Deck 15: Global Marketing and the Digital Revolution

Question 1

According to a recent "digital opportunity index" published by the United Nations, South Korea leads the world in providing its citizens with access to information and communications technologies (ICT).

Answer 1

True

Question 2

Today, more than 2 billion people nearly one-third of the world's population - are using the Internet.

Answer 2

True

Question 3

Microsoft designed Bing, which provides a superior search experience for shopping, travel, and health related searches.

Answer 3

True

Question 4

The Chinese government, alarmed by the free flow of information across the Internet, closely monitors the content on Web sites that its citizens access.

Question 5

According to a columnist, Jon Pareles, with the new millennium the Internet swallowed culture whole and delivered it back cheaper, faster, and smaller - to everyone who can get online.

Question 6

"Convergence" is a term that describes a world in which the telecommunications, consumer electronics, computer, and entertainment industries are entering each others' markets.

Question 7

The Internet's origins can be traced back to an initiative by the Defense Advanced Research Projects Agency, which created a computer network for communication during war.

Question 8

According to innovation expert Clayton Christensen, the creation of the Internet represented a disruptive technology for Dell Computer.

Question 9

In 2010, annual sales of camera-equipped cell phones passed the 1 billion unit mark.

Question 10

Kodak has easily made the transition from industry leadership in chemical-based photography to industry leadership in digital photography.

Question 11

The value network for the personal computer industry is not different from the value network for mainframe computers.

Question 12

The market opportunity for the telecom sector in Africa is limited because the people are too poor, and it is too risky to do business there.

Question 13

Although IBM tried to regain its position by creating its first PC, it was slow to recognize the growing demand for laptops.

Question 14

Ironically, Motorola, a key player in the cell phone business, could have been first to market with a cell phone camera.

Question 15

Some company executives become so committed to a current, profitable technology that they fail to provide adequate levels of investment in new, apparently riskier technologies.

Question 16

The digital revolution is causing dramatic, disruptive changes in industry structures.

Question 17

The digital revolution is a paradigm shift resulting from technological advances that allow for the digitalization of analog sources of information, sounds, and images.

Question 18

Recently, China, India, Brazil, and the EU have taken the position that since the Internet is global, no single country should be in control.

Question 19

According to a Ghanaian economist, George Ayittey, the Cheetah generation is composed of fast-moving citizens who do not accept corruption and who believe that democracy and transparency lead to better governance.

Question 20

Prior to the digital revolution, motion pictures, recorded music, and consumer electronics were separate
industries.

Question 21

An important trend in the use of information technology is "paid search advertising," whereby companies pay to have their ads appear when users type certain search terms.

Question 22

The industries' dominant firms with reputations as well-managed firms lead in developing and/or adopting sustaining technologies.

Question 23

Cybersquatting is the practice of registering a particular domain name for the express purpose of reselling it to the company that should rightfully use it.

Question 24

Apple's iTunes Music Store was a global transaction site effective day one of its launch.

Question 25

Between 2003 and 2010, the number of Internet users in China increased from 68 million to 450 million.This makes China the world's largest e-commerce market.

Question 26

Broadband allows Internet users to access streaming media such as streaming audios and videos.

Question 27

As Pandora CEO Joe Kennedy recently remarked, "The good news is that the Internet is global; however, the bad news is that copyright law is country by country."

Question 28

Until recently, visitors to Web sites for most luxury goods purveyors were not given the opportunity to buy.

Question 29

Industry experts expect marketers to integrate SMS with communication via other digital channels, such as the Internet and e-mail.

Question 30

As the NBA's Chinese site illustrates, it is enough to simply translate a Web site from the home-country
language into other languages.

Question 31

Streaming media represents a huge market opportunity for the video game industry.

Question 32

According to innovation expert Clayton Christensen, a sustaining technology is an incremental or radical innovation that improves product performance.

Question 33

Gamers in different locations, even different countries, compete against each other using PCs, Xbox, or PlayStation consoles.

Question 34

Localizing a Web site in native language can be done by translating a Web site from the home-country language.

Question 35

In Japan, consumers pay for online purchases at convenience stores (konbini).

Question 36

To fully exploit the Internet's potential, company executives must be willing to integrate interactive
media into their marketing mixes.

Question 37

An innovation that is disrupting to one firm can be sustaining to another firm.

Question 38

Google's Chrome operating system, which has been described as "a new computing paradigm," is designed to exploit the opportunities of cloud computing.

Question 39

The EUs regulations for e-commerce are among the world's most strict.

Question 40

Cloud computing means that archives - including music and movies files, photos, and documents are stored on massive remote servers and data centers in addition to individual users' computers.

Question 41

In every industry, companies are embedded in a(n)________, which has a cost structure associated with it that dictates the margins needed to achieve profitability.

A)innovator's dilemma
B)transaction
C)URL
D)value network
E)digital network

Question 42

________ are online retail operations that allow customers to purchase goods and services.

A)Promotion sites
B)Matrix sites
C)Transfer sites
D)Transaction sites
E)Content sites

Question 43

Digitas and SBI.Razorfish are:

A)popular Internet auction sites in Japan.
B)leading interactive media agencies.
C)European companies with highly rated Web sites.
D)competing standards for wireless connectivity.
E)popular digital media products.

Question 44

A key player in the cell phone business who could have been first to market with a cell phone camera is:

A)Ericsson.
B)Samsung.
C)Motorola.
D)Sprint.
E)AT&T.

Question 45

Robert Noyce and Jack Kilby are pioneers in the digital revolution.What contribution did they make?

A)They invented the transistor.
B)They invented the spreadsheet.
C)They invented the first digital computer.
D)They invented the silicon chip.
E)They invented the Internet.

Question 46

Which of the following digital revolution pioneers created a "network of networks" that is now known as the Internet?

A)Robert Noyce and Jack Kilby
B)Vincent Atanasoff and Clifford Berry
C)Vint Serf and Bob Kahn
D)Steve Jobs and Steve Wozniak
E)Tim Berners-Lee

Question 47

The integrated circuit and the concept of binary code permitted the development of the:

A)transistor.
B)radio.
C)personal computer.
D)smartphone.
E)SMS.

Question 48

Which of the following is not one of Clayton Christensen's principles of disruptive innovation?

A)Companies depend on customers for resources.
B)Small markets don't satisfy the growth needs of large companies.
C)Markets that don't exist can't be analyzed.
D)Technology supply may not equal market demand.
E)E-commerce activities can be divided into three categories.

Question 49

Web sites can be classified by purpose as represented by the term:

A)matrix sites.
B)international sites.
C)geographic sites.
D)promotion sites.
E)regional sites.

Question 50

________ is the term that refers to the merging of different industries such as computers, photography, and motion pictures.

A)Value networks
B)Convergence
C)Disruptive technology
D)Telematics
E)Agnostic marketing

Question 51

Until recently, visitors to Web sites for most luxury goods purveyors were not given the opportunity to buy.The reason behind this was:

A)luxury goods purveyors did not like to use online promotions.
B)luxury goods purveyors strive to create a shopping experience.
C)global audience do not go online for luxury goods.
D)luxury goods purveyors prefer sending information on iPad.
E)luxury goods are purchased by rich people who do not shop online.

Question 52

Web sites that provide news and entertainment and support a company's PR efforts are known as:

A)company sites.
B)transaction sites.
C)promotion sites.
D)content sites.
E)cyber sites.

Question 53

Amazon.com, the leading Internet bookseller, allows users to purchase books, CDs, and other products online.Amazon.com is primarily a ________ site:

A)promotion
B)content
C)transaction
D)execution
E)cyber

Question 54

Which is the top Interactive Agency based on 2010 Interactive Marketing Revenue?

A)OgilvyInteractive (WPP)
B)SapientNitro (Sapient Corp.)
C)Digitas (Publicis)
D)Razorfish (Publicis)
E)Wunderman (WPP)

Question 55

Which of the following pioneers of the digital revolution developed URL, http, and HTML, thus paving the way for the World Wide Web?

A)Robert Noyce and Jack Kilby
B)Vincent Atanasoff and Clifford Berry
C)Vint Serf and Bob Kahn
D)Steve Jobs and Steve Wozniak
E)Tim Berners-Lee

Question 56

According to the innovator's dilemma:

A)the computing power of a microprocessor doubles every 18 months.
B)markets that don't exist can't be analyzed.
C)well-managed companies that listen and respond to needs of established customers may miss opportunities to innovate.
D)regulation of e-commerce activities will increase at a rate that is directly proportional to the growth of e-commerce revenues.
E)innovations are copied soon after they are discovered.

Question 57

"Small markets don't solve the growth needs of large companies" and "markets that don't exist can't be analyzed" are two principles of disruptive innovation.These principles are integral to:

A)the five forces model.
B)the flagship model.
C)strategic intent.
D)the innovator's dilemma.
E)the innovator's dream.

Question 58

Claude Shannon's technical report led to his pioneer work for which he is regarded as the inventor of:

A)the transistor.
B)the spreadsheet.
C)the information theory.
D)the silicon chip.
E)the Internet.

Question 59

In the 1950s, which company used transistor technology licensed from Bell Labs to develop the transistor radio?

A)Nokia
B)Sony
C)Panasonic
D)RCA
E)Sanyo

Question 60

Which of the following principles of disruptive innovation pertains to the notion of agnostic marketing?

A)Companies depend on customers for resources.
B)Small markets don't satisfy the growth needs of large companies.
C)Markets that don't exist can't be analyzed.
D)Technology supply may not equal market demand.
E)A company's capabilities define its weaknesses.

Question 61

The term "m-commerce" is used to describe:

A)the use of Internet in commerce.
B)the use of web.com in commerce.
C)the use of credit cards in commerce.
D)the use of money in commerce.
E)the use of cell phones in commerce.

Question 62

Smartphones that are equipped with global positioning system can determine the users' exact geographic position.This capability has created new opportunity for marketers by using all of the following innovative means except:

A)text messages can be sent to smartphone users who are in the vicinity.
B)offering special deals to smartphone users who happen to be in the vicinity.
C)promoting mobile campaign which will reach smartphone users.
D)obtaining demographic information through the smartphone users.
E)locate smartphone users for delivering products or services.

Question 63

Bluetooth mobile communication technology has all of the following advantages over Wi-Fi except one:

A)Bluetooth is well suited for use with cell phones.
B)Bluetooth works over shorter distances than Wi-Fi.
C)Bluetooth consumes less power than Wi-Fi.
D)Bluetooth can handle data as well as voice.
E)Bluetooth technology has been incorporated into automobiles.

Question 64

Streaming media represents a huge market opportunity for all of the following except:

A)video game industry.
B)online gaming.
C)game publishers.
D)Internet portals.
E)telematics.

Question 65

BMW Assist and BMW Teleservices are using telematics system, which provides all of the following benefits except:

A)access to a wide range of information and services.
B)information about pricing.
C)help in booking hotel rooms.
D)help in restaurant reservation.
E)help in downloading music.

Question 66

The practice of registering a particular domain name for the express purpose of reselling it to the company that should rightfully use it is called:

A)gray market.
B)piracy.
C)copyright violation.
D)cybersquatting.
E)patent violation.

Question 67

As a result of the digital revolution, a variety of companies in all parts of the world are developing a new generation of products, services, and technologies; which include all of the following except:

A)broadband network.
B)mobile commerce.
C)wireless connectivity.
D)smart cell phones.
E)landline connectivity.

Question 68

"Cloud computing" is different from currently available technologies in all of the following aspects except:

A)it is performed "in the cloud."
B)applications are delivered through Web browser.
C)it is installed in the computer's hard drive.
D)computer files can be accessed remotely.
E)archives are stored on massive remote servers.

Question 69

Which of the following is not a critical issue for a company whose management intends to engage in e-commerce?

A)privacy
B)credit card fraud in developing countries
C)ensuring that logos and other brand identity elements are consistent with local preferences
D)ensuring a company's ASCII system supports a particular language
E)the availability of hot spots for Wi-Fi

Question 70

Bluetooth is gaining popularity in Europe compared to Wi-Fi due to all but one of the following advantages:

A)less power consumption.
B)well suited to use with cell phones.
C)works over shorter distances.
D)can be used in automobiles.
E)can be incorporated into home appliances.

Question 71

A broadband communication system is one that has sufficient capacity to carry simultaneously which of the following?

A)multiple voice
B)data
C)video
D)music
E)all of the above

Question 72

One of the problems with Web site sales is credit card fraud.All of the following countries are those where fraud is rampant except:

A)Indonesia.
B)Russia.
C)Croatia.
D)Malaysia.
E)Bosnia.

Question 73

Although it is certainly possible for European consumers to browse Amazon.com's U.S.site, they prefer a direct link to a site with a local domain name.All of the following are possible reasons for such behavior except:

A)the Web site of choice will be one that quotes prices in euros.
B)the Web site of choice will be that which offers a product selection tailored to local tastes.
C)the preference will be for the Web site which ships from local distribution points.
D)due to price fluctuations the preference will be for the Web site that quotes prices in U.S.dollars
E)the preference will be for sites that are in their own language.

Question 74

Ideally, each country-specific site should reflect all of the following except:

A)local culture.
B)language usage.
C)customs.
D)English translations.
E)aesthetic preferences.

Question 75

The country which boasts the world's fastest average Internet speed is:

A)Russia.
B)China.
C)South Korea.
D)India.
E)Japan.

Question 76

Wi-Fi, or wireless fidelity, permits laptop and PDA users to establish high-speed wireless connections to the Internet via:

A)infrared rays.
B)magnetic rays.
C)hot spots.
D)laptop warriors.
E)modem.

Question 77

Broadband offers companies the telecommunication capability to do all of the following except:

A)streaming audio.
B)streaming video.
C)streaming media.
D)streaming sales.
E)compressed video.

Question 78

________ -commerce is one of the significant marketing opportunities made possible by the digital revolution.

A)Multinational
B)Mobile
C)Multisegment
D)Marginal-cost
E)Multilingual

Question 79

Cloud-based music services are expected to have a major impact on the mobile music business.The reason for their popularity includes all of the following except:

A)they are a hybrid between subscription and online store business.
B)this new approach addresses some of the shortcomings of the existing methods.
C)they offer users a music locker "in the cloud."
D)music services can be purchased from a variety of mobile devices.
E)the pricing schemes for various services are simple.

Question 80

The domain name for Amazon company in Germany is:

A)Amazon.co.ge.
B)Amazon.co.de.
C)Amazon.de.
D)Amazon.gy.
E)Amazon.gr.