BCIS 4720 - Exam 2
Approximately ________ of U.S. Internet users research online but do not buy. a. 80% b. 25% c. 7.5% d. 10%
10%
Group M, the world's largest advertising buyer, requires which of the following in order for an ad to be considered viewable? a. 100% of the pixels must be in view for at least two seconds b. 50% of the pixels must be in view for at least one second. c. 50% of the pixels must be in view for at least two seconds. d. 100% of the pixels must be in view for at least one second
100% of the pixels must be in view for at least one second
The percentage of all e-mail that is spam averaged around ________ in 2020. a. 85% b. 65% c. 55% d. 75%
55%
In 2020, it was estimated that about what percentage of Internet users over the age of 14 would make a purchase at an online retail store? a. 80% b. 40% c. 70% d. 60%
80%
Amazon's Associates program is an example of which of the following? a. affiliate marketing b. lead generation marketing c. local marketing d. viral marketing
affiliate marketing
Which of the following provides a financial snapshot of a company's assets and liabilities (debts) on a given date? a. operating margin b. gross margin c. balance sheet d. working capital
balance sheet
Omni-channel merchants are also referred to as: A) virtual merchants. B) bricks-and-clicks companies. C) catalog merchants. D) manufacturer-direct firms.
bricks-and-clicks companies.
All of the following are challenges faced by bricks-and-clicks firms except: a. handling returns of online purchases at retail outlets. b. coordinating prices across channels. c. building a credible website. d. building a brand name.
building a brand name.
Virtual merchants face potentially large costs for all of the following except: a. building an order fulfillment infrastructure. b. building and maintaining a website. c. developing a brand name. d. building and maintaining physical stores.
building and maintaining physical stores.
All of the following are challenges for catalog merchants except: a. high costs of printing and mailing. b. building a credible website. c. building sophisticated order entry and fulfillment systems. d. the need to bring staff in or manage new technology.
building sophisticated order entry and fulfillment systems.
Which of the following occurs when retailers of products must compete on price and currency of inventory directly against the manufacturer? a. disintermediation b. channel conflict c. hypermediation d. localization
channel conflict
a. disintermediation b. hypermediation c. localization d. channel conflict
channel conflict
Which of the following is the most important tool in establishing a relationship with the customer? a. search engine display ads b. company website c. Facebook d. company CRM system
company website
Which of the following categories generated the highest percentage of online retail revenue in 2019? a. computers and electronics b. automobile and automobile parts and accessories c. books/music/video d. apparel and accessories
computers and electronics
Which of the following is not one of the main stages of the online purchasing process? a. post-purchase service and loyalty b. engagement c. awareness d. conversation
conversation
The lower the ________ compared to revenue, the higher the gross profit. a. assets b. operating expenses c. gross margin d. cost of sales
cost of sales
The NIKEiD program is an example of which of the following marketing techniques? a. transactive content b. permission marketing c. price discrimination d. customer co-production
customer co-production
Gross margin is defined as gross profit: a. divided by net sales revenues. b. minus total operating expenses. c. minus net income. d. divided by cost of sales.
divided by net sales revenues.
Which of the following online advertising formats attracted the least amount of spending in 2020? a. classifieds b. rich media c. search d. e-mail
What is another name for pro forma earnings? a. operating income b. earnings before income taxes, depreciation, and amortization (EBITDA) c. net margin d. generally accepted accounting principles (GAAP) earnings
earnings before income taxes, depreciation, and amortization (EBITDA)
All of the following are advantages of online retail except: a. lower supply chain costs. b. ability to change prices. c. faster delivery of goods. d. lower cost of distribution.
faster delivery of goods.
Ad blockers operate in a manner similar to which of the following? a. Flash cookies b. anonymous browsing c. anti-virus software d. firewalls
firewalls
All of the following are examples of the challenges that traditional manufacturers experience when using the Internet to sell directly to the consumer except: a. channel conflict. b. developing a fast-response online order and fulfillment system. c. moving to a demand-pull model. d. high-cost structures.
high-cost structures.
In modeling online consumer behavior, the concept of "consumer skills" refers to the: a. communication skills of the consumer. b. product evaluation skills of the consumer. c. education level of the consumer. d. knowledge consumers have about how to conduct online transactions.
knowledge consumers have about how to conduct online transactions.
Which of the following is not one of the central challenges facing the online retail industry? a. lack of physical store presence b. delivery delays c. inconvenience in returning goods d. consumer concerns about the privacy of personal information
lack of physical store presence
Which of the following is not considered a current asset? a. cash b. long-term investments c. marketable securities d. accounts receivable
long-term investments
The online retail sector of the retail industry is most similar to the ________ sector. a. mail order/telephone order (MOTO) b. consumer durables c. general merchandise d. specialty stores
mail order/telephone order (MOTO)
The term supply-push refers to: A) making products prior to orders being received based on estimated demand. B) waiting for orders to be received before building a product. C) channel conflict. D) multi-channel manufacturers who sell directly online to consumers.
making products prior to orders being received based on estimated demand.
The incremental cost of building the next unit of a good is called the: a. Law of One Price. b. fixed cost. c. marginal cost. d. variable cost.
marginal cost.
Which of the following is not a primary source of ad fraud? a. native advertising that is displayed on a social media site c. browser extensions that insert ads into a premium publisher's website and then list the ads as available on a programmatic ad exchange c. ad targeting firms that create bots that imitate the behavior of real shoppers and then charge advertisers d. botnets hired by publishers to click on web pages to create phony traffic
native advertising that is displayed on a social media site
Which of the following measures the percentage of sales revenue a firm can retain after all expenses are deducted from gross revenues? a. working capital b. gross profit c. net margin d. operating margin
net margin
All of the following were parts of the vision during the early days of e-commerce except the belief that: a. the cost of acquiring customers would be much lower. b. new, "first-mover" middlemen, with expertise in e-commerce, would force traditional intermediaries out of business. c. entry costs to the online retail market would be much less than those needed to establish a physical storefront. d. online consumers were rational and cost-driven.
new, "first-mover" middlemen, with expertise in e-commerce, would force traditional intermediaries out of business.
Apart from Amazon, the top online retail firms in terms of online sales are all primarily ________ firms. a. manufacturer-direct b. omni-channel c. catalog merchant d. web-only
omni-channel
Which of the following has the second-highest share of online retail sales? a. catalog merchants b. manufacturer-direct c. virtual merchants d. omni-channel merchants
omni-channel merchants
Current liabilities are debts of the firm that will be due within: a. one year. b. two years. c. six months. d. three months.
one year.
All of the following are among those most frequently affected by ad-blocking except: a. newsgroup/forums. b. online retailers. c. social network sites. d. gaming sites.
online retailers.
Which of the following is not one of the methods used by traditional retailers to develop omni-channel integration? a. online order, in-store pickup b. online promotions for offline purchases c. online supply-push d. online catalog
online supply-push
Operating margin is defined as: a. operating income or loss divided by net sales revenues. b. net assets divided by net liabilities. c. net sales revenues divided by net income or loss. d. operating income or loss divided by total operating expenses.
operating income or loss divided by net sales revenues.
All of the following are strategic factors that pertain specifically to a firm and its related businesses except: a. core competencies. b. technology. c. power of customers. d. synergies.
power of customers.
Which of the following is an automated, auction-based method for matching demand and supply for online display ads? a. keyword advertising b. programmatic advertising c. retargeting d. behavioral targeting
programmatic advertising
Which of the following industries accounted for the highest percentage of spending on online advertising in 2019?
retail
All of the following are "traditional" online marketing tools except: a. affiliate marketing. b. sponsorship marketing. c. social marketing. d. e-mail and permission marketing.
social marketing.
Which of the following is not a practice that degrades the results and usefulness of search engines? a. click fraud b. content farms c. social search d. link farms
social search
Which of the following is not a key industry strategic factor? a. existence of substitute products b. industry value chain c. synergies d. barriers to entry
synergies
All of the following are online communications used to support the evaluation of alternatives stages of the consumer decision process except: a. social networks. b. targeted banner ads. c. online catalogs. d. search engines.
targeted banner ads.
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. price discrimination c. versioning d. dynamic pricing
the Law of One Price
Which of the following statements about Internet usage in the United States is not true? a. In 2020, the growth in the number of new online users was around 1.5%. b. Over 90% of all U.S. Internet users access the Internet using a mobile device. c. Adults in the 25-to-54-age group have the highest percentage of Internet use. d. In 2020, around 290 million people of all ages had access to the Internet.
Adults in the 25-to-54-age group have the highest percentage of Internet use.
All of the following statements about Amazon are true except: a. Amazon generates the bulk of its overall revenue by selling products. b. Amazon Web Services delivers more profits than Amazon's entire retail business. c. eBay can be considered a competitor of Amazon's. d. Amazon purchased Jet.com, one of its discount competitors, to give it a more robust network for delivering goods.
Amazon purchased Jet.com, one of its discount competitors, to give it a more robust network for delivering goods.
Which of the following statements about CAN-SPAM is not true? a. CAN-SPAM went into effect in January 2004. b. CAN-SPAM prohibits the use of deceptive subject lines and false headers. c. CAN-SPAM prohibits unsolicited e-mail (spam). d. Large spammers are among CAN-SPAM's biggest supporters.
CAN-SPAM prohibits unsolicited e-mail (spam).
Which of the following is not an example of a virtual merchant? a. Dell b. Overstock c. Wayfair d. Newegg
Dell
Consumers are primarily price-driven when shopping on the Internet.
False
Consumers choose the online channel primarily due to social media influence.
False
Contrary to predictions of analysts made during the early days of e-commerce, the Internet has led to both disintermediation and hypermediation on a widespread basis.
False
Online retail constitutes about 20% of the total retail market today.
False
Personal consumption of retail goods and services accounts for over 80% of total gross domestic product (GDP).
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.
False
The majority of online shoppers find vendors by clicking on display ads.
False
Which of the following search engine algorithm updates targets websites that violate Google's guidelines? a. Panda b. Fred c. Hummingbird d. Penguin
Fred
Which of the following statements about native advertising is not true? a. Almost all of social network ad spending is native advertising. b. Native advertising's share of mobile display revenues has grown to 85% in 2020. c. Consumers look at native ads more frequently than they look at display ads. d. Most consumers are able to easily distinguish editorial content from native advertising.
Most consumers are able to easily distinguish editorial content from native advertising.
Which of the following statements is not true about the automobile, and automobile parts and accessories, online retail category? a. U.S. franchising law prohibits automobile manufacturers from selling cars directly to consumers. b. Automobile retailing is dominated by dealership networks. c. Automobile manufacturers use the Internet to deliver branding advertising. d. Most of the revenue in this category is generated from the sales of automobiles.
Most of the revenue in this category is generated from the sales of automobiles.
Which of the following is not one of the four main methods advertisers use to behaviorally target ads? a. integration of online data with offline data b. data collected from social networks c. clickstream data d. Nielsen ratings
Nielsen ratings
Google introduced which of the following changes to its search algorithm to weed out low quality sites from search results? a. Penguin b. Knowledge Graph c. Panda d. Hummingbird
Panda
Which of the following is a Google algorithm update related to local search? a. Hummingbird b. Possum c. Penguin d. Panda
Possum
Which of the following is a subscription-based retailer using predictive marketing and big data? a. Macy's b. Lands' End c. Stitch Fix d. Dell
Stitch Fix
Which of the following is not a major trend in online retail for 2020-2021? a. Buying online has become a normal, mainstream, everyday experience. b. The Covid-19 pandemic is expected to create a decrease in e-commerce retail purchases. c. The average annual purchase of online buyers continues to increase. d. The number of online buyers continues to increase.
The Covid-19 pandemic is expected to create a decrease in e-commerce retail purchases.
Which of the following statements about a free pricing strategy is not true? a. Free products and services can help build market awareness. b. It is difficult to convert free customers into paying customers. c. Free products and services can knock out potential and actual competitors. d. The free pricing strategy was born in the early days of the Web.
The free pricing strategy was born in the early days of the Web.
Which of the following statements about Canada's anti-spam law is not true? a. The law applies to e-mail, texts, and social media messaging. b. The first phase of the law went into effect in 2014. c. Canada's law is based on an opt-in model. d. The law has no impact on companies located within the United States.
The law has no impact on companies located within the United States.
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.
True
Big data plays an important role in predictive marketing.
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.
True
Evidence suggests that real-time customer chat increases the dollar value of transactions.
True
In 2020, the number of online buyers in the United States was around 205 million.
True
Lead generation marketing firms specialize in inbound marketing.
True
Online retailing provides an example of the powerful role that intermediaries continue to play in retail trade.
True
Online traffic is partially driven by offline brands and traditional shopping.
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.
True
The existence of substitute products is a key industry strategic factor.
True
All of the following have introduced social commerce functionality, such as buy buttons, shoppable ads, and marketplaces, except: a. Instagram. b. Pinterest. c. Facebook. d. Tumblr.
Tumblr
Which of the following is not a digitally native vertical brand (D2C)? a. Warby Parker b. Wayfair c. Caspar d. Everlane
Wayfair
All of the following statements about the MOTO sector are true except: a. compared to general merchandisers, the transition to e-commerce was easier for MOTO firms. b. MOTO was the last technological retailing revolution that preceded e-commerce. c. the MOTO sector is also referred to as the specialty store sector. improvements in telephone systems and the expansion of the credit d. card industry and associated technologies fueled the development of the MOTO sector.
the MOTO sector is also referred to as the specialty store sector.
Which of the following is not categorized as an operating expense? a. the cost of products being sold b. marketing costs c. amortization of goodwill d. administrative overhead
the cost of products being sold
Which of the following enabled MOTO firms to make an easier transition to e-commerce? a. the growth of the credit card industry b. falling long distance telecommunications prices c. the fact that they already had efficient customer order fulfillment processes d. the national toll-free call system
the fact that they already had efficient customer order fulfillment processes
Creating multiple variations of information goods and selling these to different market segments at different prices is called: a. bundling. b. dynamic pricing. c. customization. d. versioning.
versioning
Which of the following forms of online advertising is expected to grow the most between 2020 and 2024? a. sponsorships b. video c. paid search d. search engines
video
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. lead generation marketing d. native advertising
viral marketing
Which of the following has the highest share of online retail sales?
virtual merchants
Pinterest's Lens is an example of which of the following? a. voice search b. visual search c. SEO d. keyword advertising
visual search
For a quick check of a firm's short-term financial health, examine its: a. gross margin. b. working capital. c. cost of sales. d. long-term debt.
working capital.
All of the following are fixed price strategies except: a. versioning. b. bundling. c. free pricing d. yield management.
yield management.