Chapter 6

51) Which of the following statements about the Internet's impact on marketing is not true? A) The Internet has broadened the scope of marketing communications. B) The Internet has decreased the impact of brands. C) The Internet has increased the richness of marketing communications. D) The Internet has expanded the information intensity of the marketplace.

B) The Internet has decreased the impact of brands.

83) Which of the following measures the percentage of customers who purchase once, but never return within a year? A) retention rate B) attrition rate C) loyalty rate D) conversion rate

B) attrition rate

26) All of the following are "traditional" online marketing tools except: A) affiliate marketing. B) e-mail and permission marketing. C) social marketing. D) sponsorship marketing.

C) social marketing

3) Which of the following is not one of the main stages of the online purchasing process? A) post-purchase service and loyalty B) awareness C) engagement D) conversation

D) conversation

22) The percentage of all e-mail that is spam averaged around ________% in 2016. A) 53 B) 63 C) 73 D) 83

A) 53

58) ________ is an industry-standard database query and manipulation language. A) SQL B) PHP C) DBMS D) JSP

A) SQL

30) Which of the following statements about a free pricing strategy is false? A) Free products and services can knock out potential and actual competitors. B) The free pricing strategy was born in the early days of the Web. C) It is difficult to convert free customers into paying customers. D) Free products and services can help build market awareness.

B) The free pricing strategy was born in the early days of the Web.

24) Which of the following statements about Canada's anti-spam law is not true? A) Canada's law is based on an opt-in model. B) The law has no impact on companies located within the United States. C) The first phase of the law went into effect in 2014. D) The law applies to e-mail, texts, and social media messaging.

B) The law has no impact on companies located within the United States.

74) Purchasing an online ad on a CPA basis means that the advertiser: A) pays for impressions in 1,000 unit lots. B) pays a pre-negotiated fee for each click an ad receives. C) pays only for those users who perform a specific action, such as registering, purchasing, etc. D) exchanges something of equal value for the ad space.

C) pays only for those users who perform a specific action, such as registering, purchasing, etc.

52) Which of the following features of e-commerce technology has reduced the cost of delivering marketing messages and receiving feedback from users? A) ubiquity B) richness C) information density D) universal standards

D) universal standards

15) Which of the following is not one of the four main methods advertisers use to behaviorally target ads? A) Nielsen ratings B) data collected from social networks C) integration of online data with offline data D) clickstream data

A) Nielsen ratings

25) Which of the following is the most important tool in establishing a relationship with the customer? A) company website B) company CRM system C) Facebook D) search engine display ads

A) company website

6) Online buyers constitute approximately ________% of the online Internet audience. A) 67 B) 77 C) 87 D) 97

B) 77

70) Impressions are a measure of the: A) number of times an ad is clicked. B) number of times an ad is served. C) number of http requests. D) number of pages viewed.

B) number of times an ad is served.

4) In 2016, what was the approximate Internet penetration rate for individuals with less than a high-school education? A) 25% B) 33% C) 66% D) 75%

C) 66%

7) In modeling online consumer behavior, the concept of "consumer skills" refers to the: A) education level of the consumer. B) communication skills of the consumer. C) knowledge consumers have about how to conduct online transactions. D) product evaluation skills of the consumer.

C) knowledge consumers have about how to conduct online transactions.

5) All of the following are online communications that are used to support the evaluation of alternatives stage of the consumer decision process except: A) search engines. B) online catalogs. C) social networks. D) targeted banner ads.

D) targeted banner ads

18) Which of the following is not a practice that degrades the results and usefulness of search engines? A) social search B) link farms C) content farms D) click fraud

A) social search

79) Conversion rate is a measure of the: A) percentage of visitors who indicate an interest in a site's products by registering or visiting a product's pages. B) percentage of visitors who become customers. C) percentage of existing customers who continue to buy on a regular basis. D) percentage of shoppers who do not return within a year after their initial purchase.

B) percentage of visitors who become customers

36) Which of the following industries accounts for the highest percentage of spending on online advertising? A) financial services B) retail C) automotive D) entertainment

B) retail

76) Which of the following measures the average length of stay at a website? A) loyalty B) stickiness C) page views D) retention rate

B) stickiness

81) Which of the following measures the percentage of e-mails that could not be delivered? A) abandonment rate B) unsubscribe rate C) bounce-back rate D) attrition rate

C) bounce-back rate

34) Google's AdSense is an example of which of the following? A) context advertising B) SEO C) programmatic advertising D) viral marketing

A) context advertising

35) Which of the following is based on the idea of complete price transparency in a perfect information marketplace? A) the Law of One Price B) dynamic pricing C) price discrimination D) versioning

A) the Law of One Price

29) The incremental cost of building the next unit of a good is called the: A) Law of One Price. B) variable cost. C) marginal cost. D) fixed cost.

C) marginal cost

73) Hits are a measure of the: A) number of times an ad is clicked. B) number of times an ad is served. C) number of HTTP requests. D) number of pages viewed.

C) number of HTTP requests.

38) Which of the following is an automated, auction-based method for matching supply and demand for online display ads? A) retargeting B) behavioral targeting C) programmatic advertising D) keyword advertising

C) programmatic advertising

72) Uber has been criticized for using which of the following? A) flash marketing B) bundling C) surge pricing D) freemium

C) surge pricing

75) eCPM measures the ROI of an ad by dividing the total earnings of the ad by which of the following? A) the total number of impressions B) the total number of impressions in hundreds C) the total number of impressions in thousands D) the total number of impressions in millions

C) the total number of impressions in thousands

71) View-through rate measures the ________ response rate to an ad. A) 30-minute B) 24-hour C) 7-day D) 30-day

D) 30-day

17) Which of the following is not true about search engine advertising? A) Spending on search engine advertising constitutes over 45% of all online advertising spending. B) The top three search engine providers supply over 95% of all online searches. C) The click-through rate for search engine marketing has been steady over the years. D) Search engine advertising is the fastest growing type of online advertising.

D) Search engine advertising is the fastest growing type of online advertising.

57) A web beacon is: A) a cookie that carries a virus. B) an executable cookie. C) an automated applet for performing web searches. D) a tiny graphics file embedded in an e-mail or web page.

D) a tiny graphics file embedded in an e-mail or web page.

2) Which of the following online advertising formats involved the least amount of spending in 2016? A) search B) classifieds C) rich media D) e-mail

D) e-mail

21) Which of the following is not a primary source of ad fraud? A) browser extensions that insert ads into a premium publisher's website and then list the ads as available on a programmatic ad exchange B) ad targeting firms that create bots that imitate the behavior of real shoppers and then charge advertisers C) botnets hired by publishers to click on web pages to create phony traffic D) native advertising that is displayed on a social media site

D) native advertising that is displayed on a social media site

27) All of the following are among those most frequently affected by ad-blocking except: A) gaming sites. B) newsgroup/forums. C) social network sites. D) online retailers.

D) online retailers

14) Which of the following forms of online advertising is expected to grow the fastest between 2016 and 2020? A) paid search B) sponsorships C) search engines D) rich media

D) rich media

31) Creating multiple variations of information goods and selling these to different market segments at different prices is called: A) bundling. B) customization. C) dynamic pricing. D) versioning.

D) versioning

32) All of the following are fixed price strategies except: A) bundling. B) versioning. C) free pricing. D) yield management.

D) yeild management

28) The Nike iD program is an example of which of the following marketing techniques? A) customer co-production B) transactive content C) price discrimination D) permission marketing

A) customer co-production

77) Acquisition rate is a measure of the: A) percentage of visitors who indicate an interest in a site's products by registering or visiting a product's pages. B) percentage of visitors who become customers. C) percentage of existing customers who continue to buy on a regular basis. D) percentage of shoppers who do not return within a year after their initial purchase.

A) percentage of visitors who indicate an interest in a site's products by registering or visiting a product's pages.

61) To answer a question such as "At what time of day does our company sell the most products?" you would use ________ data mining. A) query-driven B) customer profiling C) model-driven D) behavioral

A) query driven

23) Which of the following statements about CAN-SPAM is not true? A) CAN-SPAM went into effect in January 2004. B) CAN-SPAM prohibits unsolicited e-mail (spam). C) CAN-SPAM prohibits the use of deceptive subject lines and false headers. D) Large spammers are among CAN-SPAM's biggest supporters.

B) CAN-SPAM prohibits unsolicited e-mail (spam).

59) A ________ is a repository of customer information that records all of the contacts a customer has with a firm, and generates a customer profile that is available to appropriate individuals in the firm. A) customer service chat system B) CRM system C) data warehouse D) transactive content system

B) CRM system

50) Which of the following would you use as a framework for working with your company's big data sets? A) data warehouse B) Hadoop C) SQL D) profiling

B) Hadoop

37) Which of the following statements about native advertising is not true? A) Native advertising is controversial. B) Native advertising is a new form of advertising found only online. C) Native advertising is growing rapidly, especially on social networks. D) Consumers look at native ads much more frequently than display ads.

B) Native advertising is a new form of advertising found only online.

20) Ad blockers operate in a manner similar to which of the following? A) anti-virus software B) firewalls C) Flash cookies D) anonymous browsing

B) firewalls

60) The marketing technique known as ________ involves merchants offering products or services for a very low price for a short period of time. A) long tail marketing B) flash marketing C) yield management D) bait-and-switch

B) flash marketing

53) Which of the following features of e-commerce technology allows fine-grained, highly detailed information on consumers' real-time behavior to be gathered and analyzed? A) personalization/customization B) information density C) ubiquity D) interactivity

B) information density

56) All of the following statements about cookies are true except: A) cookies can be used to create cross-site profiles of users. B) the data typically stored in cookies includes a unique ID and e-mail address. C) cookies make shopping carts possible by allowing a site to keep track of a user's actions. D) the more cookies are deleted, the less accurate ad server metrics become.

B) the data typically stored in cookies includes a unique ID and e-mail address.

78) Recency refers to the: A) percentage of customers who do not return during the next year after an initial purchase. B) time elapsed since the last visit made by a customer. C) percentage of existing customers who continue to buy on a regular basis. D) percentage of customers who return to the site within a year to make additional purchases.

B) time elapsed since the last visit made by a customer

69) If you want to determine the size of your website's audience, the metric you will use for the most accurate measurement will be: A) page views. B) unique visitors. C) hits. D) reach.

B) unique visitors

33) Which of the following involves getting customers to pass along a company's marketing message to friends, family, and colleagues? A) affiliate marketing B) viral marketing C) native advertising D) lead generation marketing

B) viral marketing

55) For a website that has 1 million 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. A) 50,000 B) 500,000 C) 5 million D) 50 million

C) 5 million

1) Around ________% of households in the United States have broadband access to the Internet. A) 45 B) 55 C) 75 D) 85

C) 75

16) Which of the following search engine algorithm updates enables Google's search engine to evaluate an entire sentence rather than just a key word? A) Panda B) Penguin C) Hummingbird D) Graph Search

C) Hummingbird

54) The richness made possible by e-commerce technologies does which of the following? A) It reduces the cost of delivering marketing messages and receiving feedback from users. B) It allows consumers to become co-producers of the goods and services being sold. C) It allows video, audio, and text to be integrated into a single marketing message and consuming experience. D) It enables worldwide customer service and marketing communications.

C) It allows video, audio, and text to be integrated into a single marketing message and consuming experience.

13) Google introduced ________ to its search algorithm to weed out low-quality sites from search results. A) Penguin B) Hummingbird C) Panda D) Knowledge Graph

C) Panda

19) Amazon's Associates program is an example of which of the following? A) viral marketing B) local marketing C) affiliate marketing D) lead generation marketing

C) affilitate marketing

80) Which of the following measures the ratio of items purchased to product views? A) conversion rate B) cart conversion rate C) browse-to-buy ratio D) view-to-cart ratio

C) browse-to-buy ratio

82) Which of the following is the most meaningful metric for video ads? A) view time B) click-through rate C) completion rate D) skip rate

C) completion rate