Deck 6: E-Commerce Marketing and Advertising Concepts

Question 1

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

Answer 1

True

Question 2

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

A)Spending on search engine advertising constitutes over 45% 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 steady over the years.
D)Search engine advertising is the fastest growing type of online advertising.

Answer 2

D

Question 3

Around ________ % of households in the United States have broadband access to the Internet.

A)45
B)55
C)75
D)85

Answer 3

C

Question 4

Ad blockers operate in a manner similar to which of the following?

A)anti-virus software
B)firewalls
C)Flash cookies
D)anonymous browsing

Question 5

Consumers choose online channels (e.g. ,e-mail)primarily due to social media influence.

Question 6

Google introduced ____________ to its search algorithm to weed out low quality sites from search results.

A)Penguin
B)Hummingbird
C)Panda
D)Knowledge Graph

Question 7

Online traffic is driven by offline brands and shopping.

Question 8

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 9

Which of the following forms of online advertising is expected to grow the fastest between 2016 and 2020?

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

Question 10

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

Question 11

Online buyers constitute approximately ________ % of the online Internet audience.

A)67
B)77
C)87
D)97

Question 12

Which of the following online advertising formats involved the least amount of spending in 2016?

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

Question 13

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

Question 14

In 2016,what was the approximate Internet penetration rate for individuals with less than a high-school education?

A)25%
B)33%
C)66%
D)75%

Question 15

The majority of online shoppers find vendors by clicking on display ads.

Question 16

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

Question 17

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 18

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

Question 19

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 20

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.

Question 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

Question 22

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 23

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.

Question 24

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 25

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.

Question 26

The highest amount of online advertising spending is for online video ads.

Question 27

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

Question 28

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

Question 29

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 30

All of the following are fixed price strategies except:

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

Question 31

Google's AdSense is an example of which of the following?

A)context advertising
B)SEO
C)programmatic advertising
D)viral marketing

Question 32

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 33

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

Question 34

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.

Question 35

Research has found that most ad impressions served across display advertising platforms are not viewable.

Question 36

The percentage of all e-mail that is spam averaged around ________ % in 2016.

A)53
B)63
C)73
D)83

Question 37

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 38

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.

Question 39

Which of the following industries accounts for the highest percentage of spending on online advertising?

A)financial services
B)retail
C)automotive
D)entertainment

Question 40

Which of the following is an automated,auction-based method for matching supply and demand for online display ads?

A)retargeting
B)behavioral targeting
C)programmatic advertising
D)keyword advertising

Question 41

Evidence suggests real-time customer chat increases the dollar value of transactions.

Question 42

How are blogs being used for marketing?

Question 43

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

Question 44

All of the following statements about cookies are true except:

A)cookies can be used 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 45

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

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

Question 46

An ad is considered viewable if half of the ad can be viewed for at least five consecutive seconds.

Question 47

Discuss the changes that Google has made to its search algorithms to improve search results and user experience.

Question 48

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 49

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 50

A ________ is a repository of customer information that records all of the contacts a customer has with a firm,and generates a customer profile that is available to appropriate individuals in the firm.

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

Question 51

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

A)long tail marketing
B)flash marketing
C)yield management
D)bait-and-switch

Question 52

Identify and describe the various types of rich media ads and video ads and explain how each one works.

Question 53

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 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

Consumers tend to look at native ads more frequently than display ads.

Question 56

For a website that has 1 million 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

Question 57

Lead generation marketing firms specialize in inbound marketing.

Question 58

Which of the following would you use as a framework for working with your company's big data sets?

A)data warehouse
B)Hadoop
C)SQL
D)profiling

Question 59

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

Question 60

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

Question 61

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 62

What are two methods being developed to track consumers across devices?

Question 63

Transaction logs are built into web server software.

Question 64

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

A)query-driven
B)customer profiling
C)model-driven
D)behavioral

Question 65

What are web transaction logs,and how do they work in combination with registration forms,shopping cart databases,and tracking files to help firms understand how customers behave online?

Question 66

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 67

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 68

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

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

Question 69

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 visit made 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 70

What is big data and why are marketers interested in it?

Question 71

Describe the revolution in Internet marketing technologies.What are the four main broad impacts the Internet has had on marketing?

Question 72

Define and describe the functionality of customer relationship management (CR
M)systems.

Question 73

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 74

Uber has been criticized for using which of the following?

A)flash marketing
B)bundling
C)surge pricing
D)freemium

Question 75

eCPM measures the ROI of an ad by dividing the total earnings of the ad by which of the following?

A)the total number of impressions
B)the total number of impressions in hundreds
C)the total number of impressions in thousands
D)the total number of impressions in millions

Question 76

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 77

Which of the following measures the average length of stay at a website?

A)loyalty
B)stickiness
C)page views
D)retention rate

Question 78

Regular in-app cookies cannot be shared between apps.

Question 79

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

A)pays for impressions in 1,000 unit lots.
B)pays a pre-negotiated 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 80

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

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