test bank for chapter 6 and 7 PDF

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E-commerce 2016: Business. Technology. Society., 12e (Laudon) Chapter 6 E-commerce Marketing and Advertising Concepts 1) Around ________ % of households in the United States have broadband access to the Internet. A) 45 B) 55 C) 75 D) 85 Answer: C Difficulty: Moderate AACSB: Application of knowledge LO: 6.1: Understand the key features of the Internet audience, the basic concepts of consumer behavior and purchasing, and how consumers behave online. 2) Which of the following online advertising formats attracted the least amount of spending in 2015? A) search B) classifieds C) rich media D) e-mail Answer: D Difficulty: Moderate AACSB: Application of knowledge LO: 6.1: Understand the key features of the Internet audience, the basic concepts of consumer 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 LO: 6.1: Understand the key features of the Internet audience, the basic concepts of consumer behavior and purchasing, and how consumers behave online. 4) In 2015, what was the approximate Internet penetration rate for individuals that have attained less than a high-school education? A) 25% B) 33% C) 66% D) 75% Answer: C Difficulty: Difficult AACSB: Application of knowledge LO: 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 that are used to support the evaluation of alternatives stage of the consumer decision process except: A) search engines. B) online catalogs. C) social networks. D) targeted banner ads. Answer: D Difficulty: Difficult AACSB: Application of knowledge LO: 6.1: Understand the key features of the Internet audience, the basic concepts of consumer behavior and purchasing, and how consumers behave online. 6) Online buyers constitute approximately ________ % of the online Internet audience. A) 65 B) 75 C) 85 D) 95 Answer: B Difficulty: Moderate AACSB: Application of knowledge LO: 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 LO: 6.1: Understand the key features of the Internet audience, the basic concepts of consumer behavior and purchasing, and how consumers behave online. 8) In the early years of e-commerce, prior to 2000, single, white, young college-educated males with high income dominated the Internet in terms of percentage of Internet usage. Answer: TRUE Difficulty: Moderate AACSB: Application of knowledge LO: 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 because it offers lower prices. Answer: TRUE Difficulty: Moderate AACSB: Application of knowledge LO: 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 AACSB: Application of knowledge LO: 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 LO: 6.1: Understand the key features of the Internet audience, the basic concepts of consumer behavior and purchasing, and how consumers behave online. 12) Research shows that the two most important factors shaping the decision to purchase online are utility and trust. Answer: TRUE Difficulty: Easy AACSB: Application of knowledge LO: 6.1: Understand the key features of the Internet audience, the basic concepts of consumer behavior and purchasing, and how consumers behave online. 13) Google introduced which of the following changes to its search algorithm in 2011 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 LO: 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 fastest between 2015 and 2019? A) paid search B) sponsorships C) search engines

D) rich media Answer: D Difficulty: Moderate AACSB: Application of knowledge LO: 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 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 LO: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 16) Which of the following search engine algorithm updates enables Google's search engine to evaluate an entire sentence rather than just a key word? A) Panda B) Penguin C) Hummingbird D) Graph Search Answer: C Difficulty: Difficult AACSB: Application of knowledge LO: 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 over 40% 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 fastest growing type of online advertising. Answer: D Difficulty: Difficult AACSB: Application of knowledge LO: 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 LO: 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? A) viral marketing B) local marketing C) affiliate marketing D) lead generation marketing Answer: C Difficulty: Moderate AACSB: Application of knowledge LO: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 20) Ad blockers operate in a manner very 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 LO: 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 Web site 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 LO: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools.

22) In the first seven months of 2015, the percentage of all e-mail that is spam averaged around ________ %. A) 50 B) 60 C) 70 D) 80 Answer: A Difficulty: Moderate AACSB: Application of knowledge LO: 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). 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 LO: 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 LO: 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 Web site B) company CRM system C) Facebook D) search engine display ads Answer: A Difficulty: Moderate AACSB: Application of knowledge LO: 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 LO: 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 Difficulty: Moderate AACSB: Application of knowledge LO: 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 LO: 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 LO: 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 LO: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies 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 LO: 6.2: Identify and describe the basic digital commerce marketing and 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 LO: 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 LO: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools.

34) Google's AdSense is an example of which of the following? A) context advertising B) SEO C) programmatic advertising D) viral marketing Answer: A Difficulty: Moderate AACSB: Application of knowledge LO: 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 LO: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 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 LO: 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 is controversial. 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 LO: 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 LO: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 39) Research has found that of all the standard formats of display ads, leaderboard ads are the most effective at getting and holding a user's attention. Answer: FALSE Difficulty: Difficult AACSB: Application of knowledge LO: 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 LO: 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 LO: 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 LO: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies 43) Lead generation marketing firms specialize in inbound marketing. Answer: TRUE Difficulty: Moderate AACSB: Application of knowledge LO: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies

44) An ad is considered viewable if half of the ad can be viewed for at least two consecutives seconds. Answer: TRUE Difficulty: Moderate AACSB: Application of knowledge LO: 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 LO: 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 LO: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 50) Which of the following would you implement to collect and analyze your company's Big Data? A) data warehouse B) Hadoop C) SQL D) profiling Answer: B Difficulty: Moderate AACSB: Application of knowledge LO: 6.3: Identify and describe the main technologies that support online marketing. 51) Which of the following statements about the Internet's impact on marketing is not true? A) The Internet has broadened the scope of marketing communications. B) The Internet has decreased the impact of brands. C) The Internet has increased the richness of marketing communications. D) The Internet has expanded the information intensity of the marketplace. Answer: B Difficulty: Difficult AACSB: Application of knowledge LO: 6.3: Identify and describe the main technologies that support online marketing.

52) Which of the following features of e-commerce technology has reduced the cost of delivering marketing messages and receiving feedback from users? A) ubiquity B) richness C) information density D) universal standards Answer: D Difficulty: Moderate AACSB: Application of knowledge LO: 6.3: Identify and describe the main technologies that support online marketing. 53) Which of the following features of e-commerce technology allows fine-grained, highly detailed information on consumers' real-time behavior to be gathered and analyzed? A) personalization/customization B) information density C) ubiquity D) interactivity Answer: B Difficulty: Moderate AACSB: Application of knowledge LO: 6.3: Identify and describe the main technologies that support online marketing. 54) The richness made possible by e-commerce technologies does which of the following? A) It reduces the cost of delivering marketing messages and receiving feedback from users. B) It allows consumers to become co-producers of the goods and services being sold. C) It allows video, audio, and text to be integrated into a single marketing message and consuming experience. D) It enables worldwide customer service and marketing communications. Answer: C Difficulty: Moderate AACSB: Application of knowledge LO: 6.3: Identify and describe the main technologies that support online marketing. 55) For a Web site that has 100,000 visitors a month, and where on average, a visitor makes five page requests per visit, there will be ________ entries in the transaction log each month. A) 50,000 B) 500,000 C) 5 million D) 50 million Answer: B Difficulty: Moderate AACSB: Information technology LO: 6.3: Identify and describe the main technologies that support online marketing.

56) All of the following statements about cookies are true except: A) cookies can be used with Web bugs to create cross-site profiles of users. B) the data typically stored in cookies includes a unique ID and e-mail address. C) cookies make shopping carts possible by allowing a site to keep track of a user's actions. D) the more cookies are deleted, the less accurate ad server metrics become. Answer: B Difficulty: Moderate AACSB: Information technology LO: 6.3: Identify and describe the main technologies that support online marketing. 57) A Web beacon is: A) a cookie that carries a virus. B) an executable cookie. C) an automated applet for performing Web searches. D) a tiny graphics file embedded in an e-mail or Web page. Answer: D Difficulty: Easy AACSB: Application of knowledge LO: 6.3: Identify and describe the main technologies that support online marketing. 58) ________ is an industry-standard database query and manipulation language. A) SQL B) PHP C) DBMS D) JSP Answer: A Difficulty: Easy AACSB: Information technology LO: 6.3: Identify and describe th...