Deck 4: Consumer Behavior,internet Marketing,and Advertising

Question 1

The first step in the buying decision process is product evaluation and comparison.

Answer 1

False

Question 2

A user profile defines a customer's preferences,behaviors,and demographics and can be generated by observing what the user does online.

Answer 2

True

Question 3

The world's largest online movie rental subscription company,Netflix,implemented intelligent agents in its movie recommendation service called CineMatch to help customers select movies they would like to watch and to better manage its inventory.

Answer 3

True

Question 4

One of the keys to building effective customer relationships is to understand intelligent agents.

Question 5

Personal characteristics of customers,such as age and income,are independent variables,which are uncontrollable variables for EC companies.

Question 6

Mass marketing is an approach to marketing that treats each customer in a unique way such as fitting advertising to the customer's profile and needs.

Question 7

When Chaplin's auto lease is about to expire,he decides it is time to buy a new car.This imbalance between a desired state and an actual state is called need identification.

Question 8

Customer loyalty is important because it is a customer's deep commitment to rebuy a product or service consistently in the future,thereby causing repetitive same-brand or same brand-set purchasing.

Question 9

In the consumer purchasing-decision process,virtual catalogs and links to external sources support the evaluation and selection phase of that process.

Question 10

Finding and retaining customers is a major critical success factor for offline and online businesses operating in an increasingly competitive environment.

Question 11

Personalization is the matching of services or products with large groups of customer segments.

Question 12

One of the major objectives of universal services is to increase customer loyalty through individual personalization.

Question 13

Segmentation refers to the matching of services,products,and advertising content to individuals and their preferences.

Question 14

Satisfaction is one of the most important consumer reactions in the B2C online environment.

Question 15

In the consumer decision-making process,the buyer is the person who ultimately makes the buying decision.

Question 16

The purpose of an EC customer behavior model is to help firms understand how a consumer makes a purchasing decision to be able to influence that decision through advertising or other marketing method.

Question 17

Consumer processing of an advertising message includes four stages: interest,desire,attention,and action.

Question 18

Customer loyalty can lead to enhanced resistance to competitors,a decrease in price sensitivity,and an increase in favorable word-of-mouth.

Question 19

Behavioral targeting helps marketers by providing information about an individual's actual Internet purchases to select the most effective advertisements to display to that individual.

Question 20

Attracting and retaining loyal customers is the most important issue for e-tailers because customer loyalty can lower marketing and advertising costs,transaction costs,customer turnover expenses,and failure costs such as warranty claims.

Question 21

All of the following are correct about market research methods except:

A)It is important first to understand how groups of consumers are classified or segmented.
B)Markets can be segmented to increase the percentage of responses and to formulate effective marketing strategies that appeal to specific consumer groups.
C)Direct mail marketing methods are usually cost-effective.
D)Market segmentation is done with the aid of tools such as data modeling and data warehousing.

Question 22

Banner exchanges are markets where companies can trade or exchange placement of banner ads on each other's Web sites.

Question 23

A cookie is a data file that is placed on a user's hard drive by a remote Web server only when the users gives full consent to collect information about the user's activities at a site.

Question 24

The number of organizational buyers is much smaller than the number of individual consumers,and their transaction volumes are:

A)a little larger,and the terms of negotiations and purchasing are more complex.
B)far smaller,and the terms of negotiations and purchasing are less complex.
C)about the same and the terms of negotiations and purchasing are simpler.
D)far larger,and the terms of negotiations and purchasing are more complex.

Question 25

Paws 'n Tails is an online pet shop that wants to influence what customers buy and build effective customer relationships and loyalty.What is the key to influencing behavior and building these relationships?

A)understanding consumer online behavior and then influencing it through advertising and promotions
B)understanding competitors' pricing strategy and then undercutting it
C)identifying the wants and needs of major customer segments
D)suggesting as many products as possible to online shoppers as soon as they visit the EC site

Question 26

Once a company knows a consumer's preferences,the company can predict,without asking the consumer directly,what other products or services that consumer might enjoy through:

A)active web bugs.
B)spyware.
C)collaborative filtering.
D)personalization.

Question 27

What has been the impact of the introduction of EC on customer loyalty in general?

A)Loyalty has decreased because of customers' increased ability to shop,compare prices and features,and change vendors.
B)Loyalty has increased because of targeted relationship marketing.
C)There has been little change in loyalty because the impacts have cancelled each other out.
D)It is not known whether loyalty has increased or decreased.

Question 28

By increasing customer loyalty,EC companies can achieve each of the following benefits except:

A)lower marketing and advertising costs.
B)higher warranty claims costs.
C)lower transaction costs.
D)lower resistance to competitors.

Question 29

The use of cookies:

A)is one of the most controversial issues in EC.
B)has not helped Internet marketers target their ads.
C)is a widely used method for mass marketing.
D)is being replaced by adware and spyware programs.

Question 30

The ethical issue raised by profiling customers too precisely is:

A)spamming.
B)invasion of privacy.
C)theft of intellectual property.
D)security.

Question 31

The introduction of EC has:

A)decreased customer loyalty because customers can more easily shop,compare,and switch to different vendors.
B)increased customer loyalty because customers don't have time to shop around.
C)increased the cost of acquiring and retaining customers.
D)decreased advertising and promotion costs.

Question 32

To avoid getting inaccurate information from participants of online surveys,marketers learn about customers by observing their behavior using each of the following except:

A)transaction logs that record user activities at a company's Web site
B)cookies that allow a Web site to store data on the user's PC
C)spyware that gathers user information through an Internet connection without the user's knowledge
D)data mining to analyze clickstream data

Question 33

One problem with Web analytics,Web mining,clickstream data,and so on is that we observe and follow a computer,not knowing who is actually moving the mouse,which can be solved with biometric marketing.

Question 34

An Internet merchant can increase its trustworthiness by using each of the following except:

A)a vendor evaluation,such as BBB Online
B)co-branding
C)simple design
D)a convenient return policy

Question 35

Marketing and advertising approaches have evolved from mass marketing to market segmentation to one-to-one marketing.This evolution occurred because:

A)the marketing focus shifted from customers to products.
B)companies sought to decrease the number of marketing campaigns.
C)concerns about privacy have diminished.
D)the Internet enabled companies to better communicate with customers and understand their needs and buying habits.

Question 36

Spyware are tiny graphics files embedded in e-mail messages and in Web sites that transmit information about users and their movements to a Web server.

Question 37

A(n)________ is someone whose advice or view carries some weight in making a final purchasing decision.

A)initiator
B)influencer
C)decider
D)buyer

Question 38

Procter & Gamble (P&G)used the Internet in the new product development of Whitestrips,a teeth-brightening product.Based on this experience,P&G:

A)decided to add Internet research to its traditional marketing test model.
B)could not determine the target market segments for the Whitestrips.
C)learned that the cost of online surveys was about the same as similarly sized telephone surveys,but online surveys expedited research considerably.
D)reduced the time-to-market from concept to market launch by approximately two years.

Question 39

According to research,customer satisfaction with an Internet store:

A)cannot be predicted.
B)depends on two types of factors: information quality and customer service quality.
C)drops dramatically when certain Web site features fail to perform properly,such as the content's reliability,loading speed,or usefulness.
D)is higher for new customers than former customers.

Question 40

Social factors such as word-of-mouth play an influential role in EC shopping or online gaming.

Question 41

________,such as concerts and videos,can generate tremendous public excitement and bring huge crowds to a Web site.

A)Live Web events
B)Webcasting
C)Phone casting
D)Mobile casting

Question 42

As the volume of customers,products,vendors,and information increases,it becomes uneconomical or impossible for customers to consider all relevant information,and available products/services.The practical solution to handling such information overload is:

A)to use permission marketing.
B)to use software or intelligent agents.
C)to increase the use of ad agencies.
D)to design Web sites with minimal content.

Question 43

Which of the following is not a specific method for collecting online data?

A)phone surveys to learn if there are too many products for the customer to look through
B)e-mail communication with individual customers
C)moderated focus groups conducted in chat rooms
D)tracking customers' movements on the Web

Question 44

Which of the following statement about Web mining is false?

A)Web mining refers to the use of data mining techniques for discovering and extracting information from Web documents.
B)Web mining explores both Web content and Web usage.
C)Web mining uses customer data to infer or predict customer interest in other products or services.
D)Usage analysis is derived from clickstream data.

Question 45

The popularity of Apple's iPhone and Application Store has made ________ important to advertisers,who see social networking widgets,restaurant locators,mobile games,and other applications as prime targets.

A)stickiness
B)direct marketing
C)mobile advertising
D)banner ads

Question 46

________ is marketing that treats each customer in a unique way to fit marketing and advertising with the customer's profile and needs.

Question 47

All of the following describe click-through rate except:

A)It is the ratio between the number of clicks on a banner ad and the number of times it is seen by viewers.
B)It is a request for data from a Web page or file.
C)It measures the success of a banner in attracting visitors to click on the ad.
D)It may be less than or equal to the conversion rate.

Question 48

A(n)________ is a person whose advice or view carries some weight in making a final purchasing decision.

Question 49

________ is the matching of services,products,and advertising content with individual consumers and their preferences.

Question 50

Banner advertising on Web sites helps trigger a realization that there is a gap between reality and a desired state,which occurs in the ________ stage of the EC purchase decision-making process.

A)need identification or recognition
B)information search
C)evaluation
D)product or merchant brokering

Question 51

The requirements,preferences,behaviors,and demographic traits of a particular customer is referred to as the ________.

Question 52

________ is an advertising network that a B2B company can use as part of its advertising strategy to reach new customers.

A)Amazon.com
B)BBB Online
C)DoubleClick
D)WebMonkey

Question 53

What is the key problem that biometric marketing is intended to solve?

A)knowing the identity of the actual shopper
B)improving accuracy of the shopper's data
C)increasing the speed of order processing
D)creating a loyalty program

Question 54

One of the major challenges of one-to-one advertising is ________,or the flooding of users with junk e-mail,banners,pop-ups,and so on.

A)interstitial ads
B)permission marketing
C)spamming
D)behavioral targeting

Question 55

Ways in which user profiles are typically generated by EC businesses include all of the following except:

A)asking users to fill in a questionnaire
B)using cookies,spyware,or Web bugs to observe what people are doing online
C)using customer segmentation to identify customers' preferences
D)basing them on what customers have purchased online before

Question 56

How many Apple Application Store downloads were made by users in the five months spanning July 2008 to December 2008?

A)100 million
B)25 million
C)5 million
D)1 million

Question 57

The classification of groups of similar customers is called ________.

Question 58

Web site content is especially important to increase stickiness because:

A)customers are expensive to acquire.
B)Web sites are expensive to maintain.
C)competitors are always attempting to steal away customers.
D)of Internet-accessible mobile devices.

Question 59

Two key factors limiting the use of personalization to more precisely target marketing efforts to individual customers are:

A)matching profiles with product offerings and delivering those offerings.
B)communication costs and filtering costs.
C)privacy and trust issues.
D)lack of customer loyalty and service customization costs.

Question 60

Word-of-mouth marketing by which customers promote a product or service by telling others via social networks or other means is referred to as:

A)affiliate marketing.
B)viral marketing.
C)target marketing.
D)search engine marketing.

Question 61

________ refers to online marketing facilitated by the Internet,and by which marketers and advertisers can interact directly with customers and consumers can interact with advertisers or vendors.

Question 62

Several market research firms create panels of qualified Web shoppers to participate in online ________.

Question 63

________ is the process of converting media products and advertisement material developed in one environment (e.g. ,a country)to a form culturally and linguistically acceptable in countries outside the original target market.

Question 64

A(n)________ records user activities at a company's Web site.

Question 65

________ is software that gathers user information through an Internet connection without the user''s knowledge.

Question 66

________ is the characteristic that influences the average length of time a visitor stays in a site.

Question 67

As customers move from a Web site to other Web sites,they establish their ________,which is a pattern of their movements on the Internet.

Question 68

________ is the method of increasing a Web site's ranking on search engines based on knowing the ranking algorithm.

Question 69

A(n)________ is a data file that is placed on a user's hard drive by a remote Web server,frequently without disclosure or the user's consent,that collects information about the user's activities at a site.

Question 70

________ refers to the use of data mining techniques for discovering and extracting information from Web documents.

Question 71

________ are firms that offer specialized services such as brokering banner ads for sale and helping target ads to consumers who are likely to be interested in categories of advertisements based on consumer profiles.

Question 72

Intelligent agents that support ________ help people deciding what product to buy.

Question 73

Trust and ________ are the two most important factors in determining customer e-loyalty.

Question 74

________ is the use of information collected on an individual's Internet browsing behavior to select which advertisements to display to that individual.

Question 75

________ is data that occurs inside the Web environment and provides a trail of the user's activities in the Web site.

Question 76

________ is the fee an advertiser pays for each 1,000 times a page with a banner ad is shown.

Question 77

________ refers to a deep commitment to rebuy or repatronize a preferred product/service consistently in the future,thereby causing repetitive same-brand or same brand-set purchasing.

Question 78

________ are the number of times users call up a page that has a banner on it during a specific period;known as impressions or page views.

Question 79

________ is the psychological status of willingness to depend on another person or organization.

Question 80

________ are tiny graphics files embedded in e-mail messages and in Web sites that transmit information about users and their movements to a Web server.