Management Science 590 - Chapter 06
What is marketing analytics software used for?
-help business managers optimize the return on investment by building a detailed understanding of how consumers behave when visiting their Web sites -help analyze where customers come from, what they do on the site, and which content is most appealing, as well as, -how users shop, add to their shopping cart, and whether they abandon their shopping cart.
View-through rate measures the ________ response rate to an ad
30-day
In the first 7 months of 2015, the percentage of all e-mail that is spam is averaged around _______%.
50
For a Web site that has 100,000 visitors a month, and where on average a visitor makes five page requests per visit, there will be _______ entries in the transaction log each month.
500,000
IN 2015, what was the approximate Internet penetration rate for individuals that have attained less than a high-school education?
66%
Around ________% of households in the United States have broadband access to the Internet.
75
Online buyers constitute approximately ________% of the online Internet audience.
75
Flash Marketing
A marketing technique that involves merchants offering products or services for a very low price for a short period of time.
Sponsorship
A paid effort to tie an advertiser's name to information, an event, or a venue in a way that reinforces its brand in a position yet not overly commercial manner.
All of the following are online communications that are used to support the evaluation of alternatives stage of the consumer decision process except: Search Engines Online Catalogs Social Networks Targeted Banner Ads
Targeted Banner Ads
Search Engine Optimization (SEO)
Techniques to improve the ranking of Web pages generated by search engine algorithms.
Lead Generation Marketing
Uses multiple e-commerce presences to generate leads for businesses who later can be contacted and converted into customers.
Probabilistic cross-device tracking uses algorithms to analyze what?
analyze thousands of anonymous data points, such as device type, operating system, and IP address, to create a possible match
What measures the percentage of customers who purchase once but never return within a year?
attrition rate
Affiliate Marketing
Commissions paid by advertisers to affiliate Web sites for referring potential customers to their Web site.
CAN-SPAM prohibits unsolicited e-mail (spam).
False
Native advertising is a anew form of advertising found only online.
False
Native advertising that is displayed on a social media site is a primary source of ad fraud?
False
Research found that of all standard formats of display ads, leaderboard ads are the most effective at getting and holding a user's attention.
False
Search engine advertising is the fastest growing type of online advertising.
False
The Internet has decreased the impact of brands.
False
The concept of "customer satisfaction" is broader than the concept of "customer experience."
False
The data typically stored in cookies includes a unique ID and e-mail address.
False
The free pricing strategy was born in the early days of the Web.
False
The highest amount of online advertising spending is for online video ads.
False
The majority of online shoppers find vendors by clicking on display ads.
False
Big Data is produced in smaller quantities and much more rapidly than traditional data collection mechanisms
False; produced in larger quantities
Ad Blockers operate in a manner very similar to which of the following? Anti-virus software Firewalls Flash cookies Anonymous browsing
Firewalls
Which of the following is not one of the four main method advertisers use to behaviorally target ads? Nielsen Ratings Data collected from social networks Integration of online data with offline data Clickstream Data
Nielsen Rating
Bundling
Offers consumers two or more goods for a reduced price.
What did Google introduce in 2011 that made changes to its search algorithm as to weed out low quality sites from search results?
Panda
Purchasing an online ad on a CPA basis means that the advertiser:
pays only for those users who perform a specific action, such as registering, purchasing, etc.
Conversion rate is a measure of the:
percentage of visitors who become customers.
Which of the following is based on the idea of complete price transparency in a perfect information marketplace? the Law of One Price dynamic pricing price discrimination versioning
the Law of One Price
The Nike iD program is an example of which marketig technique?
customer co-production
What are two methods being developed to track consumers across devices?
deterministic cross-device tracking and probabilistic cross-device tracking
Cross-platform attribution
involves understanding how to assign appropriate credit to different marketing initiatives on a variety of platforms that may have influenced a consumer along the way to an ultimate purchase
Why are marketers interested in big data?
it can be mined for patterns of consumer behavior and contain more interesting anomalies than smaller data sets, with the potential to provide new insights into customer behavior, weather patterns, financial market activity, or other phenomena
In modeling online consumer behavior, the concept of "consumer skills" refers to the:
knowledge consumer have about how to conduct online transactions
The customer profiles generated by a CRM can include:
map of the customer's relationship with the firm, the products he or she has bought and the frequency of purchases, the demographic and psychographic profile for each customer, profitability measures, a complete contact history, and marketing and sales information containing marketing campaigns that the customer received and the customer's responses to them
The incremental cost of building the next unit of a good is called the:
marginal cost
Page Views
measures the average length of stay at a Web site
Hits are a measure of the:
number of HTTP requests.
Impressions are a measure of the:
number of times an ad is served
All the following are among those most frequently affected by ad-blocking except: gaming sites newsgroups/forums social network sites online retailers
online retailers
eCPM measures the ROI of an ad by dividing the total earnings of the ad by:
the total number of impressions in thousands
Why is cross-platform attribution difficult?
there is a lengthy path from simple online ad impressions, Web site visits, and page views to the purchase of a product.
Recency refers to the:
time elapsed since the last visit made by a customer.
If you want to determine the size of your Web site's audience, the metric you will use for the most accurate measurement will be:
unique visitors
Which of the following features of e-commerce technologies has reduced the cost of delivering marketing messages and receiving feedback from users? ubiquity richness information density universal standards
universal standards
Creating multiple variations of information goods and selling these to different market segments at different prices is called:
versioning
All of the following are fixed price strategies except: bundling versioning free pricing yield management
yield management
Transaction log data becomes more useful when it is combined with registration form data and shopping cart data.
True
Transaction logs are built into Web server software.
True
Amazon's Associates program is an example of which of the following? Viral Marketing Local Marketing Affiliate Marketing Lead Generation Marketing
Affiliate Marketing
Programmatic Advertising
Automated, auction-based method for matching demand and supply for online display ads.
What are the six major processes for the Consumer Decision Process?
Awareness Search Evaluation of Alternatives Purchase Post-Purchase Loyalty
How are blogs being used for marketing?
Blogs are ideal platforms for ads for many products and services that cater to this kind of audience. They are based on the personal opinions of the writers, and an ideal platform to start a viral marketing campaign.
Customization
Changing the product, or just the marking message, according to user preferences.
Which of the following online advertising formats attracted the least amount of spending in 2015? Search Classifieds Rich Media E-mail
What search engine algorithm enables Google's search engine to evaluate an entire sentence rather that just a key word?
Hummingbird
Information Density
Is a feature of e-commerce technology that allows fine-grained, highly detailed information on consumers' real-time behavior to be gathered and analyzed.
SQL
Is an industry-standard database query and manipulation language.
The richness made possible by e-commerce technologies does what?
It allows video, audio, and text to be integrated into a single marketing message and consuming experience.
Interstitial Ad
It places a full-page message between the current and destination page of a user.
What are the four main types of video ads?
Linear, Nonlinear, In-banner, and In-text.
What type of online advertising is expected to grow the fastest between 2015 and 2019?
Rich Media
How do Web transactions work in combination with registration forms, shopping cart databases, and tracking files to help firms understand how customers behave online?
The data from transaction logs, registration forms, and the shopping cart database can also be combined with other information that users submit on product forms, contribute in chat rooms, or submit via e-mail messages to a firm to produce a veritable treasure trove of information for both individual merchant sites and for the industry as a whole.
Which of the following statements about Canada's anti-spam law is not true? Canada's law is based on an opt-in model. The law has not impact on companies located within the US. The first phase of the law went into effect in 2014. The law applies to e-mail, texts, an social media messaging.
The law has no impact on companies located within the US.
Dynamic Pricing
The price of the product varies, depending on the demand characteristics of the customer and the supply situation of the seller.
Viral Marketing
The process of getting customers to pass along a company's marketing message to friends, family, and colleagues.
What are Web transaction logs?
Transaction logs, which are built into Web server software, record user activity at a Web site
Research shows that the two most important factors shaping the decision to purchase online are utility and trust.
True
An ad is considered viewable if half of the ad can be viewed for at least two consecutive seconds.
True
Consumers choose the online channel primarily because it offers lower prices.
True
Consumers tend to look at native ads more frequently than they look at display ads.
True
Cookies, when combined with Web beacons, can be used to create cross-site profiles.
True
Customer Relationship Management Systems (CRMs) use database technology with capabilities for assessing the needs of individual customers and differentiating products to meet those needs.
True
Evidence suggests that real-time customer chat increases the dollar value of transactions.
True
Free products and services can knock out potential and actual competitors.
True
In the early years of e-commerce, prior to 2000, single, white, young college-educated males with high income dominated the Internet in terms of percentage of Internet usage.
True
Lead generation marketing firms specialize in inbound marketing.
True
Online traffic is driven by offline brands and shopping.
True
Probabilistic cross-device tracking is less accurate than deterministic matching
True
Social Search is not a practice that degrades the results and usefulness of search engines?
True
CRM system
a repository of customer information that records all of the contacts that a customers has with a firm and generates a customer profile available to everyone in the firm with a need to know the customer.
Marketing analytics software
a software package that collects, stores, analyzes, and graphically presents data on each of the stages in the conversion of shopper to customer process on e-commerce sites
A Web beacon is:
a tiny graphics file embedded in an e-mail or Web page.
Which of the following is the most important tool in establishing a relationship with the customer? company Web site company CRM system Facebook search engine display ads
company Web site
What measures the percentage of e-mails that could not be delivered?
bounce-back rate
What measures the ratio of items purchased to product views?
browse-to-buy ratio
What is the most meaningful metric for video ads?
completion rate
Google's AdSense is an example of which of the following? context switching SEO programmatic advertising viral marketing
context switching
Uber has been criticized for using which of the following? flash marketing bundling surge pricing freemium
surge pricing
Acquisition rate is a measure of the:
percentage of visitors who indicate an interest in a site's products by registering or visiting a product's pages.
To answer a question such as "At what time of day does our company sell the most products?" you would use _________ data mining.
query-driven
Big Data
refers to very large data sets in the petabyte and exabyte range-in other words, billions to trillions of records, often from different sources
What does deterministic cross-device tracking rely on?
relies on personally identifiable information such as e-mail address used to log into an app and Web site on different devices
Which of the following industries accounts for the highest percentage of spending on online advertising? financial services retail automotive entertainment
retail
All the following are "traditional" online marketing tools except: affiliate marketing e-mail and permission marketing social marketing sponsorship marketing
social marketing
