Chapter 1: Convergence

Multiple Choice
1. E-marketing affects traditional marketing in which of the following ways? a. increases efficiency of traditional marketing functions b. technologically transforms marketing strategies c. decreases the reach of marketing campaigns d. both A and B (d; edium; p. !" #. $$$$$ is the subset of e-business focused on transactions. a. E-commerce b. E-marketing c. %igital technology d. E&' (a; (ard; p. !" !. )on*enient access to digital information has the ability to transform all of the following e+cept _____. a. ecosystems b. go*ernments c. societies d. businesses (a; Easy; p. ," -. .he /nternet consists of all of the following e+cept $$$$$. a. computers with data b. users who send 0 recei*e data files c. a technology infrastructure to mo*e1 create and *iew or listen to the content d. a central mainframe (d; edium; pp. !--" ,. A network that runs internally in an organi2ation but uses /nternet standards and browsers is known as $$$$$. a. an /ntranet b. an E+tranet c. an /nternet d. the 3eb (a; edium; p. -"

4. /nternet technology has changed traditional marketing in all of the following ways e+cept _____. a. made place less important b. increased the importance of interdisciplinary understanding c. decreased the importance of imagination d. shifted power to consumers (c; (ard; p. 11" 5. 3hich of the following resources is least important to e-marketing? a. financial capital b. entrepreneurship c. creati*ity d. imagination (a; edium; p. 11" 6. 7or /nternet marketing $$$$$ capital is more important than financial capital. a. social b. intellectual c. labor d. management (b; edium; p. 11" 8. All of the following are technical roles of the /nternet e+cept _____. a. users who access content and send e-mail b. technology infrastructure c. the world wide web d. content pro*iders (d; edium; pp. !--" 19. .he /nternet can deli*er content to all the following e+cept ______. a. .:;s b. <efrigerators c. :)<;s d. Autos (c ; Easy; pp. --," 11. .he /nternet is a tool to build communities. $$$$$ is an e+ample of this. a. 7rank buying a car through Autobytel.com b. =ennifer looking for >ewelry on a Blue ?ile.com c. =ose playing poker at pokerparty.com d. <aina selling pet products at 'etsforyou.com (c; (ard; p. ,"

1#. Businesses use the /nternet computer networks $$$$$. a. to manage organi2ational knowledge and work flow b. for customer databases c. to manage human resources d. for accounting purposes (a; edium; p. 4" 1!. According to the book $$$$$ is the country with highest percentage of /nternet users. a. the @nited &tates b. &outh Aorea c. )hina d. 7rance (b; edium; p. 5" 1-. All of the following are considered by some authorities to be negati*es of the growth of the /nternet e+cept $$$$$. a. time shift b. remo*ing cultural differences c. outsourcing d. high growth in information technology e+ports (b; (ard; p. 5" 1,. .he first wa*e of Internet Disruption saw firms offer $$$$$$. a. products at premium pricing b. tangible products that can be compared and are low priced c. commodities a*ailable in large Buantities d. real estate (b; edium; p. 6" 14. /n the era of the Plateau of Profitability, marketers ha*e focused on $$$$$$. a. traditional roots and well grounded strategies b. uniBue product mi+es c. disintermediation in the marketing channel d. product benefits (a; (ard; p. 6" 15. )harles &chwab pitted their online business *s. their established brick and mortar business. 3hich of the following is not a result of this competition? a. faster growing accounts and assets b. lower prices c. more sales of bonds and less sales of stocks d. incorporation of successful e-marketing strategy (c; (ard; p. 8"

16. /nternet properties that impact marketing include$$$$$. a. global reach b. market deconstruction c. task automation d. All of the abo*e (d1 Easy1 p. 19" 18. .he authors are predicting big changes in e-marketing due to $$$$$. a. more use of wireless connections b. rapid adoption of broadband ser*ices c. icrosoft de*eloping new applications d. Cegal changes o*er content rights on the /nternet (b; Easy; p. 1!" #9. =ason wanted to buy a bracelet for his girlfriend as a gift. (e went to his local >eweler1 but was not satisfied1 so he decided to shop online for the bracelet because $$$$$$. a. all brick and mortar >ewelers are going online b. the /nternet is a good place to get detailed information to buy a bracelet c. bracelets bought at Blue?ile.com are better than those in brick and mortar stores d. (e wants to show his girlfriend that he can buy a good bracelet on the /nternet (b; (ard; p.1-" #1. As consumers become more demanding the /nternet is a good way to deli*er customer *alue because $$$$$. a. most products on the /nternet are cheaper than on other marketing channels b. broadband allows marketers to put more cookies on computers c. marketers can send e-mail messages to millions of customers in an instant d. customers gain access to information and entertainment on demand (d; edium; p. 1-" ##. A problem marketers ha*e in integrating the /nternet and traditional marketing strategies is $$$$$. a. 3eb sites are not always consistent with offline brand information b. the high cost of 3eb site de*elopment c. reluctance by traditional marketers to use the /nternet d. marketers lack of technological e+pertise (a; edium; pp.1-- 1,"

#!. $$$$$ is leading to a large increase in wireless networks. a. /ntegration of information technology and personal digital assistants ('%A;s" b. Drowth and acceptance of cellphones throughout the world c. .he 3orld 3ide 3eb d. /ncreasing adoption of high bandwidth (b; (ard; pp. 1,-14" #-. .he /nternet has the power to do all of the following except $$$$$. a. create global communities based on interests b. decrease cultural and language differences c. pre*ent the upward mobility of people and countries at lower socioeconomic le*els d. discourage workaholism (d; edium; p. 5" #,. Ef the stages of /nternet de*elopment1 industriali2ed countries are currently in the $$$$$. a. boom b. bust c. trough of disillusion d. slope of enlightenment (d; (ard; p. 6" #4. $$$$$ are specific measures designed to e*aluate the effecti*eness and efficiency of the e-business and e-marketing operations. a. &egmentation *ariables b. etrics c. E&' model d. &ite stickiness (b; (ard; p. 1,"

True/False
#5. /ndi*iduals can be both users and content pro*iders on the /nternet. a. .rue b. 7alse (a; edium; p. -" Between #999 and #99# less than ,9 /nternet firms shut down in the so-called dot-com bust. a. .rue b. 7alse (b; Easy; p. 5"

#6.

#8.

Additional research resources for buyers1 sellers and learners is a strength of the /nternet. a. .rue b. 7alse (a; Easy; pp.19-11" .i*o and %igital :ideo <ecorders pro*ide the consumers with new controls o*er .: programming. a. .rue b. 7alse (a; Easy ; p. 1#" .he /nternet <efrigerator is an e+ample of the spread of wireless networks. a. .rue b. 7alse (b; edium; pp. 14-15" arkets that are crowded with competitors will not welcome new products1 regardless of how inno*ati*e they may be. a. .rue b. 7alse (b; Easy; p. #" Ce*i &trauss stopped selling online because customers were confused about their products online in comparison to their products in retail stores. a. .rue b. 7alse (b; edium; p. 6" Electronic marketing relies solely upon web based technology. a. .rue b. 7alse (b; edium; p. -" .he /nternet has shifted power from sellers to buyers. a. .rue b. 7alse (a; Easy; p. 11" )onsumers want marketers to ask permission before sending commercial e-mail messages. a. .rue b. 7alse (a; edium; p. 1-"

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Essay Questions !5. 3hat is the difference between the /nternet1 an E+tranet and an /ntranet? .he /nternet is a global network of interconnected computers. Access to the /nternet is *ery broad and open. An e+tranet is two or more proprietary or company owned networks that are >oined to share information. Access to this network is limited. An intranet is an internal network for a company that uses /nternet standards. Access is limited to internal company use only. (Easy; pp. !--" 3hat is a content pro*ider on the /nternet? )ontent pro*iders are indi*iduals and organi2ations that create digital te+t1 *ideo1 audio1 and graphics to be sent o*er the /nternet to users who recei*e it as information1 entertainment or communications. ( edium; p. ," !8. %efine what community means for the /nternet and gi*e e+amples. )ommunities for the /nternet are groups of users who come together to share information1 hold discussions and e+change data. E+amples include Blogs or web logs1 auctions1 and peer-to peer networking. ( edium; p. ," -9. )oncerning /nternet usage1 what is the digital di*ide? /nternet adoption is affected by money1 literacy1 and education. .his creates a di*ide between those who ha*e access to the /nternet and those who don;t. /t impairs the upward mobility of those on the lower socioeconomic le*el1 who don;t ha*e access to the /nternet and the information that comes with it. .his impacts indi*iduals on the lower socioeconomic le*els and those li*ing in less de*eloped countries. ( edium; p. 5" -1. 3hy did some manufacturers such as Ce*is stop selling on the /nternet? )hannel )onflict with retail accounts )annibali2ation /nefficiency ((ard; pp. 5-6"

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3hy do some e+perts argue for dropping the e from e-commerce and ebusiness? o*ing to more traditional business models arketing processes continue to stand the test of time arketing research is enhanced1 but basic processes remain the same ((ard; p. 8"

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.he strength of the /nternet has affected traditional marketing in se*eral ways. Cist fi*e of them and how they affected marketing 'ower shift from sellers to buyers (focus on customer relationship management" arket 7ragmentation (more focus on small target markets and 1 to 1 marketing" %eath of distance or geographic location affect (less focus on place for marketing" .ime )ompression (#-F5 a*ailability" Anowledge management is key (.rack results in real time and focus on database analysis" /nterdisciplinary focus ( arketers must understand technology and use it wisely" /ntellectual )apital rules (focus on creati*ity and imagination" ((ard; pp. 19-11" arketers face new challenges with the ad*ent of ./:E and other digital *ideo recorders. 3hat is the main challenge and what has ./:E done to alle*iate some of the concerns of marketers? .he main challenge is the ability of consumers to speed through and skip commercials that ad*ertisers ha*e paid for based on their ability to communicate with consumers. ./:E has setup content with ad*ertising included that *iewers can watch at their leisure and ./:E can pro*ide specific metrics to the ad*ertisers on these programs. ( edium; pp. 1#-1!" arketing and gi*e an e+ample of ultichannel

--.

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%efine ultichannel arketing.

A company that offers more than one way or format for a consumer to buy something from them. A company selling from Brick and ortar store1 a 3eb site and a catalog1 for e+ample :ictoria;s &ecret.

(Easy; pp. 1--1," -4. 3hat is the &emantic 3eb and how is it different from the current 3orldwide 3eb? E+tension of the current web in which information is gi*en specific or welldefined meaning. .he 3eb currently uses te+t1 photos1 graphics1 etc. embedded in web pages1 which make them difficult to find *ia searches. .he &emantic 3eb will pro*ide standard definitional protocol so users can find information based on type. ((ard; pp. 15-16"