EC15 TB chapter 6 - Test Bank PDF

Preview

Summary

Test Bank...

Description

E-commerce 2019: business. technology. society., 15e (Laudon/Traver) Chapter 6 E-commerce Marketing and Advertising Concepts 1) Which of the following statements about Internet usage in the United States is not true? A) In 2018, around 280 million people of all ages had access to the Internet. B) In 2018, the growth in the number of new online users was less than 2%. C) Over 90% of all U.S. Internet users access the Internet using a mobile device. D) Adults in the 25-to-54-age group have the highest percentage of Internet use. Answer: D Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.1: Understand the key features of the Internet audience, the basic concepts of consumer behavior and purchasing, and how consumers behave online. 2) Research shows the two key factors shaping the decision to purchase online are utility and trust. Answer: TRUE Difficulty: Easy AACSB: Application of knowledge Learning Objective: 6.1: Understand the key features of the Internet audience, the basic concepts of consumer behavior and purchasing, and how consumers behave online. 3) Which of the following is not one of the main stages of the online purchasing process? A) post-purchase service and loyalty B) awareness C) engagement D) conversation Answer: D Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.1: Understand the key features of the Internet audience, the basic concepts of consumer behavior and purchasing, and how consumers behave online. 4) What is the approximate Internet penetration rate for individuals that have attained less than a high-school education? A) 55% B) 65% C) 75% D) 85% Answer: B Difficulty: Difficult AACSB: Application of knowledge Learning Objective: 6.1: Understand the key features of the Internet audience, the basic concepts of consumer behavior and purchasing, and how consumers behave online. 5) All of the following are online communications used to support the evaluation of alternatives stages of the consumer decision process except: A) search engines. 1 Copyright © 2020 Pearson Education, Inc.

B) online catalogs. C) social networks. D) targeted banner ads. Answer: D Difficulty: Difficult AACSB: Application of knowledge Learning Objective: 6.1: Understand the key features of the Internet audience, the basic concepts of consumer behavior and purchasing, and how consumers behave online. 6) Approximately ________ of U.S. Internet usersresearch online but do not buy. A) 7.7% B) 12.7% C) 15% D) 19% Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.1: Understand the key features of the Internet audience, the basic concepts of consumer behavior and purchasing, and how consumers behave online. 7) In modeling online consumer behavior, the concept of "consumer skills" refers to the: A) education level of the consumer. B) communication skills of the consumer. C) knowledge consumers have about how to conduct online transactions. D) product evaluation skills of the consumer. Answer: C Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.1: Understand the key features of the Internet audience, the basic concepts of consumer behavior and purchasing, and how consumers behave online. 8) A roughly equal percentage of men and women use the Internet today. Answer: TRUE Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.1: Understand the key features of the Internet audience, the basic concepts of consumer behavior and purchasing, and how consumers behave online. 9) Consumers choose the online channel primarily due to social media influence. Answer: FALSE Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.1: Understand the key features of the Internet audience, the basic concepts of consumer behavior and purchasing, and how consumers behave online. 10) Online traffic is driven by offline brands and shopping. Answer: TRUE Difficulty: Easy 2 Copyright © 2020 Pearson Education, Inc.

AACSB: Application of knowledge Learning Objective: 6.1: Understand the key features of the Internet audience, the basic concepts of consumer behavior and purchasing, and how consumers behave online. 11) The majority of online shoppers find vendors by clicking on display ads. Answer: FALSE Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.1: Understand the key features of the Internet audience, the basic concepts of consumer behavior and purchasing, and how consumers behave online. 12) Which of the following online advertising formats attracted the least amount of spending in 2018? A) search B) classifieds C) rich media D) e-mail Answer: D Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 13) Google introduced which of the following changes to its search algorithm to weed out low quality sites from search results? A) Penguin B) Hummingbird C) Panda D) Knowledge Graph Answer: C Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 14) Which of the following forms of online advertising is expected to grow the most between 2018 and 2022? A) paid search B) sponsorships C) search engines D) video Answer: D Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 15) Which of the following is not one of the four main methods advertisers use to behaviorally 3 Copyright © 2020 Pearson Education, Inc.

target ads? A) Nielsen ratings B) data collected from social networks C) integration of online data with offline data D) clickstream data Answer: A Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 16) Which of the following search engine algorithm updates targets websites that violate Google’s guidelines? A) Panda B) Penguin C) Hummingbird D) Fred Answer: D Difficulty: Difficult AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 17) Which of the following is not true about search engine advertising? A) Spending on search engine advertising constitutes about 44% of all online advertising spending. B) The top three search engine providers supply over 95% of all online searches. C) The click-through rate for search engine marketing has been fairly steady over the years. D) Search engine advertising is the slowest growing type of online advertising. Answer: D Difficulty: Difficult AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 18) Which of the following is not a practice that degrades the results and usefulness of search engines? A) social search B) link farms C) content farms D) click fraud Answer: A Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 19) Amazon's Associates program is an example of which of the following? 4 Copyright © 2020 Pearson Education, Inc.

A) viral marketing B) local marketing C) affiliate marketing D) lead generation marketing Answer: C Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 20) Ad blockers operate in a manner similar to which of the following? A) anti-virus software B) firewalls C) Flash cookies D) anonymous browsing Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 21) Which of the following is not a primary source of ad fraud? A) browser extensions that insert ads into a premium publisher's website and then list the ads as available on a programmatic ad exchange B) ad targeting firms that create bots that imitate the behavior of real shoppers and then charge advertisers C) botnets hired by publishers to click on web pages to create phony traffic D) native advertising that is displayed on a social media site Answer: D Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 22) The percentage of all e-mail that is spam averaged around ________ in 2017. A) 55% B) 65% C) 75% D) 85% Answer: A Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 23) Which of the following statements about CAN-SPAM is not true? A) CAN-SPAM went into effect in January 2004. B) CAN-SPAM prohibits unsolicited e-mail (spam). 5 Copyright © 2020 Pearson Education, Inc.

C) CAN-SPAM prohibits the use of deceptive subject lines and false headers. D) Large spammers are among CAN-SPAM's biggest supporters. Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 24) Which of the following statements about Canada's anti-spam law is not true? A) Canada's law is based on an opt-in model. B) The law has no impact on companies located within the United States. C) The first phase of the law went into effect in 2014. D) The law applies to e-mail, texts, and social media messaging. Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 25) Which of the following is the most important tool in establishing a relationship with the customer? A) company website B) company CRM system C) Facebook D) search engine display ads Answer: A Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 26) All of the following are "traditional" online marketing tools except: A) affiliate marketing. B) e-mail and permission marketing. C) social marketing. D) sponsorship marketing. Answer: C Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 27) All of the following are among those most frequently affected by ad-blocking except: A) gaming sites. B) newsgroup/forums. C) social network sites. D) online retailers. Answer: D 6 Copyright © 2020 Pearson Education, Inc.

Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 28) The Nike iD program is an example of which of the following marketing techniques? A) customer co-production B) transactive content C) price discrimination D) permission marketing Answer: A Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 29) The incremental cost of building the next unit of a good is called the: A) Law of One Price. B) variable cost. C) marginal cost. D) fixed cost. Answer: C Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 30) Which of the following statements about a free pricing strategy is false? A) Free products and services can knock out potential and actual competitors. B) The free pricing strategy was born in the early days of the Web. C) It is difficult to convert free customers into paying customers. D) Free products and services can help build market awareness. Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 31) Creating multiple variations of information goods and selling these to different market segments at different prices is called: A) bundling. B) customization. C) dynamic pricing. D) versioning. Answer: D Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and 7 Copyright © 2020 Pearson Education, Inc.

advertising strategies and tools. 32) All of the following are fixed price strategies except: A) bundling. B) versioning. C) free pricing. D) yield management. Answer: D Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 33) Which of the following involves getting customers to pass along a company's marketing message to friends, family, and colleagues? A) affiliate marketing B) viral marketing C) native advertising D) lead generation marketing Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 34) Group M, the world’s largest advertising buyer, requires which of the following in order for an ad to be considered viewable? A) 50% of the pixels must be in view for at least one second. B) 50% of the pixels must be in view for at least two seconds. C) 100% of the pixels must be in view for at least one second D) 100% of the pixels must be in view for at least two seconds Answer: C Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 35) Which of the following is based on the idea of complete price transparency in a perfect information marketplace? A) the Law of One Price B) dynamic pricing C) price discrimination D) versioning Answer: A Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 8 Copyright © 2020 Pearson Education, Inc.

36) Which of the following industries accounts for the highest percentage of spending on online advertising? A) financial services B) retail C) automotive D) entertainment Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 37) Which of the following statements about native advertising is not true? A) Native advertising’s share of mobile display ad revenues exceeds 75%. B) Native advertising is a new form of advertising found only online. C) Native advertising is growing rapidly, especially on social networks. D) Consumers look at native ads much more frequently than display ads. Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 38) Which of the following is an automated, auction-based method for matching demand and supply for online display ads? A) retargeting B) behavioral targeting C) programmatic advertising D) keyword advertising Answer: C Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 39) Research has found that most of the ad impressions served across display advertising platforms are not viewable. Answer: TRUE Difficulty: Difficult AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 40) The highest amount of online advertising spending is for online video ads. Answer: FALSE Difficulty: Moderate AACSB: Application of knowledge 9 Copyright © 2020 Pearson Education, Inc.

Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 41) Evidence suggests that real-time customer chat increases the dollar value of transactions. Answer: TRUE Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 42) Consumers tend to look at native ads more frequently than they look at display ads. Answer: TRUE Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 43) Lead generation marketing firms specialize in inbound marketing. Answer: TRUE Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 44) The top four display ad companies together account for almost 60% of U.S. display ad revenues. Answer: TRUE Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 45) The concept of "customer satisfaction" is broader than the concept of "customer experience." Answer: FALSE Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 46) Bundling is the process of selling two or more products together for a price that is less than the sum of the two product's individual prices. Answer: TRUE Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 47) How are blogs being used for marketing? 10 Copyright © 2020 Pearson Education, Inc.

Answer: Blogs have been around for a decade and are a part of the mainstream online culture. Around 30 million people write blogs, and around 84 million read blogs. Blogs play a vital role in online marketing. Although more firms use Twitter and Facebook, these sites have not replaced blogs, and in fact often point to blogs for long-form content. Because blog readers and creators tend to be more educated, have higher incomes, and be opinion leaders, blogs are ideal platforms for ads for many products and services that cater to this kind of audience. Because blogs are based on the personal opinions of the writers, they are also an ideal platform to start a viral marketing campaign. Advertising networks that specialize in blogs provide some efficiency in placing ads, as do blog networks, which are collections of a small number of popular blogs, coordinated by a central management team, and which can deliver a larger audience to advertisers. Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 48) How do the Interactive Advertising Bureau’s new standard ad unit portfolio and guidelines released in July 2017 differ from its earlier guidelines for display ads. Answer: For many years, IAB categorized display ads based on fixed pixel sizes, such as a medium rectangle (300 x 250 pixels), large rectangle (336 x 280 pixels), leaderboard (728 x 90 pixels), and half-page (300 x 600 pixels) (the top performing sizes, according to Google). However, in July 2017, the IAB released the final version of its new standard ad unit portfolio, based on aspect ratio and size range, rather than fixed pixel size, allowing for flexible sizing and delivery of a more consistent ad experience across multiple screen sizes and devices. Ad types are now identified as horizontal (typically placed at the top or bottom of the screen), vertical (typically placed on the right or left edge of the screen), tiles (typically placed in a grid layout), or full page (which cover th...