Professional Documents
Culture Documents
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5. A network that connects a company with its suppliers and distributors is called a(n):
a. Internet.
b. Intranet.
c. Extranet.
d. Compunet.
Answer: (c) Difficulty: (2) Page: 79
6. The Johnson Company is seeking to expand its business onto the information
highway made possible by recent advances in technology. To do this, the Johnson
Company would most likely choose the:
a. Internet.
b. Intranet.
c. Extranet.
d. Compunet.
Answer: (a) Difficulty: (1) Page: 79
7. By early 2001, Internet penetration in the United States had reached close to:
a. 100 percent.
b. 90 percent.
c. 75 percent.
d. 60 percent.
Answer: (d) Difficulty: (3) Page: 79
8. The explosive worldwide growth in ___________ usage forms the heart of the
so-called New Economy.
a. population
b. cell-technology
c. Internet
d. Intranet
Answer: (c) Difficulty: (1) Page: 79
9. Established store-based retailers of all kinds began to doubt their futures as
competitors sprung up selling their products and services via the Internet. They
feared being _______________ by the new e-tailers.
a. upstaged
b. technologically intermediated
c. disintermediated
d. contaminated
Answer: (c) Difficulty: (3) Page: 80
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10. If brick-and-mortar firms such as Barnes & Noble or Wal-Mart start their own
online sales channels, they would become a ______________ firm.
a. click-only
b. click-and-mortar
c. disintermediated
d. bits-and-mortar
Answer: (b) Difficulty: (1) Page: 80
11. The Old Economy revolved around ____________ companies that mainly focused
on standardizing their production, products, and business processes.
a. service
b. information
c. entrepreneurial
d. manufacturing
Answer: (d) Difficulty: (2) Page: 80
12. In the Old Economy, companies felt that a key to managing their assets would be to
set up command-and-control systems that would run their businesses like:
a. customers would run them.
b. service firms ran.
c. machines.
d. monopolies.
Answer: (c) Difficulty: (2) Page: 80
13. In _______________, the company leaves it to individual customers to design the
offering.
a. customization
b. customerization
c. differentiation
d. standardization
Answer: (b) Difficulty: (2) Page: 80
14. ______________ includes all electronics-based information exchanges within or
between companies and customers.
a. E-commerce
b. E-marketing
c. E-communication
d. E-business
Answer: (d) Difficulty: (2) Page: 82
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20. All of the following could be listed as benefits to sellers should they choose to sell
via the Internet EXCEPT:
a. the Internet is a powerful tool for customer relationship building.
b. the Internet is a more secure place to conduct transactions than in a retail
environment.
c. the Internet reduces costs and increases speed and efficiency.
d. the Internet offers truly global commerce.
Answer: (b) Difficulty: (2) Page: 83, 84
21. One author concludes that Web customers are often very loyal, and the Internet
promotes this loyalty. This would be an example of which of the following benefits
to sellers for using the Internet to conduct commerce?
a. The Internet is a powerful tool for customer relationship building.
b. The Internet is a more secure place to conduct transactions than in a retail
environment.
c. The Internet reduces costs and increases speed and efficiency.
d. The Internet offers truly global commerce.
Answer: (a) Difficulty: (2) Page: 83, 84
22. Which of the following would not be considered to be among the major Internet
domains?
a. B2C (business-to-consumer)
b. B2B (business-to-business)
c. G2C (government-to-consumer)
d. C2C (consumer-to-consumer)
Answer: (c) Difficulty: (1) Page: 84
23. Which of the following most accurately describes a transaction wherein online
selling of goods and services goes to final consumers?
a. B2C
b. B2B
c. C2B
d. C2C
Answer: (a) Difficulty: (2) Page: 84
24. Although Internet users are still younger on average than the population as a whole,
consumers aged 50 and older make up:
a. almost 10 percent.
b. almost 20 percent.
c. almost 30 percent.
d. almost 40 percent.
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29. Josh Nielsen has decided to sell demonstration ski equipment that he has obtained
from a Head Ski salesperson via eBay using its auction feature. Which of the
following Internet domains would most accurately describe the form of business
Josh is using?
a. B2C
b. B2B
c. C2B
d. C2C
Answer: (d) Difficulty: (2) Page: 91
30. Sheryl Scott checked in to her favorite chat room. In her chat room, she was able
use library features, exchange information with online acquaintances in real time, and
make new friends with whom she can air her views on a variety of subjects. Which of
the following terms would be an appropriate description of Ms. Scotts chat room?
a. an open trading network
b. a private trading network
c. a forum
d. a private channel
Answer: (c) Difficulty: (2) Page: 91
31. _____________ is the Internet version of forums. However, such groups are
limited to people posting and reading messages on a specified topic, rather than
managing libraries or conferencing.
a. An open trading network
b. A private trading network
c. A private channel
d. A newsgroup
Answer: (d) Difficulty: (3) Page: 92
32. Using Priceline.com, would-be buyers bid for airline tickets, hotel rooms, rental cars,
and even home mortgages, leaving the sellers to decide whether to accept their offers.
Which of the following Internet domains best matches the above example?
a. B2C
b. B2B
c. C2B
d. C2C
Answer: (c) Difficulty: (3) Page: 92
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42. A(n) ________________ is a Web site designed to build customer goodwill and to
supplement other sales channels rather than to sell the companys products directly.
a. e-mail and Webcasting site
b. corporate Web site
c. online advertising or promotion Web site
d. Web community site
Answer: (b) Difficulty: (2) Page: 97, Figure 3-4
43. A company provides information about its history, its mission and philosophy, and
the products and services that it offers on its:
a. e-mail and Webcasting site.
b. corporate Web site.
c. online advertising or promotion Web site.
d. Web community site.
Answer: (b) Difficulty: (2) Page: 98
44. A Web site that engages consumers in interactions that will move them closer to a
direct purchase or other marketing outcome is called a(n):
a. e-mail and Webcasting site.
b. online advertising or promotion Web site.
c. marketing Web site.
d. Web community site.
Answer: (c) Difficulty: (2) Page: 98
45. The key to designing an attractive Web site is to:
a. create enough value and excitement to get customers to come to the site, stick
around, and come back again.
b. have cutting edge graphics that demonstrate the technology available to the Web
marketer.
c. have a least $2 million in design funds which provide for the interactivity
demanded by todays Web savvy consumer.
d. be willing beg, borrow, or steal ideas from the top Web page designers and
incorporate these ideas into the firms own site.
Answer: (a) Difficulty: (2) Page: 99
46. For low-interest Web sites, such as one for dental floss, a company should create a
corporate Web site to do all of the following EXCEPT:
a. answer customer questions.
b. build goodwill and excitement.
c. become the primary selling channel because of the reach of the Internet.
d. collect customer feedback.
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52. __________ are online ads that pop up between changes on a Web site.
a. Interstitials
b. Content sponsorships
c. Banner ads
d. Browser ads
Answer: (a) Difficulty: (3) Page: 101
53. If Coca-Cola were to pay Web surfers a small fee to watch their ads, these ads would
be called:
a. interstitials.
b. content sponsorships.
c. banner ads.
d. browser ads.
Answer: (d) Difficulty: (2) Page: 101
54. Which of the following marketing practices would be about the same thing as the
Internet practice of viral marketing?
a. coupon clipping
b. word-of-mouth marketing
c. disintermediation
d. tele-marketing
Answer: (b) Difficulty: (3) Page: 102
55. Which of the following Web sites is the best illustration of a Web community?
a. Ben & Jerrys Ice Creamwww.benjerry.com.
b. Nikewww.nike.com.
c. Hallmark Greeting Cardswww.hallmark.com.
d. iVillagewww.ivillage.com.
Answer: (d) Difficulty: (2) Page: 104
56. Jack Strong would like to receive up-to-date financial information so he can carefully
manage his financial portfolio. He decides to use Internet Financial Networks
Infogate to supply financial news, market data, and real-time stock quotes to his
PC. Internet Financial Network is supplying Mr. Strong with a ____________
service.
a. portal
b. corporate Web site
c. Webcasting
d. Interstitial
Answer: (c) Difficulty: (2) Page: 105
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c). E-marketing offers greater flexibility. Marketers are allowed to make ongoing
adjustments to offers and programs.
d). The Internet is a truly global medium that allows buyers and sellers to click from one
country to another in seconds.
Difficulty: (2) Page: 82-84
88. There are four major Internet domains through which e-commerce can be conducted.
List and briefly describe each.
Answer:
a). B2C (business-to-consumer) e-commercethe online selling of goods and services to
final consumers. This form is targeted to consumers and is initiated by businesses.
b). B2B (business-to-business) e-commerceusing B2B trading networks, auction sites,
spot exchanges, online product catalogs, barter sites, and other online resources to reach
new customers more effectively, and obtain buying efficiencies and better prices. This
form is targeted to businesses and is initiated by businesses.
c). C2C (consumer-to-consumer) e-commerceonline exchanges of goods and
information between final consumers. This form is targeted to consumers and is initiated
by consumers.
d). C2B (consumer-to-business) e-commerceonline exchanges in which consumers
search out sellers, learn about their offers, and initiate purchases, sometimes even driving
transaction terms. This form is targeted to businesses and is initiated by consumers.
Difficulty: (3) Page: 84-92, Figure 3-2
89. Define and then discuss the differences between open trading networks and private
trading networks.
Answer:
a). Open trading networkshuge e-marketers in which B2B buyers and sellers find each
other online, share information, and complete transactions efficiently. However, only
about 7 percent of all B2B transactions use this form. Example: PlasticsNet.com.
b). Private trading networks (PTNs)B2B trading networks that link a particular seller
with its own trading partners. Account for 93 percent of all B2B transactions. PTNs give
sellers greater control over product presentation (instead of just completing transactions)
and allow them to build deeper relationships with buyers and sellers by providing valueadded services.
Difficulty: (2) Page: 89, 90
90. Examine the three types of e-marketers, characterize each, and describe the channels
each uses to reach consumers.
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Answer:
a). Brick-and-mortar (brick-only) marketersthese marketers would be considered the
types of marketers present before the Internet revolution and the advent of the New
Economy. In this form, a seller would sell through brick-and-mortar store channels
(intermediaries) to consumers.
b). Click-only marketersthe so-called dot-coms, which only operate online without
any brick-and-mortar market presence. In this form, a seller uses e-commerce channels
to reach consumers.
c). Click-and-mortar marketersthis is a hybrid form. It is a traditional brick-andmortar company that has added e-marketing to its operations. In this form, a seller uses a
combination of brick-and-mortar and e-commerce channels to reach consumers.
Difficulty: (2) Page: 92-97, Figure 3-3
91. List and briefly characterize the four methods for setting up an e-marketing presence.
Answer:
a). Corporate Web sitea Web site designed to build customer goodwill and supplement
other sales channels, rather than to sell the companys products directly. This is the most
basic type of e-marketing presence. These sites generally provide information about the
companys history, its mission and philosophy, and the products and services that it
offers.
b). Marketing Web sitea Web site that engages consumers in interactions that will
move them closer to a direct purchase or other marketing outcome. Such sites might
include a catalog, shopping tips, and promotional features.
c). Online advertising and promotionadvertising that appears while consumers are
surfing the Web, including banner and ticker ads, interstitials, skyscrapers, and other
forms.
d). Web communitiesWeb sites upon which members can congregate online and
exchange views on issues of common interest. These communities are the online
equivalent of a coffeehouse (a place where everybody knows your e-mail address). Web
communities can either be social or work-related.
Difficulty: (3) Page: 97-105, Figure 3-4
92. List and briefly characterize the 7Cs of effective Web site design.
Answer:
The 7Cs are:
a). Contextsites layout and design
b). Contenttext, pictures, sound, and video that the Web site contains
c). Communitythe ways that the site enables user-to-user communication
d). Customizationsites ability to tailor itself to different users, or allow users to
personalize the site
e). Communicationthe ways the site enables site-to-user, user-to-site, or two-way
communication
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Allow students to be creative with these answers. This could be given as an at-home
assignment.
Difficulty: (2) Page: 95, Table 3-1
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