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Questions
Q:
List the six reasons why consumers shop and buy online.
Q:
There are six (6) general product and service categories that dominate online consumer buying today and for the foreseeable future. List them and give an example of each.
Q:
How do online consumers differ from the general population? What three characteristics of online consumers make them an attractive market?
Q:
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?
Q:
What two unique capabilities of Internet technology promote and sustain customer relationships?
Q:
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.
Q:
Explain how marketspace creates value for consumers in terms of the four utilities.
Q:
What is the marketspace?
Q:
According to Ian Wolfman, "Brands that thrive will be those, like Pizza Hut, that can efficiently build sustainable relationships with people - relationships that have both high __________ and high __________."
A. trust; transactions
B. levels of communication; brand awareness
C. customer loyalty; consumer expectations
D. customer interaction; product awareness
E. customer value; mutual respect
Q:
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.
A. Gantt chart
B. market-product grid
C. marketing dashboard
D. information screen
E. BCG matrix
Q:
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.
A. Trusttern
B. Twintern
C. Stutern
D. Brandtern
E. Blogtern
Q:
Pizza Hut realized that it did not make sense for the company 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.
A. LinkedIn
B. Facebook
C. Flicker
D. Pinterest
E. Twitter
Q:
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.
A. context
B. communication
C. commerce
D. connection
E. community
Q:
When Pizza Hut designed its website, it wanted to make easy and user-friendly; it wanted its website to recognize each customer. The website was designed to retrieve a repeat customer's address, telephone number, and payment options automatically whenever he or she placed an order. To accomplish this task, Pizza Hut used a __________.
A. cookie
B. portal
C. gopher
D. spider
E. bot
Q:
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. speed up the delivery process
C. saved preferences
D. offering the best value for the price
E. create strong customer relationship
Q:
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
E. simplify ordering
Q:
Since promotions are an important expectation in pizza purchasing, Pizza Hut's website design elements of __________ and __________ balance the ability to shop for a deal with quick and easy ordering access for people who arrive at PizzaHut.com ready to purchase.
A. context; content
B. communication; context
C. commerce; customization
D. communication; connection
E. content; community
Q:
Pizza Hut set out to reinvent the retail pizza business by breaking away from a(n) __________ 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. transformational; promotional
B. promotional; transactional
C. transactional; customer engagement
D. informational; transactional
E. customer engagement; transactional
Q:
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
Q:
Pizza Hut's young adult males seek more of the food they love with __________ in the process.
A. nutritional value
B. a hassle-free eating experience
C. a great social experience
D. less time and cash invested
E. friendly environment
Q:
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 and mothers with no time
C. college students living on campus
D. men who watch sports on weekends
E. high school students on dates
Q:
Pizza Hut revolutionized the quick serve restaurant (QSR) world through a(n) __________ marketing approach that created a customer experience and a customer engagement platform that was second to none.
A. interface
B. cross-channel shopper
C. behavioral targeting
D. symbiotic
E. multichannel
Q:
Pizza Hut was a pioneer in QSR. 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
Q:
The popularity of multichannel marketing is apparent in its growing impact on online retail sales. Multichannel marketers are expected to register about __________ of U.S. online retail sales in 2014.
A. 40%
B. 50%
C. 60%
D. 70%
E. 90%
Q:
OceanSpray.com has a website that describes the company's products. The website also includes nutritional information and recipes featuring Ocean Spray products. Since Ocean Spray products are available at nearly all supermarkets, there is no need to include dealer information. Ocean Spray uses a(n) __________ website.
A. choiceboard
B. conventional
C. transactional
D. promotional
E. intermediary
Q:
The Clinique Division of Este Lauder, Inc., markets cosmetics through department stores. Clinique reports that 37 percent of non-customers who visit its website later purchase a Clinique product at a department store. It is impossible to purchase the items from the website; rather Clinique uses its __________ website to build customer relationships.
A. conventional
B. transactional
C. promotional
D. transformational
E. customer conversion
Q:
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.
Q:
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.
A. promotional
B. conventional
C. intermediary
D. choiceboard
E. transactional
Q:
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.
Q:
Websites designed to advertise a company's products and provide information on how items can be used and where they can be purchased is referred to as __________ websites.
A. choiceboard
B. conventional
C. transactional
D. promotional
E. intermediary
Q:
The principal difference between the two major types of websites is that promotional websites are designed to __________ while transactional websites are designed to __________.
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. promote a company's products and services; convert online browsers into online buyers
Q:
Wolfermans.com is a website that sells delectable muffins, rich desserts, smoked turkeys, and other food attractively packaged and ready for gift-giving. All a visitor has to do is decide what to buy. Wolfermans.com is an example of a(n) __________ website.
A. intermediary
B. promotional
C. multichannel
D. direct sales
E. transactional
Q:
A visitor to proflowers.com can select and buy beautiful cut flower arrangements to be sent anywhere in the United States. This is an example of a __________ website.
A. portal
B. promotional
C. transactional
D. multichannel
E. direct sales
Q:
When manufacturers market their product lines using transactional websites, they often
A. cooperate with marketplace retailers to share fulfillment and sales.
B. run the risk of breaking anti-competitive 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.
Q:
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.
Q:
A significant threat arising from the introduction of an Internet channel and the potential harm to trade relationships with their retailing intermediaries is referred to as __________.
A. channel conflict
B. channel clash
C. channel chaos
D. channel divergence
E. channel discord
Q:
Retailers and direct selling firms have found that their websites, while cannibalizing sales volume from stores, catalogs, and sales representatives, attract new customers and influence sales. When Victoria's Secret, the well-known retailer of intimate apparel for women ages 18 to 45 created its website, it reported 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
E. 60 percent; men
Q:
One problem that can occur from the use of a transactional website is __________, even though marketers claim the number of new customers they attract to stores offsets this problem.
A. customer attrition
B. stickiness
C. cannibalization
D. unauthorized buzz
E. excessive product returns
Q:
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.
Q:
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.
A. multichannel
B. transactional
C. promotional
D. intermediary
E. direct selling
Q:
JCPenney has leveraged its store, website, and catalog channels. A JCPenney customer who shops in all three spends four to eight times as much as a customer who shops in only one channel. JCPenney is likely following a(n) __________ strategy.
A. dual distribution
B. market penetration
C. cross-functional
D. interlocking marketing
E. multichannel marketing
Q:
Eddie Bauer has leveraged its store, website, and catalog channels with impressive results. At Eddie Bauer, every effort is made to make the apparel shopping and purchase process for its customers the same as its retail stores, its catalog, and its website. An Eddie Bauer marketing manager says, "We don't distinguish between channels because it's all Eddie Bauer to our customers." Eddie Bauer is likely following a(n) __________ strategy.
A. cross-functional
B. interlocking marketing
C. dual distribution
D. multichannel marketing
E. market penetration
Q:
Office Depot has leveraged its store, website, and catalog channels with impressive results. The promotion of all three information and delivery channels indicates that Office Depot uses a(n) __________ strategy to assist the cross-channel shopper.
A. cross-functional
B. interlocking marketing
C. multichannel marketing
D. dual distribution
E. market penetration
Q:
Two general applications of websites exist based on their intended purpose: (1) transactional websites and (2) __________ websites.
A. cross-functional
B. financial
C. service-oriented
D. informational
E. promotional
Q:
Two general applications of websites exist based on their intended purpose: (1) __________ websites and (2) promotional websites.
A. transactional
B. financial
C. service-oriented
D. informational
E. cross-functional
Q:
Websites play a multifaceted role in multichannel marketing because they can serve as either a __________ or delivery channel.
A. cost
B. communication
C. choice
D. control
E. convenience
Q:
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 non-electronic communication and delivery channels to counteract the power of online buying.
Q:
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
C. dual-track reselling
D. dual distribution
E. retail segmentation
Q:
Sales arising from cross-channel shoppers dwarf exclusive online retail sales. Retail sales revenue from cross-channel shoppers today is estimated to be about __________ times greater than online retail sales.
A. two
B. three
C. five
D. seven
E. ten
Q:
The top reasons cross-channel shoppers research items online before buying in stores include: (1) the desire to compare products among different retailers; (2) the need for more information than is available in stores; and (3) the ease of __________.
A. reducing geographical barriers
B. finding new products that are soon to be launched in their area
C. finding products that are more customized to their exact needs
D. finding products that are out of season
E. comparing their options without having to trek to multiple retail locations
Q:
Recent research shows that __________ of U.S. online consumers are cross-channel shoppers.
A. 20%
B. 37%
C. 45%
D. 51%
E. 95%
Q:
A cross-channel shopper refers to
A. the online consumer who researches products online and then purchases them at a retail store.
B. the online consumer who purchases a product online and then returns it at 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. shoppers from one country who make online purchases from a company in a different country.
E. a shopper that visits a retail store to inspect merchandise, with the intention of purchasing the merchandise online.
Q:
The online consumer who researches products online and then purchases them at a retail store is referred to as a __________ shopper.
A. multi-retail
B. cross-channel
C. marketspace
D. clicks and bricks
E. Web 3.0
Q:
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.
Q:
Some __________ of online consumers say they visit websites from their place of work, which partially accounts for the sales level during the workweek.
A. 30%
B. 40%
C. 50%
D. 60%
E. 70%
Q:
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 10 percent of consumers say they visit websites from work.
E. Most people buy online when they are depressed.
Q:
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 10 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.
Q:
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.
Q:
According to the Federal Trade Commission, __________ percent of fraud complaints are Internet related, costing consumers $560 million.
A. 35
B. 46
C. 55
D. 64
E. 75
Q:
A recent Pew Internet and American Life Project poll reported that __________ percent of online consumers have privacy and security concerns about the Internet.
A. 15
B. 28
C. 34
D. 56
E. 76
Q:
Two major issues that contribute to consumers' hesitancy to use online shopping are __________.
A. quality and price
B. privacy and security
C. computer knowledge and security
D. price and privacy
E. quality and computer knowledge
Q:
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
A. viral marketing.
B. buzz.
C. data mining.
D. behavioral targeting.
E. spyware.
Q:
Suppose you are designing a marketing website and you would like it to be as user-friendly as possible. In particular, you do not want repeat customers to have to enter in their address, e-mail, telephone number, and credit card data every time they make an online purchase. Rather, 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 __________.
A. cookies
B. portals
C. spam
D. spiders
E. bots
Q:
Those people who object to cookies are most likely concerned with __________.
A. costs
B. privacy
C. spam
D. viruses
E. information overload
Q:
Which of the following do cookies provide to improve a consumer's online buying and shopping experience?
A. convenience
B. cost
C. choice
D. communication
E. customization
Q:
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?
A. spam
B. spiders
C. loggers
D. cookies
E. trackers
Q:
Cookies refer 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 a customer 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.
Q:
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 __________.
A. bots
B. cookies
C. spiders
D. spam
E. interstitials
Q:
Which of these may be a reason why consumers do NOT shop and buy online?
A. bots
B. buzz
C. spam
D. cookies
E. interstitials
Q:
Studies show that shoppers spend an average of __________ hour(s) researching cars online before setting foot in a showroom.
A. 1
B. 2
C. 6
D. 11
E. 26
Q:
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 well 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 why consumers shop online?
A. convenience
B. communication
C. customization
D. choice
E. control
Q:
Online consumers are considered 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.
Q:
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 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.
Q:
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. The majority 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.
Q:
Which of the following pricing tactics would Ticketmaster use if it wanted to price sports and concert tickets based solely in response to demand for the events?
A. yield management pricing
B. experience curve pricing
C. dynamic pricing
D. cost-plus pricing
E. skimming pricing
Q:
The practice of changing prices for products in real time in response to supply and demand conditions is referred to as __________.
A. dynamic pricing
B. virtual pricing
C. experience curve pricing
D. skimming pricing
E. elasticity pricing
Q:
All of the following are popular product categories for showrooming EXCEPT:
A. toys.
B. books.
C. apparel.
D. consumer electronics.
E. home appliances.
Q:
About __________ of U.S. online shoppers engage in showrooming.
A. 10%
B. 25%
C. 33%
D. 40%
E. 50%
Q:
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.
E. seeking lower prices.
Q:
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.