Deck 6: E-Commerce Marketing and Advertising Concepts

Question 1

Which of the following online advertising formats is the most effective?

A)banner ads
B)rich media ads
C)video ads
D)e-mail

Answer 1

C

Question 2

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 2

B

Question 3

The concept of "customer satisfaction" is broader than the concept of "customer experience."

Answer 3

False

Question 4

Research has found that of all the standard formats of display ads, wide skyscraper ads are the most effective at holding a user's attention.

Question 5

Evidence suggests that real-time customer chat increases sales.

Question 6

E-commerce is a major conduit and generator of offline commerce.

Question 7

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.

Question 8

An interstitial ad is typically contained in a pop-up window that the user must close in order to continue.

Question 9

In the United States today, single, white, young college-educated males with high income dominate the Internet in terms of percentage of Internet usage.

Question 10

Cookies, when combined with Web beacons, can be used to create cross-site profiles.

Question 11

The digital divide still persists along age, income, ethnic, and education dimensions.

Question 12

Price is more important than convenience as a factor in online purchase decisions.

Question 13

Research shows that the two most important factors shaping the decision to purchase online are utility and trust.

Question 14

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)interaction
D)browsing

Question 15

Online shoppers tend to browse for available products rather than search for specific products they have determined in advance.

Question 16

Transaction logs are built into Web server software.

Question 17

The cost of sending 10,000 e-mails in an advertising campaign is about the same as sending 5,000.

Question 18

In 2013, mobile marketing grew at nearly the same rate as traditional online marketing.

Question 19

Which of the following online advertising formats attracted the least amount of spending in 2013?

A)search
B)classifieds
C)rich media
D)e-mail

Question 20

On a typical day, approximately ________ % of adult users in the United States logs on to the Internet.

A)50
B)60
C)70
D)80

Question 21

If you want to determine the size of your Web site's audience, the metric you will use for the most accurate measurement will be:

A)page views.
B)unique visitors.
C)hits.
D)reach.

Question 22

Search engine advertising and marketing expenditures in 2013 were approximately:

A)$19 million.
B)$195 million.
C)$1.95 billion.
D)$19.5 billion.

Question 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.

Question 24

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

Question 25

Approximately ________ of annual offline retail sales is influenced by online browsing.

A)one-quarter
B)one-third
C)one-half
D)three-quarters

Question 26

Impressions are a measure of the:

A)number of times an ad is clicked.
B)number of times an ad is served.
C)number of http requests.
D)number of pages viewed.

Question 27

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 offline data
D)clickstream data

Question 28

Studies of the effects of social "connectedness" on Internet purchases indicate that the more "connected" an individual:

A)the less purchasing that individual does.
B)the less that individual is influenced by friends' purchases.
C)the more that individual shares purchasing decisions with friends.
D)the more purchasing that individual does.

Question 29

Which of the following is not true about search engine advertising?

A)Spending on search engine advertising constitutes almost half 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.

Question 30

View-through rate measures the ________ response rate to an ad.

A)30-minute
B)24-hour
C)7-day
D)30-day

Question 31

A Crayola arts-and-crafts column on a parenting Web site is an example of what form of advertising?

A)sponsorship
B)banner swapping
C)affiliate relationship
D)public relations

Question 32

In 2013, what was the approximate Internet penetration rate for individuals that have attained less than a high-school education?

A)45%
B)60%
C)75%
D)90%

Question 33

Which of the following is the top concern of Internet users about purchasing online?

A)inability to see and touch before buying
B)difficulty of returning products
C)shipping costs
D)lack of trust in the purchase process

Question 34

"Shoppers" constitute approximately ________ % of the online Internet audience.

A)60
B)70
C)80
D)90

Question 35

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.

Question 36

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.

Question 37

A typical response rate for an e-mail campaign would be ________ %.

A)2
B)5
C)25
D)50

Question 38

Which of the following is not one of the main elements of a comprehensive multi-channel marketing plan?

A)local marketing
B)offline marketing
C)social marketing
D)mobile marketing

Question 39

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

Question 40

Which of the following forms of online advertising is growing the fastest?

A)paid search
B)sponsorships
C)video
D)rich media

Question 41

Which of the following measures the average length of stay at a Web site?

A)loyalty
B)stickiness
C)recency
D)retention rate

Question 42

Recency refers to the:

A)percentage of customers who do not return during the next year after an initial purchase.
B)time elapsed since the last action taken by a customer.
C)percentage of existing customers who continue to buy on a regular basis.
D)percentage of customers who return to the site within a year to make additional purchases.

Question 43

The marketing technique known as ________ involves merchants offering products or services for a very low price for a short period of time.

A)search engine marketing
B)flash marketing
C)yield management
D)bait-and-switch

Question 44

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.

Question 45

For a Web site that has 5 million visitors a month, and where on average, a visitor makes 10 page requests per visit, there will be ________ entries in the transaction log each month.

A)50
B)500,000
C)5 million
D)50 million

Question 46

Which of the following is not a feature that is driving the growth of social marketing and advertising?

A)social sign-on
B)network notification
C)collaborative shopping
D)affiliate programs

Question 47

Conversion rate is a measure of the:

A)percentage of visitors who indicate an interest in a site's products by registering or visiting a product's pages.
B)percentage of visitors who become customers.
C)percentage of existing customers who continue to buy on a regular basis.
D)percentage of shoppers who do not return within a year after their initial purchase.

Question 48

Hits are a measure of the:

A)number of times an ad is clicked.
B)number of times an ad is served.
C)number of http requests.
D)number of pages viewed.

Question 49

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.

Question 50

A ________ is a repository of customer information that records all of the contacts that a customer has with a firm and generates a customer profile available to everyone in the firm with a need to know the customer.

A)customer service chat system
B)CRM system
C)data warehouse
D)transactive content system

Question 51

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.

Question 52

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.

Question 53

Which of the following measures the ratio of items purchased to product views?

A)conversion rate
B)cart conversion rate
C)browse-to-buy ratio
D)view-to-cart ratio

Question 54

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.

Question 55

Which of the following examples illustrates the "Long Tail" phenomenon?

A)Rhapsody music streaming service reported that its no play rate had increased to over 20%.
B)The number of blockbuster "winner take all" video titles is declining.
C)Over 50% of Netflix's 100,000 titles are rented at least once a day by someone.
D)The average blog has a readership of slightly more than 1.

Question 56

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)interactivity
D)universal standards

Question 57

Purchasing an online ad on a CPA basis means that the advertiser:

A)pays for impressions in 1,000 unit lots.
B)pays a prenegotiated fee for each click an ad receives.
C)pays only for those users who perform a specific action, such as registering, purchasing, etc.
D)exchanges something of equal value for the ad space.

Question 58

________ is an industry-standard database query and manipulation language.

A)SQL
B)PHP
C)DBMS
D)JSP

Question 59

Acquisition rate is a measure of the:

A)percentage of visitors who indicate an interest in a site's products by registering or visiting a product's pages.
B)percentage of visitors who become customers.
C)percentage of existing customers who continue to buy on a regular basis.
D)percentage of shoppers who do not return within a year after their initial purchase.

Question 60

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)social technology
D)interactivity

Question 61

In ________, one Web site agrees to pay another Web site a commission for new business opportunities it refers to the site.

Question 62

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

Question 63

The ________ rate is an e-mail campaign metric that measures the percentage of e-mails that could not be delivered.

Question 64

A common form of ________ is targeted content (or advertorials), in which editorial content is combined with an ad message to make the message more valuable and attractive to its intended audience.

Question 65

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.

Question 66

________ rate measures the percentage of customers who purchase once but never return within a year.

Question 67

In a(n)________ search, the inclusion and ranking of Web sites depends on a more or less "unbiased" application of a set of rules (an algorithm)imposed by the search engine.

Question 68

________ is the process of getting customers to pass along a company's marketing message to friends, family, and colleagues.

Question 69

All of the following are fixed price strategies except:

A)bundling.
B)versioning.
C)free pricing.
D)yield management.

Question 70

Specialized marketing firms called ________ sell ad opportunities from a range of participating sites that receive payment for displaying ads.

Question 71

To answer a question such as "At what time of day does our company sell the most products?" you would use ________ data mining.

Question 72

________ ads involves showing the same or similar ad to individuals across multiple Web sites.

Question 73

________ use a real-time bidding process in which marketers bid for slots based on their marketing criteria.

Question 74

________ occurs when a new venue for selling products or services threatens to destroy existing venues.

Question 75

Google's AdSense is an example of network keyword or ________ advertising.

Question 76

The ________ asserts that, with complete price transparency in a perfect information marketplace, one world price for every product will emerge.

Question 77

________ behavior refers to the transaction log that consumers establish as they move about the Web from site to site.

Question 78

The incremental cost of building the next unit of a good is called the:

A)demand curve.
B)variable cost.
C)marginal cost.
D)fixed cost.

Question 79

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.

Question 80

Adjustments to a Web site's programming and content in order to improve its rank in search engine results is called search engine ________.