Clow Iapmc7 TB 08

Integrated Advertising, Promotion, and Marketing Communications, 7e (Clow)
Chapter 8 Digital Marketing
1) Digital marketing combines all of the following except:

A) e-commerce.
B) mobile marketing.
C) internet marketing.
D) indirect response marketing.
Answer: D
Difficulty: Easy
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 8-1
2) Digital marketing combines the components of e-commerce, internet marketing, and mobile
marketing.
Answer: TRUE
Difficulty: Easy
Objective: 8-1
3) To assess the effectiveness of digital marketing programs, Marketing Zen uses two metrics —
a quantitative metric and a qualitative metric.
Answer: TRUE
Difficulty: Moderate
Objective: 8-1
4) What does digital marketing mean?

Answer: Digital marketing includes all of the components of e-commerce, internet marketing,
and mobile marketing, or anything with a digital footprint.
Objective: 8-1
1
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5) In terms of the internet evolution, Web 1.0:
A) transformed traditional retailing by selling goods and services over the internet.
B) offered consumers a way to communicate with each other through email.
C) created online communities that connect buyers and sellers in new ways.
D) provided businesses with an opportunity to save money.
Answer: A
AACSB Category: Information technology
Objective: 8-2

A) transformed traditional retailing by selling goods and services over the internet.
B) offered consumers a way to communicate with each other through email.
C) created online communities that connect buyers and sellers in new ways.
D) provided businesses with an opportunity to advertise effectively on the internet.
Answer: C
Objective: 8-2

A) created static content that included customer involvement.
B) generated instant communication that helped improve customer service.
C) created online communities that connected buyers and sellers.
D) featured brand engagement, social media, and customer-generated reviews.
Answer: B
Difficulty: Difficult
Objective: 8-2

A) creates static content that includes customer involvement.
B) generates instant communication that helped improve customer service.
C) creates online communities that connect buyers and sellers.
D) features brand engagement, social media, and customer-generated reviews.
Answer: D
Objective: 8-2
2
9) The stage of web development that pushed communication channels to real-time was:
A) Web 1.0.
B) Web 2.0.
C) Web 3.0.
D) Web 4.0.
Answer: C
Objective: 8-2
10) The web phase characterized by social media, customer engagement, cloud operations, and
web participation is:
A) Web 1.0.
B) Web 2.0.
C) Web 3.0.
D) Web 4.0.
Answer: D
Objective: 8-2
11) Web 4.0 was the first to:

A) deliver static content to internet users.
B) add more socially-based sites such as Facebook.
C) include cloud operations and web participation.
D) incorporate real-time communications.
Answer: C
Objective: 8-2
12) The lack of results with digital marketing has led some companies to shift more dollars to
broadcast media and direct response marketing.
Answer: FALSE
Difficulty: Easy
Objective: 8-2
3
13) Web 1.0 transformed traditional retailing by creating engagement between companies and
customers.
Answer: FALSE
Objective: 8-2
14) The biggest disappointment web users had with Web 3.0 was the inability to connect to
events in real time.
Answer: FALSE
Objective: 8-2
15) Web 2.0 changed the ways consumers communicate and interacted with businesses.
Answer: TRUE
Objective: 8-2
16) Web 3.0 online communication channels moved companies closer to "real-time"
communications with customers.
Answer: TRUE
Objective: 8-2
17) Web 2.0 transformed traditional retailing by creating engagement between companies and
customers.
Answer: FALSE
Difficulty: Easy
Objective: 8-2
4
18) Describe the migration of the internet from Web 1.0 to Web 4.0.
Answer: Web 1.0 was typified by static content provided by the site's creator.
Web 2.0 led to more socially-based and audience-generated content, including use of social
networking sites and blogs.
Web 3.0 moved companies into real-time communications.
Web 4.0 includes the key characteristics of customer engagement, cloud operations, and Web
participation.
Objective: 8-2
19) When goods and services are sold on the internet, the approach to marketing is:
A) retail by email.
B) viral marketing.
C) e-commerce.
D) interactive marketing.
Answer: C
Difficulty: Easy
Objective: 8-3
20) E-commerce is:

A) retailing by email.
B) viral marketing.
C) selling goods and services on the internet.
Answer: C
Difficulty: Easy
Objective: 8-3
21) Which of the following does not apply to a Web 4.0 type e-commerce website?
A) Real time communication
B) Customer engagement
C) Static content
D) Cloud technology
Answer: C
Objective: 8-3
5
22) Which statement below about poor experiences and dissatisfaction with an e-commerce site
is false?
A) Walmart saw a sharp decline in conversion rate when its website load time increased from 1
second to 4 seconds.
B) Amazon.com discovered that for every 100-millisecond decline in site load time, online
revenue declined 1 percent.
C) Research by Torbit found that as load time increased, the bounce rate declined.
D) Of consumers who were dissatisfied with an e-commerce site's performance, 40 percent were
unlikely to ever visit the site again.
Answer: C
AACSB Category: Reflective thinking
Objective: 8-3
23) Making sure all channels work together when a company sells through additional channels
beyond the web is:
A) brand engagement.
B) customer engagement.
C) channel integration.
D) cyber consistency.
Answer: C
Objective: 8-3
24) Blogs, feedback applications, and customer reviews are all a part of an e-commerce's:
A) Web 1.0 tactics.
B) web analytics.
C) cyber security.
D) brand engagement strategy.
Answer: D
Objective: 8-3
6
25) Brand engagement for an e-commerce website can be obtained using all of the following
except:
A) blogs.
B) feedback applications.
D) customer reviews.
Answer: C
Question Tag: Application
Objective: 8-3
26) Presenting product reviews and feedback applications on e-commerce sites is important for
all of the following reasons except:
A) provides opportunities for interaction with customers.
B) provides an opportunity to squelch negative criticisms of the brand.
C) encourages customers to become brand advocates.
D) allows a company to gain insights into customer thoughts.
Answer: B
Objective: 8-3
27) Personalization and customization are part of an e-commerce's:

A) channel integration strategy.
B) web analytics.
C) cyber security.
D) brand engagement strategy.
Answer: D
Objective: 8-3
28) Kyra makes frequent purchases from the Victoria's Secret website. She notices that each time
she logs onto the site, it says "Welcome Kyra" and displays her credit card number and address
when she gets ready to place an order. This is an example of:
A) personalization.
B) web analytics.
D) intrusive web design.
Answer: A
Objective: 8-3
7
29) Kyra makes frequent purchases from the Victoria Secret website. She notices that each time
she logs onto the site merchandise similar to what she has already purchased or looked at on
previous visits to the site appears on the main page, often with special offers to make a purchase.
This is an example of:
A) personification.
B) web analytics.
D) customization.
Answer: D
Objective: 8-3
30) Customization features of e-commerce sites include all of the following except:
A) ability to locate the nearest retail store.
B) personalization of an individual's name.
C) print coupons or other promotions from a mobile device as well as a computer.
D) show if an item is in-stock prior to making a purchase.
Answer: B
Objective: 8-3
31) To reduce customers from abandoning shopping carts on e-commerce sites, companies can
use all of the following strategies except:
A) avoid the use of multiple cyberbaits to encourage sales.
B) make checkout easy without requiring a user name or password.
C) make it easy for customers to enter discount codes.
D) provide a safe and trustworthy checkout procedure.
Answer: A
Question Tag: Critical Thinking
Objective: 8-3
32) Using a fantasy football league to attract individuals to a website is an example of:
A) a financially-based incentive.
B) viral marketing.
C) a cyberbait.
D) a convenience incentive.
Answer: C
Objective: 8-3
8
33) All of the following incentives are types of cyberbaits except:
A) value-based.
B) financial.
C) convenience.
D) educational.
Answer: D
Objective: 8-3
34) Incentives that can be used to encourage consumers to make online purchases include all of
the following except:
A) follow-up incentives.
B) financial incentives.
C) convenience incentives.
D) value-based incentives.
Answer: A
Objective: 8-3
35) A reduced price, an introductory price, and e-coupons designed to encourage someone to
make an online purchase are ________ incentives.
A) quality
B) financial
C) convenience
D) value-based
Answer: B
Difficulty: Easy
Objective: 8-3
36) A financial incentive to encourage someone to make a purchase online can include all of the
following except:
A) consumer promotion.
B) introductory price.
C) product personalization.
D) e-coupon.
Answer: C
Objective: 8-3
9
37) Free shipping, free freight, and dollar discounts are examples of ________ incentives
designed to encourage online shopping.
A) financial
B) consumer
C) convenience
D) economic
Answer: A
Objective: 8-3
38) Persuading a first-time buyer to make an online purchase is best achieved using:
A) interstitial advertising.
B) financial incentives.
C) convenience incentives.
D) value-based incentives.
Answer: B
Objective: 8-3
39) Firms can reduce costs when customers order over the internet in all of the following ways
except:
A) lower production costs in manufacturing the product.
B) reduced shipping costs since the customer pays for shipping.
C) decreased labor costs in stocking or restocking shelves.
D) lower sales costs since sales people are not used for the transaction.
Answer: A
Objective: 8-3
40) According to BizRateResearch, the most effective financial incentive for consumers is:
A) a price discount.
B) a contest and sweepstakes.
C) a free gifts.
D) free shipping.
Answer: D
Objective: 8-3
10
41) To be successful in using financially-based incentives to encourage online purchases, the
incentives:
A) must match the target market of the website.
B) should offer something free.
C) apply to all customers, not just first time purchasers.
D) should be meaningful to those visiting the website and be changed periodically.
Answer: D
Objective: 8-3
42) Access to a website 24 hours a day is an example of ________ incentives.

A) financial
B) cyberbait
C) convenience
D) value-added
Answer: C
Difficulty: Easy
Objective: 8-3
43) Which type of incentive is designed to change purchasing habits over the long term?
A) Financial
B) Consumer
C) Convenience
D) Value-added
Answer: D
Objective: 8-3
44) Forever 21 offering an easy "how to measure" chart on its website is an example of a
________ e-commerce incentive.
A) financial
B) convenience
C) value-added
D) cyberbait
Answer: B
Objective: 8-3
11
45) Value-added incentives are designed to:
A) attract attention.
B) provide shipment information.
C) change purchasing habits over the long term.
D) change short-term buying decisions.
Answer: C
Objective: 8-3
46) Based on web analytics, a hotel's front desk staff knows a customer often stays for a week
and offers that person a discount for booking online, which is an example of:
A) merchandising.
B) a financial incentive.
C) a convenience incentive.
D) a value-added incentive.
Answer: D
Objective: 8-3
47) A financial incentive may cause a consumer to switch to e-commerce; a value-added

incentive is designed to:
A) change purchasing habits more permanently.
B) create brand awareness.
C) substitute payment plans.
D) find new buyers.
Answer: A
Objective: 8-3
48) All of the following are examples of value-added incentives designed to encourage web
visitors, except:
A) offering merchandise on the website that is not available in a catalog or in retail stores.
B) offering free shipping and handling.
C) weekly or daily tips on a topic meaningful to the web visitor.
D) personalizing products to individual consumers based on previous visits to the website and
past purchases.
Answer: B
Objective: 8-3
12
49) When Tide offers tips on how to get tough stains out of clothes, which type of incentive is
being used?
A) Financial
B) Convenience
C) Value-added
D) Supportive
Answer: C
Objective: 8-3
50) Leah does not shop online because she is afraid that her identity will be stolen. This is an
example of which e-commerce concern?
A) Security concern
B) Seller opportunism concern
C) Cognitive dissonance
D) Information privacy issues
Answer: A
Objective: 8-3
51) Confidence in e-commerce website security has increased as consumers become used to
purchase products over the internet. Currently, approximately ________ percent of consumers
have faith that web purchases are secure.
A) 40
B) 55
C) 66
D) 75
Answer: D
Objective: 8-3
13
52) Aubrey does not like to purchase anything online because she does not want cookies tracking
her web activity and then using it to market products to her. This is an example of which e-
commerce concern?
A) Seller opportunism
B) Security issues
C) Changing purchasing habits
D) Privacy issues
Answer: D
Objective: 8-3
53) The key to allaying fears about privacy and security issues in e-commerce is:
A) empathy.
B) convenience.
C) trust.
D) financial incentives.
Answer: C
Objective: 8-3
54) E-commerce focuses on selling goods or services on the internet.

Answer: TRUE
Difficulty: Easy
Objective: 8-3
55) Online sales account for nearly one-fifth of all retail activity.
Answer: FALSE
Objective: 8-3
56) Web 4.0 forced e-commerce firms to include real-time communication and engagement for
consumers.
Answer: TRUE
Objective: 8-3
14
57) A primary cause of customer dissatisfaction and lost sales with e-commerce is slow load-
times of web pages, especially the main page.
Answer: TRUE
Objective: 8-3
58) Channel integration involves making sure all aspects beyond the web work together.
Answer: TRUE
Difficulty: Easy
Objective: 8-3
59) Brand engagement typically focuses on direct mail and toll free numbers to drive customers
to e-commerce sites to make purchases.
Answer: FALSE
Objective: 8-3
60) Common venues for brand engagement with e-commerce sites are blogs, feedback
mechanism, customer reviews, and social media.
Answer: TRUE
Objective: 8-3
61) While many e-commerce sites allow customer reviews and feedback, most immediately
delete any negative comments or screen comments prior to posting to prevent negative
comments from appearing.
Answer: FALSE
Objective: 8-3
62) A component of brand engagement for e-commerce is customization, which welcomes a

person back to a website by name.
Answer: FALSE
Objective: 8-3
15
63) When Tiffany accesses the Forever 21 website, merchandise similar to what she has
purchased and searched for on the web previously appears. This is an example of personalization
of an e-commerce site.
Answer: FALSE
Objective: 8-3
64) Hidden charges, difficulty checking out, and requiring customers to register at an e-
commerce site are common causes of shopping cart abandonment.
Answer: TRUE
Objective: 8-3
65) A low percentage of online shoppers abandon shopping carts prior to checkout.
Answer: FALSE
Objective: 8-3
66) Cyberbait includes any type of lure or attraction that brings web customers to visit a brick-
and-mortar store.
Answer: FALSE
Difficulty: Easy
Objective: 8-3
67) Three types of incentives used to encourage customers to make online purchases include
financially-based incentives, convenience-based incentives, and price-based incentives.
Answer: FALSE
Objective: 8-3
68) Typically, the most effective financial incentives offer something free or at a discount.
Answer: TRUE
Objective: 8-3
16
69) According to BizRateResearch, the most popular online promotion is a price-off offer.
Answer: FALSE
Objective: 8-3
70) Availability 24/7 is an example of a convenience incentive that can be used to attract people
to an e-commerce site.
Answer: TRUE
Objective: 8-3
71) A value-added incentive should be designed to inspire a short-term purchase rather than
trying to influence long-term buying habits.
Answer: FALSE
Objective: 8-3
72) An example of a value-added incentive to attract people to an e-commerce site is a

customized shopping experience.
Answer: TRUE
Objective: 8-3
73) Financial incentives are an effective means of encouraging consumers and businesses to
return to a website on a regular basis.
Answer: FALSE
Objective: 8-3
74) Consumers are wary of shopping privacy issues and security issues on the web.
Answer: TRUE
Difficulty: Easy
Objective: 8-3
17
75) Consumer fears about e-commerce security issues are based on credit card numbers being
stolen, identity theft, and fraud.
Answer: TRUE
Objective: 8-3
76) While trust is one key to overcoming concerns about privacy and security, most consumers
do not know information can be tracked and recorded and thus are not worried.
Answer: FALSE
Objective: 8-3
77) Beyond apprehension about identity theft and fraud with e-commerce, consumers worry that
firms will sell personal information that should remain private.
Answer: TRUE
Objective: 8-3
78) Describe the characteristics of a successful e-commerce site.

Answer: Successful e-commerce sites are customer-centric and provide consistent customer
experiences. Sites will allow for channel integration and brand engagement. A significant
number of consumers abandon shopping carts. As a result, a strategy to convert these individuals
to purchases will be in place. Incentives are provided to encourage visiting, returning, and
purchasing from the site.
Objective: 8-3
18
79) What kinds of e-commerce incentives can be offered to encourage consumers to purchase
products over the internet?
Answer:
• Financial-based incentives such as free shipping, coupons, or price reductions. Financial
incentives are good at encouraging an initial purchase.
• Convenience-based incentives encourage customers to visit a website. Availability 24/7 is a
convenience many consumers appreciate.
• Value-based incentives lead consumers to change purchasing habits over the long term. It may
be customization, a newsletter, or information that is of value to the consumer.
Difficulty: Easy
Objective: 8-3
80) What consumer concerns influence e-commerce online purchasing?

Answer: Privacy and security are concerns consumers express. In terms of privacy, consumers
are afraid their credit card and personal information will be stolen or sold. Identity theft is a
concern and data breaches, such as experienced by K-Mart. Consumers must be able to trust an
e-commerce site.
Objective: 8-3
81) Marketing on cell phones and smartphones is called ________ marketing.

A) passive
B) active
C) mobile
D) customer-driven
Answer: C
Difficulty: Easy
Objective: 8-4
82) The use of QR codes, watermarks, and 2D barcodes are all part of ________ marketing.
A) Web 1.0
B) direct
C) mobile
D) embedded
Answer: C
Difficulty: Easy
Objective: 8-4
19
83) Effective mobile marketing involves:
A) utilizing web analytics to create targeted messages.
B) brand engagement through social media.
C) channel integration and brand engagement.
D) understanding the social and shopping nature of mobile phone owners.
Answer: D
Objective: 8-4
84) Keys to effective text message advertising include:

A) utilizing web analytics to create targeted messages.
B) gaining the permission of the mobile owner and careful timing of the message.
C) brand engagement and geo-targeting.
D) understanding the social and shopping nature of mobile phone users.
Answer: B
Objective: 8-4
85) A Nellymosser study revealed that the greatest usage of action codes in magazines was for:
A) access to the brand's social media site.
B) downloading something free, such as a recipe.
C) videos.
D) discounts.
Answer: C
Objective: 8-4
86) On average, individuals spend over 4 hours per day using some type of mobile device.
Answer: FALSE
Objective: 8-4
87) Mobile marketing provides a social device that links individuals to social networks where
they can post comments, pictures, and videos as well as read the thoughts of others.
Answer: TRUE
Difficulty: Easy
Objective: 8-4
20
88) Effective mobile marketing involves understanding the social and shopping nature of mobile
phone users.
Answer: TRUE
Objective: 8-4
89) Two keys to text message mobile advertising include careful timing of the message and
using geo-targeting so only consumers close to the retailer or business receive the text.
Answer: FALSE
Objective: 8-4
90) A new type of mobile advertising is the use of in-app commercials.

Answer: TRUE
Difficulty: Easy
Objective: 8-4
91) QR codes, watermarks, and 2D barcodes allow consumers to see video of the interior of a
retail store in real time.
Answer: FALSE
Difficulty: Easy
Objective: 8-4
92) The primary objective of action codes, such as QR codes, is to engage consumers in some
way with the brand.
Answer: TRUE
Objective: 8-4
93) Identify the various types of mobile marketing strategies.

Answer: Mobile marketing strategies include display ads, search ads, video advertising, text
messaging, in-app advertising, QR codes, and geo-targeting.
Objective: 8-4
21
94) Digital strategies that are being used by brands today include all of the following except:
A) direct response marketing.
B) location-based advertising.
C) content marketing.
Answer: A
Difficulty: Easy
Objective: 8-5
95) Digital strategies that are being used by brands today include all of the following except:
A) behavioral targeting.
B) lifestyle marketing.
C) blogs and newsletters.
D) email marketing.
Answer: B
Difficulty: Easy
Objective: 8-5
96) Interactive marketing is:

A) developing marketing messages that create two-way communication with customers.
B) providing interactive games for customers to play.
C) the ability of a website to visually display a product, such as clothes on a person.
D) when customers give permission for marketers to send emails and other types of.
correspondence to them.
Answer: A
Objective: 8-5
97) The ideal medium for interactive marketing is:

A) television.
B) email.
C) print media.
D) the internet.
Answer: D
Difficulty: Easy
Objective: 8-5
22
98) The development of marketing programs that create interplay between consumers and
businesses rather than simply sending messages to potential customers is:
A) direct marketing.
B) interactive marketing.
C) viral marketing.
D) behavioral marketing.
Answer: B
Difficulty: Easy
Objective: 8-5
99) Interactive marketing emphasizes two primary activities. First, it allows marketers to target
individuals with personalized messages. Second, it:
A) permits direct marketing that has been customized.
B) allows a company to personalize its website.
C) engages the consumer with the company and product in some way.
D) allows for modifying the product to fit the needs of the consumer.
Answer: C
Objective: 8-5
100) Companies can use interactive marketing to accomplish all of the following objectives
except:
A) generate sales.
B) enhance brand loyalty.
C) build an email list.
D) develop sponsorship programs.
Answer: D
Objective: 8-5
101) The online interactive tactic used most frequently by brands is:
A) banner ads.
B) email marketing.
C) online promotions.
D) social media.
Answer: B
Objective: 8-5
23
102) Online interactive tactics used by brands includes all of the following except:
A) guerrilla marketing.
B) email marketing.
C) online promotions.
D) social media.
Answer: A
Difficulty: Easy
Objective: 8-5
103) Online interactive tactics used by brands includes all of the following except:
A) blogs.
B) email newsletters.
C) trade promotions.
D) podcasts.
Answer: C
Difficulty: Easy
Objective: 8-5
104) According to Marketing Zen's Shama Kabani, the first step in developing an effective
interactive marketing strategy is to:
A) identify the one word that describes the brand.
B) gain customer trust.
C) define your ultimate vision.
D) cultivate an attitude of giving.
Answer: D
Objective: 8-5
105) According to Marketing Zen's Shama Kabani, developing an effective interactive marketing
strategy involves all of the following activities except:
B) gain customer trust.
C) create a social media site.
Answer: C
Objective: 8-5
24
106) According to Marketing Zen's Shama Kabani, developing an effective interactive marketing
strategy involves all of the following activities except:
B) develop an SEO strategy.
C) choose the best communication channels.
Answer: B
Objective: 8-5
107) Content marketing, or branded content, has all of the following characteristics except:
A) offer information and solutions to customers and potential customers.
B) make the content authentic.
C) provide content that is shareable.
D) integrate the information with the brand's offline advertising campaign.
Answer: D
Objective: 8-5
108) Branded content should be updated regularly, which according to most experts should be:
A) 2 to 3 times per day.
B) once a week.
C) 2 to 3 times per week.
D) 2 to 3 times per month.
Answer: C
Objective: 8-5
109) If Toyota sponsors a blogger who is making a trek to all 50 states in his Toyota
documenting it with text and photos, it is considered ________ content.
A) branded
B) sponsored
C) digital
D) social
Answer: B
Objective: 8-5
25
110) Another name for content marketing is:
A) branded content.
B) sponsored content.
C) location-based advertising.
D) social content.
Answer: A
Difficulty: Easy
Objective: 8-5
111) Advertising to consumers where they are located through their mobile device is called:
A) branded content.
C) location-based advertising.
D) behavioral targeting.
Answer: C
Difficulty: Easy
Objective: 8-5
112) Cindy has downloaded an app for Panera Bread on her mobile phone that alerts her to
specials being offered. The app also identifies the nearest locations and directions to get there.
This is an example of:
A) branded content.
C) geo-targeting.
Answer: C
Objective: 8-5
113) Geo-targeting is a very attractive digital strategy for restaurants because research by
Nielsen revealed that ________ percent of Smartphone users had conducted a restaurant search
on their mobile device.
A) 50
B) 65
C) 80
D) 95
Answer: D
Objective: 8-5
26
114) If someone in Chicago who has given permission receives a targeted message on his mobile
device, it is which location-based advertising method?
A) Audience targeting
B) Geo-aware advertising
C) Geo-fencing
D) Geo-targeting by DMA
Answer: D
Objective: 8-5
115) Targeting consumers around a specific retail location on their mobile devices is the
location-based advertising method of:
A) audience targeting.
B) geo-aware advertising.
C) geo-fencing.
D) geo-targeting by DMA.
Answer: C
Objective: 8-5
116) Which method of location-based advertising often couples third-party demographic data or
transactional data with geo-location around a specific retail outlet?
C) Geo-fencing
Answer: C
Objective: 8-5
117) Restaurants typically use the ________ method of location-based advertising.

A) audience targeting
B) geo-aware advertising
C) geo-fencing
D) geo-targeting by DMA
Answer: B
Objective: 8-5
27
118) Using real-time location data to deliver advertising messages based on a person's proximity
to a retailer's location is:
C) geo-fencing.
D) geo-targeting by DMA.
Answer: B
Objective: 8-5
119) Which location-based advertising method incorporates audience behaviors and

characteristics to reach individuals on their mobile devices with the exact brand and nature of the
ad determined by the person's location?
C) Geo-fencing
Answer: A
Objective: 8-5
120) Utilizing web data to target individuals the most likely to purchase a product is:
C) geo-fencing.
Answer: D
Objective: 8-5
121) Behavioral targeting can occur in all of the following ways, except based on:
A) pages a person visits on the internet.
B) keyword searches or internet content read.
C) past visits from other individuals to a website.
D) a person's location and past purchase history.
Answer: D
Objective: 8-5
28
122) The most common form of behavioral targeting involves:
A) tracking the pages a person visits on the internet.
B) the keywords individuals type into search engines.
C) past visits from other individuals to a website.
D) branded content read by an individual on the internet.
Answer: A
Objective: 8-5
123) Shane has been using Google to search the internet for sports equipment. The next time he
logs onto the web, he notices an ad from Academy Sports for sports equipment similar to what
he had examined previously. This form of online advertising is:
C) geo-fencing.
Answer: D
Objective: 8-5
124) The following statements about video tactics on the Web are true except:
A) recall and ad likeability is higher for web videos than television ads.
B) 75 percent of the U.S. population now watch online videos.
C) the average amount of time consumers view online videos is greater than for television ads.
D) video ads spending is currently growing 20 percent to 40 percent per year.
Answer: B
Objective: 8-5
125) The best position for video ads to maximize click-through rate is:
A) pre-roll.
B) mid-roll.
C) post-roll.
D) either mid-roll or post-roll.
Answer: C
Objective: 8-5
29
126) The best position for video ads to maximize impressions is:
A) pre-roll.
B) mid-roll.
C) post-roll.
Answer: A
Objective: 8-5
127) The best position for video ads to maximize watching the entire ad is:
A) pre-roll.
B) mid-roll.
C) post-roll.
Answer: B
Objective: 8-5
128) Samsung's marketing team wants to increase impressions and enhance ad recall. The best
position for Samsung's video ads is:
A) pre-roll.
B) mid-roll.
C) post-roll.
Answer: A
Objective: 8-5
129) HP's marketing team wants to increase brand recognition and enhance brand image. The
best position for HP's video ads is:
A) pre-roll.
B) mid-roll.
C) post-roll.
Answer: B
Objective: 8-5
30
130) American Eagle's marketing team wants to create a direct-response advertising message
designed to encourage individuals to access the retailer's website. The best position for American
Eagle's video ads is:
A) pre-roll.
B) mid-roll.
C) post-roll.
Answer: C
Objective: 8-5
131) Duracell has posted on its YouTube channel videos telling the personal story of firefighters
and other emergency personnel. Which video digital marketing tactic is Duracell using?
A) Creating video ads
B) Posting of television ads
C) Producing cause-related videos
D) Producing information videos
Answer: C
Objective: 8-5
132) In terms of online metrics, dwell rate measures the:

A) proportion of ad impressions that result in users clicking an advertisement.
B) proportion of ad impressions that result in users mousing over the ad.
C) proportion of ad impressions that result in users either clicking on an advertisement or
mousing over the ad.
D) amount of time individuals spend with an advertisement.
Answer: C
Objective: 8-5
133) In terms of online metrics, dwell time measures the amount of time individuals spend:
A) searching for a particular product using a search engine.
B) clicking or mousing over a link.
C) on a website.
D) with an advertisement.
Answer: D
Objective: 8-5
31
134) To be effective, blogs should be updated regularly, which means on the average:
A) once a day.
B) once a week.
C) two to three times a week.
D) two to three times a month.
Answer: C
Objective: 8-5
135) To be effective, email or online newsletters should be updated regularly, which means
posting of new material a minimum of:
A) once a week.
B) two to three times a week.
C) two to three times a month.
D) once a month.
Answer: D
Objective: 8-5
136) Successful email marketing campaigns must include all of the following except:
A) search engine optimization to draw individuals to the website.
B) integration with the other marketing channels.
C) a basis in web analytics.
D) correlate with the firm's website.
Answer: A
Objective: 8-5
137) An email campaign works most effectively when:

A) consumers perceive it as "acceptable" spam.
B) messages resemble the information on the company's website and in company advertisements.
C) it targets infrequent purchasers.
D) it contains customer-generated reviews.
Answer: B
Objective: 8-5
32
138) For email campaigns, web analytics is the process of analyzing all of the following except:
A) where consumers went on a brand's website.
B) what consumers did within the website.
C) how the individual feels about the website.
D) what other sites were visited by the individual.
Answer: C
Objective: 8-5
139) Of the following market segments, the best to target with an email campaign would be
individuals:
A) within a specific geographic area around a retail store.
B) who had purchased a competing brand.
C) who had visited a website for the first time.
D) who had abandoned a shopping cart with items in it.
Answer: D
Objective: 8-5
140) Marketers must now develop different digital marketing strategies for each type of screen.
Answer: FALSE
Objective: 8-5
141) Interactive marketing is the development of marketing programs that create interplay
between consumers and businesses rather than simply sending messages to potential customers.
Answer: TRUE
Difficulty: Easy
Objective: 8-5
142) The internet is the ideal medium for interactive marketing because of the low cost per
contact.
Answer: FALSE
Objective: 8-5
33
143) In interactive marketing, software can be used to analyze an individual's web activity and
then customize marketing communications and offers.
Answer: TRUE
Objective: 8-5
144) Interactive marketing emphasizes the targeting of individuals with personalized

information, and engages the customer with the product and company in some way.
Answer: TRUE
Objective: 8-5
145) According to Marketing Zen's Shama Kabani, developing an interactive marketing strategy
begins by identifying the one word your brand stands for.
Answer: FALSE
Objective: 8-5
146) According to Marketing Zen's Shama Kabani, customers engage with brands they trust.
Answer: TRUE
Objective: 8-5
147) Content marketing consists of sending useful information to customers through either text
messages or email.
Answer: FALSE
Objective: 8-5
148) Branded content consists of providing useful information and product-use solutions to
potential and current customers.
Answer: TRUE
Objective: 8-5
34
149) Experts believe branded content pages on the web should be changed or updated daily to
improve its relevance to consumers and to increase search results.
Answer: FALSE
Objective: 8-5
150) The advantage of using sponsored content is that companies have more control over the
content than with the company's branded content.
Answer: FALSE
Objective: 8-5
151) Sponsored content produces significantly better results than a brand having its own branded
content.
Answer: FALSE
Objective: 8-5
152) Geo-targeting is a form of mobile marketing that involves identifying retail outlets for
consumers who wish to shop at a brick-and-mortar store.
Answer: FALSE
Objective: 8-5
153) The marketing team at Starbuck's could use location-based advertising to send coupon
offers to individuals that are located within a few blocks of a Starbuck's outlet.
Answer: TRUE
Objective: 8-5
154) The most common form of location-based advertising is geo-fencing.

Answer: FALSE
Objective: 8-5
35
155) With mobile advertising, geo-fencing utilizes real-time location to deliver advertising
messages based on a person's proximity to a retail business.
Answer: FALSE
Objective: 8-5
156) With mobile advertising, audience-data targeting incorporates audience behaviors and
characteristics to reach individuals within a specified geographic area.
Answer: TRUE
Objective: 8-5
157) Behavioral targeting utilizes a person's browsing behavior to determine the ad that will be
seen.
Answer: TRUE
Difficulty: Easy
Objective: 8-5
158) Jim has been on the internet searching for a boat and reading about the various brands. An
ad pops up on the computer screen advertising a particular brand. This is an example of geo-
targeting based on keyword searches or content read.
Answer: FALSE
Difficulty: Easy
Objective: 8-5
159) Approximately 75 percent of the U.S. population now watches videos on the internet.
Answer: FALSE
Objective: 8-5
36
160) While video watching on the internet has exploded in recent years, the average time
consumers spend watching video ads on the internet is still less than the average time viewing
ads on television.
Answer: FALSE
Objective: 8-5
161) Recall, ad likeability, and completion rate are all higher for video ads on the internet than
for television ads.
Answer: TRUE
Objective: 8-5
162) If Toyota's marketing team wants to increase click-through rates for the company's video
ads on the internet, they should use post-roll ads.
Answer: FALSE
Objective: 8-5
163) When using video ads, post-roll location-based ads are best for creating impressions or
enhancing recall.
Answer: FALSE
Objective: 8-5
164) The primary motive for a company to post cause-related videos on its brand channel is to
generate goodwill with consumers.
Answer: TRUE
Difficulty: Easy
Objective: 8-5
37
165) Instead of writing product reviews, many consumers now post video reviews of products
and brands.
Answer: TRUE
Difficulty: Easy
Objective: 8-5
166) Dwell time measures the percentage of impressions that result in users clicking on an online
ad or mousing over the ad.
Answer: FALSE
Objective: 8-5
167) Dwell time is higher but dwell rate is lower when video ads are placed beside content on a
website.
Answer: FALSE
Objective: 8-5
168) Blogs are often an effective way to engage with customers and potential customers.
Answer: TRUE
Difficulty: Easy
Objective: 8-5
169) Company leaders should never respond to negative comments posted to blogs because
doing so gives the comment credibility.
Answer: FALSE
Objective: 8-5
170) In order to ensure a positive brand image is developed through a company-sponsored blog,
it is important to monitor and filter out negative comments made by customers.
Answer: FALSE
Objective: 8-5
38
171) A company-sponsored blog can provide valuable insights into how customers view the
company, its brands, and its products.
Answer: TRUE
Difficulty: Easy
Objective: 8-5
172) Blogs can provide a small business with a relatively inexpensive way to communicate with
customers.
Answer: TRUE
Objective: 8-5
173) Online newsletters can be an effective way to engage consumers if the content is seen as
useful and beneficial.
Answer: TRUE
Difficulty: Easy
Objective: 8-5
174) Spencer Pools' marketing team has created a blog. To be effective, experts suggest that the
blog be updated with new material at least 5 to 6 times per week.
Answer: FALSE
Objective: 8-5
175) To be successful, an email marketing program does not need to be integrated with other
channels, because it is a stand-alone process.
Answer: FALSE
Objective: 8-5
176) Most consumers are tolerant of spam, which makes the creation of an email program easier.
Answer: FALSE
Objective: 8-5
39
177) Web analytics can analyze where consumers went on a brand's website, what they did
within the website, and what other websites were visited.
Answer: TRUE
Objective: 8-5
178) Web analytics allow a company to develop email campaigns that offer the greatest chance
of response.
Answer: TRUE
Objective: 8-5
179) Email marketing campaigns can be directed to consumers who abandon shopping carts
without making a purchase to offer additional incentives to complete the purchase.
Answer: TRUE
Objective: 8-5
180) The best practice for email campaigns is to target only individuals who have made a
purchase during the last year.
Answer: FALSE
Objective: 8-5
181) Describe the various types of digital marketing strategies available to brands.
Answer: Digital strategies include interactive marketing, content marketing, location-based
advertising, behavioral targeting, video strategies, blogs and newsletters, and email marketing
Objective: 8-5
40
182) What is interactive marketing and what are the primary interactive marketing programs?
Answer: Interactive marketing is the development of marketing programs that create interplay
between consumers and businesses rather than simply sending messages to potential customers.
Primary forms of interactive marketing include blogs, email marketing, email newsletters, social
networks, search engines, and viral campaigns.
Objective: 8-5
183) What is content marketing and what are the keys to its success?
Answer: Content marketing or branded-content, consists of providing useful information and
product-use solutions on the internet. Success depends on the information being useful to
consumers (or businesses), is authentic, is shareable, is integrated with the brands website and
social media components, and updated regularly.
Objective: 8-5
184) What is location-based advertising? Describe the various types.

Answer: Location-based advertising, or geo-targeting, involves reaching consumers where they
are located based on the GPS in their mobile phone. The various types are 1) targeting by DMAs,
2) geo-fencing targets consumers around a specific geographic location, 3) geo-aware utilizes
real-time location to deliver advertising messages, 4) audience-data targeting utilizes behaviors
and individual characteristics combined with location to target individuals, and 5) targeting by
city or zip code.
Objective: 8-5
185) What is behavioral targeting and what three methods are used?
Answer: Behavioral targeting uses web data to identify individuals most likely to make a
purchase. The three methods are 1) pages a person visits on the web, 2) keyword searches or
content read on the internet, and 3) past visitors to a site.
Objective: 8-5
186) What types of video tactics are available to firms?

Answer: Video tactics include 1) advertising on videos, 2) posting of television ads, 3) creating
informational videos, 4) producing cause-related videos, and 5) posting product reviews.
Objective: 8-5
41
187) What are the ingredients of a successful email campaign?
Answer: It is essential to:
• Integrate with other marketing channels
• Be based on web analytics
• Monitor future web analytics.
Objective: 8-5
188) The format of online spending in the United States with the highest expenditure is
________ ads.
A) media/video
B) banner
C) classified
D) search
Answer: D
Objective: 8-6
189) The newest online technology for banner advertising is:

A) automated exchange systems that provide precise targeting of ads to specific consumers.
B) embedded widgets that access dynamic content.
C) media/video ads capable of being downloaded by consumers.
D) search ads that can be displayed on cell phones.
Answer: A
Objective: 8-6
190) Mini-applications embedded in banner ads that permit consumers access to dynamic content
from external sources are called:
A) SEOs.
B) widgets.
C) automated exchange systems.
D) personalized URLs.
Answer: B
Objective: 8-6
42
191) Widgets are:
A) automated exchange systems that provide precise targeting of ads to specific consumers.
B) geo-targeted ads that result from search engine optimization programs.
C) personalized URLs that are preloaded with a customer's data.
D) mini-applications embedded in banner ads that permit consumers access to dynamic content.
from external sources.
Answer: D
Objective: 8-6
192) Online ads that are presented only to individuals who log on to a website within a particular
region are called:
A) targeted widgets.
B) location-based widgets.
C) automated exchange systems.
D) behavioral targeted applications.
Answer: B
Objective: 8-6
193) According to ComScore, Inc., 54 percent of online display ads are not seen. Reasons given
include all of the following except:
A) the ads are not tied to the correct search terms or the bidding is too low.
B) the ad was below the fold and individuals did not scroll down on the web page.
C) software installed by web users blocked the display ads.
D) malicious software makes the web think a person is seeing the ads.
Answer: A
Objective: 8-6
194) Using traditional media to promote and attract customers to a website is:
A) cyberbranding.
B) brand spiraling.
C) off-line branding.
D) viral marketing.
Answer: B
Objective: 8-6
43
195) Brand spiraling involves using:
A) various online advertising techniques to develop a brand.
B) interactive marketing methods to build Web traffic.
C) traditional media to promote and attract customers to a website.
D) viral and permission marketing coupled with database technologies.
Answer: C
Objective: 8-6
196) Brand spiraling is a(n):

A) online advertising technique to attract individuals to a website.
B) offline advertising technique to attract individuals to a website.
C) manufacturing technique that reduces the cost of an online operation.
D) branding campaign using both online and offline advertising techniques.
Answer: B
Objective: 8-6
197) Printing a brand's web address on a shopping bag used to carry merchandise sold at a brick-
and-mortar store is a form of:
A) brand reinforcement.
B) brand spiraling.
C) interactive marketing.
D) virtual marketing.
Answer: B
Objective: 8-6
198) Banner ads account for about half of all online advertising.
Answer: FALSE
Objective: 8-6
44
199) Online technologies allow company leaders to specify the target market they want to see a
banner ad, such as females, ages 50+ with incomes above $50,000.
Answer: TRUE
Difficulty: Easy
Objective: 8-6
200) Widgets are mini-applications embedded in a company's website to track a visitor's

movements and activities while on the site.
Answer: FALSE
Objective: 8-6
201) Widgets provide consumers with access to some form of dynamic content that is provided
within the firm's website, but hidden from the consumer.
Answer: FALSE
Objective: 8-6
202) The click-through rate for banner ads on major destinations is less than 1 percent.
Answer: TRUE
Objective: 8-6
203) To improve banner ad response rates, companies can use third-party tags that track ad
interactions, brand impact, and browsing behavior.
Answer: TRUE
Objective: 8-6
204) Brand spiraling is the practice of using interactive media to promote and attract consumers
to an online website.
Answer: FALSE
Objective: 8-6
45
205) Using the internet to promote and attract consumers to a particular website is brand
spiraling.
Answer: FALSE
Difficulty: Easy
Objective: 8-6
206) What is brand spiraling?

Answer: The practice of using traditional media to promote and attract consumers to a website.
Difficulty: Easy
Objective: 8-6
207) Search engine optimization is the process of:

A) increasing the probability of a particular company's website emerging from a search.
B) maximizing paid search advertising.
C) finding the best words to maximize organic searches.
D) using a search engine as the front door to a company's website.
Answer: A
Objective: 8-7
208) The majority of all web traffic begins at a(n):

A) company's front page.
B) individual's email site.
C) neutral site.
D) search engine.
Answer: D
Objective: 8-7
209) Search engine optimization can be reached in all of the following ways except:
A) paid search insertions on search engines.
B) paid banner ads on other companies' websites.
C) increase identification through the natural, or organic, emergence of a site on a search engine.
D) paid search ads.
Answer: B
Objective: 8-7
46
210) The best and most effective search engine optimization method is:
A) paid search insertions on search engines.
B) paid banner ads on other companies' websites.
C) identification through the natural, or organic, emergence of a site on a search engine.
D) paid search ads.
Answer: C
Objective: 8-7
211) Companies can enhance the SEO results with paid search insertions by:
A) placing the ads on the first page that comes up when a search is initiated.
B) developing a cooperative program with the search engine companies.
C) registering with various search engines in order to have the site indexed.
D) developing key words and phrases that will increase organic search results.
Answer: C
Objective: 8-7
212) The click-through rate for online advertising is around 0.2 percent; for search advertising,
the click-through rate is approximately ________ percent.
A) 1.5
B) 3
C) 5
D) 8
Answer: C
Objective: 8-7
213) A ComScore study revealed that paid search ads have a positive impact on all of the
following except:
A) brand awareness.
B) brand image.
C) purchase intentions.
D) brand perception.
Answer: B
Objective: 8-7
47
214) The largest category of online advertising expenditures is for search engines.
Answer: TRUE
Objective: 8-7
215) A search engine is the primary method most consumers use to discover new websites and to
search for information.
Answer: TRUE
Difficulty: Easy
Objective: 8-7
216) The majority of web traffic begins at a search engine.

Answer: TRUE
Objective: 8-7
217) Search engine optimization is the process of placing advertisements on search sites.
Answer: FALSE
Objective: 8-7
218) One method of search advertising is through paid search insertion ads that appear on the
computer screen when certain products or information is sought through typing in key search
words.
Answer: TRUE
Objective: 8-7
219) Organic, or natural emergence of a website on a search engine can be enhanced through
paid search insertions through search engines, such as Google.
Answer: FALSE
Objective: 8-7
48
220) Of the three methods of search engine optimization, the most effective is paid search ads.
Answer: FALSE
Objective: 8-7
221) It can take months or years to get to the top of an organic search through SEO efforts.
Answer: TRUE
Objective: 8-7
222) What is search engine optimization and how is it achieved?

Answer: SEO is the process of increasing the probability of a particular company's website
emerging from a search. It is achieved in three ways:
1. paid search insertions
2. organic, or natural, listings from identification of key terms
3. paid search ads
Objective: 8-7
223) While e-commerce can increase international orders, many are turned away primarily
because the company:
A) does not understand the culture.
B) is focused on domestic business.
C) does not have a process in place to fill the order.
D) does not have an established global brand name.
Answer: C
Objective: 8-8
224) All of the following are problems faced in international e-commerce except:
A) cultural differences.
B) global shipping and infrastructure deficiencies.
C) varying degree of internet capabilities.
D) population shifts within other countries.
Answer: D
Objective: 8-8
49
225) In terms of international e-commerce, large merchandise is normally shipped by:
A) the company selling the merchandise.
B) shipping companies such as DHL, FedEx, or UPS.
C) freight forwarders.
D) the company purchasing the merchandise.
Answer: C
Objective: 8-8
226) Cultural adaptation software has been developed that:

A) performs a literal translation of an English website into other languages.
B) adapts websites to new countries.
C) cross sells merchandise to major customers.
D) reduces international spam.
Answer: B
Objective: 8-8
227) One of the advantages of e-commerce over brick-and-mortar stores is the ability to reach
consumers around the globe.
Answer: TRUE
Difficulty: Easy
Objective: 8-8
228) While the internet makes it possible to reach customers anywhere in the world, many
companies turn away from international orders because they do not have processes in place to fill
them.
Answer: TRUE
Objective: 8-8
229) Cultural adaptation software makes it possible to tailor a website to individual countries.
Answer: TRUE
Objective: 8-8
50
230) Software, internet incompatibilities, and technical problems make international e-commerce
more difficult.
Answer: TRUE
Difficulty: Easy
Objective: 8-8
231) The internet bandwidth used by countries around the world has now been standardized
allowing for easier global e-commerce activities.
Answer: FALSE
Objective: 8-8
51

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Integrated Advertising, Promotion, and Marketing Communications, 7e (Clow)

Chapter 8 Digital Marketing

1) Digital marketing combines all of the following except:

4) What does digital marketing mean?

6) In terms of the internet evolution, Web 2.0:

7) In terms of the internet evolution, Web 3.0:

8) In terms of the internet evolution, Web 4.0:

11) Web 4.0 was the first to:

20) E-commerce is:

27) Personalization and customization are part of an e-commerce's:

42) Access to a website 24 hours a day is an example of ________ incentives.

47) A financial incentive may cause a consumer to switch to e-commerce; a value-added

54) E-commerce focuses on selling goods or services on the internet.

62) A component of brand engagement for e-commerce is customization, which welcomes a

72) An example of a value-added incentive to attract people to an e-commerce site is a

78) Describe the characteristics of a successful e-commerce site.

80) What consumer concerns influence e-commerce online purchasing?

81) Marketing on cell phones and smartphones is called ________ marketing.

84) Keys to effective text message advertising include:

90) A new type of mobile advertising is the use of in-app commercials.

93) Identify the various types of mobile marketing strategies.

96) Interactive marketing is:

97) The ideal medium for interactive marketing is:

117) Restaurants typically use the ________ method of location-based advertising.

119) Which location-based advertising method incorporates audience behaviors and

132) In terms of online metrics, dwell rate measures the:

137) An email campaign works most effectively when:

144) Interactive marketing emphasizes the targeting of individuals with personalized

154) The most common form of location-based advertising is geo-fencing.

184) What is location-based advertising? Describe the various types.

186) What types of video tactics are available to firms?

189) The newest online technology for banner advertising is:

196) Brand spiraling is a(n):

200) Widgets are mini-applications embedded in a company's website to track a visitor's

206) What is brand spiraling?

207) Search engine optimization is the process of:

208) The majority of all web traffic begins at a(n):

216) The majority of web traffic begins at a search engine.

222) What is search engine optimization and how is it achieved?

226) Cultural adaptation software has been developed that:

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