Internet Marketing Midterm

Nearly _____ percent of North American adults are internet users. A. 90 B. 70 C. 60 D. 80

A. 90

Businesses have enthusiastically adopted the internet for marketing for the following: A. All of these are correct. B. customer conversion. C. customer retention. D. attracting new customers.

A. All of these are correct.

The "best customer" model, called RFM, A. All of these are correct. B. helps marketers find ways to acquire more of their best customers. C. is a multiplicative model composed of recency, frequency, and monetary value. D. helps marketers determine what kinds of new customers to acquire.

A. All of these are correct.

Which of the following is NOT a benefit of being a social business? A. Content shared by a branded account is eight times more effective than content generated by employees. B. Employee networks are much larger than a company's follower base. C. People are more likely to trust everyday employees than executives. D. Employee advocacy increases visibility, web traffic, and brand loyalty.

A. Content shared by a branded account is eight times more effective than content generated by employees.

Service-centered dominant logic includes which of the following concepts? A. Customers are always co-creators of value. B. Services are a key component of modern economic systems. C. The value of a service is not determined by the beneficiary. D. Services are distinct from tangible goods.

A. Customers are always co-creators of value.

Which of the following is a true statement about data mining? A. Data mining can uncover previously unsuspected patterns in the data. B. Marketers require the assistance of statisticians to get information from data mining routines. C. All of these are correct. D. Data mining routines were developed specifically to deal with the massive amounts of data available from the Internet.

A. Data mining can uncover previously unsuspected patterns in the data.

________ refers to the business processes necessary to receive, process, package, and ship orders. A. Fulfillment B. Data mining C. Customer service D. Front end

A. Fulfillment

A company selling shoes online to consumers is following which business model? A. Merchant B. Utility C. Brokerage D. On demand

A. Merchant

Why is data about the United States a poor indicator of the status of the mobile web? A. Mobile use has spread more slowly in the U.S. than in Europe and in developing countries. B. The encoding algorithms of U.S. mobile platforms are incompatible with those of the rest. C. Developing countries don't have widespread mobile access yet. D. Mobile use has spread more rapidly in the U.S. than in Europe and in developing countries.

A. Mobile use has spread more slowly in the U.S. than in Europe and in developing countries.

A(n) ______ system begins with a tag, which contains a chip with a unique identifying code. As the product moves along the supply chain, its movements are recorded and sent to a tracking database. A. RFID B. ERP C. EDI D. SaaS

A. RFID

Top managers can more easily be persuaded of the value of social media marketing if: A. ROI on its expenditures can be established B. it costs less than other forms of marketing. C. the top marketing officer is in favor D. they understand that no negative comments will be permitted on social platforms

A. ROI on its expenditures can be established

________ is the network of physical objects accessed through the Internet. A. The Internet of Things B. The Internet of Everything C. Augmented reality D. Virtual reality

A. The Internet of Things

Which of the following is true of the platform model? A. Unlike the pipe model, it does not draw a hard line between all of the revenues and all of the costs. B. Unlike the pipe model, it can be used effectively by digital businesses. C. Like the pipe model, it will eventually be left behind by digital transformation. D. All of these are correct.

A. Unlike the pipe model, it does not draw a hard line between all of the revenues and all of the costs.

Traditional business models extended onto the web: A. Work well in either physical or online space. B. All of these are correct. C. Are made up only of firms that existed before the internet. D. Are not very frequent today.

A. Work well in either physical or online space.

Service-centered dominant logic represents the idea that __________. A. all goods are actually services B. tangible output, in the form of goods, is not a service C. all services are actually goods D. tangible service, in the form of customer satisfaction, is not a good

A. all goods are actually services

The current dominant form of marketing is __________. A. direct marketing B. internet marketing C. collaborative filtering D. mass media advertising

A. direct marketing

We can only call it "social media marketing" if: A. it leads to achieving business and marketing goals. B. it brings in many Facebook fans and Twitter followers. C. users actively share the content. D. All of these are correct.

A. it leads to achieving business and marketing goals.

The combination of virtual and augmented reality, said to be more flexible than either, is called ________. A. mixed reality B. postmodern reality C. transcendent reality D. artificial reality

A. mixed reality

In the 2014 census, Millennials comprised between __________ of the U.S. population. A. one fourth and one third B. one third and one half C. one sixth and one fifth D. one fifth and one fourth

A. one fourth and one third

SMM metrics are: A. provided by the respective social networks. B. defined uniformly across the board by the IAB. C. None of these is correct. D. easy to integrate into existing metrics platforms.

A. provided by the respective social networks.

The rapid change in business activities and operations caused by digital disruption is referred to as digital ________. A. transformation B. transmigration C. trepidation D. transduction

A. transformation

Existing social networks are: A. used by both consumers and business people. B. exclusively for consumers. C. used mostly by nonmobile users. D. experiencing slowing growth.

A. used by both consumers and business people.

Selling software-based services on the Internet is usually an example of which type of model? A. Merchant B. Manufacturer direct C. Infomediary D. Brokerage

B. Manufacturer direct

The value proposition is NOT __________. A. a slogan B. None of these is correct. C. a positioning statement D. a business plan

B. None of these is correct.

Which type of business model includes most major goods manufacturers? A. Internet-enabled B. Pipe C. Platform D. Mobile-dependent

B. Pipe

What term is used to describe software that is stored in the cloud and accessed by subscribed companies for a fee? A. Applications Software Providers. B. Software as a Service. C. Proprietary Software. D. Software as a Product.

B. Software as a Service.

Which of the following statements is true about testing in the Internet environment? A. Testing requires a substantial amount of time. B. Testing provides information that is not ordinarily available to marketers in the mass media environment. C. Testing requires a substantial amount of marketing research. D. All of these are correct.

B. Testing provides information that is not ordinarily available to marketers in the mass media environment.

The advertising-supported model is an extension of which model? A. Brokerage B. Traditional business model C. Ecommerce D. Infomediary

B. Traditional business model

Sales force.com exemplifies: A. a nondisruptive innovator. B. a "cloud computing" product that shows the power of connectivity in a network. C. a proprietary product used by a single user. D. technology that is used primarily to develop proprietary software.

B. a "cloud computing" product that shows the power of connectivity in a network.

The set of tools used to extract useful marketing information quickly from their database is called __________. A. A/B testing B. data mining. C. multivariable testing D. analytics

B. data mining.

The phenomenon whereby old ways thinking and behaving are upset by digital technologies is called digital ________. A. desolation B. disruption C. decimation D. denunciation

B. disruption

A fast food company airs a really funny commercial during the Super Bowl. Days later, people are still sharing the ad on Facebook, tweeting it, and talking about how awesome it was on blogs. This reaction is an example of ______ media. A. owned B. earned C. social D. paid

B. earned

Objectives of a direct-response marketing program can include each of the following EXCEPT: A. achieving a sale. B. inciting the visitor to spread positive word of mouth. C. causing the visitor to request additional information. D. getting the visitor to remain on the site longer.

B. inciting the visitor to spread positive word of mouth.

The ________ manages and distributes data on the Internet. A. brokerage B. infomediary C. portal D. affiliate

B. infomediary

Zara is successful in the highly competitive fashion industry in part because it: A. relies on formal surveys of consumers to judge what will be popular next season. B. is able to get what fashion consumers want into stores quickly. C. produces only 20 percent of a season's inventory during the season itself. D. outsources production to low-wage countries.

B. is able to get what fashion consumers want into stores quickly.

Compared to the paper forms that had facilitated channels of distribution for hundreds of years, one disadvantage of EDI was that __________. A. it led to a greater volume of content errors B. its cost was higher than what most small business could pay C. it was slower D. it incurred dramatically higher processing costs

B. its cost was higher than what most small business could pay

Social media marketing campaigns: A. are impossible to measure. B. need to be developed with a specific target market in mind. C. can be designed to go viral. D. are series of random activities.

B. need to be developed with a specific target market in mind.

NIKEiD is an example of: A. data mining B. product customization. C. use of a customer database. D. an interactive website.

B. product customization.

A phrase that describes value chains is: A. high-powered synergistic marketing. B. seamless, end-to-end integration throughout the channel of distribution. C. well-managed logistics activities. D. the discrete activities that make up channels of distribution.

B. seamless, end-to-end integration throughout the channel of distribution.

The most common way consumers enter the web is through: A. "walled gardens." B. search engines. C. merchant emails. D. social networking sites.

B. search engines.

The first step in the process of supply chain management is to __________. A. establish and manage inbound logistics B. select and qualify desired suppliers C. design work flow in product-solution assembly D. establish and manage outbound logistics

B. select and qualify desired suppliers

Belinda's company's website has shopping cart technology, back-end data integration, and effective security software. These features indicate that Belinda's company has reached the __________ level in the hierarchy of interactive strategies. A. informational B. transactional C. interactive D. personalized

B. transactional

According to the American Society for Quality, the six-sigma level of quality allows no more than _____ defects per million. A. 1.2 B. 2.3 C. 3.4 D. 4.5

C. 3.4

________ is a simple type of test frequently used in various marketing media. A. Factorial design B. Control group C. A/B split D. Hyperbolic pantomime

C. A/B split

Possible applications of the community model include ________. A. open collaboration B. content sharing C. All of these are correct. D. fundraising

C. All of these are correct.

Revenue models for online businesses include: A. Crowdsourcing B. Advertising-supported C. All of these are correct. D. Freemium

C. All of these are correct.

Why are top managers often reluctant to provide budgets for social media marketing? A. Top managers doubt the value of social media marketing because they don't use social media. B. ROI for social media marketing is difficult to compute. C. All of these are correct. D. Even when social media marketing does have a good ROI, it can be difficult to prove.

C. All of these are correct.

________ is the term used to describe the marketing activities that involve fulfillment and customer service. A. Front end B. None of these is correct. C. Back end D. Inventory management

C. Back end

Why is it that some demographic data is no longer meaningful in distinguishing internet users from the general population? A. Because most internet users use the fixed web. B. Because most internet users use the mobile web. C. Because almost everyone is already an internet user. D. None of these are correct.

C. Because almost everyone is already an internet user.

Which is NOT among the four core strategies of Internet marketing? A. Customer conversion B. Customer value growth C. Customer mobile access D. Customer acquisition

C. Customer mobile access

Which of the following is a true statement about the front end of marketing? A. Front-end activities lead to customer retention. B. All of these are correct. C. Front-end activities are the most visible aspects of marketing. D. Front-end activities create lasting customer satisfaction.

C. Front-end activities are the most visible aspects of marketing.

Which two types of costs together typically account for over 40 percent of total supply chain costs? A. Fragmentation and standardization B. Transaction and fragmentation C. Information and transaction D. Standardization and information

C. Information and transaction

What was the main driver of Dell's success? A. It incorporated the Google search algorithms into its website, allowing customers to quickly find what they needed. B. All of these are correct. C. Its integrated value chain enabled it to offer affordable build-to-order computers. D. Its linear supply chain allowed it to sell large numbers of identical computers to big customers.

C. Its integrated value chain enabled it to offer affordable build-to-order computers.

________ is online media created and controlled by the marketer. A. Earned media B. All of these are correct. C. Owned media D. Paid media

C. Owned media

_____ technology allows the identification of tagged goods from a distance without any human intervention. A. SaaS B. EDI C. RFID D. ERP

C. RFID

Which of the following is NOT classified as an Internet-enabled business model? A. DAO B. M2M C. Subscription D. Affiliate

C. Subscription

Julio's company wants to analyze millions of data points pertaining to customer service interactions, purchase patterns, and other behaviors. His company is engaging in: A. analytics. B. None of these are correct. C. big data. D. algorithmic marketing.

C. big data.

A detailed document that provides strategic guidance and aids in the acquisition of internal or external resources is called a __________. A. value chain B. business model C. business plan D. value proposition

C. business plan

A man's wife dies, at which point he begins receiving marketing offers from various funeral homes in the area. This is an example of __________ targeting. A. shotgun B. insensitive C. event-triggered D. demographic

C. event-triggered

The best way to choose the right metrics for a SMM campaign is to: A. hire a consultant. B. use the existing metrics platforms. C. have specific, measurable campaign objectives. D. wait and see how the campaign turns out.

C. have specific, measurable campaign objectives.

The Four I's of Internet marketing include: A. integrated, immediate. B. information-driven, intuitive. C. involving, interactive. D. intuitive, immediate

C. involving, interactive.

Dell promotes customer loyalty by: A. frequent telephone calls. B. offering free computers via monthly sweepstakes. C. soliciting their input in social media. D. comprehensive satisfaction surveys every business quarter.

C. soliciting their input in social media.

Among the functions filled by business models are to: A. draft a business plan B. to conduct a detailed SWOT analysis. C. to describe the value proposition. D. to provide detailed pro forma financial statements.

C. to describe the value proposition.

On average, users spend about ________ as much time on mobile devices as on desktop computers. A. four times B. one fourth C. twice D. half

C. twice

In the __________, value is based on knowledge exchange that drives proactive production of goods and services. A. geometric supply chain B. value chain C. value ecosystem D. linear supply chain

C. value ecosystem

The value delivered by the firm to a specific, targeted customer segment is known as a(n) ________. A. artificial intelligence B. customer acquisition C. value proposition D. marketing schema

C. value proposition

Among the reasons marketers like SMM are: A. it can help generate exposure for the business. B. it can lead to reduced marketing expenses. C. it can increase public love for the business. D. All of these are correct.

D. All of these are correct.

How does Wegmans consistently breed employees who deliver great CX? A. By regularly posting inspirational videos on the company YouTube channel. B. By conducting extensive research on CX and summarizing the conclusions at company-wide seminars. C. By codifying CX best practices in an extensive employee rulebook. D. By trusting them to do whatever is in their best judgment to make customers happy.

D. By trusting them to do whatever is in their best judgment to make customers happy.

________ is the concept that helps the marketer understand how much it costs to acquire, maintain, and service a customer. A. Market segmentation B. Lead generation C. A/B testing D. Customer lifetime value

D. Customer lifetime value

The vast majority of companies compete on what basis? A. All of these are correct. B. Product quality. C. Product benefits. D. End-to-end CX.

D. End-to-end CX.

Software applications that allow users to use a limited, lower-quality version of the full product without paying for it are an example of which business model? A. Affiliate B. Advertising-supported C. Crowdsourcing D. Freemium

D. Freemium

Examples of the infomediary business model include: A. Fidelity B. Yahoo!. C. Amazon. D. InfoUSA

D. InfoUSA

________ is the business model used to describe a site that resells large amounts of content on the web. A. Affiliate B. Crowdsourcing C. Machine-to-Machine D. Infomediary

D. Infomediary

Which of the following is a true statement about the front end of marketing? A. It describes marketing activities that take place prior to the product being introduced to the market. B. It is the primary driver of customer retention. C. It includes all the activities most likely to produce satisfied customers. D. It involves customer acquisition activities.

D. It involves customer acquisition activities.

Which of these is true about the pipe model? A. None of these are correct. B. It is too old fashioned to be used effectively by digital firms. C. It is effective for small businesses but must be discarded once the businesses grow. D. It is used by major online companies to great success.

D. It is used by major online companies to great success.

Which of the following is NOT one of McKinsey's key factors of successful digitalization of business practices? A. Do not follow the traditional roll-out process B. Create a seamless, end-to-end customer experience C. Define outcomes precisely D. Move cautiously

D. Move cautiously

Among the things that marketers have learned about SMM is: A. it is essentially free. B. it works well as a single channel of communications. C. it works best when used in an ad hoc fashion. D. None of these is correct.

D. None of these is correct.

________ is a term that is descriptive of cloud computing. A. Secure websites B. SaaP C. Service contracts D. SaaS

D. SaaS

Which of the following uses a brokerage model? A. Dell. B. Yahoo!. C. The DAO Hub D. Tradestation

D. Tradestation

________ is the simulation of a three-dimensional environment, which the user can use special equipment to interact with. A. Artificial reality B. Augmented reality C. Mixed reality D. Virtual reality

D. Virtual reality

The most important characteristic of a direct-response offer is that it must include A. None of these is correct. B. a monetary incentive. C. customer data capture. D. a call to action.

D. a call to action.

Product reviews: A. should be written by "plants" whenever possible to minimize risk. B. do not have an impact on consumer purchases. C. tend to be negative toward the brand. D. are used and trusted by consumers.

D. are used and trusted by consumers.

Inside businesses, SMM techniques: A. have no valuable use. B. can reduce the need for middle management. C. can be used to explain corporate policies. D. can be used to improve engagement with employees.

D. can be used to improve engagement with employees.

The use of a network of remote servers hosted on the internet, not a local server or computer hard drive, to store and process data is referred to as ________. A. Software as a Product B. mixed reality C. artificial intelligence D. cloud computing

D. cloud computing

Elements of a value proposition do NOT include a description of: A. how the product(s) solve problems. B. the capabilities of the business. C. the target customer. D. customer service strategy.

D. customer service strategy.

Small businesses find SMM: A. only works if they focus on it to the exclusion of any other advertising. B. too difficult and complex to use. C. ineffective in increasing sales. D. helps generate exposure and sales.

D. helps generate exposure and sales.

Among the interactive strategies marketers can pursue are: A. interaction, profiling, and customization. B. transaction, personalization, and collaboration. C. interaction, collaboration, and customization. D. information, transaction, and personalization.

D. information, transaction, and personalization.

B2B marketers like SMM because: A. it takes place on private, proprietary networks. B. it doesn't require a great deal of planning or coordination. C. None of these is correct. D. it helps generate high-quality sales leads.

D. it helps generate high-quality sales leads.

In the wake of digital transformation, the _________, once the standard mode of operation, is often not a viable option for a successful business. A. value chain B. increasing the need for speed and agility. C. value ecosystem D. linear supply chain

D. linear supply chain

The last step in the process of supply chain management is to __________. A. acquire, install, and maintain process technology B. process orders, pricing, billing, rebates, and terms C. run batch manufacturing D. manage customer services

D. manage customer services

CX doesn't rank highly in surveys that ask customers what drives their satisfaction with companies. This finding is somewhat misleading, however, because: A. customers who experience bad CX are more likely to spread word-of-mouth than customers who experience great CX. B. customers who are unhappy with companies are more likely to respond to surveys. C. the sample sizes of the surveys are not large enough to be statistically significant. D. many of the survey items that rank higher than CX essentially amount to excellent CX.

D. many of the survey items that rank higher than CX essentially amount to excellent CX.

The value chain incorporates: A. the concept of vertical integration. B. distinct divisions between entities in the supply chain. C. a strict separation between manufacturers and distributors. D. the integration of activities throughout distribution channels.

D. the integration of activities throughout distribution channels.

The Internet of Everything builds upon the Internet of Things by adding people, process, data and ________. A. performance B. a product targeted solely at the consumer market. C. personalization D. things

D. things

An important use of customer lifetime value data is: A. as a replacement for market segmentation. B. All of these are correct. C. to decrease the need for targeting specific customer groups. D. to determine the allocation of marketing resources to marketing programs.

D. to determine the allocation of marketing resources to marketing programs.

A supply chain in which value is added at various points in the distribution process is called a __________. A. value ecosystem B. channel of distribution C. hyperbolic supply chain D. value chain

D. value chain

Pokémon Go is a mobile game in which players have to physically travel around the world to catch magical creatures with their phones. What is this game an example of? A. Virtual reality B. Augmented reality C. Artificial reality D. Mixed reality

B. Augmented reality

Which of the following is true about cloud-based supply chain management systems? A. All of these are correct. B. Cloud systems are time- and cost-effective for small firms implementing SCM systems for the first time. C. The benefits of migrating to a cloud system are dwarfed by the costs of transitioning away from a legacy ERP system. D. Cloud systems are more scalable than installed software but take longer to get up and running.

B. Cloud systems are time- and cost-effective for small firms implementing SCM systems for the first time.

________ is one step in developing a social media strategy. A. Placing advertising on social networks B. Engaging actual and potential customers C. Establishing social sales opportunities D. Creating dummy accounts on popular websites

B. Engaging actual and potential customers

Which of the following is NOT a function of business models? A. Define the structure of the value chain B. Explain the marketing strategy C. Articulate the value proposition D. Estimate the cost structure

B. Explain the marketing strategy

Why did "walled gardens" such as AOL and open portals such a Yahoo!, once the giants of the web, fall from dominance? A. An inability to capitalize on the fundamental principles of successful internet marketing. B. Google's development of better search algorithms. C. Amazon's successful harnessing of artificial intelligence. D. Poor investment decisions by the directorial boards of Yahoo! and other portal companies.

B. Google's development of better search algorithms.