CHAPTER 3
MARKETING IN THE INTERNET AGE
MULTIPLE CHOICE QUESTIONS
1. All of the following would be considered to be specific forces that underlie the new
Internet age EXCEPT:
a. digitalization and connectivity.
b. the explosion of the Internet.
c. customization and customerization.
d. increasing affluence and income in the United States.
Answer: (d) Difficulty: (2) Page: 78
2. Which of the following best characterizes digital information?
a. a stream of zeros and ones, or bits
b. something made possible by high speed printers and color reproduction
c. information in virtual space
d. three-dimensional space containing compacted data
Answer: (a) Difficulty: (1) Page: 78
3. Today a growing number of appliances and systems operate on digital information.
For bits to flow from one appliance or location to another requires ___________, a
telecommunications network.
a. customization
b. customerization
c. connectivity
d. concentration
Answer: (c) Difficulty: (2) Page: 78, 79
4. ____________ are networks that connect people within a company to each other and
to the company network.
a. Internets
b. Intranets
c. Extranets
d. Compunets
Answer: (b) Difficulty: (1) Page: 79
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
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
15. ___________________ involves buying and selling processes supported by
electronic means, primarily the Internet.
a. E-commerce
b. E-marketing
c. E-communication
d. E-business
Answer: (a) Difficulty: (2) Page: 82
16. Within e-markets, marketplaces have become:
a. market regions.
b. market zones.
c. marketspaces.
d. marketdynamos.
Answer: (c) Difficulty: (1) Page: 82
17. The flip side of e-marketing is:
a. e-advertising.
b. e-selling.
c. e-commerce.
d. e-purchasing.
Answer: (d) Difficulty: (1) Page: 82
18. All of the following could be listed as benefits to buyers should they choose to buy
via the Internet EXCEPT:
a. it can be convenient.
b. it always provides buyers with the lowest competitive prices.
c. it can provide buyers with greater product access and selection.
d. it can provide buyers with access to a wealth of comparative information.
Answer: (b) Difficulty: (2) Page: 82
19. Buyers can often use the seller’s Web site to create exactly the configuration
of information, products, or services they desire. Which of the following buyer
benefits would most appropriately match the above phrase?
a. The Internet can be convenient.
b. The Internet is interactive and immediate.
c. The Internet can provide buyers with greater product access and selection.
d. The Internet can always provide the lowest prices on merchandise.
Answer: (b) Difficulty: (2) Page: 82, 83
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.
Answer: (b) Difficulty: (2) Page: 85
25. With respect to Internet usage, Americans at the lower end of the socioeconomic
ladder are more likely to view the Internet as:
a. a way to accelerate their knowledge acquisition and as a means to step up the
ladder.
b. a technological roadblock that holds them down.
c. a kind of home entertainment center for fun and games.
d. a mechanism to correct social injustice and enhance income.
Answer: (c) Difficulty: (3) Page: 87, Marketing at Work 3-1
26. With respect to the dollar volume for transactions, which of the following
Internet domains is expected to reach more than three trillion by 2003?
a. B2C
b. B2B
c. C2B
d. C2C
Answer: (b) Difficulty: (1) Page: 89
27. Much of B2B e-commerce takes place in ____________, which are huge
e-marketspaces in which buyers and sellers find each other online, share information,
and complete transactions efficiently.
a. global networks
b. private trading networks
c. open trading networks
d. Oracle trading networks
Answer: (c) Difficulty: (2) Page: 89
28. B2B trading networks that link a particular seller with its own trading partners are
called:
a. global networks.
b. private trading networks.
c. open trading networks.
d. Oracle trading networks.
Answer: (b) Difficulty: (2) Page: 90
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. Scott’s 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
33. If an e-marketing distribution channel consisted of a seller, brick-and-mortar store
channels, and consumers, which of the following most accurately describes this
method of marketing?
a. brick-and-mortar (brick-only) marketers
b. click-only marketers
c. click-and-mortar marketers
d. click-and-service marketers
Answer: (a) Difficulty: (1) Page: 92, Figure 3-3
34. If an e-marketing distribution channel consisted of a seller, brick-and-mortar store
channels, e-commerce channels (and interaction between the brick-and-mortar store
and e-commerce channels), and consumers, which of the following most accurately
describes this method of marketing?
a. brick-and-mortar (brick-only) marketers
b. click-only marketers
c. click-and-mortar marketers
d. click-and-service marketers
Answer: (c) Difficulty: (3) Page: 92, Figure 3-3
35. Which of the following would be the most appropriate example of a transaction site?
a. Amazon.com
b. Yahoo
c. AOL
d. eBay
Answer: (d) Difficulty: (3) Page: 93
36. Which of the following would be the most appropriate example of a search
engine/portal?
a. Amazon.com
b. Yahoo
c. AOL
d. eBay
Answer: (b) Difficulty: (1) Page: 93
37. Dot-coms failed for a variety of reasons. Which of the following would be one of
the chief reasons for this failure?
a. Companies were unable to secure recognizable Web addresses.
b. Companies had poor technological advice and had great technical difficulties.
c. Companies tended to devote too much effort to acquiring new customers instead
of building loyalty and purchase frequency among current customers.
d. Companies tended to have inflated prices which discouraged purchase.
Answer: (c) Difficulty: (2) Page: 93
38. According to information found in the text, all of the following would be potential
sources of e-commerce revenue EXCEPT:
a. patent royalties.
b. product and service sales income.
c. profile income.
d. market research and information fees.
Answer: (a) Difficulty: (3) Page: 95, Table 3-1
39. Many Web sites have built elaborate databases based on customer information. If
the Web site were to sell this information and use the database as a means of
generating revenue for the firm, this would be an illustration of which of the
following?
a. referral income
b. product and service sales income
c. profile income
d. market research and information fees
Answer: (c) Difficulty: (2) Page: 95, Table 3-1
40. eBay puts buyers in touch with sellers and takes from a 1.25 percent to a 5 percent
commission on each sale. This would be an illustration of which of the following
sources of e-commerce revenue?
a. referral income
b. product and service sales income
c. profile income
d. transaction commissions and fees
Answer: (d) Difficulty: (2) Page: 95, Table 3-1
41. Click-and-mortar companies are becoming more popular. Of the top 50 retail Web
sites, ranked by the number of unique visitors, __________ were click-and-mortar
retailers versus their Internet-only retailing counterparts.
a. 45 percent
b. 56 percent
c. 68 percent
d. 75 percent
Answer: (b) Difficulty: (3) Page: 96
42. A(n) ________________ is a Web site designed to build customer goodwill and to
supplement other sales channels rather than to sell the company’s 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 today’s Web savvy consumer.
d. be willing beg, borrow, or steal ideas from the top Web page designers and
incorporate these ideas into the firm’s 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.
Answer: (c) Difficulty: (2) Page: 99
47. All of the following would be among the 7Cs for effective Web site design EXCEPT:
a. context.
b. content.
c. community.
d. conceptualization.
Answer: (d) Difficulty: (3) Page: 100
48. With respect to the 7Cs of effective Web site design, ___________ refers to a site’s
layout and design.
a. context
b. content
c. community
d. customization
Answer: (a) Difficulty: (2) Page: 100
49. All of the following are characteristics of effective Web sites EXCEPT:
a. the lowest prices within an industry group.