Deck 18: Internet Marketing

Question 1

The average amount of time each person spends on the Internet is 25 hours per month.

Answer 1

False

Question 2

People in France access the most unique domains each month and spend the most time on the Internet.

Answer 2

True

Question 3

In terms of how long individuals view one page on the Internet, people in Japan spend the most time viewing a page and individuals in the United States and Spain spend the least amount of time.

Answer 3

False

Question 4

A Canadian study found that adults use the Internet for their primary source of information more than they use the newspapers, radio, or television.

Question 5

The most obvious use of the Internet is for customer service.

Question 6

A major advantage of the Internet that many companies have not fully realized yet deals with cost efficiencies.

Question 7

While business-to-business advertisers tend to advertise on Web sites related to the firm's products, consumer advertisers tend to spend online advertising dollars in more targeted formats, such as keyword search engines.

Question 8

In Europe, online advertising spending has now passed both radio and television.

Question 9

In a survey of individuals, the biggest turnoff in terms of online advertising was for popup ads.

Question 10

Cyberbait is a lure or attractive offer used to attract someone to an Internet site.

Question 11

A common cyberbait used in the consumer market is trade promotions.

Question 12

To be effective at drawing people to a Web site, promotions must be changed on a regular basis.

Question 13

Using the same promotion over time is effective in drawing large numbers of people to a Web site over time.

Question 14

In many cases, clicks-only firms do not carry an inventory, but drop ship merchandise directly from the producer to the customer.

Question 15

Clicks-only firms typically carry a large inventory on site and thus are able to promptly deliver consumer orders.

Question 16

Brand-name retailers now realize that the Internet is not a threat to their business, but can be used to build brand loyalty and increase sales.

Question 17

The term E-commerce refers only to the consumer market; the business-to-business market is called B-commerce.

Question 18

The growth of global Internet retail commerce has averaged 664% since 2000.

Question 19

The largest online retailer in terms of market share, at 1.3%, is eBay.

Question 20

An e-commerce site should have three primary components: a catalog, a shopping cart, and a payment system.

Question 21

For manufacturers who do not sell directly to consumers and businesses, but sell through various channel members and/or retailers, it is essential to have some type of location finder on their Web site so customers can locate a place to purchase the products.

Question 22

The two primary reasons why consumers are hesitant about making purchases online are security and purchase behavior habits.

Question 23

To encourage consumers and businesses to make purchases online, firms will need to offer some type of incentives, such as financial incentives, convenience incentives, or brand quality incentives.

Question 24

Offering a financial incentive to encourage a new purchase online is normally profitable for most firms because of lower costs of doing business online.

Question 25

Once an individual or business makes the switch to online purchasing, continuing financial incentives may not be necessary because of the convenience or added-value features of e-commerce over traditional purchasing methods.

Question 26

Once an individual or business makes the switch to online purchasing, continuing financial incentives are necessary to maintain the relationship between the firm and the individual or business.

Question 27

The added-value features of e-commerce are not superior over traditional purchasing methods.

Question 28

In terms of payment for international e-commerce, in Europe, debit cards are preferred to credit cards because of the high rate of theft of credit cards.

Question 29

Online security and data protection have become major issues in global e-commerce.

Question 30

The most common method of building an online brand is through an offline technique called brand spiraling.

Question 31

When online and offline branding tactics that reinforce each other are used, it results in a higher level of brand name awareness and number of hits to the Web site.

Question 32

In viral marketing, the customer voluntarily sends the message to others, it is not sent automatically.

Question 33

In viral marketing, the message is sent to others automatically; in effect, the sender does not even know that he or she is sending out the message.

Question 34

According to research, the primary objective of companies developing Web sites is to better serve their customers, whether than on attracting new customers or servicing current customers.

Question 35

The Internet has resulted in more companies using multichannel approaches to the marketing of their products.

Question 36

To maximize the impact of a Web site, it is important that it is tied into a database in such a way that the information gathered can be added to the customer's profile.

Question 37

The overall average amount of time individuals spend on the Internet is _____ hours per month.

A) 20.4
B) 27.7
C) 31.5
D) 40.3

Question 38

People in _____ spend the most time on the Internet, an average of 39 hours and 44 minutes per month.

A) Japan
B) the United States
C) France
D) Germany

Question 39

In terms of how long one page is viewed, people in the United States and Spain spend the most time, an average of 50 seconds per page, while the _____ spend the least, only 31 seconds per page.

A) Brazilians
B) Japanese
C) Dutch
D) Swedish

Question 40

According to the Gallup Organization, the number one use of the Internet is for

A) e-mail
B) obtain news
C) check the weather
D) shopping

Question 41

According to Media Awareness Network, the primary way children in Canada are using the Internet is to

A) play games
B) connect with friends
C) do school work
D) browse entertainment sites

Question 42

All of the following are benefits companies derive from the Internet except

A) convenience
B) sales
C) interactivity
D) multimedia capabilities

Question 43

All of the following are benefits companies derive from the Internet except

A) global reach
B) flexibility
C) cost efficiencies
D) distribution

Question 44

All of the following are benefits companies derive from the Internet except

A) real time
B) information
C) data warehousing
D) sales support

Question 45

The most obvious use of the Internet, by companies, is for

A) customer service
B) advertising
C) sales
D) communication

Question 46

Potential marketing functions for the Internet include all of the following except

A) projecting an image
B) multichannel marketing
C) selling
D) distribution

Question 47

Potential marketing functions for the Internet include all of the following except

A) advertising and consumer promotions
B) public relations
C) shipping
D) database development

Question 48

Potential marketing functions for the Internet include all of the following except

A) information gathering and sharing
B) selling shares of stock
C) purchasing and inventory management
D) sales support

Question 49

The primary benefit(s) of advertising online is its effectiveness in developing

A) brand name
B) brand awareness
C) brand equity
D) all of the above

Question 50

If a Web site wanted to attract the type of person that enters a lottery or contest with the hope of winning it big, then the appropriate cyberbait to use would be

A) a contest or sweepstake with a large grand prize
B) a contest or sweepstake with multiple smaller prizes
C) a coupon or premium offer that reduces the price of the products
D) free shipping and handling with every purchase

Question 51

In terms of the Internet, interactive marketing is

A) placing games and interactive exercises such as crossword puzzles on the Internet for viewers
B) sending marketing material over the Internet to individuals who have given their permission
C) the process of individualizing and personalizing Web site content, as well as products being promoted
D) the process of obtaining a person's permission to send them marketing material

Question 52

The key to effectively using a Web site for customer service is

A) providing effective FAQ's
B) providing offline access for customers who desire personal attention
C) providing high quality products with effective warranties
D) in the design of the Web site, in that it is easy for customers to access and use

Question 53

Oscar's Sporting Goods operates four retail outlets and also allows customers to purchase merchandise directly over the Internet. Oscar's would be classified as a

A) bricks-and-mortar retailer
B) bricks-and-clicks retailer
C) clicks-only retailer
D) all of the above

Question 54

Oscar's Sporting Goods operates four retail outlets and does not sell merchandise directly over the Internet. Oscar's would be classified as a

A) bricks-and-mortar retailer
B) bricks-and-clicks retailer
C) clicks-only retailer
D) all of the above

Question 55

Oscar's Sporting Goods is an online retailer that specializes in hunting and fishing equipment. The only way individuals can purchase merchandise from Oscar's is through the Internet. Oscar's would be classified as a

A) bricks-and-mortar retailer
B) bricks-and-clicks retailer
C) clicks-only retailer
D) all of the above

Question 56

In terms of global Internet retail sales, the major category of _____ accounts for 23% of all retail sales.

A) computer hardware, software, and supplies
B) apparel and footwear
C) drugs, health products, and beauty aids
D) jewelry

Question 57

_____ generates 44% of all online retail sales.

A) The United States
B) Europe
C) Asia Pacific
D) South America

Question 58

The largest online retail market share is 1.3% by

A) Amazon.com
B) eBay
C) Office Depot
D) Staples

Question 59

An e-commerce Web site must have all of the following components except

A) a catalog
B) a shipping system
C) a shopping cart
D) a payment system

Question 60

Which of the following is essential for an e-commerce Web site?

A) a catalog
B) a payment system
C) a shopping cart
D) all of the above are essential for an e-commerce site

Question 61

In addition to the primary components of a catalog, shopping cart, and payment systems, a bricks-and-clicks retailer needs a(n)

A) location finder
B) inventory system
C) money conversion system
D) billing or voucher system

Question 62

Which of the following are the primary components of a bricks-and-clicks retailer?

A) a catalog
B) a shopping cart
C) a payment system
D) all of the above are primary components of bricks-and-clicks

Question 63

The most common reasons consumers shop online include all of the following except

A) faster shipping
B) 24-hour operations
C) convenience
D) time saving

Question 64

The most common reasons consumers shop online include all of the following except

A) lower prices
B) greater variety of products
C) no salespeople
D) speed

Question 65

Chrissy receives an e-mail about once every two weeks about new merchandise that is available at FrenchImports.com. This is an example of a(n)

A) financial incentive
B) convenience incentive
C) value-added convenience
D) all of the above

Question 66

Rachel likes to be able to sit at home and purchase birthday gifts over the Internet while she is watching CSI or one of her other favorite television shows. This is an example of a(n)

A) financial incentive
B) convenience incentive
C) value-added convenience
D) all of the above

Question 67

Amy decided to purchase a new winter coat over the Internet because the company offered her a $10 price-off coupon and free shipping. This is an example of a(n)

A) financial incentive
B) convenience incentive
C) value-added convenience
D) all of the above

Question 68

In terms of payment for international e-commerce, in Europe debit cards are preferred to credit cards because of the

A) need to pay in Euros
B) lack of adequate monetary exchange
C) high rate of theft of credit cards
D) high interest rate on credit cards

Question 69

In Europe, e-commerce firms prefer _____ as a form of payment.

A) debit cards
B) credit cards
C) personal checks
D) all of the above are preferred forms of payment in Europe

Question 70

Probably the most difficult challenge facing companies that want to be involved in international e-commerce is

A) communication barriers
B) the technical side of e-commerce sites
C) global shipping problems
D) cultural differences

Question 71

The practice of using traditional and nontraditional media to promote and attract consumers to an online Web site is called

A) brand spiraling
B) viral marketing
C) brand equity
D) brand marketing

Question 72

Placing advertisements on television, radio, and in magazines with the goal of encouraging viewers to visit a firm's Web site is an example of

A) brand spiraling
B) viral marketing
C) media rich marketing
D) brand marketing

Question 73

If consumers already have a positive feeling about a particular retailer, such as Dillard's, they often transfer these positive feelings to e-commerce transactions they may conduct on Dillard's Web site. This phenomena is known as

A) brand spiraling
B) viral marketing
C) the halo effect
D) interactive marketing

Question 74

Research has indicated that _____ percent of recipients who receive a viral marketing message will pass it along to another person.

A) 32
B) 46
C) 59
D) 81

Question 75

Viral marketing messages can include

A) actual advertisements for goods and services
B) hyperlinked promotions that take the person immediately to a Web site
C) online newsletter
D) all of the above

Question 76

The first step in developing an Internet marketing strategy is to

A) choose b-to-b functions, consumer functions, and/or e-commerce functions
B) choose the target audience and develop the objectives
C) develop the Web site design
D) decide on the functions of the Internet

Question 77

According to the Gallup Organization, the number one use of the Internet is for e-mail.

Question 78

Caucasians are the heaviest users of the Internet, whereas Hispanic Americans use it the least.

Question 79

A survey by Media Awareness Network found Canadian children are using the Internet and that the primary way it is being used is to play games.

Question 80

In the beginning, many businesses jumped into the Internet and built Web sites to offer their products in order to compete with the dot.com companies that were springing up.