Question 1

Consumers and companies populate two market environments today. One is the traditional ________ and the other is the ________.
A) extranet; intranet
B) superstore; hypermarket
C) marketplace; marketspace
D) shopping mall; virtual mall
E) online store; virtual store

Accepted Answer

The terms "marketplace" and "marketspace" distinguish between the physical market environment (traditional marketplace) and the digital market environment (marketspace). The other options are not relevant or do not accurately differentiate between the two environments.

Question 2

Internet users aged 15 and older are expected to buy about ________ worth of products and services online in 2022 (excluding travel, automobile, and prescription drugs).
A) $200 million
B) $900 million
C) $40 billion
D) $100 billion
E) $500 billion

Accepted Answer

In 2022, internet users aged 15 and older were expected to spend approximately $500 billion on products and services online, excluding travel, automobile, and prescription drugs.

Question 3

The greatest marketspace opportunity for Seven Cycles lies in its potential for creating
A) form utility.
B) time utility.
C) price utility.
D) place utility.
E) possession utility.

Accepted Answer

A

Question 4

Legacy companies that sell luxury fashions
A) offer lower prices and have smaller margins when selling online.
B) are the fastest growing category in e-commerce.
C) have been leaders in creating the online experience.
D) generate the highest profit when they offer discount merchandise only online.
E) are not likely to sell them online.

Accepted Answer

The passage does not mention legacy companies selling luxury fashions online. Choice E states that they are not likely to sell them online, which aligns with the information given in the passage. The other choices are not supported by the passage.

Question 5

Seven Cycles uses ________ to create customer value, build relationships, and produce customer experiences in novel ways.
A) the Internet
B) just-in-time delivery
C) marketing dashboards
D) logistics management
E) its own retail stores exclusively

Accepted Answer

The question asks how Seven Cycles creates customer value and produces customer experiences in novel ways. The use of the Internet allows Seven Cycles to reach customers globally and provide personalized experiences through online customization tools and virtual consultations. While just-in-time delivery, marketing dashboards, and logistics management may all contribute to the company's operations and efficiency, they are not directly tied to customer value and experience. Seven Cycles does not have its own retail stores exclusively, as it also works with independent bike shops.

Question 6

Amazon.com is an Internet retailer located in the United States. About 45 percent of its sales are to customers who live outside the United States. This shows how electronic commerce contributes to customer value through the creation of
A) service utility.
B) place utility.
C) possession utility.
D) form utility.
E) time and possession utility.

Accepted Answer

Place utility refers to the convenience of having a product available where customers can purchase it. In this case, Amazon.com provides a convenient way for customers outside the United States to purchase products, contributing to customer value.

Question 7

What do online eyeglass retailer Warby Parker, online mattress seller Casper Sleep, clothing online retailer Bonobos, jewelry online retailer Blue Nile, and Amazon have in common?
A) They are experimenting with ways to deliver products and services available to customers faster.
B) They provide price match guarantees and make comparison shopping easier right from the website.
C) They have opened physical showrooms that allow shoppers an opportunity to experience the company's products.
D) They offer easily customized products and services.
E) They provide simple two-way communication so that consumers can tell marketers exactly what they want in the marketspace.

Accepted Answer

These companies have opened physical showrooms to allow customers to experience their products in person.

Question 8

Seven Cycles' business model includes the Internet, which enables customers to collaborate on the bike design using the company's ________ fitting system that considers the rider's size, aspirations, and riding habits.
A) Rider Kit
B) Cyclo Kit
C) Custom Kit
D) Proviso Kit
E) Seven Fit

Accepted Answer

The answer of Seven Cycles' business model includes the Internet,...

Question 9

Although Recreational Equipment, Inc. (www.rei.com) has typical retail store hours, 35 percent of its orders are placed between the hours of 10 p.m. and 7 a.m. This shows how electronic commerce contributes to customer value through the creation of
A) time utility.
B) place utility.
C) possession utility.
D) form utility.
E) access utility.

Accepted Answer

The fact that 35 percent of orders are placed outside of typical retail store hours demonstrates that electronic commerce provides time utility, allowing customers to shop when it is most convenient for them.

Question 10

Marks & Spencer is a well-known British department store. Customers from Chicago or Dallas can shop for clothing as easily as a person living in London. This shows how electronic commerce contributes to customer value through the creation of
A) service utility.
B) possession utility.
C) form utility.
D) possession and place utility.
E) place utility.

Accepted Answer

Electronic commerce creates place utility because there are no geographical constraints in the marketspace.Customers can shop Marks & Spencer website regardless of where they reside.

Question 11

Which of the following characteristics of electronic commerce creates customer value by contributing to time and place utility?
A) Electronic commerce makes products and services available to customers faster.
B) Comparison shopping is easier in the marketspace than in the marketplace.
C) Customers can shop in the marketspace anywhere at any time.
D) Products available in the marketspace are more easily customized.
E) Consumers can tell marketers exactly what they want in the marketspace.

Accepted Answer

Electronic commerce creates time and place utility by allowing customers to shop in the marketspace from anywhere at any time. This convenience adds value for customers who can now access products and services easily and quickly, without the constraints of traditional store hours or physical location.

Question 12

An Internet-enabled digital environment characterized by face-to-screen exchange relationships and electronic images and offerings is referred to as
A) an extranet.
B) an intranet.
C) a marketplace.
D) a marketspace
E) a web portal.

Accepted Answer

The term "marketspace" refers to an online environment in which buyers and sellers can interact and conduct business. It is characterized by electronic images and offerings, as well as face-to-screen exchange relationships. Therefore, D is the correct answer. An extranet refers to a private network that allows companies to collaborate with external partners, while an intranet is a private network used by a company's employees. A marketplace is a physical or online location where buyers and sellers can meet to exchange goods and services. A web portal is a website that provides a variety of information and services from different sources.

Question 13

The greatest marketspace opportunity for marketers lies in its potential for creating ________ since communication capabilities there invite consumers to tell marketers specifically what their requirements are.
A) time utility
B) price utility
C) form utility
D) possession utility
E) place utility

Accepted Answer

Form utility refers to the value added to a product through its form or design. In a marketspace, consumers are able to provide feedback and communicate their specific requirements to marketers, allowing them to create products with higher form utility that better meet the needs of the market. Time, price, possession, and place utility are all important in marketing, but they are not specifically dependent on communication with consumers through a marketspace.

Question 14

Seven Cycles' tagline, "One Bike. Yours." reflects the company's
A) reputation for customized detailing of the finest motorcycles in competitive racing.
B) commitment to incorporating individual customer input for every single bike.
C) unique antitheft electronic GPS tracer built into every frame.
D) creativity promise, guaranteeing that the color (paint job) is completely unique for each touring bike it makes.
E) "one product-one market" segmentation strategy, in which all bikes are exactly alike.

Accepted Answer

Seven Cycles' tagline, "One Bike. Yours." emphasizes their commitment to incorporating individual customer input for every single bike, making each bike unique to the owner.

Question 15

The key difference between the traditional marketplace and the new marketspace is that the latter is a________ exchange environment.
A) tangible
B) competitive
C) physical
D) material
E) digital

Accepted Answer

The term "new marketspace" suggests a shift towards digital and online platforms. Therefore, the best choice is E, digital, indicating a virtual or online exchange environment. The other options focus on physical or tangible aspects, which are not necessarily applicable to online marketplaces.

Question 16

In the traditional sense, a ________ is where buyers and sellers engage in face-to-face exchange relationships in a material environment characterized by physical facilities and mostly tangible objects.
A) marketspace
B) multichannel online mall
C) cyberstore
D) virtual store
E) marketplace

Accepted Answer

The definition describes a traditional marketplace, which is characterized by physical facilities and tangible objects. A marketspace, multichannel online mall, cyberstore, and virtual store all refer to online or digital environments for buying and selling, which do not have physical facilities and may deal with intangible products or services. Therefore, the best choice is E, marketplace.

Question 17

The General offers automobile insurance online. Buyers can purchase a policy over the Internet and the company will provide immediate proof of insurance to get legal drivers on the road quickly. This shows how electronic commerce contributes to customer value through the creation of
A) service utility.
B) form utility.
C) place utility.
D) possession utility.
E) price utility.

Accepted Answer

Possession utility,which is getting a product or service to consumers so they can own or use it,is accelerated by electronic commerce,as is the case with The General.

Question 18

Which of the following transactions occurred in the marketspace?
A) Rebecca sold Discovery Toys creative puzzles at an in-home demonstration.
B) Maddie bought a brand new pair of TOMS shoes through Zappos.com.
C) Shelby purchased an iPhone case at a kiosk at the airport.
D) Corey bought a double-dipped chocolate ice cream cone from the ice cream vendor when his mobile ice cream truck came down the street.
E) Josh bought his mother a menorah through the Source for Everything Jewish gift catalog by calling a toll-free telephone number.

Accepted Answer

Maddie's purchase through Zappos.com occurred in the marketspace, which refers to online or digital marketplaces.

Question 19

About ________ percent of Internet users aged 15 and older shop online in the United States.
A) 19
B) 29
C) 48
D) 67
E) 90

Accepted Answer

About 90 percent of Internet users aged 15 and older shop online in the United States.

Question 20

Seven Cycles has a ________ with its nearly 200 authorized retailers in the United States and 30 international distributors in 40 countries.
A) contentious relationship
B) reciprocity agreement
C) joint venture
D) franchise contract
E) collaborative relationship

Accepted Answer

The word "collaborative" suggests a positive and cooperative relationship, which would be necessary for a company to successfully work with a large number of authorized retailers and distributors. Choices A, B, C, and D are all unlikely options as they do not accurately describe the type of relationship Seven Cycles would need to have with its retail partners.

Quiz 14: Implementing Interactive and Multichannel Marketing

Consumers and companies populate two market environments today. One is the traditional and the other is the .

Internet users aged 15 and older are expected to buy about ________ worth of products and services online in 2022 (excluding travel, automobile, and prescription drugs) .

The greatest marketspace opportunity for Seven Cycles lies in its potential for creating

Legacy companies that sell luxury fashions

Seven Cycles uses ________ to create customer value, build relationships, and produce customer experiences in novel ways.

Amazon.com is an Internet retailer located in the United States. About 45 percent of its sales are to customers who live outside the United States. This shows how electronic commerce contributes to customer value through the creation of

What do online eyeglass retailer Warby Parker, online mattress seller Casper Sleep, clothing online retailer Bonobos, jewelry online retailer Blue Nile, and Amazon have in common?

Seven Cycles' business model includes the Internet, which enables customers to collaborate on the bike design using the company's ________ fitting system that considers the rider's size, aspirations, and riding habits.

Although Recreational Equipment, Inc. (www.rei.com) has typical retail store hours, 35 percent of its orders are placed between the hours of 10 p.m. and 7 a.m. This shows how electronic commerce contributes to customer value through the creation of

Marks & Spencer is a well-known British department store. Customers from Chicago or Dallas can shop for clothing as easily as a person living in London. This shows how electronic commerce contributes to customer value through the creation of

Which of the following characteristics of electronic commerce creates customer value by contributing to time and place utility?

An Internet-enabled digital environment characterized by face-to-screen exchange relationships and electronic images and offerings is referred to as

The greatest marketspace opportunity for marketers lies in its potential for creating ________ since communication capabilities there invite consumers to tell marketers specifically what their requirements are.

Seven Cycles' tagline, "One Bike. Yours." reflects the company's

The key difference between the traditional marketplace and the new marketspace is that the latter is a________ exchange environment.

In the traditional sense, a ________ is where buyers and sellers engage in face-to-face exchange relationships in a material environment characterized by physical facilities and mostly tangible objects.

The General offers automobile insurance online. Buyers can purchase a policy over the Internet and the company will provide immediate proof of insurance to get legal drivers on the road quickly. This shows how electronic commerce contributes to customer value through the creation of

Which of the following transactions occurred in the marketspace?

About ________ percent of Internet users aged 15 and older shop online in the United States.

Seven Cycles has a ________ with its nearly 200 authorized retailers in the United States and 30 international distributors in 40 countries.