Deck 4: E-Business: Managing the Customer Experience

Question 1

Many e-commerce retailers employ personalization on their websites, meaning they tailor the shopping experience to each individual customer.

Answer 1

True

Question 2

​Companies that display TRUSTe logo on their websites need not disclose to consumers how they collect personal data and what they do with that information.

Answer 2

False

Question 3

Integrated marketing refers to the ability to provide a product at the exact time needed.

Answer 3

False

Question 4

The conversion rate is a basic measurement of the percentage of visitors to a website who make purchases at the site.

Question 5

Some of the most significant challenges facing e-business today involve the security of online monetary transactions and the protection of consumer privacy.

Question 6

Steak N' Shake could engage in interactive marketing by creating a mobile app to remind customers about the new Half-Price Happy Hour milkshake special.

Question 7

The majority of e-business activities are business-to-consumer transactions.

Question 8

Amazon.com maintains a record of each customer's purchases and makes recommendations based on purchase behavior whenever the customer logs in for the next purchase. This is an example of the interactive marketing capability of e-business.

Question 9

Businesses can efficiently collaborate with vendors, partners, and customers through intranets.

Question 10

Competitive pricing is one of the main reasons for consumers preferring to shop online than from a brick-and-mortar store.

Question 11

Encryption is the process of encoding data for security purposes.

Question 12

If a website is rated high based on its engagement, it implies that a large number of visitors purchase products from that website.

Question 13

Phishing is a type of credit card/payment fraud .

Question 14

To be successful at e-business, firms must establish and maintain competitive standards for customer service.

Question 15

B2B transactions refer to the use of the Internet for business transactions between organizations.

Question 16

A women's fashion website recommends coordinating shoes and accessories whenever a customer selects an item of clothing, which is an example of a business offering personalized service to their online customers.

Question 17

Phishing involves the use of authentic-looking email or pop-up messages to get unsuspecting victims to reveal personal information.

Question 18

Business-to-business transactions typically involve more steps than consumer purchases.

Question 19

Conflicts among producers, wholesalers, and retailers are called channel conflicts.

Question 20

A private exchange is a secure website at which a company and its suppliers share all types of data related to e-marketing, from product design through order delivery.

Question 21

Adecco Systems has a website service that allows the company to interact with its suppliers and share all types of data related to e-marketing. This website can be regarded as:

A) a marketing website.
B) a private exchange.
C) a corporate website.
D) an electronic storefront.

Question 22

Big Martin Corporation uses its website to target customers and promote its products. Big Martin is engaged in:

A) integrated marketing.
B) Web services.
C) digital marketing.
D) online trading.

Question 23

A private exchange is a secure website used by companies to:

A) improve the efficiency of their bidding and purchasing processes.
B) share all types of data related to e-business with its suppliers.
C) give financial information to its investors.
D) share information with the employees in different locations.

Question 24

Travel Time is an online travel site that assists customers in booking their vacations. They make advance bookings for the customers, notify them about any reductions in air fares immediately if and when they arise, and help them check the status of their bookings. This type of marketing strategy employed by Travel Time is an example of:

A) right-time marketing.
B) integrated marketing.
C) search marketing.
D) real time marketing.

Question 25

TechnoMarket, a retailer of consumer electronics, has branches in 13 states. As the company's marketing manager, you're looking for a website that will enable employees to access details regarding new products and their functionality, check inventory levels, and transfer stock to other stores. You do not want customers to have access to this data. Which of the following would best suit your purpose?

A) Private exchange
B) Extranet
C) Electronic storefront
D) Intranet

Question 26

When marketers deliver more relevant marketing messages to customers based on event triggers, they are engaged in:

A) personalization.
B) interactive marketing.
C) integrated marketing.
D) right-time marketing.

Question 27

Personalization is defined as a consumer's ability to order a custom-made product through an e-commerce website.

Question 28

Which of the following terms refers to an advantage brought about by the advent of the Internet as a shopping medium by eliminating geographic protections and limitations of local business and by giving smaller firms a wider audience?

A) Personalization
B) Digital tooling
C) Interactivity
D) Global reach

Question 29

Best Health Labs is a company that provides medical diagnostics services. The company is focused on providing rapid diagnostic and healthcare services based on the philosophy of high quality, low price, and superior flexibility. The marketing team coordinates all its promotional activities to convey a unified message to the customers regarding its philosophy of making medical diagnostics more affordable for people around the world. The strategy of the marketing team at Best Health Labs is called _____.

A) right-time marketing
B) integrated marketing
C) interactive marketing
D) personalized marketing

Question 30

Which of the following is most likely to be a reason why consumers prefer shopping online?

A) Only online purchases offer reduced rates to customers on branded credit cards.
B) E-marketers offer better warranties on products compared to brick and mortar retailers.
C) Products that are purchased online are delivered free of cost, whereas brick and mortar stores charge customers for delivering goods to their door steps.
D) Online stores allow customers to compare prices and features at their leisure.

Question 31

An e-business vendor who creates products, such as clothing or computers, to the exact specifications of individual customers is practicing:

A) personalization.
B) interactive marketing.
C) integrated marketing.
D) right-time marketing.

Question 32

References to the Internet's global reach have to do with its:

A) ability to eliminate the geographic limitations of local business.
B) capacity to overcome cultural barriers between nations.
C) power to insulate national economies from events occurring outside their borders.
D) ability to use a single language, English, to communicate with world markets.

Question 33

Simply-Fyde Shopping's website has an online catalog with the details of the products on offer. When customers pick their choices from the list, the items are automatically populated into a(n):

A) online trading database.
B) electronic shopping cart.
C) point-of-sale system.
D) Web browser.

Question 34

Secure networks used for e-marketing and accessible through a firm's website by external customers, suppliers, or other authorized users for purposes of collaboration are called:

A) cybernets.
B) extranets.
C) intranets.
D) ethernets.

Question 35

The analytics used to evaluate the effectiveness of an e-commerce site can be challenging to determine because they all require sophisticated math equations.

Question 36

By enabling the coordination of all promotional activities to produce a unified, customer-focused promotional message, e-marketing helps reach consumers through:

A) personalization.
B) interactive marketing.
C) mass marketing.
D) integrated marketing.

Question 37

Which of the following is true of B2B transactions?

A) It cannot be used to provide detailed product descriptions.
B) It can help make business communications and transactions more efficient.
C) It is a minor part of the e-business activity and typically involves fewer steps compared to consumer purchases.
D) It is not a very attractive option for buying and selling as more errors occur when orders are placed over the Internet.

Question 38

_____ describes the wide range of business transactions taking place among customers, employees, and business partners via the Internet.

A) Webonomics
B) E-business
C) Web servicing
D) Digital transcription

Question 39

TecMag is a technology firm that builds computer systems and other related components. TecMag sources its raw materials from various manufacturing firms and is looking for an electronic communication system that can help in effectively placing orders with the manufacturers online, and also in tracking the order. Which of the following types of systems would TecMag NOT consider using?

A) EDI
B) Extranet
C) Private exchange
D) Intranet

Question 40

As an avid sports fan yourself, you've got a fantastic idea for an online business. Each customer will create a profile identifying his or her favorite teams, and when those teams do well, your website will automatically send an email to the customer promoting the teams' gear and other memorabilia. You'll be engaging in:

A) social welfare marketing.
B) interactive marketing.
C) integrated marketing.
D) search marketing.

Question 41

Which of the following measures is taken by Internet companies to indicate their promise to disclose how they collect personal data and what they do with the customer information?

A) Installing software tools such as spyware when users log onto their websites
B) Issuing third-party cookies to anonymously track user activity
C) Using behavioral targeting practices to improve customer privacy
D) Displaying the TRUSTe logo on their websites

Question 42

Which of the following refers to connecting buyers and sellers electronically through interactive computer systems?

A) Electronic marketing
B) EDI
C) E-commerce
D) Virtual private networks
E) Social media

Question 43

​You work for a not-for-profit organization, and are not sure of the best way to assess the effectiveness of its website. After researching the options, you settle on one that seems most appropriate in light of the organization's goal -- to maximize time spent by visitors on its site. What measurement metric did you choose?

A) ​Click-through rates
B) ​Conversion rates
C) ​Engagement
D) ​Enthusiasm
E) ​Comprehension

Question 44

Channel conflicts can be defined as conflicts:

A) over revenue sharing between manufacturers and their workers.
B) among manufacturers, wholesalers, and retailers.
C) between customers and marketers regarding data privacy and information security.
D) between marketers and the government over legal issues.

Question 45

Which of the following measures, when adopted, will help an online retailer to build customers' trust?

A) Using third-party cookies issued by Web servers
B) Use of behavioral targeting to research customer preferences
C) Installing spyware on Web browsers
D) Prominently displaying a privacy policy

Question 46

Rigala.com is an online shopping store that sells a wide variety of products. The company saves the shipping information of customers when they place orders to save time during future purchases. The company sends an email to the customer after the purchase of the product and provides a tracking number that allows them to track their order. All these strategies have helped the company to increase the sale of their products online. Which of the following features of online shopping is attracting consumers to the website in the above scenario?

A) Access and convenience
B) Competitive pricing
C) Security
D) Personalized service

Question 47

You are head of supply chain management at a major manufacturing company. Over the last few months, there have been some high-profile breakdowns in marketing and data coordination between your company and different members of your supply chain. You are meeting with the company's CEO to develop a strategy for preventing these breakdowns going forward. The CEO has tasked you with developing an online means through which your company can collaborate with its supply chain members more efficiently and effectively. Which of following B2B tools would be most appropriate to address this issue?

A) ​EDI
B) ​A virtual private network
C) ​An extranet
D) ​An intranet
E) ​A private exchange

Question 48

Many companies have been forced to deal with a type of online fraud that lures their employees into disclosing personal information. The employees receive an email that appears to come from the Internal Revenue Service, demanding confirmation of their Social Security numbers. The message threatens that noncompliance will mean criminal penalties. These employees are victims of:

A) phishing
B) doxing
C) blogging
D) vlogging

Question 49

Fred purchased six paperbacks from books2u.com three months back. This week, when he logged on to books2u.com, the home page had his name and recommended six new books on his favorite topics. This is an example of:

A) information leak.
B) breach of privacy.
C) geotargeting.
D) personalized marketing.

Question 50

Online shopping has been influenced by the increased availability of _______________.

A) smartphones
B) blogging sites
C) digital signatures
D) consumer education
E) company websites

Question 51

​Your company is a direct competitor of Netflix, the online, movie-streaming service that allows viewers to select a movie for viewing online whenever they want it. You noticed that not all of Netflix's movies are available for online viewing immediately. For many of their movies, the user has to request a DVD be mailed to them. Your company intends to exploit this situation by making more movies available for immediate online viewing by users. Which of the following e-marketing capabilities most closely describes what your company is doing to exploit this opportunity?

A) ​Global reach
B) ​Personalization
C) ​Right-time marketing
D) ​Interactive marketing
E) ​Integrated marketing

Question 52

When you are welcomed back by your name to a website you've shopped at before and offered products suited specifically to your tastes and budget (based on your past purchase), you are being targeted by:

A) personalized marketing.
B) geotargeting.
C) interstitial advertising.
D) engagement ads.

Question 53

The click-through rate is a measure of the:

A) number of clicks performed by an average user when searching for information through a search engine.
B) number of ads served up to a user on a search engine per query.
C) percentage of people presented with an ad who click on it.
D) number of Web pages viewed by a user after clicking through an ad.

Question 54

​If a book publisher decides to bypass Barnes and Noble by selling directly to readers online, this would be most likely to create a serious _____:

A) ​ethical issue
B) ​channel conflict
C) ​profitability challenge
D) ​customer loyalty challenge
E) ​channel overlap

Question 55

A basic measurement of a website's effectiveness is the conversion rate, which is the:

A) number of people who, having previously visited the site, return to it for additional visits.
B) proportion of visitors who mark the website as a favorite.
C) percentage of people presented with a banner ad who click on it.
D) percentage of website visitors who make purchases.

Question 56

The Metrics Group is a firm that helps companies improve the performance of their websites. The firm rates the effectiveness of the website based on the percentage of website visitors making purchases through the site. Which of the following measures is being used by the firm while assessing the effectiveness of the websites?

A) Click-through rate
B) Brand awareness
C) Conversion rate
D) Customer engagement

Question 57

​The customers of a national bank recently received emails from a fake email address asking them to make a phone call to a number mentioned in the email and provide information regarding their account numbers, recent transactions, and online passwords. The email informed them that it was a check being conducted by the bank to update their personal information. This is an example of:

A) phishing.
B) search marketing.
C) vishing.
D) data mining.

Question 58

The term _____ is used to describe a high-tech scam that uses authentic-looking email or pop-up messages to get unsuspecting victims to reveal personal information.

A) e-tailing
B) phishing
C) data harvesting
D) shoulder surfing

Question 59

The process of encoding data for security purposes is called _____.

A) authorization
B) authentication
C) encryption
D) randomization

Question 60

The LifeguardStore.com is an Internet-based business serving customers by providing products that meet their swim, lifeguard, or facility needs. The company offers a dedicated team of consultants to work with swim teams across the globe to design and deliver apparel appropriate for their needs. Once designed, a dedicated web portal is created, so members of the swim team can purchase their items directly from The LifeguardStore.com. The ability to customize products for swim teams is an example of the _____ capability of e-marketing.

A) personalization
B) global reach
C) right-time marketing
D) integrated marketing

Question 61

Women's Shoe Warehouse sells shoes and other accessories in shopping mall stores and on a massive e-commerce website. Through _________, the company collects data on each customer's favorite brands and styles. Then, through _________ marketing, whenever a customer is within 10 miles of a bricks-and-mortar store, it sends the customer a text message offering a 15% discount off one pair of her favorite brand of shoes.

A) personalization; integrated
B) personalization; interactive
C) integrated marketing; interactive
D) interactive marketing; personalization

Question 62

You have just bought a bowling alley, and you see a great opportunity to increase revenues by appealing to teens. Your integrated marketing plan for accomplishing your goal involves:

A) coupons distributed through social media advertising.
B) Facebook and Instagram accounts for the bowling alley.
C) discounts, outdoor signage, and mobile marketing.
D) an engaging, teen-friendly website.

Question 63

Zach is a sports enthusiast and enjoys staying fit by participating in a CrossFit program, playing basketball and soccer. He has been a loyal customer of Eastbay.com and when he signs in to his account, Eastbay offers suggestions on new products that Zach might like based upon his purchasing history. The ability of the Eastbay.com web store to offer product suggestions based on Zach's purchasing history is known as the _______ benefit of B2C e-marketing.

A) personalized service
B) convenience
C) competitive pricing
D) shopbots

Question 64

Miranda Vasquez is a nationally known real-estate expert who teaches workshops on how to use social media to buy and sell houses. About two weeks before each workshop, held in cities all across the country, she uses social media to create buzz and promote these events. Miranda is making the most of:

A) personalization.
B) right-time marketing.
C) integrated marketing.
D) global reach.

Question 65

Which of the following is NOT a common scenario in a B2B transaction?

A) A graphic designer sharing ideas with a client electronically.
B) A wholesaler informing retailers about a new product by posting specs on a private website.
C) A large corporation announcing a new employment policy on the in-house blog.
D) An office supply retailer promoting products on an e-commerce site.

Question 66

You own a large, organic turkey farm in rural Pennsylvania, and you have set up distribution channels in five mid-Atlantic states. Interest in your product has been steadily increasing over the years, especially around the winter holidays, but you'd like to encourage your distributors to place their orders earlier so you have a better sense of inventory requirements. Which option seems like the best choice to you?

A) Designing a social media advertising campaign targeted at Midwestern consumers
B) Building a website that makes recommendations based on distributors' previous orders
C) Creating online promotional campaigns based on seasonal changes and holidays
D) Sending promotional email campaigns to distributors throughout the summer and early fall

Question 67

As the marketing manager of Heartland Pride, a cheese and dairy goods producer, you've done a great job of promoting your company's products in Wisconsin. However, now you want to take it further, expanding into neighboring states. Which option seems like the best choice to you?

A) Designing a social media advertising campaign targeted at Midwestern consumers
B) Building a website that makes recommendations based on customers' previous orders
C) Creating online promotional campaigns based on seasonal changes and holidays
D) Sending e-mail campaigns alerting distributors when new products become available

Question 68

You are head of operations for a pharmaceutical developer, and you'd like to be able to share information with suppliers and pharmacists through your company's website. However, the CEO of your firm does not understand how it will work, and she's deeply concerned that you're going to start posting proprietary data where competitors and consumers can see it. To meet everyone's needs, your best solution is to use a(n):

A) EDI.
B) extranet.
C) blog.
D) intranet.

Question 69

Keisha received an email from the IT department at her university saying that she should update her password. However, before following the instructions in the email, Keisha checked the University's technology notices and read a post cautioning users about recent ______ activity on student accounts.

A) phishing
B) vishing
C) smishing
D) fishing

Question 70

Which of the following is NOT an example of using digital marketing to expand global reach?

A) Enabling customers to pay invoices electronically
B) Promoting the business through social media advertising
C) Creating an app used to place and track orders
D) Building an e-commerce store

Question 71

You started a small company that designs garden accessories, which has grown dramatically over the years. To keep up with demand, you need to hire more product designers, but it's hard to find enough qualified talent in the rural town where your business is located. Your friend has suggested solving the problem by hiring remote workers and having them work with you collaboratively through a(n):

A) EDI.
B) extranet.
C) network.
D) intranet.

Question 72

CallowayGolf.com is a popular website for consumers who enjoy golf and are seeking information about the products and/or those who wish to order directly from the website. CallowayGolf.com notices that its _______ is relatively low with very few visitors actually purchasing from the website. However, it believes the website is effective for ______ shoppers who typically visit locally owned golf retailers to sample the clubs and make a purchase.

A) conversion rate; web-to-store
B) click-through rate; traditional
C) conversion rate; traditional
D) engagement; web-to-store

Question 73

One of the things you love most about the Domino's Pizza app is that it remembers your previous orders. That way you don't have to punch in your favorite toppings and crust preference every time, which means you'll get your pizza even faster! You're impressed with Domino's use of:

A) personalization.
B) right-time marketing.
C) integrated marketing.
D) global reach.

Question 74

Jessica is visiting Chicago with several friends from college and wants to book reservations at one of the top restaurants in the city. She accesses the OpenTable application on her smartphone and reviews several restaurants that are near her location. After discussing with her friends, she makes a reservation at 8 p.m. at one of the restaurants for that evening. Which capability of e-marketing has Jessica utilized to obtain a reservation for dinner?

A) right-time marketing
B) global reach
C) personalization
D) integrated marketing

Question 75

HGTV, the popular home decor and remodeling channel, holds an annual contest for a new house. To enter the contest, viewers must go to the network's website, where they are encouraged to subscribe to e-newsletters produced by HGTV and its major sponsors. HGTV is successfully utilizing:

A) personalization.
B) right-time marketing.
C) integrated marketing.
D) global reach.

Question 76

You've just inherited a car parts wholesaler business from your grandfather, who liked to do things the "old school" way. You don't have much money to invest in modern technology, but you can at least upgrade to EDI. Now you need to explain the advantages of EDI to your employees. Which of the following will you NOT list as a benefit of the change?

A) It will reduce the amount of paper involved in order processing.
B) It will reduce the number of errors in orders.
C) It will give your salespeople greater flexibility with price quotations.
D) It will allow the company to process and deliver orders faster.

Question 77

Bailee works approximately 60 hours each week as an account executive with an advertising agency and rarely has time to shop. She loves the _______ of shopping online and is a VIP customer with Zappos. She can order shoes or clothing and receive the item within 24 hours delivered right to her door by UPS with free delivery.

A) ​convenience
B) ​personalized service
C) ​competitive pricing
D) ​product assortment

Question 78

Amazon boasts a very high _____ when using banner ads placed on CNN.com based upon the percentage of people who are exposed to the advertisement and follow the link to view the advertisement. ​

A) click-through rate
B) engagement
C) conversion rate
D) hosting rate

Question 79

You're the marketing director of a large chain of sporting goods retail stores, and you're working with your company's web designer to upgrade the company's e-commerce site. She says there are a number of ways to personalize the ordering process for customers whenever they select a product for purchase. Which way makes the most sense to you?

A) Making recommendations of similarly priced products
B) Recommending products from the same brand
C) Showing what other customers in the same region have purchased
D) Recommending related products

Question 80

You have just bought a bowling alley, and you see a great opportunity to increase revenues by appealing to teens. You're going to use interactive marketing to launch your new "Tuesday Teen Night," so you:

A) build a bowling app where teens can post their scores after each game.
B) add "how to bowl" videos to your website.
C) create a Facebook group where teens who like to bowl can chat with each other.
D) post coupons on your Facebook and Instagram feeds on Sundays and Mondays.