MAR1011 - Chapter 4

You were shopping on one of your favorite websites for cloths -- gap.com -- and read customer reviews on a sweater you were thinking of purchasing. The product was rating a 4.2 out of 5 but several customers mentioned that the fit of the sweater was not true to size and that the material was a little itchy. Although you liked the sweater, based on the reviews, you decided not to purchase the item. This example demonstrates the ________ advantage of online shopping.

- Access and convenience. One dimension of the advantage, access and convenience is the ability to read customer reviews where consumers can read ratings and comments from actual users of the product.

Which of the following is the correct formula to calculate the "click-though-rate"?

- Ad clicks/ad impressions. Click-through-rate = ad clicks/ad impressions.

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

- Channel.

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

- Competitive price. This is an example of competitive pricing since Rafael can compare options and identify the most competitive rate.

Marketing who takes advantage of the digital marketing capability known as integrated marketing benefit by ______ all promotional activities.

- Coordinating. Intergrated marketing involves the coordination of all promotional activities to produce a consistent, customer-oriented promotional message.

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

- Disclose how they collect personal data. The TRUSTe logo is an indication that the firm will disclose how they collect personal data and what they do with this information.

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

- Electronic data interchange. This is an example of an electronic data interchange (EDI), a direct, computer-to-computer exchange where companies can share price quotations, purchase orders, invoice, and other sales information between buyers and sellers.

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

- Encryption. Encryption is the process of encoding data for security purposes.

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

- Global reach. Global reach eliminates the geographical of local business and gives smaller firms a wider audience.

Which of the following is NOT one of the challenges faced by online marketers and consumers?

- Information overload. The five challenges faced by online marketers and consumers are safely of online payment, privacy issues, fraud and scams, site design and customer service, and channel conflicts.

A not-for-profit raising funds for cancer research invites donors to suggest new ideas on website for fundraising target. This not-for-profit is engaged in:

- Interactive marketing. This is an example of interactive marketing, where marketers can deliver more relevant marketing messages to customers based on event triggers.

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

- Intranet. An intranet is best suited to this task. It is a secure internal network that helps companies share information among employees anywhere.

You log on to Amazon to purchase a new ink cartridge for your printer. You notice that Amazon has a "recommended for you" section on the website based on past purchases and searches. This is an example of _____, an advantage of online shopping.

- Personal service. Amazon is practicing personalization by providing you with recommendations using your past purchases and searches.

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

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

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

- Private exchange. A private exchange is a secure website where a company and its suppliers share data related to e-business.

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

- Revenue maximization. Revenue maximization strategies are designed to increase the size of each customer transaction and encourage repeat visits by the customer.

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

- Secure, external.

Marketers often utilize metrics to determine their website's effectiveness. Which of the following best characterizes "engagement"?

- The amount of time users spend on the site. "Engagement" is a measure of effectiveness that tracks the amount of time users on a site and/or which pages they visit.

Which of the following statements is TRUE regarding conversion rate?

- The higher the conversion rate, the better.

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

- User experience. User experience relates to the overall experience customers have when visiting a website such as the look and feel, ease of finding items, and speed of loading pages.