Deck 14: Marketing Strategies for a Digitally Networked World

Question 1

The key to Internet success is first-mover advantage-arriving first in the market with an idea or technology.

Answer 1

False

Question 2

An academic publisher converts text books into online formats.This is an example of delivering digital products.

Answer 2

True

Question 3

Disintermediation refers to the use of the Internet for marketers to reach customers with the help of distribution channels.

Answer 3

False

Question 4

The customer insight stage in the customer experience process requires that information flow from customer to seller.

Question 5

During the customer support or service stage,additional information may flow in either direction or additional goods or services may flow to the customer,possibly in exchange for additional revenue.

Question 6

E*Trade,a distributor of syndicated information,brings together from many sources content relevant to its investor clientele and packages it in ways useful to these clients.

Question 7

Product or service delivery is the final step of the consumer experience process.

Question 8

Customization techniques are user-driven,instead of marketer-driven.

Question 9

Several new companies are using web technology to do what banks do,without the bank.

Question 10

Marketers rely on a flow of information from customers or prospective customers about their wants and needs to generate the insight essential to the development of compelling new products

Question 11

Customer retention is a competitive necessity in every industry.

Question 12

Privacy and security issues can drive away customers rather than attract them if they are not handled with care.

Question 13

A company can syndicate the same informational good to an almost infinite number of customers,but the incremental costs are high.

Question 14

Dynamic pricing is a controversial system that gauges a customer's desire to buy,measures his means,and sets the price accordingly.

Question 15

First-mover strategy is the best strategy as it helps attract investors,makes founders and venture capitalists rich,and is a great recipe for building a great company.

Question 16

Regardless of its limitations,web-based research,is here to stay and will undoubtedly grow.

Question 17

Syndication involves the sale of different informational goods to different customers,who may in turn combine them with information from other sources and distribute it.

Question 18

The internet and other new-economy technologies have led to a global reach,where information,digital goods,or services are available anywhere one can gain access to the web.

Question 19

The characteristic of informational networks when a product becomes more valuable as the number of users increases is called a positive network effect,or network externality.

Question 20

Collaborative filtering is a way of personalizing a market offering to each customer.

Question 21

Barriers to entry on the web are low and most good ideas can be quickly imitated.

Question 22

Making information,goods,or services available on the web is of little use if the people to whom those flows are directed lack web access.

Question 23

Daffodil Inc. ,an on-line floral company allows users to enter family and friends' birthdays and anniversaries,so that users can be reminded to send gifts throughout the year.Which of the following techniques is being used by Daffodil Inc.?

A)Customization
B)Categorization of choice
C)Rules-based personalization
D)Disintermediation

Question 24

Customers' experiences with goods and some services do not end until the products are consumed,returned,or disposed of.

Question 25

With which of the following technologies can syndicated content can be fed to users having preferences for such content?

A)Really Simple Syndication
B)Data portability
C)Mash-up
D)Bullet Board System

Question 26

Dotsandlines.com,a website that sells art,craft,and photographs,tracks the photographs and art pieces a person orders,compares them to purchases of others,and recommends some of the items available that he/she may like.This implies that the website is using _____.

A)collaborative filtering
B)rules-based personalization
C)customization
D)disintermediation

Question 27

In a class of 10 students,two of the students owned cell phones.Hence,only these two students could send text messages to each other in the class.A few days later,two more students got their own cell phones.This increased the habit of texting via phones.In a few months' time,all the students in the class got cell phones and thus,cell phones became more valuable in their class.Which of the following phenomena had occurred in the class?

A)Network internality
B)Network externality
C)Supply side economies of scale
D)Negative network effect

Question 28

Which of the following occurs when a product becomes more valuable as the number of users increases?

A)Network internality
B)Negative network effect
C)Supply side economies of scale
D)Network externality

Question 29

Web integration is the equivalent of having a team of marketing researchers follow customers through a bricks-and-mortar retail store.

Question 30

Most tangible goods and many services can easily be transmitted digitally.

Question 31

The more time-critical the information,the less sensible it may be to invest in digital world applications.

Question 32

Web-based customer service applications should focus on cost-cutting,and not on customer service benefits.

Question 33

The concept of coproduction provides insights into new ways to serve customers better.

Question 34

Cash flows and payments cannot be readily digitized.

Question 35

Videolove.com enables to share videos of songs,movie trailers,stage performances,etc. ,on their internet site.In the syndication process,what would Videolove.com be considered as?

A)Writer
B)Originator
C)Distributor
D)Receiver

Question 36

Global Age,a newspaper website forms a collection of blogs from different blog pages of bloggers and uses them on its website.In the syndication process,what would the bloggers be considered as?

A)Middlepersons
B)Originators
C)Distributors
D)Receivers

Question 37

A wildlife magazine conducts online photography contests and the collection of prize-winning entries of different participants is published on the official website.Which of the following elements is the magazine engaging in?

A)Customization
B)Syndication
C)Disintermediation
D)Information dissemination

Question 38

The sale of the same information to many customers,who then combine the information with information from other sources,and distribute it,is referred to as:

A)customization.
B)disintermediation.
C)syndication.
D)information dissemination.

Question 39

Which of the following is NOT an element that characterizes many new-economy technologies?

A)Syndication of information
B)Decreasing returns to scale of network products
C)Possibility of instantaneous delivery
D)Global reach

Question 40

A few companies have created a myth that the Internet is a self-service medium.

Question 41

At the _____ stage in the customer experience process,a product may be returned to the seller and cash may flow back to the customer.

A)product promotion and brand building
B)customer support or service
C)product disposal
D)transaction

Question 42

Which of the following is an example of a threat to technology?

A)Lack of effort from a firm to digitize music recordings
B)Lack of funds required to convert a text book into a downloadable format
C)Absence of web access in a village where a firm launches a social networking website
D)Imitation of a question bank released by a publisher on the internet

Question 43

Positron Pvt.Ltd. ,a telecommunications and broadband company,helped a consumer to install antivirus software in his PC by providing him step-by-step instructions through the instant messaging service available on the website of Positron.Which of the following was the broadband company engaged in?

A)Delivering digital products
B)Conducting transactions
C)Product promotion and brand building
D)Customer service and support

Question 44

Which of the following stages in the customer experience process includes additional information that may flow in either direction or additional goods or services that may flow to the customer?

A)Product promotion and brand building
B)Customer support or service
C)Product delivery
D)Transaction

Question 45

Jeremy purchased a washing machine from H&L Ltd. ,an electronics manufacturer.The store installed the washing machine at Jeremy's place.He was also given instructions and directions to use the washing machine properly.In the consumer experience process this step would be referred to as _____.

A)product promotion and brand building
B)product disposal
C)customer insight
D)customer support or service

Question 46

A movie producer screened trailers of his upcoming movie on search engine results pages,banner ads,and blogs.Which of the following stages in the customer experience process was the movie producer engaging in?

A)Customer insight
B)Product promotion and brand building
C)Transaction
D)Product return or disposal

Question 47

Which of the following is the last stage in the customer experience process?

A)Transaction
B)Product disposal
C)Customer support
D)Product delivery

Question 48

Which of the following stages in the consumer experience process requires that information flow from customer to seller?

A)Transaction
B)Product delivery
C)Customer insight
D)Product return

Question 49

Glenbogle School of Music releases manuals on its official website which help interested individuals play musical instruments.These manuals are downloadable.This implies that Glenbogle School of Music is engaging in:

A)conducting transactions.
B)product promotion and branding.
C)delivering digital products.
D)product return or disposal.

Question 50

Vulture Pvt.Ltd. ,an insurance company,uses instant messaging to get information about the needs of consumers.The company also conducts regular polls regarding various schemes it offers,on its official website.By engaging in these practices,Vulture Pvt.Ltd.is involved in:

A)product promotion and branding.
B)customer insight.
C)conducting transactions.
D)product return and disposal.

Question 51

Aloof Inc. ,offers t-shirts,bags,and shoes with designs based on needs of consumers.Their products include consumers' favorite bands,favorite quotes,personal ideas,etc.Which of the following techniques is being used by Aloof Inc.?

A)Collaborative filtering
B)Rules-based personalization
C)Customization
D)Recommendation

Question 52

What phenomenon allows marketers to reach customers directly over the Internet,without the expense or complication of distribution channels?

A)Global reach
B)Disintermediation
C)Information highway
D)Syndication

Question 53

At which stage in the customer experience process does the information start flowing from producer to customer?

A)Product promotion and brand building
B)Customer insight
C)Transaction
D)Product delivery

Question 54

Fiona loved the woolens made by Cuddle Inc.However she used to have problems buying them as there were very few retailers that sold Cuddle Inc.'s woolen products.Soon,she was able to buy them directly from the manufacturers,as they started to sell their products at HYPERLINK "http://www.cuddleinc.com/"www.cuddleinc.com.Which of the following techniques was used by Cuddle Inc.?

A)Global reach
B)Information highway
C)Syndication
D)Disintermediation

Question 55

Which of the following stages in the customer experience process ensues if a customer likes what is offered?

A)Product promotion and brand building
B)Customer insight
C)Product disposal
D)Transaction

Question 56

Siesta Inc. ,a holiday booking organization based in New Jersey arranges for holidays to international travelers from different continents on its own website.Which of the following is being achieved by Siesta Inc.due to its online transactions?

A)Global reach
B)Syndication
C)Product return
D)Network externality

Question 57

Which of the following statements about success is true?

A)First mover advantage is a recipe for building a great company.
B)Best beats first in today's competitive economy.
C)The biggest budget helps win product wars.
D)The company with the most unique product line will be more successful than its competitors.

Question 58

Pluto Inc. ,a footwear manufacturer launched its official website and sold its products to consumers directly.This helped in building its customer relations as the firm provided custom-made footwear.However,this online selling activity caused the firm to face several protests from its regular retailers.Which of the following did Pluto Inc.engaged in by launching its website and selling directly to consumers?

A)Disintermediation
B)Information highway
C)Syndication
D)Global reach

Question 59

______ refers to a controversial system that gauges a customer's desire to buy,measures his means,and sets the price accordingly.

A)Dynamic pricing
B)Limit pricing
C)Cost-plus pricing
D)Skimming

Question 60

Which of the following is true of web-based research?

A)It has a small response rate.
B)It is expensive and slow.
C)It is useful for qualitative and quantitative research.
D)There is no scope for growth of web-based research of customer insight.

Question 61

What is disintermediation?

Question 62

Which of the following can be solved by systematically measuring the points where potential customers drop off without making a purchase,and then finding ways to keep more of them in the funnel until they buy and pay?

A)Imitation of web information
B)Lack of web access among customers
C)Cyber crime
D)Leaky bucket issue

Question 63

Marketers' concerns over the effectiveness and efficiency of their websites have led to the development of _____,software solutions that monitor and summarize website usage patterns.

A)central remote server system
B)web analytics
C)search engine optimization
D)cloud computing

Question 64

Explain the six-stage consumer experience process.

Question 65

Explain the first mover advantage and give examples of where first mover advantage has and has not been applied?

Question 66

Track Change,a radio station,launched its online station in the countryside of Florida.However,this was of no use to the people who lived there as they lacked online access.This resulted in a severe loss of sales for the radio station.Which of the following questions should have been asked by Track Change before engaging itself in digitization?

A)Can we digitize information in a proprietary way?
B)How valuable and how time-critical are what kinds of information to the recipient?
C)Can digital world tools reach and build relationships with customers in the target market?
D)Are new economy tools measurably effective and efficient compared to other solutions?

Question 67

What is a positive network effect?

Question 68

What are the seven potentially attractive elements that characterize many new economy technologies?

Question 69

Describe some of the techniques used to personalize and customize market offerings.

Question 70

Under _____,companies carefully consider which burdens they can remove from the customer,using new-economy technologies,and which customers can perform,assessing costs and benefits to both parties.

A)positive feedback
B)causality loop
C)first-mover advantage
D)coproduction

Question 71

BRV Inc. ,a logistics services firm that functions across different countries,provides quick freight delivery services,parcels,and couriers to meet tight deadlines of its customers.They also meet the emergencies of customers by ensuring that the goods are delivered within 24 hours.The executives of the firm are discussing if the firm should invest in digital applications of their services.Which of the following will most support the firm's decision to implement online application?

A)Customer satisfaction surveys reveal that they use the services of BRV Inc.due to their ability to deliver goods within 24 hours.
B)Most of the customers rate their services as time-critical and valuable.
C)BRV InC.caters exclusively to services that are exquisite in nature.
D)The services provided by BRV Inc.can be imitated easily on the web.

Question 72

Which of the following supports the fact that younger companies without long histories of traditional advertising adopt new digital strategies much faster than larger and older firms?

A)Older firms have institutionalized cultures.
B)Older firms consist of centralized management systems.
C)Older firms do not have enough funds to invest in adopting digital strategies.
D)Older firms consist of employees who are technically ignorant.

Question 73

Explain the time-critical factor of information that would help a firm decide if it should digitize information.

Question 74

The taste of hot chocolate,the fragrance of a perfume,the fit of a pair of gloves,and so on cannot be digitized.Which of the following reasons explains why they cannot be digitized?

A)These attributes are very expensive and luxurious in nature.
B)These attributes do not have high demand in the online business environment.
C)Important informational attributes of goods cannot be readily digitized.
D)These attributes do not qualify as necessary goods.

Question 75

Stairway,a rock band wanted to enter the online world of marketing in order to promote their music.However,the band members were worried that their songs would be imitated as barriers to entry on the web are low.In this context,which of the following questions should the band discuss?

A)How valuable and how time-critical are what kinds of music releases to the recipient?
B)Can digital world tools reach and build relationships with customers in the target market?
C)Are new economy tools measurably effective and efficient compared to other solutions?
D)Can we digitize our music in a proprietary way?

Question 76

When an organization decides whether or not to employ a new digital application,it should discuss if it can be done in a proprietary way.This is done as:

A)barriers to entry on the web are low.
B)good ideas cannot be imitated.
C)important informational attributes of goods cannot be readily digitized.
D)simply reaching customers with digital tools may not be enough.

Question 77

What are some of the ethical issues and threats that digital and social networking technologies present?

Question 78

Why is syndication important? Discuss.

Question 79

The senior executives of Blueberry Inc. ,a leading firm that published graphic novels,entered into online selling by launching their official website.It created graphic novels in downloadable formats.It also introduced credit card payment and other electronic modes of payment.These steps increased the sales of the organization.Which of the following questions would have most likely helped the executives of Blueberry Inc.?

A)Are new economy tools measurably effective and efficient compared to other solutions?
B)Can we digitize any or all of the necessary flows at each stage in the consumer experience process?
C)How valuable and how time-critical are what kinds of information to the recipient?
D)Can digital world tools reach and build relationships with customers in the target market?

Question 80

What are the critical questions to ask in developing new-economy marketing strategies?