Question 1

The key to Internet success is first-mover advantage-arriving first in the market with an idea or technology.

Accepted Answer

First-mover advantage is not always the key to Internet success. Many successful companies entered the market later but differentiated themselves through innovation or better execution. It is also important to note that being the first mover can come with significant risks and costs, such as having to educate the market and develop a new infrastructure.

Question 2

An academic publisher converts text books into online formats.This is an example of delivering digital products.

Accepted Answer

Converting text books into online formats is a way of delivering digital products.

Question 3

Disintermediation refers to the use of the Internet for marketers to reach customers with the help of distribution channels.

Accepted Answer

Disintermediation refers to the removal of intermediaries in the supply chain, allowing producers to sell directly to their customers, often facilitated by the internet.

Question 4

The customer insight stage in the customer experience process requires that information flow from customer to seller.

Accepted Answer

The customer insight stage in the customer experience process is focused on gathering information and insights from the customer's perspective. Therefore, information needs to flow from the customer to the seller in order to gather these insights.

Question 5

During the customer support or service stage,additional information may flow in either direction or additional goods or services may flow to the customer,possibly in exchange for additional revenue.

Accepted Answer

During the customer support or service stage, there may be a need for additional information or further goods/services may be required by the customer. This may result in additional revenue being generated for the business.

Question 6

E*Trade,a distributor of syndicated information,brings together from many sources content relevant to its investor clientele and packages it in ways useful to these clients.

Accepted Answer

The statement accurately describes E*Trade's business model as a distributor of syndicated information for investors.

Question 7

Product or service delivery is the final step of the consumer experience process.

Accepted Answer

Product or service delivery is a crucial step, but not the final step of the consumer experience process. The final step often involves post-purchase support and follow-up, which are essential for ensuring customer satisfaction and loyalty.

Question 8

Customization techniques are user-driven,instead of marketer-driven.

Accepted Answer

Customization techniques are based on user choices and preferences. Marketers may offer options for customization, but it is ultimately up to the user to select what they want.

Question 9

Several new companies are using web technology to do what banks do,without the bank.

Accepted Answer

Many new companies are emerging, such as online lending platforms, digital wallets, and peer-to-peer payment systems, that are utilizing web technology to provide financial services traditionally offered by banks.

Question 10

Marketers rely on a flow of information from customers or prospective customers about their wants and needs to generate the insight essential to the development of compelling new products

Accepted Answer

Marketers need information from customers or prospective customers to understand their needs and develop new products that meet those needs. Without this customer insight, marketers would struggle to create products that resonate with their target audience.

Question 11

Customer retention is a competitive necessity in every industry.

Accepted Answer

Customer retention is crucial for businesses to maintain a loyal customer base and compete in the marketplace. Without ongoing customer engagement and loyalty, it can be difficult to sustain profitability and growth in any industry.

Question 12

Privacy and security issues can drive away customers rather than attract them if they are not handled with care.

Accepted Answer

Customers value their privacy and security, and if they perceive that a company is not taking appropriate measures to protect their personal information, they may choose to take their business elsewhere. Therefore, privacy and security issues can indeed drive away customers if not handled properly.

Question 13

A company can syndicate the same informational good to an almost infinite number of customers,but the incremental costs are high.

Accepted Answer

Syndicating an informational good (like software, digital media, etc.) to additional customers typically involves very low incremental costs, as the primary cost is in the initial creation, not in the distribution to more users.

Question 14

Dynamic pricing is a controversial system that gauges a customer's desire to buy,measures his means,and sets the price accordingly.

Accepted Answer

This statement is true as dynamic pricing involves using various data points about a customer, such as their browsing history or location, to adjust the price of a product or service in real-time.

Question 15

First-mover strategy is the best strategy as it helps attract investors,makes founders and venture capitalists rich,and is a great recipe for building a great company.

Accepted Answer

While being a first-mover in a market can come with advantages, it is not always the best strategy. There are risks involved in being the first to enter a market, such as having to educate consumers and establish a market where none existed before. In some cases, being a fast follower may offer a better chance of success. Additionally, the goal of building a great company should not solely be focused on making founders and investors rich, but rather on providing value to customers and making a positive impact on society.

Question 16

Regardless of its limitations,web-based research,is here to stay and will undoubtedly grow.

Accepted Answer

Web-based research has become an integral part of the research process and has proved to be a valuable tool for researchers. As the internet continues to grow and evolve, so too will web-based research.

Question 17

Syndication involves the sale of different informational goods to different customers,who may in turn combine them with information from other sources and distribute it.

Accepted Answer

The answer of Syndication involves the sale of different informational...

Question 18

The internet and other new-economy technologies have led to a global reach,where information,digital goods,or services are available anywhere one can gain access to the web.

Accepted Answer

The statement is true. The internet and new-economy technologies have made it possible for information, digital goods, and services to be accessible globally with internet access.

Question 19

The characteristic of informational networks when a product becomes more valuable as the number of users increases is called a positive network effect,or network externality.

Accepted Answer

This is correctly defined as a positive network effect or network externality, where the value of a product or service increases as more people use it.

Question 20

Collaborative filtering is a way of personalizing a market offering to each customer.

Accepted Answer

Collaborative filtering uses data on a customer's past behavior and preferences to make recommendations or personalize products or services for them. This can lead to increased customer satisfaction and loyalty.

Quiz 14: Marketing Strategies for a Digitally Networked World