Deck 22: Marketing and the Information Economy

Question 1

The widespread application of technology to business began:

A) after World War II
B) before the Civil War
C) during the Industrial Revolution
D) as a result of the Great Depression
E) during the 1960s

Answer 1

during the Industrial Revolution

Question 2

The effective utilization of customer information:

A) allows the marketer to create both time and place utility.
B) creates more effective communication.
C) allows prices to be set within the customer's expected range.
D) allows marketers to create products that more closely fit buyers' needs
E) does all of the above.

Answer 2

does all of the above.

Question 3

The role of customer information in marketing is to:

A) create a marketing mix that better satisfies the needs of the customer.
B) increase an organization's economic order quantity.
C) increase operating costs.
D) increase the intensity of product distribution.
E) decrease profit margins.

Answer 3

create a marketing mix that better satisfies the needs of the customer.

Question 4

The role of customer information in marketing is to:

A) raise the break-even quantity.
B) decrease contribution margin.
C) increase fixed costs.
D) create a marketing mix strategy that result in customer satisfaction.
E) do all of the above.

Question 5

The Internet:

A) is also called the World Wide Web.
B) was created as part of a U.S. government project.
C) was created to keep track of stock market fluctuations around the world.
D) is easy to use for commercial applications.
E) was originally used to link military bases around the world.

Question 6

The World Wide Web:

A) is a synonym for the Internet.
B) was created in the early 1970s to link researchers at many different sites.
C) makes it possible for users to share a full range of communications from text to graphics and audio messages.
D) is cumbersome to use.
E) is accurately described by all of the above.

Question 7

_____ are individuals or organizations linked together to share data, exchange information and ideas, and perform tasks.

A) Browsers
B) Portals
C) Websites
D) Directories
E) Networks

Question 8

A _____ is a collection of Web files beginning with a home page, that is accessible through a unique address.

A) browser
B) portal
C) website
D) directory
E) network

Question 9

Electronic _____ are created when individuals or organizations are linked via some form of telecommunications.

A) browsers
B) portals
C) websites
D) directories
E) networks

Question 10

A group of would-be authors in the New England are linked together through a weekly newsletter that provides information on story ideas, writer's blocks, and information on the publishing industry. Each week a different author takes responsible for the newsletter; this allows each to share his or her own perspective on what is happening. This newsletter allows the authors to create a(n):

A) network.
B) browser.
C) home page.
D) intertype competitive environment.
E) hierarchical organization.

Question 11

A group of crafters who sell their merchandise at craft shows in the Southeastern U.S. are linked together through a weekly newsletter that provides information on shows, including attendance and sales figures for various individuals. Each week a different crafter takes responsible for the newsletter; this allows each to share his or her own perspective on what is happening. If the newsletter were shared with other members of the group via e-mail, then it would be an example of:

A) purpose-specific browsing.
B) Internet linking.
C) electronic networking.
D) directory downloading.
E) database linking.

Question 12

In business, when the personal computers of individuals in a company or department are linked together a(n) _____ is created.

A) internal browser
B) interconnect
C) intranet
D) Internet link
E) downloading conduit

Question 13

Within the Appalachian Agency, an agency that plans mountain retreats for executives, an individual who wants to access travel plans for a specific group that are located on someone else's computer can use a(n) _____ and never have to leave his or her desk.

A) internal browser
B) interconnect
C) intranet
D) Internet link
E) co-worker conduit

Question 14

Office Depot, the office supply superstore, has developed wireless, handheld computers for its store managers and sales associates to use. When bewildered customers inquire about a product, a computer-equipped sales associate can pull detailed information on products right out of the corporate database instead of making wild guesses. Employees at one store can contact employees at another store for advice or information. This is an example of how _____ can be used to enhance marketing.

A) intranets
B) partnering software
C) extranets
D) Internet servers
E) electronic data interchangeable browsers

Question 15

Electronic data interchange (EDI) is:

A) a fairly inflexible system.
B) costly to implement.
C) a proprietary system in which data are exchanged between trading partners.
D) a system that saves time, minimizes order-processing costs, and reduces clerical errors.
E) accurately described by all of the above.

Question 16

Electronic data interchange (EDI):

A) is a very flexible system.
B) can be implemented at little cost.
C) is a proprietary system in which data are exchanged between trading partners.
D) is a decision-making system for managers.
E) is accurately described by all of the above.

Question 17

The _____ is a proprietary system in which data are exchanged between trading partners. These data are used for standardized, preapproved transactions.

A) intranet
B) extranet
C) information downloading system
D) interconnect
E) electronic data interchange (EDI)

Question 18

Electronic data interchanges (EDIs) are commonly used in _____ situations.

A) straight rebuy
B) new-task buying
C) impulse buying
D) modified-rebuy
E) intensive distribution

Question 19

A large chain of convenience stores in the Pacific northeast regularly uses an electronic data interchange (EDI) when:

A) placing the order to repave the parking lot
B) performing maintenance on gas pump gauges
C) responding to a customer demand for a refund
D) ordering more snack food
E) deciding whether to carry a line of greeting cards.

Question 20

JCPenney carries Lee and Wrangler jeans made by VF Corporation. When the number of Wrangler jeans in a particular size, style, and color gets below a predetermined amount, the _____ used by the retailer and the manufacturer automatically places a reorder.

A) intranet
B) extranet
C) information downloading system
D) interconnect
E) electronic data interchange (EDI)

Question 21

JCPenney carries Lee and Wrangler jeans made by VF Corporation. When the number of Wrangler jeans in a particular size, style, and color gets below a predetermined amount, the electronic data interchange (EDI) used by the retailer and the manufacturer automatically places a reorder. EDI is used to do all of the following EXCEPT:

A) standardize transactions.
B) minimize order-processing expenses.
C) reduce clerical error.
D) lower personnel turnover.
E) save time.

Question 22

_____ is a form of networking that involves the creation of a corporate website for posting information ranging from product descriptions to operating instructions.

A) Extranet downloading
B) Intranet downloading
C) Electronic information transfer
D) Data interchange
E) Computerized interconnect

Question 23

Which of the following statements about an electronic information (e-information) website is True?

A) There is no way to restrict accessibility to e-information website.
B) Consumer product manufacturers do not perceive the Web to be an important advertising medium.
C) An e-information website is the most common use of the Internet for business-to-business marketers.
D) An e-information website does not include sales promotion inducements such as are found in print media.
E) All of the above statements about e-information websites are True.

Question 24

When Therese went to the Starbucks website, she found the addresses of Starbucks located around the world, the company's plans for expansion, a history of the company, and links to the Starbucks catalog. The information was provided in a(n) _____ website.

A) e-information
B) intranet
C) extranet
D) interconnect
E) electronic data interchanger

Question 25

The _____ website for M&M candies was the place where consumers were asked to vote for the next new M&M color. After he or she voted, a visitor to the site could learn about the history of M&Ms and link to the Mars Candy sites.

A) e-information
B) intranet
C) extranet
D) interconnect
E) EDI

Question 26

What type of website would a student need to visit if she wanted to know the history of the Coca-Cola Company and its product history?

A) e-information website
B) intranet
C) extranet
D) interconnect
E) EDI website

Question 27

For business-to-business marketers, an e-information website:

A) actually reduces the amount of information available.
B) reduces the need for paper-based communication.
C) is not available 24 hours a day, 7 days a week.
D) cannot be provided selectively to some customers and not to all customers.
E) is accurately described by all of the above.

Question 28

If Roze were to access the information available on the Seeds of Change (a producer of organic food) website, she could expect to find all of the following EXCEPT:

A) details of ongoing marketing research projects.
B) product descriptions.
C) e-mail links.
D) information on special sales promotions.
E) financial performance and investing information.

Question 29

The postings on an e-formation website typically include:

A) background and general information.
B) information on current business operations for potential and existing partners.
C) a contact point.
D) attraction and entertainment features.
E) all of the above.

Question 30

The postings on an e-formation website typically include all of the following EXCEPT:

A) links to other related sites.
B) transaction sites.
C) an e-mail link for visitors permitting them to ask questions or make comments about the site.
D) attraction and entertainment features.
E) information on current business operations for potential and existing partners.

Question 31

Which of the sections in an e-information website is potentially most important in terms of creating opportunities for interaction between the organization maintaining the site and the potential customer?

A) current business operations
B) background and general information
C) links
D) attraction and entertainment features.
E) contact point

Question 32

What is the major distinguishing feature for Internet communications in comparison to traditional media advertising?

A) long lead time
B) ease with which sites are set up and maintained
C) costs
D) interaction opportunities
E) passalong rate

Question 33

On the Mars Candy website, there is a connection to a site maintained by FLW Outdoors. Visitors who want to learn the locations of upcoming fishing tournaments can click on the FLW Outdoors logo and find themselves at the FLW Outdoors website. The _____ is on the Mars site because Mars is a sponsor of many of the tournaments.

A) portal
B) browser
C) link
D) interconnect
E) contact point

Question 34

When Huston visited the SoBe beverages website, he was able to get the upcoming schedule for the next X Games by clicking on the X Games logo. SoBe sponsors a team that participates in the extreme sports that make up the X Games. Huston used a(n) _____ to get to the X Games website.

A) portal
B) browser
C) link
D) interconnect
E) contact point

Question 35

Seeds of Change is a company that produces organic food. At its website, the company asks for customer input as to what new products people would like to see, how they like existing products, and whether consumers believe they are healthier for eating organic food. This is a description of the website's:

A) portal.
B) browser.
C) link.
D) interconnect.
E) contact point.

Question 36

At the SoBe beverages website, Marlon can register to be kept posted on the actions of SoBe's extreme sports team that it sponsors and register to win various prizes with the SoBe logo. This is a description of SoBe's:

A) action and entertainment feature
B) portal
C) link
D) interconnect
E) datapoint

Question 37

The benefits marketers are seeking through a website depend on:

A) whether the company is a leader or a follower in the market.
B) how readily the company adopts outsourcing.
C) the size of the website.
D) whether the company has a product-market growth strategy.
E) the nature of the organization.

Question 38

The primary benefit of an e-information website to business-to-business marketers is:

A) greater efficiency in dealing with suppliers and customers.
B) the goodwill generated by such sites.
C) its ability to strengthen relationships between customers and suppliers.
D) its ability to defuse negative public relations.
E) the ability to create a sustainable Internet competitive advantage.

Question 39

The primary benefit of an e-information website aimed at final consumers is to:

A) build goodwill and strengthen relationships.
B) create greater efficiency in dealing with suppliers and customers.
C) defuse negative public relations.
D) create a sustainable Internet competitive advantage.
E) match supply and demand.

Question 40

The Internet advertising of a consumer product is most closely related to which of the following types of advertising?

A) reminder advertising
B) pioneering advertising
C) brand-building advertising
D) advocacy advertising
E) trade advertising

Question 41

When Petra visited, www.colorworks.com, she purchased two 8-ounce bags of M&Ms in yellow and green, her school colors. She was dealing with a(n) _____ website.

A) e-transaction
B) e-information
C) intranet
D) networked
E) link-specific

Question 42

What kind of company can be expected to engage in e-transactions?

A) a manufacturer of supplies needed to clean up after an oil spill
B) an airline company
C) a company that provides genealogical services for people who want to locate their ancestors
D) a company that manufactures replacement automobile parts
E) all of the above

Question 43

Angela Scharps set up www.Siam-I-Am.com, a website where cat lovers can order specially bred Siamese cats. Thus far, she has been visited over 5000 times and sold over 50 cats at this _____ website.

A) e-transaction
B) e-information
C) intranet
D) networked
E) link-specific

Question 44

Why would a company decide to maintain its e-information website and not establish an e-transaction site?

A) because the company is more interested in providing information than selling its products
B) because the technology needed to set up an e-transaction website does not exist
C) because business-to-business marketing is more cost effective when done through personal selling
D) because of legal restrictions, especially the need to collect sales tax on purchases
E) because of the negative impact selling direct on the Internet can have on existing channel partners

Question 45

When a firm reconfigures its marketing operations around the interactions made possible by its Web connections, it is engaging in _____, which is a sophisticated network that can link a large number of firms at different levels of a distribution channel in what is called an extranet.

A) e-information
B) networking
C) e-commerce
D) supply downloading
E) electronic distribution

Question 46

When a firm reconfigures its marketing operations around the interactions made possible by its Web connections, it is engaging in electronic commerce, which is a sophisticated network that can link a large number of firms at different levels of a distribution channel in what is called an:

A) interconnect.
B) linked site.
C) direct channel.
D) extranet.
E) intranet.

Question 47

Extranets:

A) allow business partners access to highly sensitive data about current operations.
B) require strong relationships built on mutual trust.
C) speed up decision making processes and get products to market faster.
D) make electronic commerce a viable strategy.
E) are accurately described by all of the above.

Question 48

Hy-Vee Food Stores has implemented the technology to make its portal accessible to its suppliers. Suppliers can access simple reports on sales activity and engage in real-time ordering. Hy-Vee has created a(n):

A) intranets
B) partnering software
C) extranets
D) Internet servers
E) electronic data interchangeable browsers

Question 49

Electronic data interchanges and _____ are used by companies such as Wal-Mart to send real-time inventory information to their distributors and suppliers.

A) intranets
B) partnering software
C) extranets
D) Internet servers
E) electronic data interchangeable browsers

Question 50

A(n) _____ provides an Internet visitor with the necessary application program to look at and interact with individual websites.

A) portal
B) directory
C) interconnect
D) browser
E) network

Question 51

An electronic directory:

A) maintains cache sites within e-mail inboxes.
B) provides an Internet visitor with the necessary application program to look at and interact with individual websites.
C) is an electronic database used to access individual names for cold calling.
D) is similar in concept to a phone book.
E) is also called a portal.

Question 52

A portal:

A) is also called a gateway.
B) offers a directory of websites.
C) provides the user with a search engine to look for information.
D) gives access to e-mail service.
E) is accurately described by all of the above.

Question 53

A portal:

A) is similar in concept to a phone book.
B) was the first development that allowed the Internet to become a marketing tool.
C) provides the user with a search engine to look for information.
D) does not give access to e-mail service.
E) is accurately described by all of the above.

Question 54

With the 2010 Olympics approaching, Tourism Vancouver, which represents about a thousand businesses in the Greater Vancouver Area needs to amalgamate information collected from various hotels, spas and other tourist locations into marketing packages designed to promote the city. One efficient way to do this is to:

A) use multiple links.
B) create a portal.
C) use interconnects.
D) create service extranets.
E) use an electronic data interchange.

Question 55

What do American Online, Yahoo!, and Netscape Navigator have in common?

A) They permit easy access to the Web for virtually anyone with a PC and a telephone line connection.
B) They are all types of portals.
C) They are all user-specific interstitials.
D) They are all types of electronic directories.
E) They are found on the Internet and not on the Web.

Question 56

If Danny wanted to find a paperback copy of The Complete Calvin and Hobbes by Bill Watterson, he could go to AddAll.com and have the computer search over 40 different Internet book selling sites to determine which had the book at the lowest price. The AddAll.com website allowed Danny to _____, one of the advantages of Internet shopping.

A) lower his fixed price
B) customize the product he was buying
C) comparison shop
D) receive information controlled by the seller
E) do none of the above

Question 57

Blooms.com is a website for flower buyers in the North Virginia area. Customers can go to the Blooms website, look at what flowers are available, design their own arrangements, and have them delivered or pick them up at the shop. Blooms provides _____, one of the advantages of Internet marketing.

A) outsourcing
B) product customization
C) reduced fixed pricing
D) opportunities for comparison shopping
E) aggregated marketing

Question 58

Internet marketing eliminates the need for huge investments in inventory. This elimination of inventory:

A) creates opportunities for product comparisons.
B) gives the seller control over the information flow.
C) creates more direct channels of distribution.
D) supports the use of fixed pricing.
E) allows marketers to engage in product customization.

Question 59

Yesterday Marlene bought a first edition copy of Rudolph the Red-Nosed Reindeer, at an Internet auction for $15.96. Last week her neighbor bought a copy in similar condition for $23.80 at another Internet auction site. This difference in pricing shows how Internet marketing encourages:

A) price skimming.
B) a controlled flow of pricing information.
C) fewer fixed prices.
D) lower profit margins.
E) a multiple-pricing strategy.

Question 60

Activities related to filling orders are collectively referred to as:

A) purchase satisfaction.
B) product delivery.
C) service management.
D) fulfillment.
E) follow-up service.

Question 61

Ingram Book Group, the largest book distributor in the world, ships books to some Amazon.com customers as part of a deal between the two companies. Ingram will ship orders of single books directly to customers in cases where Amazon does not have the books in its inventory. Ingram will engage in _____ for Amazon.

A) purchase creation
B) market delivery
C) service management
D) fulfillment
E) follow-up service

Question 62

When www.hanes.com receives an order from a customer, the activities the seller engages in to fill the customer's order include charging the purchase to a credit card, readying the purchased item for shipment, and arranging for its delivery. These activities are referred to as:

A) purchase satisfaction.
B) market delivery.
C) service management.
D) fulfillment.
E) follow-up service.

Question 63

Which type of unsponsored promotion has been most influenced by the Internet?

A) advocacy advertising
B) publicity
C) word-of-mouth
D) guerrilla
E) coupons

Question 64

_____ is a market research technique used to identify segments through electronic observation of website visitors.

A) Market augmenting
B) Research segmentation
C) Grouping
D) Market congregating
E) Clustering

Question 65

When Hansine visits the BMG website, the marketer tracked the pages she visited, the amount of time she spent on each page, and the CDs she purchased. It then grouped visitors with similar patterns. On subsequent visits, Hansine and visitors who had displayed similar behavior to hers will be steered to merchandise they are most likely to buy. This is called:

A) market augmenting.
B) research segmentation.
C) grouping.
D) market congregating.
E) clustering.

Question 66

When Betty visits a website that sells CDs, she is greeted with a list of current CDs the marketer thinks she would like based on her previous purchases and purchases of customers whose likes in music seem to parallel hers. This is an example of:

A) collaborative filtering.
B) aggregated marketing.
C) grouping.
D) website congregating.
E) niche marketing.

Question 67

_____ allows an Internet marketer to recommend items to individuals based on a comparison of that person's selections and those of previous visitors who purchased the same item(s).

A) Collaborative filtering
B) Aggregated e-marketing
C) Grouping
D) Website congregating
E) Niche e-marketing

Question 68

Because the majority of sales for most manufacturers are still made through traditional channels, the risk of alienating business partners has affected Web strategies. Which of the following is an approach used by manufacturers to avoid Internet-related channel conflict?

A) Limit the website's use to lead generator.
B) Offer products online that are not available in stores.
C) Involve middlemen in online sales.
D) Target a different market segment when selling online.
E) Do any or all of the above.

Question 69

Because the majority of sales for most manufacturers are still made through traditional channels, the risk of alienating business partners has affected Web strategies. Which of the following is an approach used by manufacturers to avoid Internet-related channel conflict?

A) Use lower than retail prices when selling online.
B) Target the same market segment online and at retail outlets.
C) Offer the same products online as are available in retail outlets.
D) Use the Web as a lead generator only.
E) Do any or all of the above.

Question 70

Manufacturers can avoid Internet-related channel conflict by using:

A) collaborative filtering.
B) either channel assembly or co-location.
C) intensive distribution.
D) electronic data interchanges.
E) fixed pricing.

Question 71

Which of the following is an example of a strategy middlemen have devised to add value to their positions in the supply chain?

A) collaborative filtering
B) product fulfillment
C) co-location
D) joint distribution
E) distribution fulfillment

Question 72

Many manufacturers prefer not to disrupt their production process and tend to postpone customizing products. One approach to overcome this problem, which often creates long periods between order placement and delivery, is _____. This technique allows semi-finished products to be sent to the distributor who finishes the manufacturing process.

A) channel assembly
B) channel role expansion
C) disintermediation
D) supplier finishing
E) channel overlap

Question 73

Imagine David buys a dog bed for his Labrador retriever from the Petopia.com website. When the sale is made, the dog bed is not in Petopia's inventory, but is still in the inventory at the Scott & Hawes Manufacturers where it was made. Petopia has an employee stationed at the Scott & Hawes facility; and Petopia's employee will take responsibility for arranging shipment of the bed to Grant. This is an example of:

A) collaborative filtering.
B) market overlap.
C) co-location.
D) joint distribution.
E) distribution fulfillment.

Question 74

Which of the following is NOT an approach used to attract the right audience to a website?

A) sponsorships
B) interconnects
C) targeted e-mail
D) affiliate promotion
E) portal arrangements

Question 75

Which approach for attracting the right audience to a website is most commonly used?

A) sponsorships
B) banner ads
C) targeted e-mail
D) affiliate promotion
E) portal arrangements

Question 76

When Kim visited www.addall.com, a site for people who want to find the lowest prices on book purchases, she saw a boxed-in promotional message at the top of the home page, which invited her to click on the ad and visit a site that would show her how to get the lowest possible rate on her long-distance phone service. Kim saw a(n):

A) hot spot.
B) ad portal.
C) communication button.
D) leveraged position.
E) banner ad.

Question 77

Zandra used the search engine at www.cooking.com to look for companies that sold bread makers. Breadman machines appeared at the top of a fairly long list of bread maker manufacturers. Zandra can assume that Breadman made a _____ and paid a fee so it would appear at the top of the list.

A) affiliation
B) networked sponsorship
C) linked promotion
D) portal arrangement
E) sponsored arrangement

Question 78

On the Starbucks home page, there is a box that you can click on to go to buy a "game that keeps your brain working" from Cranium. Cranium pays Starbucks a commission each time it sells a game as a result of someone using the Starbucks site to get to the Cranium page. This is an example of a(n):

A) affiliate promotion.
B) portal arrangement.
C) interconnect.
D) sponsorship.
E) linked promotion.

Question 79

Three months ago, Renny purchased a pair of New Balance running shoes from www.RoadRunnerSports.com. Yesterday, he got an e-mail from the e-commerce site that the style of shoe he had purchased was being phased out and would no longer be available after December 1. RoadRunnerSports.com offered to reserve him a pair of the shoes while it still had them in stock. This is an example of:

A) an affiliatate promotion.
B) portal connection.
C) targeted e-mail.
D) a pop-up e-mail.
E) transactional e-mail.

Question 80

MyDailyCartoon.com is a site, which contains frequently updated cartoons about dogs and cats. Friskies pet food has a permanent place on this website. Friskies offers special products and pet care information to visitors to the site. Friskies is using a(n):

A) sponsorship.
B) banner ad.
C) networked interconnect.
D) aggregate promotion.
E) portal arrangement.