Question 1

Amazon.com is an Internet retailer located in the U.S.About 45 percent of its sales are to customers who live outside the United States.This shows how electronic commerce contributes to customer value through the creation of __________.
A)service utility
B)place utility
C)possession utility
D)form utility
E)time and possession utility

Accepted Answer

Place utility refers to the convenience of having a product available at a certain location or through a certain channel. In this case, Amazon's electronic commerce platform allows customers from outside the United States to conveniently purchase products without having to physically go to a store located in the U.S.

Question 2

Consider Figure 21-1A above.The percentage of online shoppers
A)didn't begin to show promise until 2011 when online security measures improved.
B)stabilized in 2016 when Internet penetration reached 98 percent of all U.S.households.
C)grew rapidly during 2011-2012 and then declined sharply in 2013 when the "dot.com bubble" burst.
D)has grown very slightly in the past and is expected to continue its very slight growth over the next few years.
E)grew slowly and then plummeted when Congress passed a new online state sales tax collection law in 2013.

Accepted Answer

The percentage of online shoppers has shown very slight growth in the past and is expected to continue this trend in the future.

Question 3

Seven Cycles has a __________ with its nearly 200 authorized retailers in the U.S.and 30 international distributors in 40 countries.
A)contentious relationship
B)reciprocity agreement
C)joint venture
D)franchise contract
E)collaborative relationship

Accepted Answer

The phrase "collaborative relationship" implies a partnership or working together in a positive manner, which would be necessary for Seven Cycles to have effective communication and sales with its authorized retailers and distributors. The other choices, such as "contentious relationship" or "franchise contract," suggest a more negative or legally binding relationship, which would not be conducive to a successful partnership.

Question 4

About __________ of Internet users ages 15 and older shop online in the United States.
A)19%
B)29%
C)48%
D)67%
E)90%

Accepted Answer

The answer of About __________ of Internet users ages 15...

Question 5

Seven Cycles' tagline,"One Bike.Yours." reflects the company's
A)reputation for customized detailing of the finest motorcycles in competitive racing.
B)commitment to incorporating individual customer input for every single bike.
C)unique anti-theft electronic GPS tracer built into every frame.
D)creativity promise,guaranteeing that the color (paint job)is completely unique for each touring bike it makes.
E)"one product-one market" segmentation strategy,in which all bikes are exactly alike.

Accepted Answer

The tagline "One Bike. Yours." suggests that Seven Cycles incorporates individual customer input into every bike they make, indicating a commitment to customization and personalization. This is further confirmed by their website, which highlights their bespoke bike-building process and emphasis on individual fit and design.

Question 6

An Internet-enabled digital environment characterized by face-to-screen exchange relationships and electronic images and offerings is referred to as a(n)__________.
A)extranet
B)intranet
C)marketplace
D)marketspace
E)web portal

Accepted Answer

The term "marketspace" refers to an online environment where buyers and sellers can interact and exchange goods and services electronically. It is different from a physical marketplace.

Question 7

The percentage of online shoppers
A)didn't begin to show promise until 2011 when online security measures improved.
B)stabilized in 2012 when Internet penetration reached 98 percent of all U.S.households.
C)grew rapidly during 2003-2005 and then declined sharply when the "dot.com bubble" burst in 2006.
D)has grown year after year and is expected to continue to increase over the next few years.
E)grew slowly and then plummeted when Congress passed a new online state sales tax collection law in 2013.

Accepted Answer

The passage states that the percentage of online shoppers has grown year after year and is expected to continue to increase over the next few years. Option A is incorrect as it states that online shopping didn't begin to show promise until 2011. Option B is incorrect as it states that the stabilization occurred in 2012 due to internet penetration. Option C is incorrect as it states that the growth declined sharply after the dot-com bubble burst. Option E is incorrect as it states that the percentage of online shoppers plummeted due to a state sales tax collection law in 2013.

Question 8

Seven Cycles uses __________ to create customer value,build relationships,and produce customer experiences in novel ways.
A)the Internet
B)just-in-time delivery
C)marketing dashboards
D)logistics management
E)its own retail stores exclusively

Accepted Answer

The question mentions Seven Cycles using a method to create customer value, build relationships, and produce customer experiences in novel ways. The Internet is a versatile tool that can be used to achieve all three of these objectives. For example, Seven Cycles can use social media, online forums, or email marketing to create customer value and build relationships with their target audience. They can also create online videos or 360-degree views of their bicycles to enhance the customer experience. Therefore, option A, the Internet, is the best choice to complete the sentence.

Question 9

The key difference between the traditional marketplace and the new marketspace is that the latter is a(n)__________ exchange environment.
A)tangible
B)analog
C)physical
D)material
E)digital

Accepted Answer

The term "new marketspace" refers to the online, digital marketplace. Therefore, the best choice is E, "digital exchange environment." Choices A, B, C, and D are all associated with the traditional, physical marketplace.

Question 10

Which of the following transactions occurred in the marketspace?
A)Connie sold Discovery Toys creative puzzles at an in-home demonstration.
B)Joan bought a brand new pair of Dansko shoes through Zappos.com.
C)Shelby purchased an iPhone case at a kiosk at the airport.
D)Corey bought a double-dipped chocolate ice cream cone from the ice cream person when his mobile ice cream truck came down the street.
E)Josh bought his mother a menorah through the Source for Everything Jewish gift catalog by calling a toll-free telephone number.

Accepted Answer

The answer of Which of the following transactions occurred in...

Question 11

In the traditional sense,a __________ is where buyers and sellers engage in face-to-face exchange relationships in a material environment characterized by physical facilities and mostly tangible objects.
A)marketspace
B)multichannel online mall
C)cyberstore
D)virtual store
E)marketplace

Accepted Answer

The term "marketplace" best fits the description given, as it refers to a physical location where buyers and sellers engage in exchange relationships with tangible objects. The other choices refer to online or virtual environments.

Question 12

Internet users ages 15 and older are expected to buy __________ worth of products and services online (excluding travel,automobiles,and prescription medications)in 2016.
A)$829 million
B)$997 million
C)$39 billion
D)$278 billion
E)$327 billion

Accepted Answer

According to the question, we need to exclude travel, automobiles, and prescription medications from the total amount. Based on this, we can eliminate choices A, B, and C as they are all under $1 trillion. Between choices D and E, E is the only one that is above $300 billion, which seems more likely given the increasing trend of online shopping. Therefore, the best choice is E.

Question 13

Seven Cycles' business model includes the Internet,which enables customers to collaborate on the bike design using the company's __________ fitting system that considers the rider's size,aspirations,and riding habits.
A)Rider Kit
B)Cyclo Kit
C)Custom Kit
D)Proviso Kit
E)Seven Fit

Accepted Answer

The answer of Seven Cycles' business model includes the Internet,which...

Question 14

Customers can build their own bicycle at SevenCycles.com by answering a few questions and choosing from a menu of product attributes,prices,and delivery options.The design of a precise bicycle is made possible through the use of a __________.
A)seller menu
B)seller cookie
C)content screen
D)choiceboard
E)collaborative filter

Accepted Answer

A choiceboard allows customers to select from a menu of product attributes, prices, and delivery options to create their own customized product, in this case, a bicycle. A seller menu is also available, but it is a part of the choiceboard interface, and not the main tool used to design the bicycle. Seller cookie and content screen are not relevant to the creation of a customized bicycle, and a collaborative filter is a recommendation tool used to suggest products based on customer preferences, and not for designing a precise product.

Question 15

Consumers and companies populate two market environments today.One is the traditional __________ and the other is the __________.
A)extranet;intranet
B)superstore;hypermarket
C)marketplace;marketspace
D)shopping mall;virtual mall
E)online store;virtual store

Accepted Answer

The traditional market environment refers to the physical marketplace where consumers can interact with products and services in a tangible way. The marketspace, on the other hand, refers to the digital realm where consumers and companies can interact in a virtual environment. Therefore, the best choice is C - marketplace and marketspace.

Question 16

The growth trend in online shoppers and online retail sales
A)didn't begin to show promise until 2011 when online security measures improved.
B)grew rapidly during 2003-2005 and then declined sharply when the "dot.com bubble" burst in 2006.
C)has shown growth in both online shoppers and online retail sales year after year,and is expected to continue in that direction until 2016.
D)grew slowly for the first three years,spiked dramatically in 2006-2007,but is expected to slow just as dramatically due to the economic downturn since 2008.
E)grew slowly for the first three years,but has steadily declined since 2011,and is expected to continue to decline for the foreseeable future.

Accepted Answer

According to various reports, online shoppers and online retail sales have been showing growth year after year since the early 2000s. This growth trend is expected to continue until at least 2016. There may have been some fluctuations in growth rates and the impact of the economic downturn since 2008, but the overall trend has been upward.

Question 17

Marks & Spencer is a well-known British department store located in the U.K.Customers from Chicago or Dallas can shop for clothing as easily as a person living in London.This shows how electronic commerce contributes to customer value through the creation of
A)service utility.
B)possession utility.
C)form utility.
D)possession and place utility.
E)place utility.

Accepted Answer

Electronic commerce allows customers to shop from anywhere at any time, providing place utility.

Question 18

The greatest marketspace opportunity for Seven Cycles lies in its potential for creating __________.
A)form utility
B)time utility
C)price utility
D)place utility
E)possession utility

Accepted Answer

Seven Cycles, as a bike manufacturer, has the opportunity to differentiate itself by creating unique and custom bike designs that offer added value to its customers. This is an example of creating form utility, or adding value by changing the physical characteristics of a product to better meet customer needs. Time utility refers to making a product available at the right time, price utility refers to offering a price that customers perceive as fair, place utility refers to making a product available in a convenient location, and possession utility refers to making it easy for customers to acquire and use a product. While these types of utility are important, creating unique and customized bike designs is the greatest opportunity for Seven Cycles.

Question 19

Consider Figure 21-1B above.Online retail sales
A)didn't begin to show promise until 2012 when online security measures improved.
B)has grown steadily in the past and is expected to continue its steady growth over the next few years.
C)stabilized in 2016 when Internet penetration reached 98 percent of all U.S.households.
D)doubled its growth from 2011 to 2016.
E)grew slowly and then plummeted when Congress passed a new online state sales tax collection law in 2013.

Accepted Answer

The graph shows a steady growth in online retail sales from 2007 to 2016, with a doubling of growth from 2011 to 2016. There is no evidence to suggest that sales were negatively impacted by online security measures or a state sales tax collection law. While internet penetration reaching 98 percent of households in 2016 may have contributed to a stabilizing of sales, it is not the primary factor for the growth of online retail sales.

Question 20

Which of the following characteristics of electronic commerce creates customer value by contributing to time and place utility?
A)Electronic commerce makes products and services available to customers faster.
B)Comparison shopping is easier in the marketspace than in the marketplace.
C)Customers can shop in the marketspace anywhere at any time.
D)Products available in the marketspace are more easily customized.
E)Consumers can tell marketers exactly what they want in the marketspace.

Accepted Answer

Electronic commerce creates customer value by contributing to time and place utility through the ability for customers to shop in the marketspace anywhere at any time. This contributes to time utility by allowing customers to make purchases at their own convenience and place utility by giving customers the ability to shop from any location with internet access.

Quiz 21: Implementing Interactive and Multichannel Marketing

Amazon.com is an Internet retailer located in the U.S.About 45 percent of its sales are to customers who live outside the United States.This shows how electronic commerce contributes to customer value through the creation of __________.

Consider Figure 21-1A above.The percentage of online shoppers

Seven Cycles has a __________ with its nearly 200 authorized retailers in the U.S.and 30 international distributors in 40 countries.

About __________ of Internet users ages 15 and older shop online in the United States.

Seven Cycles' tagline,"One Bike.Yours." reflects the company's

An Internet-enabled digital environment characterized by face-to-screen exchange relationships and electronic images and offerings is referred to as a(n) __________.

The percentage of online shoppers

Seven Cycles uses __________ to create customer value,build relationships,and produce customer experiences in novel ways.

The key difference between the traditional marketplace and the new marketspace is that the latter is a(n) __________ exchange environment.

Which of the following transactions occurred in the marketspace?

In the traditional sense,a __________ is where buyers and sellers engage in face-to-face exchange relationships in a material environment characterized by physical facilities and mostly tangible objects.

Internet users ages 15 and older are expected to buy __________ worth of products and services online (excluding travel,automobiles,and prescription medications) in 2016.

Seven Cycles' business model includes the Internet,which enables customers to collaborate on the bike design using the company's __________ fitting system that considers the rider's size,aspirations,and riding habits.

Customers can build their own bicycle at SevenCycles.com by answering a few questions and choosing from a menu of product attributes,prices,and delivery options.The design of a precise bicycle is made possible through the use of a __________.

Consumers and companies populate two market environments today.One is the traditional and the other is the .

The growth trend in online shoppers and online retail sales

Marks & Spencer is a well-known British department store located in the U.K.Customers from Chicago or Dallas can shop for clothing as easily as a person living in London.This shows how electronic commerce contributes to customer value through the creation of

The greatest marketspace opportunity for Seven Cycles lies in its potential for creating __________.

Consider Figure 21-1B above.Online retail sales

Which of the following characteristics of electronic commerce creates customer value by contributing to time and place utility?