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Chapter 2

Concept of Electronic Commerce and the Traditional Marketing Process

Test Bank

1. In traditional marketing, a situation analysis forms the foundation of opinions and facts, with better marketing planning and marketing implementation being the result. In electronic marketing, is this also the case?

  1. Yes

B. No

Answer: APage: 24

2. One advantage of the online environment is that it makes which of the following research tools more accessible?

A. opinion studies

B. international trade figures

  1. consumer behavior statistics
  2. government statistics

E. all of the above

Answer: EPage: 24

3. Various marketing processes, including those done in annual cycles, are also done in electronic marketing, but there is one unique feature that e-marketing resources add beyond traditional marketing. What is that factor?

A. that it costs more to do the same processes

B. the use of computer systems

C. a bigger sales staff

D. the need to advertise on the Internet

E. interactivity between the e-marketer and the consumer

Answer: EPage: 24

4. The number of Internet users is

A. 57 million.

B. 9.5 million.

C. 62 million.

D. 7.5 million.

E. unknown due to the wide variance of estimates.

Answer: EPage: 24

5. Based on recent demographic surveys of Internet users, it is clear that

A. women do not use the Internet.

B. women make up the majority of Internet users.

C. an increasing percentage (approaching 50%) of Internet users are women.

D. children between the ages of 12-17 are the biggest users of the Internet.

E. none of the above are true.

Answer: CPage: 26

6. According to the GVU 9th survey it is apparent that Internet users, compared to the general population, are

A. more educated.

B. have higher incomes.

C. are in education-related occupations.

D. are in professional occupations

E. all of the above.

Answer: EPage: 26

7. ______% of all Internet users use e-mail.

A. 85%

B. 50%

C. 10%

D. 100%

  1. less than 10%

Answer: APage: 25

8. Some consumers shop and buy on the Internet while other consumers prefer to shop and buy in regular, physical stores causing which new category of consumers to emerge?

A. People who do not shop anywhere.

B. People who shop only on the Internet.

C. People who buy only in physical stores.

D. People who shop on the Internet but buying using normal channels.

  1. None of the above are new consumer categories.

Answer: APage: 26

9. Web sites preferred by teens are

A. virtually identical to those of adults.

B. X-rated sites.

C. game sites.

D. business or educational sites.

  1. movie sites.

Answer: APage: 26

10. Electronic commerce now comprises ______of the total U.S. economy.

A. 40%

B. a tiny percentage

C. 30%

D. 60%

  1. nearly 100 %

Answer: BPage: 27

11. The typical business model for start-up retail vendors on the Internet includes all of the following except:

A. payment by credit card.

B. immediate delivery of the purchase.

C. relatively quick home delivery.

D. easily searchable catalogs of products.

  1. B and C.

Answer: BPage: 28

12. Online business activities benefit more from a short-term rather than a long-term focus.

A. True

B. False

Answer: BPage: 28

13. Of all businesses that make frequent use of the Internet, the percentage of those businesses that are actually purchasing products and services on the Internet is

A. 10%.

B. less than 10%.

C. decreasing.

D. 30%.

  1. unknown.

Answer: DPage: 29

14. The percentage of product selling firms who are making use of the Internet is

A. 16%.

B. negligible.

C. at least 30%.

D. almost 90%.

  1. decreasing.

Answer: APage: 29

15. The most frequent activity engaged in by businesses on the WWW is

A. internal communications.

B. vendor support.

C. researching competitors.

D. collaborating.

E. gathering product information.

Answer: EPage: 29

16. The one-on-one basis of communication that the WWW makes possible between marketers and consumers will ideally result in a relationship which

A. benefits the marketer more than the consumer.

B. benefits the consumer much more than the marketer.

C. is mutually beneficial for the marketer and the consumer.

D. terminates with the sale.

  1. provides no added value to the product.

Answer: CPage: 30

17. Most consumers report that the main irritant in the process of buying a car is

A. the high price of the car.

B. how long the purchase takes.

C. the need to select optional equipment.

D. the salesperson.

  1. the need for more insurance.

Answer: DPage: 32

18. When the marketing program objective is initiating an online awareness as an extension of a product or service's promotional program, copy and graphics should

A. take on a new thematic direction.

B. adhere to existing (traditional) advertising or sales promotions themes.

C. be as bold as possible.

D. not be as important as the URL.

  1. not contain any graphics.

Answer: BPage: 32

19. Informed marketers understand that "prospect" selection is more important than "product” selection.

A. True

  1. False

Answer: APage: 39

  1. A major benefit to conducting market research is that it permits more

A. support for "what the boss likes".

B. subjectivity.

C. objectivity.

D. flexibility.

  1. bias.

Answer: CPage: 26

21. Online marketers, besides using the Internet for selling or buying activities, can also use it for

A. employee recruitment.

B. filing legal documents.

C. disseminating fragrance samples.

D. providing relocation information (homes, apartments, schools, etc.).

  1. A and D.

Answer: APage: 22

22. The marketer must monitor and adapt to events taking place in the economic environment, such as

A. monetary exchange rates.

B. trends in wages.

C. interest rate fluctuations.

D. public values.

E. A, B, and C.

Answer: EPage: 40

23. Demographic change is an important environmental variable. Which of the following is not a key demographic concern?

A. composite age profiles

B. income clusters

C. occupational profiles

D. lifestyle clusters

  1. educational levels

Answer: DPage: 42

24. A marketer will find benefit in analyzing U.S. Census data in regards to which of the following?

A. current population totals

B. population growth/decline from prior periods

C. projected population figures

D. current number of households

E. all of the above

Answer: EPage: 42

25. All successful companies are recognized by customers as having certain well developed capabilities such as, but not limited to: dependability, creativity, product selection, etc. These capabilities are called ______and are translated into customer benefits.

A. customer advantages

B. power attributes

C. winning features

D. consumer efficiencies

E. competencies.

Answer: EPage: 43

26. According to a media mark research survey the majority of Internet users are

A. Married

  1. Single
  2. Married and professional worker
  3. Single and male
  4. Married and technical, sales, or clerical worker

Answer: Epage: 27

27. Primary research information is proprietary and owned by the company that commissioned the study

A. True

B. False

Answer: BPage: 39

28. A new service is more difficult to establish, either online or otherwise because most services must be consumed before any judgment of satisfaction can be made

A. True

B. False

Answer: APage: 43

29. In segmenting a population a marketer can analyze which of the following factor supplied by a census tract

A. Number in a house

B. Age profiles

  1. Income clusters
  2. Psychographics
  3. All of the above

Answer: EPage; 46