e-Commerce Self Quiz Chapter 4

Question

1 of 40

A cookie is a data file that is placed on a user’s hard drive by a remote Web server only when the user gives full consent to collect information about the user’s activities at a site.

	True
	False

Question

2 of 40

The purpose of an EC customer behavior model is to help firms understand how a consumer makes a purchasing decision to be able to influence that decision through advertising or other marketing methods.

	True
	False

Question

3 of 40

In the consumer decision-making process, the buyer is the person who ultimately makes the buying decision.

	True
	False

Question

4 of 40

By increasing customer loyalty, EC companies can achieve each of the following benefits except:

	lower marketing and advertising costs.
	higher warranty claims costs.
	lower transaction costs.
	lower resistance to competitors.

Question

5 of 40

One of the major challenges of one-to-one advertising is ________, or the flooding of users with junk e-mail, banners, pop-ups, and so on.

	interstitial ads
	permission marketing
	spamming
	behavioral targeting

Question

6 of 40

Customer loyalty is important because it is a customer’s deep commitment to buying a product or service consistently in the future, thereby causing repetitive same-brand or same brand-set purchasing.

	True
	False

Question

7 of 40

The introduction of EC has:

	decreased customer loyalty because customers can more easily shop, compare, and switch to different vendors.
	increased customer loyalty because customers don’t have time to shop around.
	increased the cost of acquiring and retaining customers.
	decreased advertising and promotion costs.

Question

8 of 40

Banner exchanges are markets where companies can trade or exchange placement of banner ads on each other’s Web sites.

	True
	False

Question

9 of 40

________, such as concerts and videos, can generate tremendous public excitement and bring huge crowds to a Web site.

	Live Web events
	Webcasting
	Phone casting
	Mobile casting

Question

10 of 40

One of the major objectives of universal services is to increase customer loyalty through individual personalization.

	True
	False

Question

11 of 40

One of the keys to building effective customer relationships is to understand intelligent agents.

	True
	False

Question

12 of 40

Personal characteristics of customers, such as age and income, are independent variables, which are uncontrollable variables for EC companies.

	True
	False

Question

13 of 40

Attracting and retaining loyal customers is the most important issue for e-tailers because customer loyalty can lower marketing and advertising costs, transaction costs, customer turnover expenses, and failure costs such as warranty claims.

	True
	False

Question

14 of 40

Segmentation refers to the matching of services, products, and advertising content to individuals and their preferences.

	True
	False

Question

15 of 40

All of the following describe click-through rate except:

	It is the ratio between the number of clicks on a banner ad and the number of times it is seen by viewers.
	It is a request for data from a Web page or file.
	It measures the success of a banner in attracting visitors to click on the ad.
	It may be less than or equal to the conversion rate.

Question

16 of 40

Ways in which user profiles are typically generated by EC businesses include all of the following except:

	asking users to fill in a questionnaire
	using cookies, spyware, or Web bugs to observe what people are doing online
	using customer segmentation to identify customers’ preferences
	basing them on what customers have purchased online before

Question

17 of 40

Procter & Gamble (P&G) used the Internet in the new product development of Whitestrips, a teeth-brightening product. Based on this experience, P&G:

	decided to add Internet research to its traditional marketing test model.
	could not determine the target market segments for the Whitestrips.
	learned that the cost of online surveys was about the same as similarly sized telephone surveys, but online surveys expedited research considerably.
	reduced the time-to-market from concept to market launch by approximately two years.

Question

18 of 40

The world’s largest online movie rental subscription company, Netflix, implemented intelligent agents in its movie recommendation service called CineMatch to help customers select movies they would like to watch and to better manage its inventory.

	True
	False

Question

19 of 40

Spyware is tiny graphics files embedded in email messages and in Web sites that transmit information about users and their movements to a Web server.

	True
	False

Question

20 of 40

Mass marketing is an approach to marketing that treats each customer in a unique way such as fitting advertising to the customer’s profile and needs.

	True
	False

Question

21 of 40

The popularity of Apple’s iPhone and Application Store has made ________ important to advertisers, who see social networking widgets, restaurant locators, mobile games, and other applications as prime targets.

	stickiness
	direct marketing
	mobile advertising
	banner ads

Question

22 of 40

An Internet merchant can increase its trustworthiness by using each of the following except:

	a vendor evaluation, such as BBB Online
	co-branding
	simple design
	a convenient return policy

Question

23 of 40

The first step in the buying decision process is product evaluation and comparison.

	True
	False

Question

24 of 40

Satisfaction is one of the most important consumer reactions in the B2C online environment.

	True
	False

Question

25 of 40

Word-of-mouth marketing by which customers promote a product or service by telling others via social networks or other means is referred to as:

	affiliate marketing.
	viral marketing.
	target marketing.
	search engine marketing.

Question

26 of 40

A(n) ________ is someone whose advice or view carries some weight in making a final purchasing decision.

	initiator
	influencer
	decider
	buyer

Question

27 of 40

The use of cookies:

	is one of the most controversial issues in EC.
	has not helped Internet marketers target their ads.
	is a widely used method for mass marketing.
	is being replaced by adware and spyware programs.

Question

28 of 40

How many Apple Application Store downloads were made by users in the five months spanning July 2008 to December 2008?

	100 million
	25 million
	5 million
	1 million

Question

29 of 40

Web site content is especially important to increase stickiness because:

	customers are expensive to acquire.
	Web sites are expensive to maintain.
	competitors are always attempting to steal away customers.
	of Internet-accessible mobile devices.

Question

30 of 40

Social factors such as word-of-mouth play an influential role in EC shopping or online gaming.

	True
	False

Question

31 of 40

In the consumer purchasing decision process, virtual catalogs and links to external sources support the evaluation and selection phase of that process.

	True
	False

Question

32 of 40

Customer loyalty can lead to enhanced resistance to competitors, a decrease in price sensitivity, and an increase in favorable word-of-mouth.

	True
	False

Question

33 of 40

What is the key problem that biometric marketing is intended to solve?

	knowing the identity of the actual shopper
	improving accuracy of the shopper’s data
	increasing the speed of order processing
	creating a loyalty program

Question

34 of 40

Banner advertising on Web sites helps trigger a realization that there is a gap between reality and a desired state, which occurs in the ________ stage of the EC purchase decision-making process.

	need identification or recognition
	information search
	evaluation
	product or merchant brokering

Question

35 of 40

The ethical issue raised by profiling customers too precisely is:

	spamming.
	invasion of privacy.
	theft of intellectual property.
	security.

Question

36 of 40

As the volume of customers, products, vendors, and information increases, it becomes uneconomical or impossible for customers to consider all relevant information and available products/services. The practical solution to handling such information overload is to:

	use permission marketing.
	use software or intelligent agents.
	increase the use of ad agencies.
	design Web sites with minimal content.

Question

37 of 40

Marketing and advertising approaches have evolved from mass marketing to market segmentation to one-to-one marketing. This evolution occurred because:

	the marketing focus shifted from customers to products.
	companies sought to decrease the number of marketing campaigns.
	concerns about privacy have diminished.
	the Internet enabled companies to better communicate with customers and understand their needs and buying habits.

Question

38 of 40

Personalization is the matching of services or products with large groups of customer segments.

	True
	False

Question

39 of 40

Paws ‘n Tails is an online pet shop that wants to influence what its customers buy and build effective customer relationships and loyalty. What is the key to influencing behavior and building these relationships?

	understanding consumer online behavior and then influencing it through advertising and promotions
	understanding competitors’ pricing strategy and then undercutting it
	identifying the wants and needs of major customer segments
	suggesting as many products as possible to online shoppers as soon as they visit the EC site

Question

40 of 40

One problem with Web analytics, Web mining, clickstream data, and so on is that you observe and follow a computer without knowing who is actually moving the mouse, which can be solved with biometric marketing.

	True
	False

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