Deck 6: E-Commerce Marketing and Advertising Concepts

Question 1

Which of the following forms of online advertising is expected to grow the most between 2018 and 2022?

A) paid search
B) sponsorships
C) search engines
D) video

Answer 1

D

Question 2

Which of the following search engine algorithm updates targets websites that violate Google's guidelines?

A) Panda
B) Penguin
C) Hummingbird
D) Fred

Answer 2

D

Question 3

The majority of online shoppers find vendors by clicking on display ads.

Answer 3

False

Question 4

Which of the following is not a practice that degrades the results and usefulness of search engines?

A) social search
B) link farms
C) content farms
D) click fraud

Question 5

Online traffic is driven by offline brands and shopping.

Question 6

Ad blockers operate in a manner similar to which of the following?

A) anti-virus software
B) firewalls
C) Flash cookies
D) anonymous browsing

Question 7

Which of the following online advertising formats attracted the least amount of spending in 2018?

A) search
B) classifieds
C) rich media
D) e-mail

Question 8

Which of the following is not one of the four main methods advertisers use to behaviorally target ads?

A) Nielsen ratings
B) data collected from social networks
C) integration of online data with offline data
D) clickstream data

Question 9

In modeling online consumer behavior,the concept of "consumer skills" refers to the:

A) education level of the consumer.
B) communication skills of the consumer.
C) knowledge consumers have about how to conduct online transactions.
D) product evaluation skills of the consumer.

Question 10

A roughly equal percentage of men and women use the Internet today.

Question 11

Approximately ________ of U.S.Internet usersresearch online but do not buy.

A) 7.7%
B) 12.7%
C) 15%
D) 19%

Question 12

What is the approximate Internet penetration rate for individuals that have attained less than a high-school education?

A) 55%
B) 65%
C) 75%
D) 85%

Question 13

All of the following are online communications used to support the evaluation of alternatives stages of the consumer decision process except:

A) search engines.
B) online catalogs.
C) social networks.
D) targeted banner ads.

Question 14

Which of the following is not one of the main stages of the online purchasing process?

A) post-purchase service and loyalty
B) awareness
C) engagement
D) conversation

Question 15

Amazon's Associates program is an example of which of the following?

A) viral marketing
B) local marketing
C) affiliate marketing
D) lead generation marketing

Question 16

Google introduced which of the following changes to its search algorithm to weed out low quality sites from search results?

A) Penguin
B) Hummingbird
C) Panda
D) Knowledge Graph

Question 17

Which of the following is not true about search engine advertising?

A) Spending on search engine advertising constitutes about 44% of all online advertising spending.
B) The top three search engine providers supply over 95% of all online searches.
C) The click-through rate for search engine marketing has been fairly steady over the years.
D) Search engine advertising is the slowest growing type of online advertising.

Question 18

Consumers choose the online channel primarily due to social media influence.

Question 19

Which of the following statements about Internet usage in the United States is not true?

A) In 2018, around 280 million people of all ages had access to the Internet.
B) In 2018, the growth in the number of new online users was less than 2%.
C) Over 90% of all U.S. Internet users access the Internet using a mobile device.
D) Adults in the 25-to-54-age group have the highest percentage of Internet use.

Question 20

Research shows the two key factors shaping the decision to purchase online are utility and trust.

Question 21

Which of the following is the most important tool in establishing a relationship with the customer?

A) company website
B) company CRM system
C) Facebook
D) search engine display ads

Question 22

The highest amount of online advertising spending is for online video ads.

Question 23

Which of the following industries accounts for the highest percentage of spending on online advertising?

A) financial services
B) retail
C) automotive
D) entertainment

Question 24

Which of the following involves getting customers to pass along a company's marketing message to friends,family,and colleagues?

A) affiliate marketing
B) viral marketing
C) native advertising
D) lead generation marketing

Question 25

Which of the following statements about CAN-SPAM is not true?

A) CAN-SPAM went into effect in January 2004.
B) CAN-SPAM prohibits unsolicited e-mail (spam).
C) CAN-SPAM prohibits the use of deceptive subject lines and false headers.
D) Large spammers are among CAN-SPAM's biggest supporters.

Question 26

Which of the following statements about a free pricing strategy is false?

A) Free products and services can knock out potential and actual competitors.
B) The free pricing strategy was born in the early days of the Web.
C) It is difficult to convert free customers into paying customers.
D) Free products and services can help build market awareness.

Question 27

Which of the following statements about native advertising is not true?

A) Native advertising's share of mobile display ad revenues exceeds 75%.
B) Native advertising is a new form of advertising found only online.
C) Native advertising is growing rapidly, especially on social networks.
D) Consumers look at native ads much more frequently than display ads.

Question 28

Which of the following statements about Canada's anti-spam law is not true?

A) Canada's law is based on an opt-in model.
B) The law has no impact on companies located within the United States.
C) The first phase of the law went into effect in 2014.
D) The law applies to e-mail, texts, and social media messaging.

Question 29

Which of the following is not a primary source of ad fraud?

A) browser extensions that insert ads into a premium publisher's website and then list the ads as available on a programmatic ad exchange
B) ad targeting firms that create bots that imitate the behavior of real shoppers and then charge advertisers
C) botnets hired by publishers to click on web pages to create phony traffic
D) native advertising that is displayed on a social media site

Question 30

All of the following are among those most frequently affected by ad-blocking except:

A) gaming sites.
B) newsgroup/forums.
C) social network sites.
D) online retailers.

Question 31

All of the following are "traditional" online marketing tools except:

A) affiliate marketing.
B) e-mail and permission marketing.
C) social marketing.
D) sponsorship marketing.

Question 32

All of the following are fixed price strategies except:

A) bundling.
B) versioning.
C) free pricing.
D) yield management.

Question 33

Research has found that most of the ad impressions served across display advertising platforms are not viewable.

Question 34

The percentage of all e-mail that is spam averaged around ________ in 2017.

A) 55%
B) 65%
C) 75%
D) 85%

Question 35

Group M,the world's largest advertising buyer,requires which of the following in order for an ad to be considered viewable?

A) 50% of the pixels must be in view for at least one second.
B) 50% of the pixels must be in view for at least two seconds.
C) 100% of the pixels must be in view for at least one second
D) 100% of the pixels must be in view for at least two seconds

Question 36

The Nike iD program is an example of which of the following marketing techniques?

A) customer co-production
B) transactive content
C) price discrimination
D) permission marketing

Question 37

Which of the following is an automated,auction-based method for matching demand and supply for online display ads?

A) retargeting
B) behavioral targeting
C) programmatic advertising
D) keyword advertising

Question 38

Which of the following is based on the idea of complete price transparency in a perfect information marketplace?

A) the Law of One Price
B) dynamic pricing
C) price discrimination
D) versioning

Question 39

The incremental cost of building the next unit of a good is called the:

A) Law of One Price.
B) variable cost.
C) marginal cost.
D) fixed cost.

Question 40

Creating multiple variations of information goods and selling these to different market segments at different prices is called:

A) bundling.
B) customization.
C) dynamic pricing.
D) versioning.

Question 41

How do the Interactive Advertising Bureau's new standard ad unit portfolio and guidelines released in July 2017 differ from its earlier guidelines for display ads.

Question 42

________ is an open source database that can store and analyze both structured and unstructured data.

A) ASP
B) PHP
C) Hadoop
D) JSP

Question 43

The concept of "customer satisfaction" is broader than the concept of "customer experience."

Question 44

Evidence suggests that real-time customer chat increases the dollar value of transactions.

Question 45

The marketing technique known as ________ involves merchants offering many products for which there is little demand.

A) long tail marketing
B) flash marketing
C) yield management
D) bait-and-switch

Question 46

Which feature of e-commerce technology decreases the cost of delivering marketing messages and receiving feedback from users?

A) personalization/customization
B) universal standards
C) ubiquity
D) interactivity

Question 47

A ________ is a repository of customer information that records all contacts that a customer has with a firm and generates a customer profile available to everyone in the firm with a need to know the customer.

A) customer service chat system
B) CRM system
C) data warehouse
D) transactive content system

Question 48

How are blogs being used for marketing?

Question 49

The top four display ad companies together account for almost 60% of U.S.display ad revenues.

Question 50

Discuss the changes that Google has made to its search algorithms to improve search results and user experience.

Question 51

Which of the following would you implement to collect and analyze your company's big data?

A) data warehouse
B) Hadoop
C) SQL
D) profiling

Question 52

The richness made possible by e-commerce technologies does which of the following?

A) It reduces the cost of delivering marketing messages and receiving feedback from users.
B) It allows consumers to become co-producers of the goods and services being sold.
C) It allows video, audio, and text to be integrated into a single marketing message and consuming experience.
D) It enables worldwide customer service and marketing communications.

Question 53

All of the following statements about cookies are true except:

A) cookies can be used to create cross-site profiles of users.
B) the data typically stored in cookies includes a unique ID and e-mail address.
C) cookies make shopping carts possible by allowing a site to keep track of a user's actions.
D) the more cookies are deleted, the less accurate ad server metrics become.

Question 54

Which of the following is a Google algorithm update related to local search?

A) Penguin
B) Hummingbird
C) Panda
D) Possum

Question 55

Which of the following features of e-commerce technology has reduced the cost of delivering marketing messages and receiving feedback from users?

A) ubiquity
B) richness
C) information density
D) universal standards

Question 56

A web beacon is:

A) a cookie that carries a virus.
B) an executable cookie.
C) an automated applet for performing web searches.
D) a tiny graphics file embedded in an e-mail or web page.

Question 57

Which of the following statements about the Internet's impact on marketing is not true?

A) The Internet has broadened the scope of marketing communications.
B) The Internet has decreased the impact of brands.
C) The Internet has increased the richness of marketing communications.
D) The Internet has expanded the information intensity of the marketplace.

Question 58

Bundling is the process of selling two or more products together for a price that is less than the sum of the two product's individual prices.

Question 59

Consumers tend to look at native ads more frequently than they look at display ads.

Question 60

Lead generation marketing firms specialize in inbound marketing.

Question 61

What are two methods being developed to track consumers across devices?

Question 62

Regular in-app cookies can be shared between apps.

Question 63

What kinds of ads have the lowest CTR?

A) video ads
B) e-mails to an in-house list
C) social network display ads
D) banner display ads

Question 64

What is big data and why are marketers interested in it?

Question 65

Define and describe the functionality of customer relationship management (CRM)systems.

Question 66

Purchasing an online ad on a CPA basis means that the advertiser:

A) pays for impressions in 1,000 unit lots.
B) pays a pre-negotiated fee for each click an ad receives.
C) pays only for those users who perform a specific action, such as registering, purchasing, etc.
D) exchanges something of equal value for the ad space.

Question 67

Uber has been criticized for using which of the following?

A) flash marketing
B) bundling
C) surge pricing
D) freemium

Question 68

Discuss the revolution in Internet marketing technologies.What are the four main broad impacts the Internet has had on marketing?

Question 69

Acquisition rate is a measure of the:

A) percentage of visitors who indicate an interest in a site's products by registering or visiting a product's pages.
B) percentage of visitors who become customers.
C) percentage of existing customers who continue to buy on a regular basis.
D) percentage of shoppers who do not return within a year after their initial purchase.

Question 70

VTR measures the ________ response rate to an ad.

A) 30-minute
B) 24-hour
C) 7-day
D) 30-day

Question 71

Which of the following measures the ratio of items purchased to product views?

A) conversion rate
B) cart conversion rate
C) browse-to-buy ratio
D) view-to-cart ratio

Question 72

Cross-platform attribution refers to:

A) how to assign credit to different marketing initiatives.
B) understanding why visitors to a website purchase a product.
C) understanding how impressions lead to visits.
D) understanding why people click on ads.

Question 73

If you want to determine the size of your website's audience,the metric you will use for the most accurate measurement will be:

A) page views.
B) unique visitors.
C) hits.
D) reach.

Question 74

Recency refers to the:

A) percentage of customers who do not return during the next year after an initial purchase.
B) time elapsed since the last visit made by a customer.
C) percentage of existing customers who continue to buy on a regular basis.
D) percentage of customers who return to the site within a year to make additional purchases.

Question 75

View-to-cart ratio is a measure of the:

A) percentage of visitors who indicate an interest in a site's products by registering or visiting a product's pages.
B) percentage of views that lead to an add-to-cart action.
C) percentage of existing customers who continue to buy on a regular basis.
D) percentage of shoppers who do not return within a year after their initial purchase.

Question 76

eCPM measures the ROI of an ad by dividing the total earnings of the ad by which of the following?

A) the total number of impressions
B) the total number of impressions in hundreds
C) the total number of impressions in thousands
D) the total number of impressions in millions

Question 77

Which of the following provides web marketers with a very quick means of identifying a customer and understanding his or her behavior at a site?

A) transaction logs
B) cookies
C) registration forms
D) data warehouses

Question 78

What are web transaction logs,and how do they work in combination with registration forms,shopping cart databases,and tracking files to help firms understand how customers behave online?

Question 79

Transaction logs are built into client software.

Question 80

Which of the following measures the average length of stay at a website?

A) loyalty
B) stickiness
C) page views
D) retention rate