BAD 2610 Chapter 4 Practice

Choose the problem(s) that could probably not be overcome by B2B e-business. a. Increases in order processing errors b. Increases in purchasing costs c. Increases in order processing expenses d. Increases in global competition

Increases in global competition

Which of the following is NOT one of the challenges faced by online marketers and consumers? a.Information overload b.Fraud and scams c.Site design d.Safety of online payment

Information overload

Which of the following is not one of the three main drivers of consumer shopping online?

Less competitive pricing

Which of the following might improve the checkout process and increase the number of customers who complete a purchase using a company's website?

Offer free shipping

_________ marketing is implemented on a site that analyzes your previous purchases on that site, welcomes you back, and suggests other products you might like.

Personalized

Recognizing that fraud is a serious impediment to the growth of e-marketing, you bring in a speaker to educate your employees about the major types. Choose the topics you ask him or her to discuss. a.Phishing b.Smishing c.Vishing d.Drishing

Phishing

______ is/are a high-tech scam that uses/use e-mail or pop-up messages that claim to be from familiar business such as banks, Internet service providers, or even government agencies.

Phishing

Marketers who take advantage of the digital marketing capability known as integrated marketing benefit by ________ all promotional activities.

coordinating

Interactive marketing allows users to control the _______ they receive from marketers.

information

An extranet is a(n) ________ network used for e-marketing and accessible through the firm's website by _______ customers.

secure, external

Often shoppers who browse websites may select items and place them in the shopping cart. However, a large percentage of shoppers fail to follow through with the purchase and "abandon" their cart. Which of the following is NOT a reason why a shopper might abandon their cart? a.Poor product selection b.High shipping fees c.Website required customers to create an account d.Website was not secure

Poor product selection

What is the primary reason why online shopping is growing? a.Shifting consumer preferences b.Number of companies that are offering online shopping outlets c.Increased acceptance and use of smartphones d.Free shipping incentives

Shifting consumer preferences

Which of the following is an example of the "competitive pricing" advantage to online shopping? a.Use of bots to compare pricing such as using PriceGrabber.com b.Hidden costs related to product returns c.Shipping fees d.Lack of personal service

Use of bots to compare pricing such as using PriceGrabber.com

Which of the following is an example of the "access and convenience" advantage of online shopping?

Using an application via a smartphone to shop a firm's e-tailer website

B2B e-marketing is the use of the Internet for buying and selling among:

all kinds of organizations.

Personalization refers to the ability of an e-marketer to create products that meet customer:

specifications

As a social media marketing manager for a local community sponsored agriculture program where members receive weekly boxes of fresh produce, you are testing two different campaigns to determine which one is most effective and profitable for your business. Campaign #1 generated a conversion rate of 7% with a cost-per-click of $1.25, whereas Campaign #2 generated a conversion rate of 6% with a cost-per-click of $1.15. Calculate the conversion cost for Campaign #1.

$17.86

As a social media marketing manager for a local community sponsored agriculture program where members receive weekly boxes of fresh produce, you are testing two different campaigns to determine which one is most effective and profitable for your business. Campaign #1 generated a conversion rate of 7% with a cost-per-click of $1.25, whereas Campaign #2 generated a conversion rate of 6% with a cost-per-click of $1.15. Calculate the conversion cost for Campaign #2.

$19.17

Which of the following statements is TRUE regarding B2B e-commerce? a.B2B e-commerce revenues are more than double the amount generated in B2C businesses. b.B2C companies generate greater sales through online transactions than B2B firms. c.B2B firms rely most on personal, face-to-face selling rather than Internet selling since e-commerce is less efficient. d.Companies in the B2B setting prefer personal relationships rather than the impersonal nature of doing business via the Internet.

B2B e-commerce revenues are more than double the amount generated in B2C businesses.

Which of the following is TRUE regarding conversion cost? a.Companies should seek to obtain the lowest possible conversion cost. b.Conversion cost measures the percentage of users that click on an ad. c.Conversion cost is calculated by dividing ad clicks by ad impressions. d.Companies should seek to obtain the highest possible conversion cost.

Companies should seek to obtain the lowest possible conversion cost

Which of the following is FALSE regarding the conversion rate? a. Conversion rates measure the number of people who have previously visited a site and then return to that site. b. Conversion rates measure the percentage of visitors to a site who make a purchase. c. A higher conversion rate is better than a lower conversion rate. d. Conversion rate is a critical measure of e-commerce effectiveness.

Conversion rates measure the number of people who have previously visited a site and then return to that site

Marketers often utilize metrics to determine their website's effectiveness. Which of the following best characterizes engagement? a.The amount of time users spend on a site b.The number of purchases a visitor makes c.The number of unique visitors to a site d.The number of clicks to reach the checkout page

The amount of time users spend on a site

Which of the following statements is TRUE regarding conversion rate? a.The higher the conversion rate, the better. b.Lower conversion rates are desired. c.Conversion is a measure of engagement. d.Conversion is calculated as # site visitors/# of purchases.

The higher the conversion rate, the better

The number of people visiting a website who make a purchase is referred to as:

conversions

Internet companies display the TRUSTe logo on their websites to indicate their promise to:

disclose how they collect personal data.

Pete's Plumbing uses its website to target customers and promote its plumbing repair services. The firm is engaged in:

e-business

Today's shoppers are more comfortable purchasing products online if the website utilizes _____ to protect their personal banking or credit card details.

encryption

Most websites such as American Eagle's www.ae.com use a variety of metrics to determine the effectiveness of their e-commerce site. For example, _____ is determined by tracking how much time a visitor spends on the site as well as the specific pages viewed.

engagement

Your luxury handbag store just launched its first marketing website, but online sales are disappointing. An expert in assessing the effectiveness of websites discovered that many people take a quick look at the site, but few spend enough time to learn about your products and the discounts that make them affordable. In measurement terms, this is a problem with:

engagement

Caleb works in marketing with a large chemical manufacturer and has hired a consultant who will conduct a customer satisfaction study of its customers. The consultant will utilize a web-based survey to gather information and insight from the chemical company's customers but needs a way to contact the customers to invite them to participate. Since the chemical company uses a(n) ______, Caleb can access the system and obtain a listing of all customers including their names, position, company, address, and e-mail that he can then provide to the consulting company for the project.

intranet

You work for a retailer with stores in 20 countries. It is a constant challenge to keep far-flung managers connected to each other, and store employees around the world apprised of product news and information. Which online tool would help the company address these issues?

intranet

Christina enjoys shopping online at Buckle.com and when she signs in to her account, a list of new items appears with the heading, "recommended for you." The Buckle utilizes the information from Christina's past purchases and browsing history to recommend new products that match her interests or styles. This "recommended for you" feature is an example of the _____ advantage of online shopping.

personalized service

Jackie was recently shopping on Zappos.com for shoes and clothing and while she was on the website, she noticed a pop-up feature with the words, "Can I help?" Jackie closed the window because she wasn't interested in interacting with anyone at Zappos during this particular shopping trip. This is an example of _____, an advantage of online shopping.

personalized service

When Barbara returned to the website where she ordered shoes last month, the home page showed the message "Welcome, Barbara!" and offered new footwear based on the styles, colors, and sizes she had previously bought. Barbara experienced:

personalized service.

Cynthia received an e-mail from the "IT Director" of her business with instructions to click on a link within the e-mail to change her password to continue access to her e-mail. Cynthia was worried about _____ so she contacted her company's computer support desk by phone to inquire about the message.

phishing

A firm that sells lighting fixtures to theaters and sports stadiums uses a website to share purchasing information and other e-marketing data with its suppliers of electrical parts. This site is known as a:

private exchange

A secure website used by companies to share all types of data related to e-marketing with its suppliers is a:

private exchange

John owns a custom fabrication and classic car renovation business and orders parts from a variety of suppliers. He typically receives 10 or more e-mails from his suppliers with offers to save 10% or more on his next purchase and/or discounts if his purchase exceeds $150 or more. These e-mail offers are an example of the _______ factor to influence e-commerce success.

revenue maximization

Office Max often offers special discounts to save $25 on orders over $100, which are placed via the website store and uses e-mail promotional messages to alert customers to the special offer and entice them to purchase online. Office Max knows that ________ is a key factor that influences the success of their e-commerce.

revenue maximization

To better compete with airlines, some bus companies let customers make advance reservations, buy tickets, and check for traffic delays online. Their websites also notify customers of route changes due to weather. These bus companies are engaged in:

right-time marketing.

Based on a recent promotion for Zuilily.com, 8500 people visited the website and 1700 registered to create an account and receive promotion e-mail messages from the company. The promotion utilized Facebook to attract potential customers to Zuilily.com and the average cost-per-click was $0.75. Based on this promotion, how much did Zuilily spend to attract one customer?

$3.75

Brady is the social media marketing manager with a local company and manages their online activities as well as tracks the effectiveness of its marketing activities. The company recently sponsored an advertisement on Facebook, which received 9000 impressions and resulted in 980 visitors to its website. Using this information, calculate the click-through-rate (CTR).

10.89%

ased on a recent promotion for Zuilily.com, 8500 people visited the website and 1700 registered to create an account and receive promotion e-mail messages from the company. Based on the promotion and outcomes, the conversion rate can be calculated as:

20%.

Jessica is a social media analyst with a company that recently launched a new product. She worked with the web designers and IT staff to create two different landing pages in a test to determine which one is more effective. The IT staff programmed the website to randomly vary whether visitors to the page saw design #1 or design #2. The website launched a few months ago and Jessica is now analyzing the data to determine which design is more effective. Design #1 data shows that 2500 people visited the page and of those, 95 people purchased the item, whereas Design #2 resulted in 3000 visits with 140 people making a purchase. What is the conversion rate for Design #2?

4.7%

Which of the following is the correct formula to calculate the click-through-rate? a. Ad clicks/ad impressions b. # pages visited/amount of time on site c. # purchases/# of visitors to site d. Cost-per-click/conversion rate

Ad clicks/ad impressions

What type of software enables companies to track visitors to their website as well as identify the source of traffic such as a search engine, online ad, or social media post?

Analytics

Brandon recently visited a local CarMax website to view the available sport utility vehicles for sale. However, after a few minutes of using the filter options to select brands and mileage of vehicles, he left the website since it took too long to load. What factor should the local CarMax focus on based upon Brandon's experience to enhance its e-commerce success?

user experience

Carla just heard about an upscale fashion retailer TheRealReal.com and was interested in browsing the site. She went to the website but discovered she couldn't browse the site without first setting up an account. She left the site and was frustrated with the company. This example suggests that TheRealReal.com should examine their _______, a factor that contributes to e-commerce success.

user experience

Kohl's recently redesigned its website by providing more white space, eliminating clutter, and enabling faster loading speeds. Kohl's is trying to improve the _____, a factor that influences the success of e-commerce.

user experience

Sophia is using the Internet to research prospective colleges and learn about their degree programs. She has noticed that some of the websites are very easy to access and she can easily find information about courses and requirements for graduation. However, other websites are more difficult to navigate and if she can't easily find what she's seeking, she gets frustrated and leaves the site. Sophia's experiences with college websites relates most specifically to _______, a factor that influences e-commerce success.

user experience

E-business is using the _______ to provide services to customers and communicate with employees and business partners.

Internet

Students enrolled at your college received emails that seemed to come from the campus housing office. The emails claimed that recipients would be barred from their dormitories unless they immediately replied with their bank account numbers. These students experienced:

phishing.

As a social media marketing manager for a local community sponsored agriculture program where members receive weekly boxes of fresh produce, you are testing two different campaigns to determine which one is most effective and profitable for your business. Campaign #1 generated a conversion rate of 7% with a cost-per-click of $1.25, whereas Campaign #2 generated a conversion rate of 6% with a cost-per-click of $1.15. Which of the following is TRUE regarding the two campaigns and/or effectiveness of the marketing programs? a.Campaign #1 is more effective. b.Campaign #2 is more effective. c.Companies should only consider the conversion ratios when analyzing effectiveness. d.Campaign #1 is more expensive.

Campaign #1 is more effective.

Brandon was viewing his Instagram newsfeed and noticed a sponsored advertisement from Ford for a new truck model. He thought it looked great and followed the ad link to learn more about the truck. Ford and other e-commerce marketers utilize metrics to determine the success of their efforts. Which metric would help Ford understand the effectiveness of the Instagram advertisement for the new truck?

Click-through-rate

You've recently been working as a social media intern with a local company and managing their online activities as well as tracking the effectiveness of its marketing activities. The company recently sponsored an advertisement on Facebook, which received 4000 impressions and resulted in 600 visitors to its website. Using this information, which metric could be utilized to determine the effectiveness of the sponsored advertisement?

Click-through-rate

Tabitha is a consultant with Ever skincare and uses social media to market the products to her customers. She's always trying to expand her reach and since she has a Facebook business page as well as a private Facebook group page, she is considering sponsoring an advertisement or sponsored post to attract new customers. Tabitha conducted some research and discovered that Facebook utilizes the CPC method for selling online ads. CPC is an acronym which represents

Cost-per-click

Mitch is an Amazon Prime customer and loves the range of products that he can purchase from Amazon—whether dog food, books, auto parts, or clothing—he can find virtually anything from Amazon. This example highlights _____, one of the factors that contributes to the Amazon's success as an e-commerce business.

product offering

One factor relating to a company's website success is the ability to offer detailed descriptions, attractive and accurate product photos, and customer reviews. This factor is:

product offering.

Jessica is a social media analyst with a company that recently launched a new product. She worked with the web designers and IT staff to create two different landing pages in a test to determine which one is more effective. The IT staff programmed the website to randomly vary whether visitors to the page saw design #1 or design #2. The website launched a few months ago and Jessica is now analyzing the data to determine which design is more effective. Design #1 data shows that 2500 people visited the page and of those, 95 people purchased the item, whereas Design #2 resulted in 3000 visits with 140 people making a purchase. Which of the following is TRUE based on the information provided?

Jessica should recommend Design #2

Which of the following is NOT one of the reasons why a customer might abandon his or her shopping cart before checking out when shopping via a website? a.Takes too long for web pages to load b.High shipping costs c.Hassle of creating an account d.Concern about the safety and security of the website

Takes too long for web pages to load

Why would marketers be more interested in identifying the number of unique visitors to their website rather than the total number of visitors to a site? a.The number of unique visitors provides a more accurate measure of potential revenue. b.The number of unique visitors indicates the proportion who can be converted to purchasers. c.The number of unique visitors is always higher than the total number of visitors to a site. d.The number of unique visitors includes those who visited a site multiple times.

The number of unique visitors provides a more accurate measure of potential revenue.

Which of the following is TRUE regarding click-through-rates? a.The percentage of people presented with an online ad who click on it b.The number of clicks necessary to search for information on a search engine c.The percentage of visitors to a website who make purchases d.The number of ads delivered to a user on a search engine per query

The percentage of people presented with an online ad who click on it

You recently gave a talk about extranets to a trade association. An attendee asked you to address the relationship between extranets and private exchanges. What statement(s) did you make? a.Private exchanges are the next generation of extranets. b.Like extranets, private exchanges are secure. c.Private exchanges are more collaborative than typical extranets. d.Private exchanges are less collaborative than typical extranets.

a. Private exchanges are the next generation of extranets. b.Like extranets, private exchanges are secure. c.Private exchanges are more collaborative than typical extranets.

Marco has a new iPad and is enjoying the opportunity to access his Amazon.com and eBay account via the proprietary app for the iPad. He thinks it's great that the app remembers him and he doesn't have to re-enter his information when making purchases since it links to his personal account. Marco is appreciating the _____ advantage of online shopping

access and convenience

Peter was shopping one of his favorite websites for clothing—Boden.com—and was reading customer reviews on a sweater he was thinking of purchasing. The product was rated a 4.2 out of 5 but several customers mentioned that the fit of the sweater was not true to size and that the material was a little itchy. Although he liked the sweater, based on the reviews, he decided not to purchase the item. This example demonstrates the _______ advantage of online shopping.

access and convenience

Choose the benefit(s) of digital marketing unrelated to its global reach. a. Ability to communicate with customers anywhere in the world b. Capacity to overcome cultural barriers between nations c. Power to insulate national economies from events outside their borders d. Ability to use a single language, English, to communicate with world markets

b.Capacity to overcome cultural barriers between nations c.Power to insulate national economies from events outside their borders d.Ability to use a single language, English, to communicate with world markets

Many Internet companies now promise to disclose how they collect personal data and what they do with it. The main goal of these promises is to:

build customers' trust.

E-business describes all of the following transactions except: a.those taking place via email. b.those taking place via virtual shopping carts. c.business-to-business exchanges via email. d.business-to-business exchanges over $1 in value.

business-to-business exchanges over $1 in value

As a category, conflicts among manufacturers, wholesalers, and retailers are known as ________ conflicts.

channel

The luxury watch brand Movado is sold by many high-end jewelry stores. If the watchmaker decided to bypass these retailers and sell its products directly to customers online, Movado would probably create a(n):

channel conflict.

One problem affecting the success of e-commerce sites is that customers often abandon their shopping cart and don't follow through with the transaction to make a purchase. This issue relates to _____, a factor that contributes to the success of e-commerce sites.

checkout process

Rafael was planning a trip to Las Vegas for his best friend's bachelor party weekend and was using Hotel.com to research lodging options. While he was shopping on Hotel.com, he was also offered the opportunity to view listings on Expedia.com and Trivago.com. Rafael clicked on a few selections and then could identify the most competitive rate options across the various websites. This highlights the _____ advantage of online shopping.

competitive price

At the Toyota plant in Kentucky, suppliers such as Exide Technologies who provide batteries for the auto maker must utilize a(n) _______, a direct, computer-to-computer system to share updates about product quantities and delivery dates that allow Toyota to leverage their just-in-time manufacturing system to control costs and improve efficiencies.

electronic data interchange

Encryption is the process of _______ data for security purposes.

encoding

Julie is an office manager at a pediatrics clinic affiliated with a major hospital. Since the hospital has a corporate account with Office Max, the hospital purchasing agents and affiliated health care offices can purchase office supplies directly from Office Max using a special portal that Office Max created for them. Employees simply log-in with their credentials and are given special pricing based on the corporate account. The "special portal" provided by Office Max is known as a(n):

extranet

Digital marketing offers unique opportunities to reach customers. Among them is the opportunity for a business in the United States to easily promote its products to target audiences in Europe and Asia. This reflects the digital marketing benefit known as:

global reach.

A not-for-profit raising funds for cancer research invites donors to suggest new ideas on its website for fundraising events or concepts. Users can also sign up to receive regular updates about how much the group has raised toward its fundraising target. This not-for-profit is engaged in:

interactive marketing