CIS 340 Exam #3 Study Guide

B) CRM system

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

TRUE

A roughly equal percentage of men and women in the United States use the Internet today.

TRUE

A significant percentage of online ad impressions served are not actually viewed or even viewable.

D) online retailers.

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) yield management.

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

D) targeted banner ads.

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

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

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.

C) affiliate marketing

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

B) 10%

Approximately ________ of U.S. Internet users research online but do not buy. A) 7.5% B) 10% C) 25% D) 80%

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

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.

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

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.

FALSE

Regular in-app cookies can be shared between apps.

TRUE

Research has found that most of the ad impressions served across display advertising platforms are not viewable.

TRUE

Research shows the two key factors shaping the decision to purchase online are utility and trust.

About 7.5% of Internet users do not shop or buy online. One of the most important factors cited by those who don't shop or buy online is the "trust factor," the fear that online merchants will cheat you, lose your credit card information, or use personal information you give them to invade your personal privacy, bombarding you with unwanted e-mail and pop-up ads. Secondary factors can be summarized as "hassle factors," like shipping costs, returns, and inability to touch and feel the product.

Some people still don't shop online. Why?

A) customer co-production

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

FALSE

The average abandonment rate is highest for shopping carts accessed via smartphones.

FALSE

The concept of "customer satisfaction" is broader than the concept of "customer experience."

FALSE

The highest amount of online advertising spending is for online video ads.

C) marginal cost.

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.

FALSE

The majority of online shoppers find vendors by clicking on display ads.

A) long tail marketing

The marketing technique known as ________ involves merchants offering many products for which there is little demand. A) long tail marketing B) flash marketing C) yield management D) bait-and-switch

A) 55%

The percentage of all e-mail that is spam averaged around ________ in 2020. A) 55% B) 65% C) 75% D) 85%

C) surge pricing

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

D) 30-day

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

B) percentage of views that lead to an add-to-cart action.

View-to-cart ratio 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 views that lead to an add-to-cart action. 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) Nielsen ratings

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

D) conversation

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

A) company website

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

C) completion rate

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

B) stickiness

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

C) bounce-back rate

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

B) CTR

Which of the following measures the percentage of times an ad is clicked? A) retention rate B) CTR C) loyalty rate D) conversion rate

C) browse-to-buy ratio

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

D) e-mail

Which of the following online advertising formats attracted the least amount of spending in 2020? A) search B) classifieds C) rich media D) e-mail

B) cookies

Which of the following provides web marketers with a very quick means of identifying a customer and understanding his or her behavior at a site? A) transaction logs B) cookies C) registration forms D) data warehouses

D) Fred

Which of the following search engine algorithm updates targets websites that violate Google's guidelines? A) Panda B) Penguin C) Hummingbird D) Fred

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

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

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.

TRUE

Bundling is the process of selling two or more products together for a price that is less than the sum of the two product's individual prices.

FALSE

Consumers choose the online channel primarily due to social media influence.

D) versioning.

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.

A) how to assign credit to different marketing initiatives.

Cross-platform attribution refers to: A) how to assign credit to different marketing initiatives. B) understanding why visitors to a website purchase a product. C) understanding how impressions lead to visits. D) understanding why people click on ads.

TRUE

Lead generation marketing firms specialize in inbound marketing.

C) the total number of impressions in thousands

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

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

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.

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

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.

B) firewalls

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

C) social marketing.

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.

TRUE

Evidence suggests that real-time customer chat increases the dollar value of transactions.

Customer relationship management systems are an important Internet marketing technology. They serve as repositories for customer information that records all of the contacts a customer has with a firm including its website. CRM systems can generate a profile of each customer that is available to everyone in the firm who requests the data, and they contain analytical software that will make this data valuable to the firm. In the past, firms generally did not maintain a single storehouse of customer information, and any customer data was organized along product lines with each product line maintaining a separate customer list. CRMs are part of the evolution towards customer-centric and segmented market-based businesses, and away from this product-based model. CRMs use database technology with capabilities for assessing the needs of individual customers and differentiating products to meet those needs. The customer profiles generated by a CRM can include a map of the customer's relationship with the firm, the products he or she has bought and the frequency of purchases, the demographic and psychographic profile for each customer, profitability measures, a complete contact history, and marketing and sales information containing marketing campaigns that the customer received and the customer's responses to them. With these profiles, CRMs can be used to sell additional products and services, develop new products, increase product utilization, reduce marketing costs, identify and retain profitable customers, optimize service delivery costs, retain high lifetime value customers, enable personal communications, improve customer loyalty, and increase product profitability.

Define and describe the functionality of customer relationship management (CRM) systems.

Google makes frequent changes to their search algorithms to improve search results and user experience. Google, for instance, reportedly makes over 600 search engine changes in a year. Most are small unannounced tweaks. Major changes have included Panda, Penguin, Hummingbird, Knowledge Graph, an unnamed algorithm that has been nicknamed Mobilegeddon, and Possum. Panda was introduced to weed out low quality sites from search results. Those sites with thin content, duplicate content, content copied from elsewhere on the Web, and content that did not attract high-quality hits from other sources were systematically pushed down in the search results. Google introduced Penguin to punish websites and their SEO marketing firms who were manipulating links to their site in order to improve their rankings. The Google search engine rewards sites that have links from many other sites. What some marketers discovered is that Google could not tell the quality of these back links, and they began to manufacture links by putting their clients onto list sites, creating multiple blogs to link to their clients' site, and paying others to link to their clients' sites. Penguin evaluates the quality of links to a site and pushes down in the rankings those sites that have poor-quality back links. Rather than evaluate each word separately in a search, Google's semantically informed Hummingbird will try to evaluate an entire sentence. Semantic search more closely follows conversational search, or search as you would ordinarily speak it to another human being. Google developed Knowledge Graph as an effort to anticipate what you might want to know more about as you search on a topic or answer questions you might not thought of asking. Results of Knowledge Graph appear on the right of the screen and contain more information about the topic or person you are searching on. Not all search terms have a Knowledge Graph result. Google displays information based on what other users have searched for in the past, as well as its database on over 1 billion objects (people, places, and things), and more than 70 billion facts. In 2015, Google released a new algorithm update (nicknamed Mobilegeddon) that made the "mobile-friendliness" of websites a much stronger ranking factor for mobile searches. Websites that are not optimized for mobile now have a much lower ranking in mobile search results. Google also lowers the search rank of mobile websites that display an ad that obscures the screen and asks users whether they would like to install the site's mobile app, because such ads are less mobile-friendly. In 2016, Google introduced Possum, an algorithm update that varies search results based on the user's location; so, for example, the closer a user is to a business's address, the more likely it is to appear among the local results. In 2017, Google released the Fred algorithm, which targets websites that violate Google's guidelines, primarily blogs with low-value, ad-centered content. Since then, Google has released a number of unnamed core algorithm updates, about which it has not provided many details.

Discuss the changes that Google has made to its search algorithms to improve search results and user experience.

The Internet has had four broad impacts on marketing. First, the Internet as a communications medium has broadened the scope of marketing. Marketing messages can now easily reach a greater number of people. Second, the Internet has increased the richness of marketing communications by combining text, video, and audio content into rich messages. Some even think that the Web is a richer medium than television or video because of the complexity of messages and the huge amount of, and wide ranging, content that is available. Third, the Internet has greatly expanded the information intensity of the marketplace by providing marketers with fine-grained, detailed, real-time information about consumers as they transact in the marketplace. Fourth, the always-on, always-attached, environment created by mobile devices results in consumers being much more available to receive marketing messages. One result is an extraordinary expansion in marketing opportunities for firms.

Discuss the revolution in Internet marketing technologies. What are four primary impacts the Internet has had on marketing?

C) Panda

Google introduced which of the following changes to its search algorithm to weed out low quality sites from search results? A) Penguin B) Hummingbird C) Panda D) Knowledge Graph

C) 100% of the pixels must be in view for at least one second

Group M, the world's largest advertising buyer, requires which of the following in order for an ad to be considered viewable? A) 50% of the pixels must be in view for at least one second. B) 50% of the pixels must be in view for at least two seconds. C) 100% of the pixels must be in view for at least one second D) 100% of the pixels must be in view for at least two seconds

Blogs have been around for a decade and are a part of the mainstream online culture. Around 30 million people write blogs, and around 85 million read blogs. Blogs play a vital role in online marketing. Although more firms use Facebook, Instagram, and Twitter, these sites have not replaced blogs, and in fact often point to blogs for long-form content. Because blog readers and creators tend to be more educated, have higher incomes, and be opinion leaders, blogs are ideal platforms for ads for many products and services that cater to this kind of audience. Because blogs are based on the personal opinions of the writers, they are also an ideal platform to start a viral marketing campaign. Advertising networks that specialize in blogs provide some efficiency in placing ads, as do blog networks, which are collections of a small number of popular blogs, coordinated by a central management team, and which can deliver a larger audience to advertisers.

How are blogs being used for marketing?

For many years, IAB categorized display ads based on fixed pixel sizes, such as a medium rectangle (300 x 250 pixels), large rectangle (336 x 280 pixels), leaderboard (728 x 90 pixels), and wide skyscraper (100 x 600 pixels) (the top performing sizes, according to Google). However, in 2017, the IAB released the final version of its new standard ad unit portfolio, based on aspect ratio and size range, rather than fixed pixel size, allowing for flexible sizing and delivery of a more consistent ad experience across multiple screen sizes and devices. Ad types are now identified as horizontal (typically placed at the top or bottom of the screen), vertical (typically placed on the right or left edge of the screen), tiles (typically placed in a grid layout), or full page (which cover the full screen of the device in either a portrait or landscape layout). The guidelines are based on HTML5 technology and cover all types of display ads, as well as new ad experiences such as augmented reality, virtual reality, 360-degree ads, and emoji ads, among others. Another important aspect of the guidelines is their incorporation of LEAN principles. LEAN is an acronym that stands for lightweight, encrypted, AdChoices-supported, and non-invasive advertising. In an attempt to enhance consumer acceptance of advertising, the standard contains guidelines with respect to animations, ad expansions, close buttons, user initiation, interstitials (ads that appear before, in-between, or after the primary content), video and auto-play video and audio. LEAN also includes a list of disruptive ad experiences that are no longer permitted, such as pop-up ads (ads that overlay or cover the content after the user has started viewing the content), auto expansion (ads that expand without user initiation), auto-play video with audio, and flashing animations.

How do the Interactive Advertising Bureau's standard ad unit portfolio and guidelines released in 2017 differ from its earlier guidelines for display ads?

B) unique visitors.

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.

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

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.

TRUE

Online traffic is partially driven by offline brands and traditional shopping.

D) visual search

Pinterest's Lens is an example of which of the following? A) keyword advertising B) SEO C) voice search D) visual search

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

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.

FALSE

Transaction logs are built into client software and not the web server software.

Two methods being developed to track consumers across devices are deterministic cross-device tracking and probabilistic cross-device tracking. Deterministic cross-device tracking relies on personally identifiable information such as e-mail address used to log into an app and website on different devices. Facebook, Google, Apple, Twitter, and other companies that have very large user bases and have both desktop and mobile properties that require logins are the most likely to be able to effectively exploit deterministic matching. Probabilistic cross-device tracking uses algorithms to analyze thousands of anonymous data points, such as device type, operating system, and IP address, to create a possible match. This type of matching is less accurate than deterministic matching.

What are two methods being developed to track consumers across devices?

Big data usually refers to very large data sets in the petabyte and exabyte range—in other words, billions to trillions of records, often from different sources. Big data is produced in much larger quantities and much more rapidly than traditional data collection mechanisms. Even though tweets are limited to 140 characters each, Twitter generates more than eight terabytes of data daily. According to technology research firm IDC, data is more than doubling every two years, so the amount of data available to organizations is skyrocketing. The next frontier will be data derived from the Internet of Things (IoT). Making sense out of big data quickly to gain a market advantage is critical. Marketers are interested in big data because it allows them to link huge amounts of data from a variety of different sources, which in the past they were unable to do, and mine if for patterns of consumer behavior, with the potential to derive new insights into customer behavior, financial market activity, or other phenomena. For instance, Evrythng, an IoT platform company, partnered with Trueffect, a digital ad firm, to develop ways that marketers can use data generated by connected appliances and other devices to directly communicate with and target advertising with consumers. However, to derive business value from this data, organizations need new technologies and analytic tools capable of managing and analyzing nontraditional data along with their traditional enterprise data.

What is big data and why are marketers interested in it?

Cross-platform attribution involves understanding how to assign appropriate credit to different marketing initiatives on a variety of platforms that may have influenced a consumer along the way to an ultimate purchase. There is increasing recognition that first-click and last-click models that focus on either the first or last marketing channel or advertising format that a consumer engages with prior to a purchase, are not sufficient. Cross-platform attribution is difficult because there is a lengthy path from simple online ad impressions, website visits, and page views to the purchase of a product.

What is cross-platform attribution and why is it difficult?

Marketing analytics software is a software package that collects, stores, analyzes, and graphically presents data on each of the stages in the conversion of shopper to customer process on e-commerce sites. Marketing analytics packages help business managers optimize the return on investment on their websites and social marketing efforts, by building a detailed understanding of how consumers behave when visiting their websites. They help analyze where customers come from, what they do on the site, and which content is most appealing, as well as how users shop and add to their shopping cart, and whether they abandon their shopping cart. Marketing analytics also allows managers to measure the impact of specific marketing campaigns.

What is marketing analytics software and what is it used for?

D) banner display ads

What kinds of ads have the lowest CTR? A) video ads B) e-mails to an in-house list C) social network display ads D) banner display ads

C) 71%

What was the approximate Internet penetration rate in 2019 for individuals that have attained less than a high-school education? A) 51% B) 61% C) 71% D) 81%

B) universal standards

Which of the following features of e-commerce technology decreases the cost of delivering marketing messages and receiving feedback from users? A) personalization/customization B) universal standards C) ubiquity D) interactivity

D) interactivity

Which of the following features of e-commerce technology enables marketers to engage customers in a dialog and dynamically adjust the experience to the consumer? A) ubiquity B) richness C) information density D) interactivity

D) video

Which of the following forms of online advertising is expected to grow the most between 2020 and 2024? A) paid search B) sponsorships C) search engines D) video

B) retail

Which of the following industries accounted for the highest percentage of spending on online advertising in 2019? A) financial services B) retail C) automotive D) entertainment

B) viral marketing

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

D) Possum

Which of the following is a Google algorithm update related to local search? A) Penguin B) Hummingbird C) Panda D) Possum

C) programmatic advertising

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

B) Hadoop

Which of the following is an open source software framework used to collect and analyze a company's big data? A) data warehouse B) Hadoop C) SQL D) profiling

A) the Law of One Price

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) social search

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

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

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) Adults in the 25-to-54-age group have the highest percentage of Internet use.

Which of the following statements about Internet usage in the United States is not true? A) In 2020, around 290 million people of all ages had access to the Internet. B) In 2020, the growth in the number of new online users was around 1.5%. C) Over 90% of all U.S. Internet users access the Internet using a mobile device. D) Adults in the 25-to-54-age group have the highest percentage of Internet use.

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

Which of the following statements about a free pricing strategy is not true? 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) Most consumers are able to easily distinguish editorial content from native advertising.

Which of the following statements about native advertising is not true? A) Almost all of social network ad spending is native advertising. B) Most consumers are able to easily distinguish editorial content from native advertising. C) Native advertising's share of mobile display revenues has grown to 85% in 2020. D) Consumers look at native ads more frequently than they look at display ads.

B) The Internet has decreased the impact of brands.

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.

C) Hadoop

________ is an open source database that can store and analyze both structured and unstructured data. A) ASP B) PHP C) Hadoop D) JSP