children
C)The Chatbooks campaign was very effective in building brand awareness
D)The Chatbooks video appeared on Facebook, YouTube and other media outlets

Question 72

Which of the following is a false statement?

A)Consumers do not want to see slick ads or know they are being marketed to
B)Consumers want to be entertained and allowed to control when and where they receive their messages
C)Spending on digital marketing by advertisers is predicted to increase substantially whereas spending on traditional advertising is predicted to decline
D)The onslaught of intrusive or misleading ads frustrates consumers, but there is nothing they can do to make them disappear

Question 73

The purpose of Starbuck's content marketing campaigns is to promote its products.

Question 74

An advantage of product marketing is that you get fast results from your ad.

Question 75

One of the reasons Starbucks is successful at content marketing is that its campaigns are community focused.

Question 76

Big Data is primarily used to determine if a company has made a profit.

Question 77

The Chatbooks' campaign was not designed to build brand awareness, but rather to entertain.

Question 78

Digital marketing uses digital technology to sell products.Which of the following is not an advantage of digital ads from the viewpoint of the seller?

A)ad can be published quickly
B)if you place a digital ad, you can be sure your ad will be seen
C)advertisers/sellers can measure the effectiveness of the ad
D)buyers can view an ad, look at the product, select it, order it, and pay online

Question 79

Upstanders, a Starbuck's content marketing campaign, is a collection of ten short stories about ordinary people enjoying Starbuck's products.

Question 80

The term "Big Data" describes very large collections of data that are analyzed by computers to reveal useful consumer information.