Chapter 15 Global Marketing and the Digital Revolution

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83) One factor driving mobile ads in ________ is the low rates that subscribers pay.A) IndiaB) South KoreaC) SudanD) JapanE) Indonesia

: A: 2: ModerateChapter LO: 15.6: Identify the most important new products and services that have been introduced in the past decade.AACSB: Information technology

2) Facebook, Google, Pinterest, Twitter, and Wikipedia represent which element of the marketing mix?A) priceB) productC) placeD) promotionE) people

: B: 1: EasyChapter LO: 15.1: List the major innovations and trends that contributed to the digital revolution.AACSB: Information technology

4) In the 1950s, which company used transistor technology licensed from Bell Labs to develop the transistor radio?A) NokiaB) SonyC) PanasonicD) RCAE) Sanyo

: B: 1: EasyChapter LO: 15.1: List the major innovations and trends that contributed to the digital revolution.AACSB: Information technology

9) An Internet site's address on the World Wide Web is a(n):A) HTML.B) HTTP.C) URL.D) WWW.E) HTTPS.

: B: 1: EasyChapter LO: 15.1: List the major innovations and trends that contributed to the digital revolution.AACSB: Information technology

1) The new user interface that has the potential to replace our phones, TVs, and desktop computers is described by all of the following terms except:A) virtual reality.B) interface reality.C) mixed reality.D) personal reality.E) preferred reality.

: B: 2: ModerateChapter LO: 15.1: List the major innovations and trends that contributed to the digital revolution.AACSB: Information technology

46) According to Christensen's five principles of disruptive innovations, the following statement is not true:A) companies depend on customers and investors for resources.B) small markets solve the growth needs of large companies.C) markets that don't exist can't be analyzed.D) an organization's capabilities define its disabilities.E) technology supply may not equal market demand.

: B: 2: ModerateChapter LO: 15.3: Define value network and explain the differences between sustaining technologies and disruptive technologies.AACSB: Information technology

79) ________-commerce is one of the significant marketing opportunities made possible by the digital revolution.A) MultinationalB) MobileC) MultisegmentD) Marginal-costE) Multilingual

: B: 2: ModerateChapter LO: 15.6: Identify the most important new products and services that have been introduced in the past decade.AACSB: Information technology

84) Bluetooth mobile communication technology has all of the following advantages over Wi-Fi except one:A) Bluetooth is well suited for use with cell phones.B) Bluetooth works over shorter distances than Wi-Fi.C) Bluetooth consumes less power than Wi-Fi.D) Bluetooth can handle data as well as voice.E) Bluetooth technology has been incorporated into automobiles.

: B: 2: ModerateChapter LO: 15.6: Identify the most important new products and services that have been introduced in the past decade.AACSB: Information technology

26) ________ is the term that refers to the merging of different industries such as computers, photography, and motion pictures.A) Value networksB) ConvergenceC) Disruptive technologyD) TelematicsE) Agnostic marketing

: B: 3: ChallengingChapter LO: 15.2: Define "convergence" and give an example.AACSB: Information technology

3) The integrated circuit and the concept of binary code permitted the development of the:A) transistor.B) radio.C) personal computer.D) smartphone.E) SMS.

: C: 1: EasyChapter LO: 15.1: List the major innovations and trends that contributed to the digital revolution.AACSB: Information technology

57) The top Digital Agency Network by 2016 Interactive Marketing Revenues is:A) IBM iX.B) Deloitte Digital.C) Accenture Interactive.D) PwC Digital Services.E) Publicis Sapient

: C: 1: EasyChapter LO: 15.4: Identify current trends in global e-commerce and explain how global companies are expanding their presence on the Web.AACSB: Information technology

10) A key player in the cell phone business who could have been first to market a cell phone camera is:A) Ericsson.B) Samsung.C) Motorola.D) Sprint.E) AT&T.

: C: 2: ModerateChapter LO: 15.1: List the major innovations and trends that contributed to the digital revolution.AACSB: Information technology

5) Claude Shannon's technical report led to his pioneer work for which he is regarded as the inventor of the:A) transistor.B) spreadsheet.C) information theory.D) silicon chip.E) Internet.

: C: 2: ModerateChapter LO: 15.1: List the major innovations and trends that contributed to the digital revolution.AACSB: Information technology

56) Amazon.com, the leading Internet bookseller, allows users to purchase books, CDs, and other products online. Amazon.com is primarily a(n) ________ site.A) promotionB) contentC) transactionD) executionE) cyber

: C: 2: ModerateChapter LO: 15.4: Identify current trends in global e-commerce and explain how global companies are expanding their presence on the Web.AACSB: Information technology

58) Some global marketers make the strategic decision to establish a presence on the Web without offering transaction opportunities even though the product could be sold that way. Such sites are known as:A) company sites.B) transaction sites.C) promotion sites.D) content sites.E) cyber sites.

: C: 2: ModerateChapter LO: 15.4: Identify current trends in global e-commerce and explain how global companies are expanding their presence on the Web.AACSB: Information technology

73) The country which boasts the world's fastest average Internet speed is:A) Russia.B) China.C) South Korea.D) India.E) Japan.

: C: 2: ModerateChapter LO: 15.6: Identify the most important new products and services that have been introduced in the past decade.AACSB: Information technology

76) "Cloud computing" is different from currently available technologies in all of the following aspects except:A) it is performed "in the cloud."B) applications are delivered through a Web browser.C) it is installed in the computer's hard drive.D) computer files can be accessed remotely.E) archives are stored on massive remote servers.

: C: 2: ModerateChapter LO: 15.6: Identify the most important new products and services that have been introduced in the past decade.AACSB: Information technology

19) According to Steve Case, founder of AOL, the second wave of the Internet revolution lasting from 2000 to 2014, shifted the focus from building the Internet to building on top of it.

: TRUE: 2: ModerateChapter LO: 15.1: List the major innovations and trends that contributed to the digital revolution.AACSB: Information technology

77) While South Korea is considered as "ready for tomorrow" in terms of Internet speed, countries which are "below today's applications threshold" include all of the following except:A) the United States.B) Germany.C) India.D) Hong Kong.E) China.

: C: 2: ModerateChapter LO: 15.6: Identify the most important new products and services that have been introduced in the past decade.AACSB: Information technology

80) Wi-Fi, or wireless fidelity, permits laptop and PDA users to establish high-speed wireless connections to the Internet via:A) infrared rays.B) magnetic rays.C) hot spots.D) laptop warriors.E) modem.

: C: 2: ModerateChapter LO: 15.6: Identify the most important new products and services that have been introduced in the past decade.AACSB: Information technology

7) Which of the following digital revolution pioneers were instrumental in created the "network of networks" that is now known as the Internet?A) Robert Noyce and Jack KilbyB) Vincent Atanasoff and Clifford BerryC) Vint Serf and Bob KahnD) Steve Jobs and Steve WozniakE) Tim Berners-Lee

: C: 3: ChallengingChapter LO: 15.1: List the major innovations and trends that contributed to the digital revolution.AACSB: Information technology

40) According to the innovator's dilemma:A) the computing power of a microprocessor doubles every 18 months.B) markets that don't exist can't be analyzed.C) well-managed companies that listen and respond to needs of established customers may miss opportunities to innovate.D) regulation of e-commerce activities will increase at a rate that is directly proportional to the growth of e-commerce revenues.E) innovations are copied soon after they are discovered.

: C: 3: ChallengingChapter LO: 15.3: Define value network and explain the differences between sustaining technologies and disruptive technologies.AACSB: Information technology

43) Which of the following principles of disruptive innovation pertains to the notion of agnostic marketing?A) Companies depend on customers for resources.B) Small markets don't satisfy the growth needs of large companies.C) Markets that don't exist can't be analyzed.D) Technology supply may not equal market demand.E) A company's capabilities define its weaknesses.

: C: 3: ChallengingChapter LO: 15.3: Define value network and explain the differences between sustaining technologies and disruptive technologies.AACSB: Information technology

59) The domain name for Amazon.com in Germany is:A) amazon.com.gm.B) amazon.gr.C) amazon.ge.D) amazon.de.E) amazon.gm.

: D: 1: EasyChapter LO: 15.4: Identify current trends in global e-commerce and explain how global companies are expanding their presence on the Web.AACSB: Information technology

69) The Web site's architecture should be flexible enough to allow all of the following except:A) different dates.B) currency.C) money formatting.D) local culture.E) privacy.

: D: 1: EasyChapter LO: 15.5: Explain the key issues facing a global company when designing and implementing a Web site.AACSB: Information technology

6) Robert Noyce and Jack Kilby are pioneers in the digital revolution. What contribution did they make?A) They invented the transistor.B) They invented the spreadsheet.C) They invented the first digital computer.D) They invented the silicon chip.E) They invented the Internet.

: D: 2: ModerateChapter LO: 15.1: List the major innovations and trends that contributed to the digital revolution.AACSB: Information technology

42) Each value network has a ________ associated with it that dictates the margins needed to achieve profitability.A) dilemmaB) transactionC) technologyD) cost structureE) digital network

: D: 2: ModerateChapter LO: 15.3: Define value network and explain the differences between sustaining technologies and disruptive technologies.AACSB: Information technology

45) Each network has its own "metrics of value." For laptop computers this value would include all of the following except:A) small size.B) low weight.C) power consumption.D) memory capacity.E) rugged design.

: D: 2: ModerateChapter LO: 15.3: Define value network and explain the differences between sustaining technologies and disruptive technologies.AACSB: Information technology

52) ________ are online retail operations that allow customers to purchase goods and services.A) Promotion sitesB) Matrix sitesC) Transfer sitesD) Transaction sitesE) Content sites

: D: 2: ModerateChapter LO: 15.4: Identify current trends in global e-commerce and explain how global companies are expanding their presence on the Web.AACSB: Information technology

53) Internet penetration is less than 10 percent in:A) Qatar.B) Bahrain.C) Greenland.D) Burundi.E) the Netherlands.

: D: 2: ModerateChapter LO: 15.4: Identify current trends in global e-commerce and explain how global companies are expanding their presence on the Web.AACSB: Information technology

54) Web sites can be classified by purpose as represented by the term:A) matrix sites.B) international sites.C) geographic sites.D) promotion sites.E) regional sites.

: D: 2: ModerateChapter LO: 15.4: Identify current trends in global e-commerce and explain how global companies are expanding their presence on the Web.AACSB: Information technology

55) Web sites that provide news and entertainment and support a company's PR efforts are known as:A) company sites.B) transaction sites.C) promotion sites.D) content sites.E) cyber sites.

: D: 2: ModerateChapter LO: 15.4: Identify current trends in global e-commerce and explain how global companies are expanding their presence on the Web.AACSB: Information technology

64) Although it is certainly possible for European consumers to browse Amazon.com's U.S. site, they prefer a direct link to a site with a local domain name. All of the following are possible reasons for such behavior except:A) the Web site of choice will be one that quotes prices in euros.B) the Web site of choice will be that which offers a product selection tailored to local tastes.C) the preference will be for the Web site which ships from local distribution points.D) due to price fluctuations the preference will be for the Web site that quotes prices in U.S. dollars.E) the preference will be for sites that are in their own language.

: D: 2: ModerateChapter LO: 15.5: Explain the key issues facing a global company when designing and implementing a Web site.AACSB: Information technology

65) Konbini is a convenience store in ________, where consumers can pay for online purchases.A) IndonesiaB) RussiaC) CroatiaD) JapanE) Bosnia

: D: 2: ModerateChapter LO: 15.5: Explain the key issues facing a global company when designing and implementing a Web site.AACSB: Information technology

66) Ideally, each country-specific site should reflect all of the following except ________, which may not be familiar to shoppers in some countries.A) logos and symbolsB) the local languageC) local customsD) the shopping cart iconE) local colors

: D: 2: ModerateChapter LO: 15.5: Explain the key issues facing a global company when designing and implementing a Web site.AACSB: Information technology

67) The practice of registering a particular domain name for the express purpose of reselling it to the company that should rightfully use it is referred to as:A) gray market.B) piracy.C) copyright violation.D) cybersquatting.E) patent violation.

: D: 2: ModerateChapter LO: 15.5: Explain the key issues facing a global company when designing and implementing a Web site.AACSB: Information technology

74) Broadband offers companies the telecommunication capability to do all of the following except:A) streaming audio.B) streaming video.C) streaming media.D) streaming sales.E) compressed video.

: D: 2: ModerateChapter LO: 15.6: Identify the most important new products and services that have been introduced in the past decade.AACSB: Information technology

81) Smartphones that are equipped with a global positioning system can determine the users' exact geographic position. This capability has created new opportunity for marketers by using all of the following innovative means except:A) text messages can be sent to smartphone users who are in the vicinity.B) offering special deals to smartphone users who happen to be in the vicinity.C) promoting mobile campaigns which will reach smartphone users.D) obtaining demographic information about the smartphone users.E) locate smartphone users for delivering products or services.

: D: 2: ModerateChapter LO: 15.6: Identify the most important new products and services that have been introduced in the past decade.AACSB: Information technology

82) Alcatel-Lucent, the French telecommunications equipment manufacturer, has launched a service that sends tailored text messages when smartphone users are near a specific location, such as a store, hotel, or restaurant. This capability can help in all of the following ways except:A) text messages can be sent to smartphone users who are in the vicinity.B) offering special deals to smartphone users who happen to be in the vicinity.C) promoting mobile campaigns which will reach smartphone users.D) obtaining demographic information about the smartphone users.E) locating smartphone users for delivering products or services.

: D: 2: ModerateChapter LO: 15.6: Identify the most important new products and services that have been introduced in the past decade.AACSB: Information technology

63) Which of the following is not a critical issue for a company whose management intends to engage in e-commerce?A) privacyB) credit card fraud in developing countriesC) ensuring that logos and other brand identity elements are consistent with local preferencesD) ensuring a company's computer system supports only a particular languageE) the availability of hot spots for Wi-Fi

: E: 2: ModerateChapter LO: 15.5: Explain the key issues facing a global company when designing and implementing a Web site.AACSB: Information technology

68) It is advisable to start a double-ACSII platform when designing a Web site's architecture since:A) the English language can store only a maximum of 256 characters.B) French and German languages use the Latin alphabet.C) German-language Web sites require double the English Web site's capacity.D) French and German languages cannot be used in a Web site's architecture.E) Japanese and Chinese languages require a database which supports such a platform.

: E: 2: ModerateChapter LO: 15.5: Explain the key issues facing a global company when designing and implementing a Web site.AACSB: Information technology

75) Streaming media represents a huge market opportunity for all of the following except:A) video game industry.B) online gaming.C) game publishers.D) Internet portals.E) telematics.

: E: 2: ModerateChapter LO: 15.6: Identify the most important new products and services that have been introduced in the past decade.AACSB: Information technology

78) The term "m-commerce" is used to describe the use of:A) Internet in commerce.B) web.com in commerce.C) credit cards in commerce.D) money in commerce.E) cell phones in commerce.

: E: 2: ModerateChapter LO: 15.6: Identify the most important new products and services that have been introduced in the past decade.AACSB: Information technology

85) BMW and Porsche have developed Apple Watch apps that enable drivers to remotely check many items within their cars which includes all of the following except:A) information about services.B) information about pricing.C) help in booking hotel rooms.D) help in restaurant reservation.E) help recharging the car's batteries.

: E: 2: ModerateChapter LO: 15.6: Identify the most important new products and services that have been introduced in the past decade.AACSB: Information technology

86) Cloud-based music services are expected to have a major impact on the mobile music business. The reason for their popularity includes all of the following except:A) they are a hybrid between subscription and online store business.B) this new approach addresses some of the shortcomings of the existing methods.C) they offer users a music locker "in the cloud."D) music services can be purchased from a variety of mobile devices.E) the pricing schemes for various services are simple.

: E: 2: ModerateChapter LO: 15.6: Identify the most important new products and services that have been introduced in the past decade.AACSB: Information technology

8) Which of the following pioneers of the digital revolution developed the URL, HTTP, and HTML, thus paving the way for the World Wide Web?A) Robert Noyce and Jack KilbyB) Vincent Atanasoff and Clifford BerryC) Vint Serf and Bob KahnD) Steve Jobs and Steve WozniakE) Tim Berners-Lee

: E: 3: ChallengingChapter LO: 15.1: List the major innovations and trends that contributed to the digital revolution.AACSB: Information technology

41) Which of the following is not one of Clayton Christensen's principles of disruptive innovation?A) Companies depend on customers for resources.B) Small markets don't satisfy the growth needs of large companies.C) Markets that don't exist can't be analyzed.D) Technology supply may not equal market demand.E) E-commerce activities can be divided into three categories.

: E: 3: ChallengingChapter LO: 15.3: Define value network and explain the differences between sustaining technologies and disruptive technologies.AACSB: Information technology

44) Today Microsoft lags behind new industry entrants in high-growth, consumer-oriented areas such as search and social networking. Which of the principles of disruptive innovation does this fact pertain to?A) Companies depend on customers for resources.B) Small markets don't satisfy the growth needs of large companies.C) Markets that don't exist can't be analyzed.D) Technology supply may not equal market demand.E) A company's capabilities define its disabilities.

: E: 3: ChallengingChapter LO: 15.3: Define value network and explain the differences between sustaining technologies and disruptive technologies.AACSB: Information technology

18) The digital revolution is causing dramatic, desired changes in industry structures.

: FALSE: 1: EasyChapter LO: 15.1: List the major innovations and trends that contributed to the digital revolution.AACSB: Application of knowledge

12) E-mail within a computer network was made possible by the creation of a file-transfer program in 1972, which enabled an e-mail created by one network to be delivered to a computer on a different network.

: FALSE: 2: ModerateChapter LO: 15.1: List the major innovations and trends that contributed to the digital revolution.AACSB: Application of knowledge

16) Because the Internet is global, no single country controls it.

: FALSE: 2: ModerateChapter LO: 15.1: List the major innovations and trends that contributed to the digital revolution.AACSB: Application of knowledge

22) China, India, Brazil, and the European Union (EU) have taken the position that, because the Internet is global, one single country should be in control of it.

: FALSE: 2: ModerateChapter LO: 15.1: List the major innovations and trends that contributed to the digital revolution.AACSB: Information technology

28) Kodak has easily made the transition from industry leadership in chemical-based photography to industry leadership in digital photography.

: FALSE: 2: ModerateChapter LO: 15.2: Define "convergence" and give an example.AACSB: Information technology

30) Originally, Sony entered new businesses by acquiring CBS Records and Columbia Motion Pictures. These acquisitions represent convergence because they occurred in the early days of the digital revolution, when motion pictures, recorded music, and consumer electronics were still separate industries.

: FALSE: 2: ModerateChapter LO: 15.2: Define "convergence" and give an example.AACSB: Information technology

32) Sustaining technologies enable something to be done that was previously deemed impossible.

: FALSE: 2: ModerateChapter LO: 15.2: Define "convergence" and give an example.AACSB: Information technology

33) According to innovation expert Clayton Christensen, the creation of the Internet represented a disruptive technology for Dell Computer.

: FALSE: 2: ModerateChapter LO: 15.2: Define "convergence" and give an example.AACSB: Information technology

35) The value network for the personal computer industry is not different from the value network for mainframe computers.

: FALSE: 2: ModerateChapter LO: 15.2: Define "convergence" and give an example.AACSB: Information technology

48) As Pandora CEO Joe Kennedy recently remarked, "The good news is that the Internet is global, and that the copyright law is country by country."

: FALSE: 2: ModerateChapter LO: 15.3: Define value network and explain the differences between sustaining technologies and disruptive technologies.AACSB: Information technology

49) Web "content sites" provide news and entertainment and support a company's PR efforts.

: FALSE: 2: ModerateChapter LO: 15.3: Define value network and explain the differences between sustaining technologies and disruptive technologies.AACSB: Information technology

60) Research suggests that visitors spend more time at sites that are in English than in their own language.

: FALSE: 2: ModerateChapter LO: 15.4: Identify current trends in global e-commerce and explain how global companies are expanding their presence on the Web.AACSB: Information technology

70) Localizing a Web site in native language can be done by translating a Web site from the home-country language.

: FALSE: 2: ModerateChapter LO: 15.5: Explain the key issues facing a global company when designing and implementing a Web site.AACSB: Information technology

13) There is a misperception that the market opportunity in Africa is limited because people are too poor.

: TRUE: 1: EasyChapter LO: 15.1: List the major innovations and trends that contributed to the digital revolution.AACSB: Application of knowledge

17) The marginal cost of storing and distributing digitized products—music files, for example—is practically nothing.

: TRUE: 1: EasyChapter LO: 15.1: List the major innovations and trends that contributed to the digital revolution.AACSB: Application of knowledge

11) In 1948, a Bell Labs researcher named Claude Shannon wrote a technical report in which he proposed that all information media could be encoded in binary digits, or bits.

: TRUE: 1: EasyChapter LO: 15.1: List the major innovations and trends that contributed to the digital revolution.AACSB: Information technology

15) Today, almost 3 billion people-nearly half of the world's population—are using the Internet.

: TRUE: 1: EasyChapter LO: 15.1: List the major innovations and trends that contributed to the digital revolution.AACSB: Information technology

20) The Chinese government, alarmed by the free flow of information across the Internet, closely monitors the content on Web sites that its citizens access. Facebook, Twitter, and numerous other social media sites are blocked in China.

: TRUE: 1: EasyChapter LO: 15.1: List the major innovations and trends that contributed to the digital revolution.AACSB: Information technology

38) An innovation that is disrupting to one firm can be sustaining to another firm.

: TRUE: 1: EasyChapter LO: 15.2: Define "convergence" and give an example.AACSB: Information technology

14) The digital revolution is a paradigm shift resulting from technological advances that allow for the digitization of analog sources of information, sounds, and images.

: TRUE: 2: ModerateChapter LO: 15.1: List the major innovations and trends that contributed to the digital revolution.AACSB: Application of knowledge

21) Despite the "go-slow "market entry strategy in the United States, by 2016 Alibaba was selling nearly 15 billion items per year—three times more than Amazon.

: TRUE: 2: ModerateChapter LO: 15.1: List the major innovations and trends that contributed to the digital revolution.AACSB: Information technology

23) Russia and China have new cyber-security laws requiring that all data about customers in their respective countries be stored on in-country servers.

: TRUE: 2: ModerateChapter LO: 15.1: List the major innovations and trends that contributed to the digital revolution.AACSB: Information technology

27) "Convergence" is a term that describes a world in which the telecommunications, consumer electronics, computer, and entertainment industries are entering each other's markets.

: TRUE: 2: ModerateChapter LO: 15.2: Define "convergence" and give an example.AACSB: Information technology

29) Ironically, Motorola, a key player in the cell phone business, could have been first to market with a cell phone camera.

: TRUE: 2: ModerateChapter LO: 15.2: Define "convergence" and give an example.AACSB: Information technology

31) Although IBM tried to regain its position by creating its first PC, it was slow to recognize the growing demand for laptops.

: TRUE: 2: ModerateChapter LO: 15.2: Define "convergence" and give an example.AACSB: Information technology

34) Some company executives become so committed to a current, profitable technology that they fail to provide adequate levels of investment in new, apparently riskier technologies.

: TRUE: 2: ModerateChapter LO: 15.2: Define "convergence" and give an example.AACSB: Information technology

36) According to innovation expert Clayton Christensen, markets that don't exist can't be analyzed since companies embrace agnostic marketing.

: TRUE: 2: ModerateChapter LO: 15.2: Define "convergence" and give an example.AACSB: Information technology

47) In South Korea, the Netherlands, Greenland, the UAE, Bahrain, and Qatar, more than 90 percent of the population is online.

: TRUE: 2: ModerateChapter LO: 15.3: Define value network and explain the differences between sustaining technologies and disruptive technologies.AACSB: Information technology

61) Cybersquatting is the practice of registering a particular domain name for the express purpose of reselling it to the company that should rightfully use it.

: TRUE: 2: ModerateChapter LO: 15.4: Identify current trends in global e-commerce and explain how global companies are expanding their presence on the Web.AACSB: Information technology

87) Bandwidth determines the range of frequencies that can pass over a given transmission channel.