Chapter 1: Convergence

Multiple Choice

1. E-marketing affects traditional marketing in which of the following ways?a. increases efficiency of traditional marketing functionsb. technologically transforms marketing strategiesc. decreases the reach of marketing campaignsd. both A and B

(d; Medium; p. 3)

2. _____ is the subset of e-business focused on transactions. a. E-commerceb. E-marketingc. Digital technologyd. ESP

(a; Hard; p. 3)

3. Convenient access to digital information has the ability to transform all of the following except _____.a. ecosystemsb. governmentsc. societies d. businesses(a; Easy; p. 5)

4. The Internet consists of all of the following except _____.a. computers with datab. users who send & receive data filesc. a technology infrastructure to move, create and view or listen to the contentd. a central mainframe(d; Medium; pp. 3-4)

5. A network that runs internally in an organization but uses Internet standards and browsers is known as _____. a. an Intranetb. an Extranetc. an Internetd. the Web(a; Medium; p. 4)

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6. Internet technology has changed traditional marketing in all of the following ways except _____.a. made place less importantb. increased the importance of interdisciplinary understandingc. decreased the importance of imaginationd. shifted power to consumers(c; Hard; p. 11)

7. Which of the following resources is least important to e-marketing?a. financial capital b. entrepreneurshipc. creativityd. imagination(a; Medium; p. 11)

8. For Internet marketing _____ capital is more important than financial capital.a. socialb. intellectualc. labord. management(b; Medium; p. 11)

9. All of the following are technical roles of the Internet except _____. a. users who access content and send e-mailb. technology infrastructurec. the world wide webd. content providers

(d; Medium; pp. 3-4)

10. The Internet can deliver content to all the following except ______.a. TV’sb. Refrigeratorsc. VCR’sd. Autos

(c ; Easy; pp. 4-5)

11. The Internet is a tool to build communities. _____ is an example of this.a. Frank buying a car through Autobytel.comb. Jennifer looking for jewelry on a Blue Nile.comc. Jose playing poker at pokerparty.com d. Raina selling pet products at Petsforyou.com

(c; Hard; p. 5)

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12. Businesses use the Internet computer networks _____.a. to manage organizational knowledge and work flowb. for customer databasesc. to manage human resources d. for accounting purposes

(a; Medium; p. 6)

13. According to the book _____ is the country with highest percentage of Internet users.a. the United Statesb. South Koreac. Chinad. France

(b; Medium; p. 7)

14. All of the following are considered by some authorities to be negatives of the growth of the Internet except _____.a. time shiftb. removing cultural differencesc. outsourcingd. high growth in information technology exports

(b; Hard; p. 7)

15. The first wave of Internet Disruption saw firms offer ______. a. products at premium pricingb. tangible products that can be compared and are low pricedc. commodities available in large quantitiesd. real estate

(b; Medium; p. 8)

16. In the era of the Plateau of Profitability, marketers have focused on ______.a. traditional roots and well grounded strategiesb. unique product mixesc. disintermediation in the marketing channeld. product benefits

(a; Hard; p. 8)

17. Charles Schwab pitted their online business vs. their established brick and mortar business. Which of the following is not a result of this competition? a. faster growing accounts and assetsb. lower pricesc. more sales of bonds and less sales of stocksd. incorporation of successful e-marketing strategy

(c; Hard; p. 9)

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18. Internet properties that impact marketing include_____. a. global reachb. market deconstructionc. task automationd. All of the above

(d, Easy, p. 10)

19. The authors are predicting big changes in e-marketing due to _____.a. more use of wireless connectionsb. rapid adoption of broadband servicesc. Microsoft developing new applicationsd. Legal changes over content rights on the Internet

(b; Easy; p. 13)

20. Jason wanted to buy a bracelet for his girlfriend as a gift. He went to his local jeweler, but was not satisfied, so he decided to shop online for the bracelet because ______.a. all brick and mortar jewelers are going online b. the Internet is a good place to get detailed information to buy a braceletc. bracelets bought at BlueNile.com are better than those in brick and mortar

storesd. He wants to show his girlfriend that he can buy a good bracelet on the

Internet (b; Hard; p.14)

21. As consumers become more demanding the Internet is a good way to deliver customer value because _____.a. most products on the Internet are cheaper than on other marketing channelsb. broadband allows marketers to put more cookies on computersc. marketers can send e-mail messages to millions of customers in an instantd. customers gain access to information and entertainment on demand

(d; Medium; p. 14)

22. A problem marketers have in integrating the Internet and traditional marketing strategies is _____.

a. Web sites are not always consistent with offline brand informationb. the high cost of Web site developmentc. reluctance by traditional marketers to use the Internetd. marketers lack of technological expertise

(a; Medium; pp.14- 15)

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23. _____ is leading to a large increase in wireless networks.a. Integration of information technology and personal digital assistants

(PDA’s)b. Growth and acceptance of cellphones throughout the worldc. The World Wide Webd. Increasing adoption of high bandwidth(b; Hard; pp. 15-16)

24. The Internet has the power to do all of the following except _____. a. create global communities based on interestsb. decrease cultural and language differencesc. prevent the upward mobility of people and countries at lower

socioeconomic levelsd. discourage workaholism

(d; Medium; p. 7)

25. Of the stages of Internet development, industrialized countries are currently in the _____.

a. boomb. bustc. trough of disillusiond. slope of enlightenment

(d; Hard; p. 8)

26. _____ are specific measures designed to evaluate the effectiveness and efficiency of the e-business and e-marketing operations.

a. Segmentation variablesb. Metricsc. ESP modeld. Site stickiness

(b; Hard; p. 15)

True/False

27. Individuals can be both users and content providers on the Internet.a. Trueb. False

(a; Medium; p. 4)

28. Between 2000 and 2002 less than 50 Internet firms shut down in the so-called dot-com bust.

a. Trueb. False

(b; Easy; p. 7)

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29. Additional research resources for buyers, sellers and learners is a strength of the Internet.

a. Trueb. False

(a; Easy; pp.10-11)

30. Tivo and Digital Video Recorders provide the consumers with new controls over TV programming.

a. Trueb. False

(a; Easy ; p. 12)

31. The Internet Refrigerator is an example of the spread of wireless networks.a. Trueb. False

(b; Medium; pp. 16-17)

32. Markets that are crowded with competitors will not welcome new products, regardless of how innovative they may be.

a. Trueb. False(b; Easy; p. 2)

33. Levi Strauss stopped selling online because customers were confused about their products online in comparison to their products in retail stores.

a. Trueb. False

(b; Medium; p. 8)

34. Electronic marketing relies solely upon web based technology.a. Trueb. False

(b; Medium; p. 4)

35. The Internet has shifted power from sellers to buyers.a. Trueb. False

(a; Easy; p. 11)

36. Consumers want marketers to ask permission before sending commercial e-mail messages.

a. Trueb. False(a; Medium; p. 14)

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Essay Questions

37. What is the difference between the Internet, an Extranet and an Intranet?

The Internet is a global network of interconnected computers. Access to the Internet is very broad and open.

An extranet is two or more proprietary or company owned networks that are joined to share information. Access to this network is limited.

An intranet is an internal network for a company that uses Internet standards. Access is limited to internal company use only.(Easy; pp. 3-4)

38. What is a content provider on the Internet?

Content providers are individuals and organizations that create digital text, video, audio, and graphics to be sent over the Internet to users who receive it as information, entertainment or communications.(Medium; p. 5)

39. Define what community means for the Internet and give examples.

Communities for the Internet are groups of users who come together to share information, hold discussions and exchange data. Examples include Blogs or web logs, auctions, and peer-to peer networking.

(Medium; p. 5)

40. Concerning Internet usage, what is the digital divide?

Internet adoption is affected by money, literacy, and education. This creates a divide between those who have access to the Internet and those who don’t. It impairs the upward mobility of those on the lower socioeconomic level, who don’t have access to the Internet and the information that comes with it. This impacts individuals on the lower socioeconomic levels and those living in less developed countries. (Medium; p. 7)

41. Why did some manufacturers such as Levis stop selling on the Internet?

Channel Conflict with retail accounts Cannibalization Inefficiency (Hard; pp. 7-8)

42. Why do some experts argue for dropping the e from e-commerce and e-business?

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Moving to more traditional business models Marketing processes continue to stand the test of

time Marketing research is enhanced, but basic processes

remain the same (Hard; p. 9)

43. The strength of the Internet has affected traditional marketing in several ways. List five of them and how they affected marketing

Power shift from sellers to buyers (focus on customer relationship management)

Market Fragmentation (more focus on small target markets and 1 to 1 marketing)

Death of distance or geographic location affect (less focus on place for marketing)

Time Compression (24/7 availability) Knowledge management is key (Track results in real time and focus on

database analysis) Interdisciplinary focus (Marketers must understand technology and use it

wisely) Intellectual Capital rules (focus on creativity and imagination)

(Hard; pp. 10-11)

44. Marketers face new challenges with the advent of TIVO and other digital video recorders. What is the main challenge and what has TIVO done to alleviate some of the concerns of marketers?

The main challenge is the ability of consumers to speed through and skip commercials that advertisers have paid for based on their ability to communicate with consumers.

TIVO has setup content with advertising included that viewers can watch at their leisure and TIVO can provide specific metrics to the advertisers on these programs.(Medium; pp. 12-13)

45. Define Multichannel Marketing and give an example of Multichannel Marketing.

A company that offers more than one way or format for a consumer to buy something from them.

A company selling from Brick and Mortar store, a Web site and a catalog, for example Victoria’s Secret.

(Easy; pp. 14-15)

46. What is the Semantic Web and how is it different from the current Worldwide Web?

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Extension of the current web in which information is given specific or well-defined meaning.

The Web currently uses text, photos, graphics, etc. embedded in web pages, which make them difficult to find via searches.

The Semantic Web will provide standard definitional protocol so users can find information based on type.(Hard; pp. 17-18)

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