Deck 6: E-Commerce Marketing and Advertising Concepts

Question 1

Which of the following activities is the one engaged in by the highest percentage of online users?

A)using e-mail
B)using a social networking site
C)researching products and services
D)reading news

Answer 1

A

Question 2

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

Answer 2

False

Question 3

Price is the top factor in online purchase decisions.

Answer 3

True

Question 4

Research indicates that social network influence may not extend to distant friends.

Question 5

Online video advertising now accounts for the largest amount of the Internet advertising spending.

Question 6

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

A)52
B)62
C)72
D)82

Question 7

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

Question 8

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

A)38
B)68
C)88
D)98

Question 9

Which of the following age groups has the highest percentage of Internet access?

A)18-29
B)30-49
C)50-64
D)65+

Question 10

The dial-up audience is ________ the broadband audience.

A)virtually indistinguishable from
B)more educated than
C)less intensely involved with the Internet than
D)wealthier than

Question 11

A majority of states in the United States have laws regulating or prohibiting spam.

Question 12

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 13

Search engine marketing saves consumers cognitive energy and reduces search costs.

Question 14

The amount spent on online advertising in 2012 accounted for approximately 10 percent of the total amount spent on all advertising.

Question 15

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

A)$1.2 trillion
B)$102 billion
C)$120 million
D)$12 million

Question 16

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

Question 17

Households with incomes of below $75,000 are obtaining Internet access at faster rates than households with incomes above that level.

Question 18

Spending on social advertising is less than 10 percent of spending on all online advertising.

Question 19

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)inability to speak to sales assistant in person

Question 20

Sending e-mail marketing messages is typically less costly than sending direct mail marketing messages.

Question 21

Which of the following is not a kind of Twitter marketing product?

A)Promoted Shopping
B)Promoted Tweets
C)Promoted Accounts
D)Promoted Trends

Question 22

Which of the following is not a feature that is driving social e-commerce growth?

A)social sign-on
B)network notification
C)collaborative shopping
D)personal intelligent agents

Question 23

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 24

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 25

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

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

Question 26

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 27

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 percent 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 28

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 percent.
B)The number of blockbuster "winner take all" video titles is declining.
C)Amazon sells a larger number of obscure books than hit books.
D)The average blog has a readership of slightly more than 1.

Question 29

CAN-SPAM imposes fines of ________ for each unsolicited pornographic e-mail.

A)$1
B)$10
C)$100
D)$1000

Question 30

The amount spent on online advertising in 2012 was approximately:

A)$373 million.
B)$3.73 billion.
C)$37.3 billion.
D)$373 billion.

Question 31

All of the following are traditional online marketing and advertising tools except:

A)affiliate marketing.
B)permission marketing.
C)social marketing.
D)sponsorship marketing.

Question 32

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

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

Question 33

Search engine advertising expenditures in 2012 were approximately:

A)$17 million.
B)$170 million.
C)$1.7 million.
D)$17 billion.

Question 34

Which of the following online advertising formats attracted the least amount of spending in 2012?

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

Question 35

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 36

Which of the following is not an attribute of personalized marketing?

A)suitable for highly complex products
B)unique price
C)targeting of individuals
D)use of mass media

Question 37

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 38

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 39

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

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

Question 40

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 41

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

Question 42

Promoted Trends is an example of which of the following types of online advertising?

A)blog advertising
B)interest-based advertising
C)game advertising
D)social network advertising

Question 43

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 44

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

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

Question 45

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 46

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 47

CTR is a measure of the:

A)percentage 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 48

In ________ advertising, companies pay for ads to be placed dynamically on any participating Web site that the search engine determines is appropriate.

A)paid inclusion
B)network keyword
C)keyword
D)social

Question 49

The typical dwell rate for rich media and video ads is:

A)1%-2%.
B)4%-5%.
C)7%-8%.
D)10%-12%.

Question 50

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 51

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

Question 52

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

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

Question 53

Which of the following measures the ratio of actual orders to checkouts started?

A)checkout conversion rate
B)conversion rate
C)acquisition rate
D)cart conversion rate

Question 54

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

Question 55

Which of the following forms of online advertising typically has the highest click-through rate?

A)e-mail marketing in-house list
B)interstitials
C)search engine keyword purchase
D)sponsorships

Question 56

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 57

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 58

Typical click-through rates for an online display ad are:

A))02%-.16%.
B))03%-.30%.
C)1)5%-2%.
D)3%-6%.

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

Purchasing an online ad on a CPC 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 61

What are the issues to be aware of when using social advertising?

Question 62

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

Question 63

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

Question 64

Discuss the process of establishing a relationship with the customer, focusing on affiliate marketing, and viral marketing.

Question 65

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

Question 66

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 67

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

Question 68

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 69

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

Question 70

________ involves using the social graph to communicate brand images and to directly promote sales of products and services.

Question 71

What are the values or benefits of search engine advertising? Describe the types of search engine advertising that exist.

Question 72

Conversations between a firm and the consumers of its products in various forums such as blogs, Facebook, and Twitter feeds are referred to collectively as ________.

Question 73

How would you determine if an online marketing campaign to drive customers to your Web site has been successful?

Question 74

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

Question 75

Discuss four features of social e-commerce that are driving its growth.