Deck 7: Marketing and the Internet

Question 1

The global electronic superhighway of computer networks is

A) the Internet.
B) the World Wide Web (WWW).
C) E-marketing.
D) E-commerce.

Answer 1

the Internet.

Question 2

All of the resources and users that use the Hypertext Transfer Protocol comprise

A) the Internet.
B) the World Wide Web (WWW).
C) E-marketing.
D) E-commerce.

Answer 2

the World Wide Web (WWW).

Question 3

Users are able to see words, pictures, video, and hear audio through

A) the Internet.
B) E-commerce.
C) E-marketing.
D) the World Wide Web (WWW).

Answer 3

the World Wide Web (WWW).

Question 4

A customer obtaining information on how to install a kitchen floor from a tile manufacturer from its Web site would most specifically be part of

A) the Internet.
B) E-marketing.
C) E-commerce.
D) the World Wide Web (WWW).

Question 5

A potential customer obtaining a price quote on tile flooring material would most specifically be part of

A) the Internet.
B) E-commerce.
C) E-marketing.
D) the World Wide Web (WWW).

Question 6

Which statement concerning usage of the Internet is NOT correct?

A) About 1.75 billion people around the globe use the Internet.
B) The average home user in the United States spends about 35 hours per month on the Internet.
C) The United States has more active home Internet users than any other country.
D) The U.S. Postal Service handles more messages on a daily basis than are transmitted and received through E-mail.

Question 7

The country with the greatest number of active home Internet users is

A) Great Britain.
B) Germany.
C) France.
D) the United States.

Question 8

The countries with the highest number of active Internet users as a percent of the total population are the United States and

A) the Netherlands.
B) Sweden.
C) France.
D) Germany.

Question 9

Which statement concerning usage of the Internet is NOT correct?

A) Business-to-business firms can conduct sophisticated analyses of customer data bases from the Internet.
B) A very small portion of E-marketing and E-commerce involves business-to-business marketers.
C) Business-to-business firms can use the Internet to monitor inventory conditions.
D) Business-to-business firms can use the Internet to survey customers.

Question 10

Which of the following is NOT a phase of E-marketing?

A) Bricks-and-clicks firms
B) Direct marketing firms
C) Clicks-only firms
D) Bricks-and-mortar firms

Question 11

Which E-marketing strategy is most likely to be used by small firms?

A) Bricks-and-clicks firms
B) Direct marketing firms
C) Clicks-only firms
D) Bricks-and-mortar firms

Question 12

The shakeup among E-markets has had the greatest effect on

A) bricks-and-clicks firms.
B) direct marketing firms.
C) clicks-only firms.
D) bricks-and-mortar firms.

Question 13

Which E-marketing strategy appeals to multiple market segments?

A) Bricks-and-clicks firms
B) Direct marketing firms
C) Clicks-only firms
D) Bricks-and-mortar firms

Question 14

Which of the following is NOT a benefit of a company's using the Internet in marketing?

A) Global possibilities
B) Timeliness
C) Dynamism/flexibility
D) Freedom from site maintenance

Question 15

A Web-based retailer is able to update prices and availability of items on a continuous basis. This reflects which benefit of its using the Internet in marketing?

A) Freedom from site maintenance
B) Timeliness
C) Dynamism
D) Communicability

Question 16

In contrast to a typical direct marketer, a marketer using the Internet can have major cost efficiencies due to savings from

A) the multimedia capabilities of the Internet.
B) the ability to reach foreign markets.
C) catalog printing and mailing expenses.
D) customer service costs.

Question 17

The interactive nature of the Internet refers to

A) its multimedia capability.
B) the ability of a user to direct his/her questions to specific areas of a firm's Internet site.
C) its uni-directional nature.
D) the medium's timeliness.

Question 18

Channel conflict can present on the Web due to

A) a manufacturer providing customer service support for its resellers' customers.
B) a retailer charging different prices at its Web site and store location.
C) a manufacturer deciding to sell direct to final consumers.
D) a Web-based retailer not charging sales tax.

Question 19

A firm is able to develop a list of its key Internet customers. This list enables it to tailor specials to a customer's past purchases, to develop an incentive program for loyal customers, and to notify customers who have not made a recent purchase. This list most clearly illustrates

A) channel relations.
B) mass customization.
C) data-base development.
D) projecting an image.

Question 20

Mass-market goods and services are individualized to satisfy a specific customer need, at a reasonable price, in

A) data-base development.
B) mass customization.
C) advertising and sales promotion.
D) customer service.

Question 21

Generally, what is the lot size in mass customization?

A) 1
B) 10
C) The economic order quantity
D) The order cycle

Question 22

Mass customization is often considered an Internet-based concept due to the role of the Internet in

A) mass production.
B) flexible production.
C) reducing inventory costs.
D) providing data on a customer's specific needs.

Question 23

A major benefit to the manufacturer of mass customization is

A) better coordination with vendors.
B) lower shipping costs.
C) reduced inventory risk.
D) lower production costs.

Question 24

Which E-marketing strategy best illustrates multichannel marketing?

A) Bricks-and-mortar firms
B) Direct marketing firms
C) Clicks-only firms
D) Bricks-and-clicks firms

Question 25

Which of the following is NOT a basic component of developing an Internet marketing strategy?

A) Goal development
B) Marketing-mix decisions
C) Target audience selection
D) Insourcing or outsourcing

Question 26

Which of the following is NOT a key influence in making strategic Internet marketing strategy decisions?

A) Security
B) Scale of Web presence
C) Marketing-mix decisions
D) Channel relationships

Question 27

Which Internet shoppers are most concerned with Internet security and privacy issues?

A) Cautious browsers
B) Active online spenders
C) Occasional purchasers
D) Thoughtful spenders

Question 28

Which Internet shopper is focused on starter items such as gifts and flowers?

A) Cautious browsers
B) Active online spenders
C) Occasional purchasers
D) Thoughtful spenders

Question 29

Which is the largest group of Internet shoppers?

A) Active online spenders
B) Occasional purchasers
C) Cautious browsers
D) Thoughtful spenders

Question 30

Which element of a firm's Internet site is the gateway to the firm?

A) Its Web address
B) A banner ad for the firm
C) Its home page
D) Its links

Question 31

The difference between a firm's external versus internet links is based on

A) whether the firm has its own address or is part of a Web community.
B) whether the Web site was developed by another firm (outsourced) or developed internally.
C) whether the Web site was maintained by another firm (outsourced) or maintained internally
D) whether the user is directed to a section within the company's site or to another firm's Web site.

Question 32

A shopping basket that tabulates a purchaser's total purchases and then adds shipping, handling, and applicable sales taxes is an example of

A) a shopping tool. .
B) site content.
C) a home page
D) a link.

Question 33

Shipping and inventory data can be transferred between suppliers and their resellers via

A) Web addresses.
B) site content specifications.
C) electronic data interchange.
D) links.

Question 34

A clothing retailer with a Web site is debating whether to include color swatches, as well as animations. While these graphics are attractive, they could result in long download times for consumers with slow dial-up Internet access. The retailer's dilemma is an example of

A) trade-offs.
B) dynamism/flexibility.
C) Web-site interactivity.
D) communicability.

Question 35

There are no privacy concerns for consumers who use a site from a marketer that utilizes

A) electronic data interchange.
B) multichannel marketing.
C) opt-in E-mail.
D) closed circuit data-base development.

Question 36

Which of these statements about pricing strategy on the Internet is NOT correct?

A) Online prices are generally higher than offline products for the same products due to increased consumer convenience.
B) Blicks-and-clicks firms need to decide whether to charge the same prices at each channel location.
C) Online transactions are not often subject to sales tax.
D) Online prices can be changed by the minute.

Question 37

The last step in an Internet marketing strategy is to

A) implement the Internet marketing strategy.
B) assess performance and make modifications.
C) decide which aspects, if any, of the firm's Internet strategy are to be outsourced.
D) monitor the site on a continuous basis for site crashes and out-of-stock conditions.

Question 38

Which statement concerning consumer online purchases in the United States is NOT correct?

A) Internet usage is highest for young adults.
B) Relatively high percentages of computers and computer software are bought online.
C) Over 70 percent of U.S. online shoppers are male.
D) Higher income and better-educated consumers are most apt to use the Internet.

Question 39

Which product category accounts for the greatest percent of U.S.-based Internet user purchases?

A) Books
B) Computer software
C) Toys and games
D) Apparel

Question 40

Which of the following is NOT a challenge of using the Internet in marketing?

A) Handling closeout sales on the Internet may require special ambiance.
B) A firm's corporate culture may be resistant to change.
C) It may be difficult to integrate a strategy for a bricks-and-clicks firm.
D) Investment costs and ongoing site maintenance costs may be underestimated.

Question 41

Online sales constitute approximately what percent of U.S. retail revenues?

A) 1
B) 5
C) 10
D) 15

Question 42

About what percent of U.S. business-to-business revenues are from Internet transactions?

A) 6-8
B) 10-15
C) 17-20
D) 25-30

Question 43

Service breakdowns, the number of links that no longer connect, and the need to constantly update prices signify the importance of

A) channel relations.
B) continuous Web site maintenance.
C) fast Internet connections.
D) legal issues.

Question 44

The speed of site performance is a particularly important concern for consumers with

A) DSL connections.
B) T1 lines.
C) cable connections.
D) dial-up connections.

Question 45

The legal issues facing E-marketing typically involve

A) patents and copyright protection.
B) privacy issues.
C) Internet connection costs.
D) customer service.

Question 46

The opposite of opt-in E-mail is

A) hacking.
B) junk mail.
C) spam.
D) clutter.

Question 47

The E-mail equivalent of junk mail is

A) clutter.
B) E-junk.
C) opt-in E-mail.
D) spam.

Question 48

The large number of search engines, as well as the large number of Web sites in a given category, contributes to

A) clutter.
B) narrowcasting.
C) interconnectivity.
D) privacy issues.

Question 49

A special promotional issue unique to the Web is

A) the low costs of acquiring customers.
B) high customer contact costs.
C) the ability to reach unforeseen markets, particularly global ones.
D) the high costs of outsourcing.

Question 50

Which of the following statements concerning the future of E-marketing is NOT correct?

A) Business-to-business E-commerce will grow faster than business-to-consumer E-commerce.
B) More multimedia capability will be included in Web sites due to the increase in cable and DSL connection services.
C) There will be more emphasis on E-commerce than E-marketing.
D) Bricks-and-clicks firms will outperform bricks-and-mortar firms and clicks-only firms.

Question 51

The granting of free software downloads on a printer company's Web site illustrates

A) E-commerce.
B) E-marketing.
C) HTTP.
D) the World Wide Web.

Question 52

The sale of airline tickets by a major airline through its Web site illustrates

A) E-commerce.
B) E-marketing.
C) HTTP.
D) the World Wide Web.

Question 53

Which of the following is an advantage of a bricks-and-mortar firm as contrasted with a clicks-only firm?

A) 24/7 access
B) Global access
C) The ability to see and try on actual products
D) Lower inventory requirements

Question 54

A major advantage of a clicks-only firm in contrast with a bricks-and-mortar firm is

A) lower capital requirements.
B) higher market capitalization.
C) lower costs in generating new customers.
D) higher profitability.

Question 55

Large retailers are most likely to have which format?

A) Bricks-and-clicks
B) Bricks-and-mortar
C) Clicks-only
D) An integrated retail format

Question 56

A marketer seeks to use traditional retail stores for its current merchandise and the Web for the sale of samples and discontinued styles. This illustrates a(n)

A) integrated retail firm.
B) bricks-and-mortar firm.
C) clicks-only firm.
D) bricks-and-clicks firm.

Question 57

A marketer sees a synergy between having a Web site and a traditional retail facility. Which format should it pursue?

A) An integrated retail format
B) Clicks-only
C) Bricks-and-clicks
D) Bricks-and-mortar

Question 58

The ability to sell to different target markets is a major advantage of which format?

A) Bricks-and-clicks
B) An integrated retail format
C) Clicks-only
D) Bricks-and-mortar

Question 59

The focus/tailored approach offered by the Web enables a firm to

A) outsource site development and maintenance.
B) effectively reach its target market.
C) reduce the costs of maintaining its Web site.
D) reduce its site development costs.

Question 60

An advantage of timeliness of a Web site is its ability to

A) access the site on a 24/7 basis.
B) change prices and inventory availability in real time.
C) offer free information.
D) record sales information for speedy shipment.

Question 61

Which of the following is NOT a cost advantage of utilizing the Web?

A) No postal costs for advertising
B) No site maintenance costs
C) Lower inventory costs
D) No shipping costs for software

Question 62

The cost efficiencies offered via the Web are due to

A) the timeliness of the Web site.
B) the absence of catalog printing costs.
C) the 24/7 access by customers.
D) ease of communicability.

Question 63

A major disadvantage of the global possibilities of the Web is the

A) expanded nature of the consumer market.
B) expanded nature of competition.
C) need to reflect different languages, currencies, and shipping on the Web site.
D) need to compute shipping costs to multiple countries.

Question 64

A Web site's multimedia capabilities can best be used by consumers with

A) cable and DSL lines.
B) high-quality graphics boards.
C) Pentium 4 computers.
D) large monitors.

Question 65

Through cookies, a firm can gather information about a customer's past purchases. This enables a firm's Web site to

A) project a favorable image.
B) utilize mass customization.
C) be uni-directional.
D) be interactive.

Question 66

A Web site that records consumer characteristics through the use of cookies can best employ which benefit in using a Web site?

A) Cost efficiency
B) Timeliness
C) Multimedia capabilities
D) Interactivity

Question 67

Some Web experts argue that the Web enables manufacturers to bypass their traditional resellers. This feature has major implications for

A) inventory management.
B) channel relations.
C) purchasing.
D) customer service.

Question 68

Through cookies, a firm can gather information about the past behavior of its customers. This feature of the Web fosters

A) effective use of advertising and sales promotion.
B) multichannel marketing.
C) multimedia capabilities.
D) data-base development.

Question 69

A key characteristic of mass customization is

A) large accumulations of inventory.
B) small lot sizes.
C) a high level of returns.
D) centralized manufacturing.

Question 70

The key difference between making a custom-made suit through traditional means and mass customization is that through mass customization, the suit is

A) individualized.
B) made specifically for the customer.
C) ordered on a Web site.
D) produced at a reasonable cost.

Question 71

A major advantage of mass customization from the perspective of the marketer is

A) directly fulfilling a consumer's distinct need.
B) low production costs due to large production runs.
C) economies of scale.
D) high profit margins.

Question 72

Which of the following is an example of multichannel marketing?

A) An integrated retail format
B) Bricks-and-clicks
C) Clicks-only
D) Bricks-and-mortar

Question 73

Shopping bots are Web sites that provide price quotes for selected items from a group of merchants. Bots would most likely appeal to what type of shopper?

A) Occasional purchasers
B) Browsers
C) Active online spenders
D) Enthusiastic shoppers

Question 74

A marketer that feels it necessary to have a Web site, but has little knowledge of the Web, should

A) outsource both Web site development and maintenance.
B) not undertake the Web site.
C) outsource the site to the least costly provider.
D) outsource Web site development and not undertake maintenance.

Question 75

A major disadvantage of a firm's using a Web address that is part of a Web community is

A) low recognition of the Web address.
B) the high degree of clutter.
C) high presence of links.
D) ability to use a shopping tool.

Question 76

The first impression a customer gets of a firm's image on the Web is through its

A) Web address.
B) shopping tools.
C) links.
D) home page.

Question 77

The higher the site content on a Web site's home page, the greater the degree of

A) white space.
B) multimedia.
C) waste circulation.
D) clutter.

Question 78

A research study found that while many consumers attempt to complete a sale on the Web, few actually do so. Problems cited include the presence of shipping fees, taxes, fear of credit card security, and the difficulty in implementing the transaction. This study should make a firm reevaluate its

A) Web address.
B) links.
C) shopping tools.
D) use of multimedia.

Question 79

Which of the following best represents an example of a retailer's using relationship marketing with its business partners?

A) A retailer's maintaining a Web site featuring the names of all the brands it sells
B) A retailer's engaging in electronic data interchange with its key suppliers
C) A retailer's charging a supplier a slotting fee for new products
D) A retailer's bargaining hard with a supplier to obtain the lowest possible price

Question 80

The direct goal of electronic data interchange is to reduce

A) channel conflict through an improved dialogue among all channel members.
B) costs through use of lower cost shipping modes.
C) inventory levels for a manufacturer and its resellers through mass customization.
D) inventory levels for a manufacturer and its resellers through improved communication.