Reference no: EM13731001

Consumer Behavior, Internet Marketing and Advertising

Multiple Choice Questions (Circle the correct answer)

1) By increasing customer loyalty, EC companies can achieve each of the following benefits except:

a. lower marketing and advertising costs.
b. higher warranty claims costs.
c. lower transaction costs.
d. lower resistance to competitors.

2) What has been the impact of the introduction of EC on customer loyalty in general?

a. Loyalty has decreased because of customers' increased ability to shop, compare prices and features, and change vendors.
b. Loyalty has increased because of targeted relationship marketing.
c. There has been little change in loyalty because the impacts have cancelled each other out.
d. It is not known whether loyalty has increased or decreased.

3) All of the following are correct about market research methods except:

a. It is important first to understand how groups of consumers are classified or segmented.
b. Markets can be segmented to increase the percentage of responses and to formulate effective marketing strategies that appeal to specific consumer groups.
c. Direct mail marketing methods are usually cost-effective.
d. Market segmentation is done with the aid of tools such as data modeling and data warehousing.

4) Once a company knows a consumer's preferences, the company can predict, without asking the consumer directly, what other products or services that consumer might enjoy through:

a. active web bugs.
b. spyware.
c. collaborative filtering.
d. personalization.

5) Which of the following is not a specific method for collecting online data?

a. Phone surveys to learn if there are too many products for the customer to look through
b. E-mail communication with individual customers
c. Moderated focus groups conducted in chat rooms
d. Tracking customers' movements on the Web

6) What is the key problem that biometric marketing is intended to solve?
a. Knowing the identity of the actual shopper
b. Improving accuracy of the shopper's data
c. Increasing the speed of order processing
d. Creating a loyalty program

7) ___________ is an advertising network that a B2B company can use as part of its advertising strategy to reach new customers.

a. Amazon.com
b. BBB Online
c. DoubleClick
d. WebMonkey

8) All of the following describe click-through rate except:

a. it is the ratio between the number of clicks on a banner ad and the number of times it is seen by viewers.
b. it is a request for data from a Web page or file.
c. it measures the success of a banner in attracting visitors to click on the ad.
d. it may be less than or equal to the conversion rate.

9) Word-of-mouth marketing by which customers promote a product or service by telling others via social networks or other means is referred to as:

a. affiliate marketing.
b. viral marketing.
c. target marketing.
d. search engine marketing.

10) One of the major challenges of one-to-one advertising is ________, or the flooding of users with junk e-mail, banners, pop-ups, and so on.

a. interstitial ads
b. permission marketing
c. spamming
d. behavioral targeting

Critical Analysis / Case Study Problems

The Critical Analysis questions are designed to help you gain a deeper understanding of the subject matter, develop an increased ability to apply what you have learned and integrate this knowledge into a greater understanding and appreciation for your field of study. Completion of the following questions will help you outline your answers and organize your thoughts within an appropriate framework. These practice questions will not be graded, but you should apply the same analytical skills and writing proficiencies that you will need for the unit essays. We suggest writing your answers on another piece of paper and comparing your results to the suggested answers at the end of this chapter to help you identify any areas you need to review.

1. Assess how market research is done online and the major market research methods.

2. Create an inventory of the reasons for the growth in Web advertising.

3. Evaluate banner swapping and banner exchanges