Chapter 21
Implementing Interactive and Multichannel Marketing
Multiple Choice Questions
1. | 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. |
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2. | Seven Cycles uses __________ to create customer value, build relationships, and produce customer experiences in novel ways.
E. | its own retail stores exclusively |
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3. | 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.
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4. | Seven Cycles has a __________ with its nearly 200 authorized retailers in the United States and 30 international distributors in 40 countries.
A. | contentious relationship |
E. | collaborative relationship |
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5. | The greatest marketspace opportunity for Seven Cycles lies in its potential for creating
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6. | Consumers and companies populate two market environments today. One is the traditional __________ and the other is the __________.
B. | superstore; hypermarket |
C. | marketplace; marketspace |
D. | shopping mall; virtual mall |
E. | online store; virtual store |
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7. | 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.
B. | multichannel online mall |
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8. | An Internet-enabled digital environment characterized by face-to-screen exchange relationships and electronic images and offerings is referred to as
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9. | The key difference between the traditional marketplace and the new marketspace is that the latter is __________ exchange environment.
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10. | 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 Dansko 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. |
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11. | About __________ percent of Internet users ages 15 and older shop online in the United States.
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12. | Internet users ages 15 and older are expected to buy __________ worth of products and services online (excluding travel, automobiles, and prescription medications) in 2018.
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13. | 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. |
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14. | 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
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15. | 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
E. | time and possession utility. |
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16. | 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
D. | possession and place utility. |
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17. | Travelocity.com provides almost immediate access to and confirmation of travel arrangements and accommodations. And payment can be made using one of four credit cards (Visa, MasterCard, American Express, and Discover). This shows how electronic commerce contributes to customer value through the creation of
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18. | The greatest marketspace opportunity for marketers lies in its potential for creating
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19. | 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
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20. | Seven Cycles creates __________ in its creation of customized bikes for its customers in 40 countries.
E. | possession and place utility |
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21. | Which of the following examples demonstrates how electronic commerce creates customer value through form utility?
A. | Recreational Equipment, an outdoor gear marketer, receives 35 percent of its orders between the hours of 10 p.m. and 7 a.m. when its retail stores are closed. |
B. | Forty-five percent of sales at Amazon.com are from buyers who live outside the United States. |
C. | Travelocity.com provides almost immediate access to and confirmation of travel arrangements and accommodations. |
D. | Bluefly.com, an apparel company, encourages customers to create their own uniquely designed shirts. |
E. | Pediatricians can purchase dinosaur stethoscope covers at AllHeart.com. |
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22. | Matthew is planning a trip to Mexico for spring break. One night about midnight, he decides to visit Orbitz, an airline, car rental, and lodging electronic reservation system, to book his flight using the computer in his dorm room. It takes him about five seconds to connect to Orbitz, where he is prompted to enter his preferred travel dates and times and to specify which of several criteria such as schedule or price are most important to him. Matt is on a tight budget, so he checks the price of several flights. A second or two after submitting this information, data about several flights on various airlines, arranged from least to most expensive, appear on his computer screen. He requests aisle seats on his two-stop connection because they best meet his budget and scheduling preferences. After making the selections, he receives instantaneous confirmation of his reservation. Orbitz then prompts Matt to provide his credit card information to complete the booking process. After providing his credit card number, he prints a copy of his receipt and itinerary. The total time to complete the transaction is less than five minutes. Orbitz created customer value for Matt by contributing to which of the following form(s) of utility?
E. | all four utilities: time, place, possession, and form |
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23. | Two unique capabilities of Internet technology, __________, promote and sustain customer relationships.
C. | interactivity and individuality |
D. | communication and information |
E. | choice boards and collaborative filtering |
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24. | Individuality and interactivity are important capabilities that marketers derive from Internet technology. Both capabilities are important building blocks for buyer-seller relationships. For these relationships to develop, companies must treat customers as individuals and empower them to: (1) influence the timing and extent of the buyer-seller interaction and (2) __________, the information they receive, and in some cases, the prices they pay.
A. | demand product quality and timely service |
B. | shop confidently without fear of identity theft |
C. | speed up the click-through process |
D. | have a say in the kind of products and services they buy |
E. | comparison shop with the prices of competitors alongside those of the firm |
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25. | Interactive marketing refers to
A. | the two-way buyer-seller electronic communication in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller. |
B. | the two-way buyer-seller electronic communication in a computer-mediated environment in which the seller controls the kind and amount of information received from the buyer. |
C. | the interactive, Internet-enabled system that allows individual customers to design their own products and services by answering a few questions and choosing from a menu of product or service attributes, prices, and delivery options. |
D. | the consumer-initiated practice of generating content on a marketer's website that is custom-tailored to an individual's specific needs and preferences. |
E. | an Internet-enabled digital environment characterized by face-to-screen exchange relationships and electronic images and offerings. |
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26. | With interactive marketing,
A. | the seller controls the kind and amount of information presented to the buyer. |
B. | buyers and sellers communicate face-to-face in the traditional marketplace. |
C. | a website high in media richness is necessary for an exchange to take place. |
D. | the buyer controls the kind and amount of information received from the seller. |
E. | real-time transactions are impossible. |
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27. | Interactive marketing is characterized by
B. | sophisticated choice boards. |
C. | the digital divide, which separates online consumers from traditional marketplace consumers. |
D. | a marketing mix strategy that de-emphasizes the promotion element. |
E. | human-to-human mediated online "chat room" communication prior to the purchase. |
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28. | An interactive, Internet-enabled system that allows individual customers to design their own products by answering a few questions and choosing from a menu of product attributes, prices, and delivery options, is referred to as a
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29. | Because __________ collect precise information about preferences and behavior of individual buyers, a company becomes more knowledgeable about a customer and better able to anticipate and fulfill that customer's needs.
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30. | Mars, Inc., uses __________ technology to decorate M&Ms with personal photos and messages.
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31. | The My M&M'S® customization web page is an example of how Mars has effectively used __________ technology on its mymms.com website to allow its customers to personalize the candy with photos and messages.
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32. | The Reebok Design Your Own website is an example of how the firm has effectively used __________ technology to allow its customers to customize their athletic shoes.
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33. | Customers can build their own bicycle at SevenCycles.com by answering a few questions and choosing from a menu of product attributes, prices, and delivery options. The design of a precise bicycle is made possible through the use of a
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34. | Nike is a recognized innovator in the use of __________ for creating interactivity, individuality, and customer relationships. Its NikeiD product configurator invites customers to create one-of-a-kind shoes, messenger bags, and backpacks by simply answering a few questions and viewing the finished product from numerous angles.
D. | collaborative filtering |
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35. | Customers can build their own computers with Dell's online configurator. They simply have to answer a few questions and choose from a menu of product attributes, prices, and delivery options. The design of a Dell customized computer is made possible through the use of a
B. | permission-based e-mail. |
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36. | A process that automatically groups people with similar buying intentions, preferences, and behaviors and then predicts future purchases is referred to as
B. | collaborative filtering. |
D. | interactive marketing. |
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37. | Collaborative filtering refers to
A. | a process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases. |
B. | the two-way buyer-seller electronic communication in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller. |
C. | the interactive, Internet-enabled system that allows individual customers to design their own products and services by answering a few questions and choosing from a menu of product or service attributes, prices, and delivery options. |
D. | the consumer-initiated practice of generating content on a marketer's website that is custom-tailored to an individual's specific needs and preferences. |
E. | an Internet-enabled digital environment characterized by face-to-screen exchange relationships and electronic images and offerings. |
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38. | Collaborative filtering gives marketers the ability to make a dead-on sales recommendation to a buyer in
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39. | When you view a selection at Amazon.com and see "Customers who bought this (item) also bought…", you are seeing the application of
C. | interactive marketing. |
E. | collaborative filtering. |
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40. | Amazon.com uses __________ to compare each user's purchases with the purchases of other users with similar preferences to create a list of purchase recommendations. Based on a customer's desire to purchase an author's e-book for her Kindle, Amazon might recommend an e-book by a similar author within the same genre.
C. | collaborative filtering |
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41. | The consumer-initiated practice of generating content on a marketer's website that is custom-tailored to an individual's specific needs and preferences is referred to as
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42. | Personalization refers to
A. | the solicitation of a consumer's consent to receive e-mail and advertising based on personal data supplied by the consumer. |
B. | a process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases. |
C. | the consumer-initiated practice of generating content on a marketer's website that is custom-tailored to individual's specific needs and preferences. |
D. | the interactive, Internet-enabled system that allows individual customers to design their own products and services by answering a few questions and choosing from a menu of product or service attributes, prices, and delivery options. |
E. | an Internet-enabled digital environment characterized by face-to-screen exchange relationships and electronic images and offerings. |
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43. | Yahoo! allows its users to create a web page by picking the content they want (stock quotes, weather conditions, etc.) and deciding how they want it to look. This consumer-initiated practice is an example of
C. | transactional website. |
D. | collaborative filtering. |
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44. | Monster.com is a leading online, job-hunting website. A person hunting for a new job does not have to look at every listing on the website. He or she can type in a job description and Monster.com will find all the matching jobs plus continue the search and e-mail any new relevant listings. If the individual has to stop looking before seeing all the relevant jobs, Monster.com will remember where he or she left off. Monster.com uses the consumer-initiated practice of
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45. | The solicitation of a consumer's consent (called "opt-in") to receive e-mail and advertising based on personal data supplied by the consumer is referred to as
A. | collaborative marketing. |
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46. | Permission marketing refers to
A. | the interactive, Internet-enabled system that allows individual customers to design their own products and services by answering a few questions and choosing from a menu of product or service attributes, prices, and delivery options. |
B. | the consumer-initiated practice of generating content on a marketer's website that is custom-tailored to the individual's specific needs and preferences. |
C. | an Internet-enabled digital environment characterized by face-to-screen exchange relationships and electronic images and offerings. |
D. | the solicitation of a consumer's consent to receive e-mail and advertising based on personal data supplied by the consumer. |
E. | a process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases. |
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47. | The solicitation of a consumer's consent to receive e-mail and advertising based on personal data supplied by the consumer is called
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48. | Permission marketing is also referred to as
A. | seller-initiated marketing. |
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49. | A company that successfully employs permission marketing adheres to three rules: (1) __________; (2) customers are given the option of opting out, or changing the kind, amount, or timing of information sent to them; and (3) their customers are assured that their name or buyer profile data will not be sold or shared with others.
A. | opt-in customers will be guaranteed the lowest possible price for an item compared to similar products or services sold by its competitors |
B. | the firm will never buy marketing lists from other companies that may contain their personal information |
C. | opt-in customers receive only information that is relevant or meaningful to them |
D. | customers will receive a "30-day money-back guarantee if not 100 percent satisfied" for any product purchased online |
E. | customers will be protected from identity theft for any product purchased from its website |
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50. | A company that successfully employs permission marketing adheres to three rules: (1) opt-in customers receive only information that is relevant or meaningful to them; (2) __________; and (3) their customers are assured that their name or buyer profile data will not be sold or shared with others.
A. | customers will receive a "30-day money back guarantee if not 100 percent satisfied" for any product purchased online |
B. | customers will be protected from identity theft for any product purchased from its website |
C. | opt-in customers will be guaranteed the lowest possible price for an item compared to similar products or services sold by its competitors |
D. | customers are given the option of opting out, or changing the kind, amount, or timing of information set to them |
E. | the firm will never buy marketing lists from other companies that may contain their personal information |
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51. | A company that successfully employs permission marketing adheres to three rules: (1) opt-in customers receive only information that is relevant or meaningful to them; (2) customers are given the option of opting out, or changing the kind, amount, or timing of information sent to them; and (3) __________.
A. | their customers are assured that their name or buyer profile data will not be sold or shared with others |
B. | customers will receive a "30-day money back guarantee if not 100 percent satisfied" for any product purchased online |
C. | customers will be protected from identity theft for any product purchased from its website |
D. | the firm will never buy marketing lists from other companies that may contain their personal information |
E. | opt-in customers will be guaranteed the lowest possible price for an item compared to similar products or services sold by its competitors |
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52. | A cosmetics company has a database of more than 600,000 people who registered on its website by providing selected personal information. The registration process requested that customers fill out a brief survey and check a box that allows the company to send them product updates via e-mail. When it introduced its Anti-Aging Formula, it sent e-mails to all women over 35 who had indicated in the survey that they were worried about wrinkles. Eight percent of the women who received the e-mail purchased the new product. The company used __________ to introduce its new product.
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53. | Monster.com is a leading online, job-hunting website. A person hunting for a new job does not have to look at every listing on the website. He or she can type in a job title, keyword, company name, and location (city, state). Monster.com will then search for and list all the jobs that match the criteria. Users also have the ability to click on the link "Email me Jobs" to send users e-mails identifying any new relevant job listings. Monster.com uses __________ to send its e-mail updates.
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54. | A term used when someone is given the option to receive e-mail and advertising based on personal data supplied by the consumer is referred to as
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55. | The term __________ refers to several methods by which individuals can avoid receiving unsolicited product or service information, such as unsubscribing to spam.
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56. | What is the standard for measuring a meaningful marketspace company presence?
A. | the sales compared to the marketplace alternative in a multichannel marketing context |
B. | the quality of the website design |
D. | the quality of the customer experience |
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57. | From an interactive marketing perspective, __________ is defined as the sum total of the interactions a customer has with a company's website from the initial look at a home page through the entire purchase decision process.
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58. | Marketers produce a customer experience through seven website design elements: (1) context, (2) __________, (3) community, (4) customization, (5) communication, (6) connection, and (7) commerce.
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59. | Marketers produce a customer experience through seven website design elements: (1) context, (2) content, (3) __________, (4) customization, (5) communication, (6) connection, and (7) commerce.
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60. | Marketers produce a customer experience through seven website design elements: (1) context, (2) content, (3) community, (4) __________, (5) communication, (6) connection, and (7) commerce.
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61. | Marketers produce a customer experience through seven website design elements: (1) context, (2) content, (3) community, (4) customization, (5) communication, (6) __________, and (7) commerce.
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62. | Marketers produce a customer experience through seven website design elements: (1) context, (2) content, (3) community, (4) customization, (5) communication, (6) connection, and (7) __________.
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63. | In terms of the online customer experience, context refers to
A. | the ability of a website to modify itself to, or be modified by, each individual user. |
B. | a website's aesthetic appeal and functional look and feel, reflected in site layout and visual design. |
C. | the website's ability to conduct sales transactions for products and services. |
D. | a patented feature that allows users to order products with a single mouse click. |
E. | the dialogue that occurs between the website and its users. |
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64. | A website's aesthetic appeal and functional look and feel reflected in site layout and visual design is referred to as
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65. | Travel websites such as Priceline.com are designed to be __________ oriented, with emphasis on destinations, scheduling, and prices.
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66. | Beauty product websites are traditionally designed to be more __________ oriented than travel websites.
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67. | Wolfermans.com is a company that sells gourmet English muffins, specialty breads, and exquisite desserts in gift assortments. When you access its website, you discover 14 pictures that make lavish use of color. The Wolferman's website design conveys the core consumer benefits provided by the company's offerings through the use of
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68. | In terms of the online customer experience, content refers to
A. | a website's capabilities to enable commercial transactions. |
B. | all the digital information on a website—text, video, audio, and graphics. |
C. | the multiple ways the website enables user-to-user communication. |
D. | the dialogue that unfolds between the website and its users. |
E. | the information consumers provide to the firm through its website. |
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69. | The text, video, audio, and graphics that are found on a website are referred to as
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70. | The ability of a website to modify itself to, or be modified by, each individual user is referred to as
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71. | In terms of the online customer experience, customization refers to
A. | the consumer-initiated practice of generating content on a marketer's website that is custom-tailored to an individual's specific needs and preferences. |
B. | the website's ability to conduct sales transactions for products and services. |
C. | an interactive, Internet-enabled system that allows individual customers to design their own products and services. |
D. | a website's aesthetic appeal and functional look and feel, reflected in site layout and visual design. |
E. | the ability of a website to modify itself to, or be modified by, each individual user. |
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72. | Websites that offer personalized content, such as My eBay and My Yahoo!, have __________ as a prominent design element.
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73. | In terms of website design, connection refers to
A. | the text, video, audio, and graphics that the website contains. |
B. | the website's capabilities to enable commercial transactions. |
C. | the network of linkages between a company's website and other sites. |
D. | the layout of the website. |
E. | the website's ability to tailor itself to different users or to allow users to personalize the website. |
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74. | In terms of the online customer experience, connection is defined as the
A. | the network of formal linkages between a company's website and other sites. |
B. | the text, video, audio, and graphics that the website contains that appeal directly to the consumer. |
C. | the website's capabilities to enable commercial transactions through credit, debit, or transfer payments (PayPal, etc.). |
D. | the speed and ease with which a customer can move between pages on a website. |
E. | the website's ability to tailor itself to different users or to allow users to personalize the site. |
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75. | Links that are embedded in the website, appear as highlighted words, a picture, or graphic, and allow a user to effortlessly visit other sites with a mouse click comprise a website's __________ design element.
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76. | A visitor to a sports website notices that all of the information is contained within the website—there are no links to other websites. The website provides frequently updated information on the sports players, matches, and licensed merchandise on a starry black background. The website is lacking __________, a website design element that influences customer experience.
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77. | TheKnot.com, a website for locating everything needed for a wedding, contains several links to other websites that an engaged couple might need, including a travel agency, a linen store, a wedding gown retailer, and several other links. TheKnot.com is a good example of a website that incorporates the __________ design element.
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78. | Users of NYTimes.com can peruse the book review section and click on a link to Barnes & Noble to order a book that was reviewed or browse related titles. NYTimes.com effectively uses the __________ website design element.
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79. | In terms of website design, communication refers to
A. | the process of conveying an online presence to others that requires an organization, a website, an online consumer, and the processes of a shopping cart, online payment, and order fulfillment. |
B. | the speed and ease with which a customer can move between pages on a website. |
C. | a website's ability to tailor itself to different users or to allow users to personalize the website. |
D. | the dialogue that unfolds between the website and its users. |
E. | the links from a company's website to a customer's e-mail, Facebook, or Twitter account. |
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80. | In terms of the online customer experience, __________ is defined as the dialogue that unfolds between the website and its users.
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81. | Some websites enable a user to talk directly with a customer representative using an "online chat" feature while shopping on the site. This is an example of the __________ website design element.
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82. | A virtual __________ is a social network of individuals who interact through user-to-user communications hosted by a company to enhance customer experience and build a favorable buyer-seller relationship.
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83. | In terms of website design and the online customer experience, community refers to
A. | an information system where anyone can post content depending upon his or her level of self-disclosure. |
B. | websites that allow people to congregate in online chat rooms to exchange views on topics of common interest. |
C. | a social network of individuals who interact through specific media, potentially crossing geographical and political boundaries, in order to pursue mutual interests or goals. |
D. | user-to-user communications hosted by a company to enhance customer experience and build favorable buyer-seller relationships. |
E. | a customer's network of family, friends, acquaintances, and co-workers with whom he or she communicates on regular basis. |
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84. | The Harley Owners Group (HOG), sponsored by Harley-Davidson and supported by its website, allows fellow HOG members to communicate with each other. Because it supports HOG, the Harley-Davidson website incorporates the __________ design element.
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85. | A website that provides the ability to conduct sales transactions for products and services emphasizes the __________ design element.
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86. | In terms of website design and the online customer experience, commerce refers to
A. | business-to-business only transactions made between a purchasing manager's website and websites from its suppliers. |
B. | Internet-based networks that permit communication between a company and its suppliers, distributors, and other partners. |
C. | websites specifically designed for electronic funds transfer with banks and other institutions such as PayPal. |
D. | the application of information and communication technologies in support of the firm's entire business activities. |
E. | the website's ability to conduct sales transactions for products and services. |
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87. | When Andrea visited www.disneystore.com, she looked at several different classic Winnie the Pooh plush animals before she selected Piglet and Tigger and put them in her shopping cart. She next went to checkout where she confirmed that she wanted to buy the two stuffed animals, typed in her address, and concluded the transaction by providing her credit card information. In terms of customer experience, this example describes the __________ website design element.
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88. | Most websites do not include every design element. Websites that are used primarily for advertising and promotion purposes emphasize the __________ design element.
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89. | Most websites do not include every design element. Although every website has _________, they differ in the use of the remaining five elements.
B. | commerce and customization |
D. | communication and community |
E. | context and connection |
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90. | The amount of time per month that visitors spend on a company's website is referred to as
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91. | Automobile dealerships have invested significant time, effort, and money in their websites. Dealerships commonly measure website performance by tracking visits, visitor traffic, and __________—the amount of time per month that visitors spend on their websites.
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92. | To gauge stickiness, a company monitors
A. | the average time it takes customers to make a purchase from the time they log on to a website to the time they log off. |
B. | the average time it takes for customers to move from one page of a website to another. |
C. | the amount of time per month, in minutes, visitors spend on a company's website. |
D. | the number of visits by a unique customer to the same website before an actual purchase is made. |
E. | the total time, in hours and minutes, that it takes for a customer to make an online purchase. |
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93. | To gauge stickiness, companies use the following formula:
A. | Average time spent per unique hourly visitor in minutes = (Average visits per unique hourly visitor) × (Average time spent per visit in minutes). |
B. | Average time spent per unique daily visitor in minutes = (Average visits per unique daily visitor) × (Average time spent per visit in minutes). |
C. | Average time spent per unique weekly visitor in minutes = (Average visits per unique weekly visitor) × (Average time spent per visit in minutes). |
D. | Average time spent per unique yearly visitor in minutes = (Average visits per unique yearly visitor) × (Average time spent per visit in minutes). |
E. | Average time spent per unique monthly visitor in minutes = (Average visits per unique monthly visitor) × (Average time spent per visit in minutes). |
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94. | The subsegment of all Internet users who employ this technology to research products and services and make purchases is referred to as
D. | cross-channel consumers. |
E. | multichannel consumers. |
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95. | Compared to the general population, online consumers tend to be
A. | younger, more educated, more affluent, and equally male and female. |
B. | younger, more educated, conservative, and male. |
C. | younger, more educated, socially conscious, and female. |
D. | older, less educated, less affluent, and male. |
E. | older, more educated, more affluent, and female. |
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96. | Which of the following statements regarding online consumers is most accurate?
A. | With the exception of the setting used to make the exchange (online versus retail store), the profile of an online customer is almost identical to the traditional shopper. |
B. | Although online shopping and buying is popular, a small percentage of online consumers still account for a disproportionate share of online retail sales in the United States. |
C. | The group most likely to use the Internet to make purchases is comprised of educated males between the ages of 25 and 39. |
D. | Although growing in total sales revenues, the percentage of online sales is beginning to decline due to the downturn in the economy and the passage of a national Internet sales tax. |
E. | Many people are put off by the difficulty in navigating so many new websites. |
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97. | Which of the following profiles would most likely describe an online consumer?
A. | a tech-savvy high-school student living with her parents |
B. | a 21-year-old high-school graduate earning $18,000 annually living in his own apartment |
C. | a 28-year-old chemical engineer living in the suburbs with her husband and two children |
D. | a 55-year-old factory worker living with his wife in an apartment |
E. | a 70-year-old retired naval officer living in a retirement community |
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98. | Internet shopping addiction is considered part of a broader condition known as Internet addiction. PsychCentral has an online, interactive quiz to test
A. | if the shopper understands post-purchase support services. |
B. | whether shoppers carefully check price of purchases. |
C. | whether shoppers are prepared enough when planning online shopping. |
D. | whether shoppers' Internet behavior is, or is becoming, an addiction. |
E. | whether shoppers are involved online shoppers. |
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99. | Six general product and service categories account for about 70 percent of online consumer buying today and for the foreseeable future. One category includes items for which product information is an important part of the purchase decision, but prepurchase trial is not necessarily critical. This category contains items such as
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100. | Six general product and service categories account for about 70 percent of online consumer buying today and for the foreseeable future. One category contains unique items such as
C. | consumer packaged goods. |
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101. | Six general product and service categories account for about 70 percent of online consumer buying today and for the foreseeable future. One category includes regularly purchased consumer packaged goods such as personal care items where
A. | customer value is the most important element. |
B. | price and delivery time are not key factors. |
C. | convenience is very important. |
D. | digital delivery is an important factor. |
E. | price and speed of delivery are the determinant sales factors. |
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102. | One product and service category of online consumer buying consists of highly standardized products and services, such as home furnishings, automotive products, and casual apparel. For this category
A. | audio or video demonstration is important. |
B. | price and delivery time are not key factors. |
C. | digital delivery is an important factor. |
D. | assortment and speed of delivery are the determinant sales factors. |
E. | information about price is important. |
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103. | The six reasons consumers shop and buy online are
A. | interest, personalization, cost, control, speed, and customization. |
B. | customization, customerization, price, service, entertainment, and convenience. |
C. | content, context, utility, entertainment, communication, and cost. |
D. | convenience, choice, customization, communication, cost, and control. |
E. | control, utility, interest, personalization, choice, and flexibility. |
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104. | Consumers can visit the BananaRepublic.com website to scan and order from among thousands of displayed clothing items without fighting traffic, finding a parking space, or standing in store checkout lines. This describes one example of why consumers shop and buy online, which is
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105. | Online buyers of consumer electronics can shop individual manufacturers, such as QVC.com, a general online merchant that offers more than 100,000 products. This describes one example of why consumers shop and buy online, which is
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106. | Levi's Japan has a website that caters to those looking to tailor their own denim, allowing customers to choose from different cuts (502 regular wide, 505 regular wide, 517 boot cut), coloration (dark used, mid used), button and rivet colors (gold, silver, bronze), inseam length, and extra treatments (sanding, paint drips). From start to delivery takes about a month. This describes one example of why consumers shop and shop and buy online, which is
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107. | iVillage.com is a website targeted at women who share common interests such as career management, personal finances, parenting, relationships, beauty, and health. The site features articles, newsletters, and videos on these topics as well as the opportunity for visitors to link to its social media sites like Facebook and Pinterest. This describes one example of why consumers shop and buy online, which is
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108. | Internet-enabled software permits the practice of Delta Air Lines to change its prices in real time in response to supply and demand conditions. This describes one example of why consumers shop and buy online, which is
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109. | Consumers deftly use Internet technology to seek information, evaluate alternatives, and make purchase decisions on their own time, terms, and conditions. This describes an example of the sixth reason consumers buy and shop online.
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110. | The view that holds that online shopping and buying avoids fighting traffic or standing in store checkout lines is an example of
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111. | Which of the following characteristics of online shopping contributes to its convenience?
A. | Customers don't have to fight traffic, find a parking space, walk long aisles, or stand in store checkout lines. |
B. | Consumers can avail themselves of numerous websites for almost any product or service they want. |
C. | Consumers who prefer one-of-a-kind items that fit their specific needs can create them online. |
D. | Consumers can engage in an electronic dialogue with marketers. |
E. | Consumers are in charge in the marketspace. |
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112. | Electronic shopping agents that comb websites to compare prices and product or service features are referred to as
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113. | Bots are
A. | web pages that serve as a publicly accessible personal journal for an individual or organization. |
B. | computer files that a marketer can download onto the computer or mobile phone of an online shopper who visits the marketer's website. |
C. | electronic shopping agents that comb websites to compare prices and product or service features. |
D. | filters that reduce the number of unsolicited messages allowed into an individual's e-mail account. |
E. | interactive Internet-enabled systems that allow individual customers to design their own products and services. |
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114. | Bots contribute to the convenience of online shopping because they
A. | reduce time spent online. |
B. | allow customers to make online comparisons of prices and product features. |
C. | permit customers to design one-of-a-kind items that fit their specific needs. |
D. | allow customers to engage in an electronic dialogue with marketers. |
E. | offer customers almost any product or service they want. |
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115. | Why would an online consumer want to use a bot?
A. | Bots help customers design one-of-a-kind products that fit their specific needs. |
B. | Bots increase the selection of products and services from which online consumers can choose. |
C. | Bots allow online consumers to engage in an electronic dialogue with marketers. |
D. | Bots enhance the convenience of online shopping. |
E. | Bots allow marketers to record an online consumer's visits to their websites. |
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116. | Megan is looking for a gift for her older brother who enjoys reading mysteries. A book by one of his favorite authors was recently published and she plans to buy it. However, because she is on a limited budget, she wants to find the lowest price. The most convenient way for Megan to find the best price for the book would be to
A. | drive to a large shopping center that is 45 minutes away from home where there are two bookstores (Barnes & Noble and Half-Priced Books) to see which one has the book at the lowest price. |
B. | call all five bookstores in her community to inquire about the price of the book at each one. |
C. | use a bot to comb the websites of online booksellers and locate the one with the best price. |
D. | use a cookie to contact various bookstores and find the one with the best price. |
E. | create a choice board using the Barnes & Noble's Facebook page. |
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117. | According to the eight-second rule,
A. | it only takes eight seconds for someone to learn how to navigate a marketer's website. |
B. | any online purchase should take no more than eight seconds to complete. |
C. | prospective customers will not wait longer than eight seconds for a response in a chat room. |
D. | 50 percent of online consumers will spend less than eight seconds "surfing" a website. |
E. | customers will abandon a website if download time exceeds eight seconds. |
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118. | The eight-second rule refers to the view that
A. | if a website doesn't attract a consumer's attention in the first eight seconds, the consumer will move on to a different site. |
B. | customers will abandon their efforts to enter and navigate a website if download time exceeds eight seconds. |
C. | any online purchase should take no more than eight seconds to complete. |
D. | prospective customers will not wait longer than eight seconds for a response in a chat room. |
E. | 50 percent of online consumers will spend less than eight seconds "surfing" a website. |
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119. | The view that holds customers will abandon their efforts to enter and navigate a website if download time exceeds eight seconds is referred to as
A. | the stickiness guideline. |
C. | the eight-second rule. |
D. | the law of limited patience. |
E. | the expedience factor. |
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120. | On eBay.com, the Internet auction website, sellers design the web page on which they sell their merchandise. One individual who was selling a Coca-Cola tray from the 1920s used a background that resembled fluffy clouds in a blue sky. The page contained six pictures of the tray from different angles and an animated depiction of an American flag. Many potential buyers abandoned the web page before all the pictures downloaded. The seller must have been unaware of the
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121. | The ability of customers to avail themselves of numerous websites for almost anything they want, as well as the ability to engage in electronic dialogue with marketers for the purpose of making informed decisions, are both elements referred to as
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122. | The interactive capabilities of Internet-enabled technologies that invite customers to engage in an electronic dialogue with marketers for the purpose of making informed choices is referred to as
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123. | Choice, a reason customers shop and buy online, has two dimensions. They are
A. | availability and price. |
B. | speed and availability. |
C. | product or service selection and speed. |
D. | choice assistance and speed. |
E. | product or service selection and choice assistance. |
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124. | One of the reasons for the continued success of Zappos.com is its ability to provide
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125. | Internet-enabled capabilities that make possible a highly interactive and individualized information and exchange environment for shoppers and buyers is referred to as
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126. | Customization refers to
A. | the specialization in one very small but highly sought out specialty item. |
B. | Internet-enabled capabilities that make possible a highly interactive and individualized information and exchange environment for shoppers and buyers. |
C. | the growing practice of personalizing the marketing mix elements to provide a unique shopping and buying experience for each customer. |
D. | items that are unique in every dimension to minimize feature bloat. |
E. | novelty items used as sales promotions such as cups, hats, etc., that will be imprinted with a company logo and use the company colors and slogans if applicable. |
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127. | The relationship between the interactive communication capabilities of the Internet and customization is that
A. | a highly interactive and individualized information and exchange environment is created for shoppers and buyers. |
B. | it helps customers reduce their search costs and more conveniently find the offerings with the desired features. |
C. | it protects online consumer privacy about the customized products and services they desire. |
D. | it records users' visits to websites, which enhances online consumers' convenience in future visits by suggesting offerings that may be of interest to them when they access the site. |
E. | it reduces costs and wasted coverage both for the buyer and seller. |
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128. | The growing practice of customizing not only a product but also personalizing the marketing and overall shopping and buying interaction for each customer is referred to as
C. | customer digitalization. |
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129. | Reebok, Schwab, Dell, and Seven Cycles are all examples of companies that have been very successful because of their ability to __________ their products and services for their online customers and also personalize the marketing and overall shopping and buying interaction for them.
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130. | Internet-enabled technology employed in transmitting information from marketer-to-consumer, consumer-to-consumer, and consumer-to-marketer is referred to as
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131. | Internet-enabled technologies provide communication capabilities that take three forms. They are
A. | a highly interactive and individualized information and exchange environment, telephone-based customer service, and order processing via PayPal. |
B. | marketer-to-consumer e-mail notification, telephone-based customer service, and order processing via PayPal. |
C. | consumer-to-marketer buying and service requests, marketer-to-consumer e-mail notification, and telephone-based customer service. |
D. | recording a user's visits to websites, consumer-to-marketer buying and service requests, and marketer-to-consumer e-mail notification. |
E. | marketer-to-consumer e-mail notification; consumer-to-marketer buying and service requests; and consumer-to-consumer chat rooms, instant messaging, and social networking websites. |
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132. | The communication capabilities of Internet-enabled technologies take three forms: (1) __________; (2) consumer-to-marketer buying and service requests; and (3) consumer-to-consumer chat rooms, instant messaging, and social networking websites.
A. | marketer-to-consumer e-mail notification |
B. | government-to-marketer Do Not Spam monitoring |
C. | phishing and spamming whistleblowing |
E. | web-to-web customer exchanges |
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133. | The communication capabilities of Internet-enabled technologies take three forms: (1) marketer-to-consumer e-mail notification; (2) __________; and (3) consumer-to-consumer chat rooms, instant messaging, and social networking websites.
B. | government-to-marketer Do Not Spam monitoring |
C. | web-to-web customer exchanges |
D. | phishing and spamming whistleblowing |
E. | consumer-to-marketer buying and service requests |
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134. | The communication capabilities of Internet-enabled technologies provide consumer convenience, reduce information search costs, and make choice assistance possible. Communication also promotes
A. | consumer responsibility. |
B. | closer global alliances. |
D. | social responsibility. |
E. | courteous online dialogue. |
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135. | Websites that allow people to congregate online and exchange views on topics of common interest are referred to as
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136. | Web communities are
A. | online cooperative buying centers that allow individuals to purchase at the same bulk rate as large organizations. |
B. | customers linked by a common Internet service provider. |
C. | virtual reality games that allow players to create their own worlds, countries, towns, etc. |
D. | websites that allow people to congregate online and exchange views on topics of common interest. |
E. | all customers served by a particular firm who are sent regular e-mail sales notifications and coupons from the manufacturer. |
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137. | Coca-Cola hosts MyCoke.com that allows people to congregate online and exchange views on topics of common interest. This website is an example of
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138. | iVillage.com is a website for women that encourages its users to discuss health and beauty, parenting, personal finances, career management, and relationships. This website is an example of
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139. | An online forum where people can discuss a wide variety of subjects is referred to as
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140. | Blog refers to
A. | a private online forum centered on a specific topic or theme. |
B. | a running account of all purchases made at a single website. |
C. | an online forum where people can discuss a wide variety of subjects. |
D. | an itemized list of all website "hits" on an individual person including a short biographical summary. |
E. | a web network that works as a family tree linking all members of a group or organization. |
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141. | Spam refers to
A. | communications that take the form of electronic junk mail or unsolicited e-mail. |
B. | published private, secret, and/or classified e-mails from anonymous sources. |
C. | computer-generated e-mails that are self-directed and self-perpetuating. |
D. | a marketer-generated "cookie" whose sole purpose is to block a consumer from accessing competitors' websites. |
E. | any nonpersonal electronically generated message sent via the Internet. |
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142. | Communications that take the form of electronic junk mail or unsolicited e-mail are referred to as
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143. | In 2004, the __________ Act became effective and restricts information collection and unsolicited e-mail promotions on the Internet.
D. | Consumer E-Mail Solicitation |
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144. | Word-of-mouth behavior in marketspace is referred to as
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145. | In marketspace, buzz refers to
B. | twittering or tweeting. |
C. | word-of-mouth behavior. |
D. | firm-based viral marketing. |
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146. | Buzz is a particularly influential force. According to Jeff Bezos, president of Amazon.com, "If you have an unhappy customer on the Internet, he doesn't tell his six friends, he tells his __________ friends!"
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147. | Buzz is particularly influential for which of the following items?
A. | toys, pharmaceuticals, motion pictures, and consumer electronics |
B. | parenting, gardening, retirement funds, and health insurance |
C. | funeral services, cruises, foreign travel, and higher education |
D. | day care, silver-plating, restaurants, and road paving |
E. | tennis lessons, veterinarians, dance studios, and pressure washing |
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148. | Viral marketing refers to
A. | an embedded message that causes a pop-up screen to appear every time a user types in a specific word. |
B. | malicious malware that is used to create doppelgangers on competitors' websites. |
C. | a subversive program that automatically transfers viruses from one website to another. |
D. | an Internet-enabled promotional strategy that encourages individuals to forward marketer-initiated messages to others via e-mail, social networking, and blogs. |
E. | an online multilevel marketing promotion that awards participants based upon how many friends they "like" on personal social networking sites such as Facebook. |
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149. | An Internet-enabled promotional strategy that encourages individuals to forward marketer-initiated messages to others via e-mail, social networking, and blogs is referred to as
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150. | There are three approaches to viral marketing. Marketers can: (1) __________, (2) make the website content so compelling that viewers want to share it with others, and (3) offer incentives for referrals.
A. | embed a message in the product or service |
E. | use permission marketing |
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151. | There are three approaches to viral marketing. Marketers can: (1) embed a message in the product or service, (2) __________, and (3) offer incentives for referrals.
D. | make the website content so compelling that viewers want to share it with others |
E. | use permission marketing |
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152. | When Microsoft's Hotmail included the tagline, "Get Your Private, Free Email from MSN Hotmail" on each of the millions of e-mails it processed daily, it was using
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153. | Careerbuilder.com has made its Monk-e-mail site, which allows users to send personalized, private-themed e-cards for all occasions, so compelling that more than 100 million Monk-e-mails have been sent since 2006. Careerbuilder.com is using __________ to promote its services.
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154. | Some marketers offer incentives such as discounts, sweepstakes, or free merchandise. For example, Burger King in its Whopper Sacrifice campaign asked, "What do you love more, your friend or the Whopper?" Facebook users were asked to "unfriend" 10 people from their Facebook friends list in exchange for a free burger. Burger King is using __________ to promote its diamonds.
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155. | People who referred 10 friends to the Procter & Gamble website for Physique shampoo received a free, travel-sized styling spray and were entered in a sweepstakes to win a year's supply of the shampoo. The promotion generated 2 million referrals and made Physique the most successful new shampoo ever launched in the United States. To accomplish this, P&G used
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156. | The practice of changing prices for products in real time in response to supply and demand conditions is referred to as
C. | experience curve pricing. |
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157. | Which of the following pricing tactics would Ticketmaster use if it wanted to price sports and concert tickets based solely in response to supply and demand?
A. | yield management pricing |
B. | experience curve pricing |
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158. | Which of the following statements about cost and its impact on online shopping is most accurate?
A. | Dynamic pricing is commonly used online because there is no need to respond quickly to changes in supply and demand conditions. |
B. | The margins for online offerings are usually higher than those purchased in traditional marketplaces. |
C. | Any price advantage for online purchases is lost in shipping and handling fees. |
D. | Many of the most popular items bought online can be purchased at the same price or cheaper than in retail stores. |
E. | Dynamic pricing is the most commonly used pricing strategy for Internet purchases. |
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159. | Which of the following statements about cost and its impact on online shopping is most accurate?
A. | Dynamic pricing is commonly used online because there is no need to respond quickly to changes in supply and demand conditions. |
B. | The margin for online offerings is usually higher than those purchased in traditional marketplaces. |
C. | Dynamic pricing is the most commonly used pricing strategy for Internet purchases. |
D. | Any price advantage for online purchases is lost in shipping and handling fees. |
E. | Lower external information search costs is one of the major reasons for the popularity of online shopping. |
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160. | Dynamic pricing is typically used for pricing
A. | products and services that cannot be purchased in a retail store. |
B. | the very latest items such as new season fashions. |
C. | time-sensitive items such as airline seats. |
D. | high demand products or services. |
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161. | Out-of-date items such as last year's models of computer equipment and accessories are often priced using
A. | time-sensitive pricing. |
B. | real-time response pricing. |
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162. | Buying online gives consumers control over their shopping and
D. | purchase decision process. |
E. | ability to save online data. |
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163. | Because online shoppers seek information, evaluate alternatives, and make purchase decisions on their own time, they are
A. | spending more time shopping outside the home. |
B. | more cautious than other shoppers. |
C. | more informed and discerning shoppers. |
D. | less informed shoppers. |
E. | have more ability to save online data. |
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164. | Online consumers are called empowered consumers because
A. | products and services purchased online often cost less than in a retail store. |
B. | online shopping does not require that they fight traffic, find a parking space, walk long store aisles, and wait in line at checkout. |
C. | they can control their shopping and purchase decision process. |
D. | there are websites for almost any product or service they want. |
E. | they can engage in an electronic dialogue with marketers. |
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165. | Frank needs to buy a new car. Before visiting a showroom, however, he logs onto www.autobytel.com. Here, he can compare the attributes of various makes and models, find information about the prices of various option packages, and learn the manufacturer's suggested retail prices for different cars. After deciding on the car he wants to buy, Frank visits the local showroom and negotiates with the salesperson for the model and options package he wants. Because Frank is so informed about prices, he is able to make a deal that is several hundred dollars less than the salesperson's best offer. Frank's car-buying experience illustrates which reason consumers shop online?
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166. | Studies show that shoppers spend an average of __________ researching cars online before setting foot in a showroom.
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167. | What may be the seventh reason consumers shop and buy online?
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168. | Computer files that a marketer can download onto the computer and mobile phone of an online shopper who visits the marketer's website are referred to as
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169. | Cookies refers to
A. | computer files that a marketer can download onto the computer and mobile phone of an online shopper who visits the marketer's website. |
B. | embedded programs that flash split-second subliminal messages at regular intervals. |
C. | benign links that direct customers to alternate websites that might be of interest to them. |
D. | electronic unsolicited e-mail. |
E. | spyware used to secretly retrieve personal information from a person's computer. |
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170. | What is the technology called that allows a marketer's website to record a user's visit, track visits to other websites, and store and retrieve this information in the future?
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171. | What technology term would be used to describe the capability of capturing visitor information to a website such as expressed product preferences, personal data, passwords, and financial information, including credit card numbers?
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172. | Which of the following do cookies provide to improve a consumer's online buying and shopping experience?
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173. | Those people who object to cookies are most likely concerned with
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174. | Suppose you are designing a marketing website and you would like it to be as user-friendly as possible. You would like your website to recognize each customer by name every time he or she visits the website and to retrieve all the information about that customer automatically whenever he or she wishes to make a purchase. To achieve this goal, you would most likely use
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175. | The practice of using information provided by cookies for directing online advertising from marketers to those online shoppers whose behavioral profiles suggest they would be interested in such advertising is referred to as
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176. | Two major issues that contribute to consumers' hesitancy to use online shopping are
C. | computer knowledge and security. |
E. | quality and computer knowledge. |
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177. | A recent Pew Internet and American Life Project poll reported that __________ percent of online consumers have privacy and security concerns about the Internet.
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178. | According to the Federal Trade Commission, __________ percent of fraud complaints are Internet-related, costing consumers $560 million.
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179. | Self-regulatory efforts to respond to online consumers' concerns about privacy and security include
A. | eliminating the use of cookies on marketing websites. |
B. | prohibiting the collection of online consumers' personal and financial information. |
C. | awarding the TRUSTe trademark to companies that comply with privacy standards. |
D. | lobbying against the adoption of federal Internet privacy laws. |
E. | relying on the U.S. government to protect online consumer privacy. |
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180. | Which of the following statements regarding when and where online consumers shop and buy is most accurate?
A. | Eighty percent of online sales occur on weekdays. |
B. | The busiest online shopping day is Saturday. |
C. | Only 20 percent of consumers say they visit websites from their place of work. |
D. | Most people buy online when they are depressed. |
E. | Favorite websites for workday shopping and buying feature shoes or work attire. |
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181. | Which of the following statements regarding when and where online consumers shop and buy is most accurate?
A. | Twenty percent of online sales occur Monday through Friday. |
B. | The busiest online shopping day is Wednesday. |
C. | Favorite websites for workday shopping and buying include those featuring health and beauty items, and apparel and accessories. |
D. | Some 20 percent of consumers say they visit websites from work. |
E. | Most people buy online when they are depressed. |
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182. | Some __________ percent of online consumers say they visit websites from their place of work, which partially accounts for the sales level during the workweek.
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183. | Which of the following statements regarding when and where online consumers shop and buy is most accurate?
A. | Eighty percent of online sales occur on the weekends. |
B. | The busiest shopping day is Saturday. |
C. | Only 20 percent of consumers say they visit websites from their place of work. |
D. | Favorite websites for workday shopping and buying include those featuring event tickets, travel, and flowers and gifts. |
E. | Most people buy online when they are depressed. |
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184. | The online consumer who shops online but buys offline, or shops offline but buys online is referred to as a __________ consumer.
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185. | A cross-channel consumer is
A. | an online consumer who shops online but buys offline, or shops offline but buys online. |
B. | the online consumer who purchases a product online and then returns it to a retail store for store credit. |
C. | a consumer who e-mails or forwards a copy of a competitor's coupon to another firm in hopes that it will meet or beat the offer. |
D. | a consumer from one country who makes online purchases from a company in a different country. |
E. | when a consumer visits a retail store to inspect merchandise, but then purchases the merchandise. |
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186. | Cross-channel consumers who shop offline but buy online engage in ____________, which is the practice of examining products in a store and then buying them online for a cheaper price.
A. | multichannel retailing |
B. | multichannel searching |
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187. | Showrooming refers to
A. | areas in retail stores where point-of-purchase displays are used to show goods for sale. |
B. | an arrangement whereby a firm reaches different buyers by employing two or more different retail layouts and atmospherics for the same basic product. |
C. | competition among retail firms in different types of businesses but which sell the same product. |
D. | retailers that utilize and integrate a combination of traditional store formats and nonstore formats such as catalogs, television home shopping, and online retailing. |
E. | when shoppers visit a retail store to inspect merchandise, but then purchase that merchandise online, either from the store or one of its competitors. |
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188. | All of the following are motivators for showrooming except
A. | looking for online promotions or deals. |
B. | evaluating product displays in retail outlets. |
C. | obtaining merchandise information (features, benefits). |
D. | checking merchandise reviews and ratings. |
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189. | About __________ percent of U.S. online shoppers engage in showrooming.
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190. | __________ is when a shopper examines products online and then buys them in a store.
A. | Multichannel retailing |
B. | Multichannel marketing |
C. | Intertype retailer competition for customers |
E. | Intratype retailer competition for customers |
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191. | Cross-channel consumers who shop online but buy offline are engaging in
C. | inter-retailer shopping. |
E. | intratype retailer competition for customers. |
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192. | Cross-channel consumers who are motivated by price, avoiding shipping costs, immediate possession of a product, and easier returns are considered
A. | multichannel searchers. |
E. | to be challenging for multichannel retailers. |
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193. | The blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in the traditional marketplace and online is referred to as
A. | multichannel marketing. |
B. | strategic channel alliances. |
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194. | Multichannel marketing refers to
A. | selling the same product to the same customers under two distinct brand names. |
B. | selling the same product to the same customers at two different price points through two different distributors. |
C. | the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in the traditional marketplace and online. |
D. | the use of bots to find the best prices and make purchases from multiple websites simultaneously. |
E. | the blending of nonelectronic communication and delivery channels to counteract the power of online buying. |
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195. | Websites play a multifaceted role in multichannel marketing because they can serve as either a __________ or delivery channel.
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196. | Two general applications of websites exist based on their intended purpose: (1) __________ websites and (2) promotional websites.
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197. | Two general applications of websites exist based on their intended purpose: (1) transactional websites and (2) __________ websites.
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198. | Office Depot promises an exceptional online shopping experience, free delivery for purchases over $35, buy-online-collect in store, and a wide range of products available for purchase in the store. Office Depot is likely following __________ strategy.
B. | an interlocking marketing |
C. | a multichannel marketing |
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199. | A marketing manager for a décor and housewares company should carefully review the company's website because the shopping and buying path for cross-channel consumers indicates that company websites should
B. | focus on high-tech customers. |
C. | allow dual distribution. |
E. | encourage market penetration. |
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200. | A national retail store has leveraged its store, website, and catalog channels. The marketing director has calculated that a store customer who shops in all three channels—store, catalog, and website—spends four to eight times as much as a customer who shops in only one channel. The store is likely following __________ strategy.
D. | an interlocking marketing |
E. | a multichannel marketing |
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201. | A(n) __________ website is essentially an electronic storefront with the primary purpose of converting an online browser into an online, catalog, or in-store buyer.
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202. | Which of the following statements about transactional websites is not true?
A. | Transactional websites are most common among store and catalog retailers and direct selling companies. |
B. | Transactional websites can create channel conflict. |
C. | Transactional websites may cannibalize sales from stores, catalogs, and sales representatives. |
D. | Transactional websites often engage visitors with interactive experiences that involve games, contests, and quizzes. |
E. | Transactional websites are used less frequently by manufacturers of consumer products. |
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203. | Retailers and direct selling firms have found that their websites, while ___________ from stores, catalogs, and sales representatives, attract new customers and influence sales.
A. | also increasing sales volume |
C. | cannibalizing sales volume |
D. | creating unauthorized sales |
E. | creating excessive product returns |
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204. | Victoria's Secret, the well-known retailer of intimate apparel for women ages 18 to 45 reports that __________ of its website customers are __________, most of whom generate new sales volume for the company.
A. | 50 percent; women between the ages of 45 and 65 |
B. | 40 percent; teenagers from 13 to 17 |
C. | 30 percent; mature women 50 years and older |
D. | 25 percent; customers from rural communities |
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205. | A recurring issue for manufacturers with transactional websites is the threat of __________________ and the potential harm to trade relationships with their retailing intermediaries.
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206. | Manufacturers of consumer products use transactional websites less frequently than other firms because
A. | in some industries, this form of vertical integration is illegal. |
B. | there is a threat of channel conflict. |
C. | it is difficult to maintain inventory levels at online warehouses. |
D. | some stakeholders are opposed to websites that drain resources without providing any return on investment. |
E. | such websites require dynamic pricing, which is difficult to use if supply and demand conditions change frequently. |
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207. | When manufacturers market their product lines using transactional websites, they often
A. | cooperate with retailers. |
B. | run the risk of breaking anticompetitive laws, such as the Clayton Act. |
C. | keep their websites as simple as possible. |
D. | change their pricing strategy from a skimming to a penetration pricing strategy. |
E. | employ the services of Internet warehouses so they do not have to maintain title to the goods. |
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208. | A visitor to the Tupperware website, Tupperware.com, can select and buy products to be sent anywhere in the United States. This is an example of a __________ website.
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209. | Callaway Golf Co. markets its golf merchandise at www.callawaygolf.com but relies on a retailer close to the buyer to fill the order. The majority of retailers that sell Callaway merchandise participate in this relationship. Callaway does this in such a way
A. | to create competition with its intermediaries. |
B. | to create additional promotional opportunities for its partners. |
C. | to limit completion among its retail partners. |
D. | to not violate the relationship with trade partners, and thus avoiding channel conflict. |
E. | to create additional transactional opportunities. |
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210. | The principal difference between the two major types of websites is that promotional websites are designed to __________ while transactional websites __________.
A. | create portals; act as bots |
B. | convert online browsers into online buyers; promote a company's products and services |
C. | provide information about a company; move consumers closer to a purchase |
D. | move consumers closer to a purchase; provide information about a company |
E. | advertise and promote; convert online browsers into a buyer |
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211. | Websites designed to advertise a company's products and provide information on how items can be used and where they can be purchased are referred to as __________ websites.
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212. | Promotional websites generate interest in and trial of a company's products and services by
A. | providing access to human service representatives to assist in making purchases. |
B. | accommodating interactive communication initiated by a company's employees, investors, and suppliers. |
C. | converting online browsers into online buyers. |
D. | providing information on how items can be used and where they can be purchased. |
E. | obtaining information on customer preferences and buying habits. |
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213. | Websites designed to engage the visitor in an interactive experience involving games, contests, and quizzes with electronic coupons and other gifts as prizes would be referred to as __________ websites.
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214. | Which of the following statements about promotional websites is not true?
A. | Promotional websites can be used to support a company's traditional marketing channel. |
B. | Promotional websites provide information on how items can be used and where they can be purchased. |
C. | Promotional websites are effective in generating interest in and trial of a company's products. |
D. | Promotional websites can cannibalize sales. |
E. | Promotional websites advertise and promote a company's products and services. |
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215. | The Clinique Division of Estée Lauder, Inc., markets cosmetics through department stores. Clinique reports that 37 percent of noncustomers who visit its website later purchase a Clinique product at a department store. Clinique uses its __________ website to build customer relationships.
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216. | Hyundai Motor America reports that 80 percent of the people visiting a Hyundai store first visited the brand's website (www.hyundaiusa.com) and 70 percent of Hyundai leads come from its website. Hyundai uses this strategy because promotional sites are
A. | by far the cheapest means for Hyundai to reach potential customers. |
B. | much better than transactional sites at generating sales at Hyundai. |
C. | also transactional sites for Hyundai. |
D. | effective in generating interest in and trial of Hyundai's products. |
E. | suitable intermediary channels for Hyundai. |
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217. | The popularity of multichannel marketing is apparent in its growing impact on online retail sales. Multichannel marketers are expected to register about __________ percent of U.S. online retail sales in 2018.
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218. | Pizza Hut was a pioneer in the QSR industry. QSR is an acronym for
A. | quick serve restaurant. |
B. | quality service restaurant. |
C. | quality, service, and responsibility. |
D. | quantity service restaurant. |
E. | quality service review. |
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219. | Pizza Hut revolutionized the quick serve restaurant (QSR) world through __________ marketing approach that created a customer experience and a customer engagement platform that was second to none.
B. | a cross-channel consumer |
C. | a behavioral targeting |
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220. | Pizza Hut's most frequent customers divide into two categories: (1) __________ and (2) young adult males with active lifestyles.
A. | people returning home from work |
B. | families, primarily time-starved mothers |
C. | college students living on campus |
D. | men who watch sports on weekends |
E. | high school students on dates |
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221. | Pizza Hut's young adult males seek more of the food they love with __________ in the process.
B. | a hassle-free eating experience |
C. | a great social experience |
D. | less time and cash invested |
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222. | Pizza Hut's cost-conscious mothers look for a good quality product and __________. Deal-seeking young adult males seek more of the food they love with __________ in the process.
A. | nutritional value; coupons and extra servings |
B. | a hassle-free eating experience; less time and cash invested |
C. | the lowest price possible; a great social experience |
D. | time with their children; the best price possible |
E. | friendly environment; free, fast, and easy delivery |
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223. | Pizza Hut set out to reinvent the retail pizza business by breaking away from __________ platform to an efficient and powerful __________ platform by reaching into its customers' kitchens and couches to offer a better mealtime ordering, delivery, and dining experience.
A. | a transformational; promotional |
B. | a promotional; transactional |
C. | a transactional; customer engagement |
D. | an informational; transactional |
E. | a customer engagement; transactional |
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224. | Since promotions are an important expectation in pizza purchasing, Pizza Hut's __________ and __________ website design elements balance the ability to shop for a deal with quick and easy ordering access for people who arrive at PizzaHut.com ready to purchase.
B. | communication; context |
C. | commerce; customization |
D. | communication; connection |
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225. | Pizza Hut's website customization is achieved in several ways, but the primary utility is to
A. | speed up the delivery process. |
B. | offer the greatest selection. |
C. | offer the best value for the price. |
D. | create strong customer relationship. |
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226. | Pizza Hut's website customization is achieved in several ways, but the primary utility is to simplify ordering. For customers who have already registered, there are several personalization options, including rapid ordering called Express Checkout—a feature that's based on
A. | offering the greatest selection. |
B. | speeding up the delivery process. |
D. | offering the best value for the price. |
E. | creating a strong customer relationship. |
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227. | When Pizza Hut designed its marketing website, it wanted to make it as user-friendly as possible. In particular, it wanted its website to recognize each customer by name every time he or she visited the site to place an order. The website was designed to retrieve all the information about the customer automatically whenever he or she placed an order. To accomplish this task, Pizza Hut used a
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228. | Pizza Hut's website __________ are integrated with the company's overall communications programs—including traditional media—with product innovations, promotions, and special events shared across platforms.
B. | communication and context |
C. | commerce and customization |
D. | communication and connection |
E. | content and communications |
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229. | Pizza Hut realized that it did not make sense for it or its customers to create a community on the site. As a result, Pizza Hut tapped into __________ to achieve results in a very cost-effective manner.
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230. | Pizza Hut's 2009 program to identify a summer intern, or __________, responsible for monitoring and encouraging dialog on Twitter and other social media networks, is an example of how the brand is building on existing platforms and making effective use of the massive social marketing infrastructure.
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231. | Pizza Hut's management team uses a(n) __________ to monitor various aspects of the brand's marketing program and provide an almost constant stream of fresh information that it can use to optimize engagement with people or tweak various aspects of performance.
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232. | According to Ian Wolfman, Pizza Hut chief marketing officer, "Brands that thrive will be those, like Pizza Hut, that can efficiently build sustainable relationships with people—relationships that have both high __________ and high __________."
B. | levels of communication; brand awareness |
C. | customer loyalty; consumer expectations |
D. | customer interaction; product awareness |
E. | customer value; mutual respect |
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Short Answer Questions
233. | What is the marketspace?
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234. | Explain the four ways the marketspace creates value for consumers.
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235. | The greatest marketspace opportunity for marketers lies in its potential for creating form utility. Explain how form utility contributes to customer value through communication, customization, and choice.
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236. | What two unique capabilities of Internet technology promote and sustain customer relationships?
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237. | Define the customer experience from an interactive marketing perspective. List the seven website design elements that companies use to produce a customer experience. Which two of these design elements provide a platform for the other five?
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238. | How do online consumers differ from the general population? What three characteristics of online consumers make them an attractive market?
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239. | There are six general product and service categories that dominate online consumer buying today and for the foreseeable future. List them and give an example of each.
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240. | List the six reasons consumers shop and buy online.
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241. | Harley-Davidson is well known for the HOG or Harley Owners Group that it has developed. Harley-Davidson encourages owners to visit its website to find out about events, races, and membership chapters. The website visitor can play motorcycle-inspired games, plan motorcycle trips, and even investigate how to finance a bike. Visitors can view the entire line of bikes as well as find out where the closest dealer is located. You can contact Harley-Davidson by clicking on the "Contact Us" tab. The visitor can either create a wish list of Harley products and accessories or view another's list. Using the six reasons consumers shop and buy online, explain how Harley-Davidson uses the Internet to stay connected with its target market.
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242. | Define and explain the importance of the eight-second rule.
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243. | Define spam and viral marketing.
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244. | Explain why a majority of online consumers are concerned about the privacy and security issues related to cookies.
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245. | When John subscribed to a financial news publication online, the company told him that as a service it would be creating a cookie. Explain what the online publication did.
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246. | Explain what online companies are doing to address consumer worries about privacy and security when shopping online.
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247. | Define cross-channel consumer, and explain why they are important to marketers.
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248. | How are transactional and promotional websites different?
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249. | Describe two potential problems associated with transactional websites.
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250. | Explain how the Pizza Hut website uses the seven website design elements.
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