Question 1

Seven Cycles creates ________ in its creation of customized bikes for its customers in 40 countries.
A) time utility
B) form utility
C) place utility
D) possession utility
E) possession and place utility

Accepted Answer

Seven Cycles creates form utility by customizing its bikes to meet the specific needs and preferences of individual customers. This involves designing and constructing a bike that is tailored to the customer's body measurements, riding style and terrain preferences.

Question 2

Internet users ages 15 and older are expected to buy about __________ worth of products and services online in 2020 (excluding travel,automobile,and prescription drugs).
A) $200 million
B) $900 million
C) $40 billion
D) $100 billion
E) $500 billion

Accepted Answer

In 2020, the e-commerce market was expected to be substantial, with internet users spending around $500 billion on products and services online, excluding travel, automobiles, and prescription drugs.

Question 3

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 anywhere at any time.

Question 4

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

Accepted Answer

The answer of About __________ percent of Internet users ages...

Question 5

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 or service by creating it in a way that best meets the needs and wants of customers. In a marketspace, communication capabilities allow consumers to provide specific information on their requirements, which creates an opportunity for marketers to tailor their offerings to meet those needs and wants. This enhances the form utility of the products or services offered in the marketspace.

Question 6

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 case mentions that Seven Cycles uses the internet to offer customized bike designs and allows customers to interact directly with Seven Cycles staff during the design process. This creates customer value, builds relationships, and produces a unique customer experience. The other options (just-in-time delivery, marketing dashboards, logistics management, and its own retail stores exclusively) are not mentioned in the case as strategies used by Seven Cycles to create customer value, build relationships, and produce customer experiences in novel ways.

Question 7

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

The tagline "One Bike. Yours." implies that Seven Cycles is committed to incorporating individual customer input for every single bike, making them personalized for each customer.

Question 8

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 between 10 p.m. and 7 a.m. shows that electronic commerce creates time utility for customers, allowing them to shop outside of traditional retail store hours.

Question 9

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

A marketspace is an Internet-enabled digital environment characterized by face-to-screen exchange relationships and electronic images and offerings. An extranet is a private network that uses Internet protocols, while an intranet is a private network accessible to only an organization's employees. A marketplace refers to a physical or virtual location where goods and services are bought and sold. A web portal is a website that serves as a gateway to various resources and services.

Question 10

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

Amazon.com creates value for customers through the creation of place utility, allowing customers outside the United States to access and purchase their products through electronic commerce.

Question 11

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

The answer of The greatest marketspace opportunity for Seven Cycles...

Question 12

Which of the following transactions occurred in the marketspace?
A) Connie sold Discovery Toys creative puzzles at an in-home demonstration.
B) Joan 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 person 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

Joan bought a pair of shoes through Zappos.com, which is an online marketplace and hence falls under marketspace transactions.

Question 13

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 use of the word "collaborative" indicates that there is a positive working relationship between Seven Cycles and its retailers and distributors. This is further evidenced by the use of the word "authorized," which implies a level of trust and cooperation between the parties involved. Neither contentious relationship nor franchise contract accurately captures this type of relationship, and while there may be some degree of reciprocation or joint venture involved, these terms are not as fitting as "collaborative."

Question 14

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 15

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 16

In the marketspace,consumers can tell marketers specifically what their requirements are,making possible the customization of a product or service to fit their exact needs.This means that marketers can use electronic commerce to enhance customer value by providing
A) place utility.
B) form utility.
C) time utility.
D) possession utility.
E) product utility.

Accepted Answer

Customization of a product or service to fit the exact needs of a consumer relates to form utility, which is the value added to a product or service by changing its form or design to make it more useful to the consumer. Place utility is the value added by having the product available in a convenient location, time utility is the value added by having the product available at a specific time, possession utility is the value added by making it easy for the consumer to acquire and use the product, and product utility is not a commonly used term in marketing.

Question 17

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,which...

Question 18

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 term "marketplace" refers to a traditional physical location where buyers and sellers interact in person and exchange tangible goods. The other options refer to online or digital channels for buying and selling, which do not involve physical facilities or face-to-face interactions in the same way.

Question 19

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 traditional market environment is referred to as the marketplace, while the newer, digital market environment is known as the marketspace. This terminology is commonly used in marketing and e-commerce literature. The other options listed do not accurately reflect the two market environments mentioned in the question.

Question 20

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

Accepted Answer

The word "new" suggests that it is not physical or tangible, and the term "marketspace" implies a digital or virtual environment. Therefore, the correct answer is E: digital.

Quiz 18: Implementing Interactive and Multichannel Marketing

Seven Cycles creates ________ in its creation of customized bikes for its customers in 40 countries.

Internet users ages 15 and older are expected to buy about __________ worth of products and services online in 2020 (excluding travel,automobile,and prescription drugs) .

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

About __________ percent of Internet users ages 15 and older shop online in the United States.

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 uses __________ to create customer value,build relationships,and produce customer experiences in novel ways.

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

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

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

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

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

Which of the following transactions occurred in the marketspace?

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

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

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

In the marketspace,consumers can tell marketers specifically what their requirements are,making possible the customization of a product or service to fit their exact needs.This means that marketers can use electronic commerce to enhance customer value by providing

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.

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.

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

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