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David Issa 27/12/2015

Marketing Management, 15e (Kotler)


Chapter 21 Managing Digital Communications: Online, Social Media, and Mobile

1) Which of the following is an example of paid media?


A) word-of-mouth about the brand
B) news stories about the brand
C) social network conversations about the brand
D) a trade show booth about the brand
E) consumers' Instagram photos that include the brand
Answer: D
Diff: 2
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Analytical thinking

2) Mountain Dew's Dewmocracy promotional campaign — including advertising, events, a Web


site and social media efforts designed to engage consumers in brand-related activities — is an
example of ________.
A) paid media
B) earned media
C) individualization
D) word-of-mouth
E) mobile marketing
Answer: A
Diff: 3
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Analytical thinking; Application of knowledge

3) Which of the following is NOT one of the four main categories of online marketing
communications?
A) Web sites
B) guerrilla marketing
C) search ads
D) display ads
E) e-mail
Answer: B
Diff: 1
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Analytical thinking

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4) Which of the following is an advantage of online communications for marketers?


A) Consumers cannot effectively screen out your messages.
B) Companies can accurately track how effective their ads are because software filters out all
bogus hits.
C) Companies can offer tailored information or messages that engage consumers.
D) Advertisers maintain complete control over the message.
E) Advertisers do not need to worry as much about context.
Answer: C
Diff: 2
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Analytical thinking

5) Of the time US consumers spend with all media, almost ________ is spent online.
A) one-quarter
B) one-third
C) two-thirds
D) one-half
E) three-quarters
Answer: D
Diff: 2
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Reflective thinking

6) How much was total digital ad spending in 2013?


A) $40.1 million
B) $42.8 million
C) $18.4 billion
D) $40.1 billion
E) $42.8 billion
Answer: E
Diff: 2
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Reflective thinking

7) What percentage of total digital ad spending is accounted for by search advertising?


A) 1 percent
B) 7 percent
C) 17 percent
D) 30 percent
E) 43 percent
Answer: E
Diff: 3
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Reflective thinking

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8) What percentage of total digital ad spending is accounted for by mobile?


A) 1 percent
B) 7 percent
C) 17 percent
D) 30 percent
E) 43 percent
Answer: C
Diff: 3
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Reflective thinking

9) Which of the following is NOT one of the seven design elements featured in effective Web
sites (as identified by Rayport and Jaworski)?
A) change
B) context
C) content
D) customization
E) commerce
Answer: A
Diff: 3
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Information technology

10) Which of the following is one of the elements of a site's ease of use?
A) Individual pages are clean and not crammed with content.
B) The first page is easy to understand.
C) Typefaces and font sizes are very readable.
D) The site makes good use of color.
E) The site has user-centric privacy controls.
Answer: B
Diff: 3
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Information technology

11) Individual Web pages or clusters of pages that function as supplements to a primary site are
________.
A) search engine optimization
B) pay-per-click ads
C) delighters
D) microsites
E) touch points
Answer: D
Diff: 2
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Information technology

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12) The average click-through in terms of the percentage of consumers who click on a link for
________ is about 2 percent.
A) search engine optimization
B) pay-per-click ads
C) standard banner ads
D) microsites
E) rich media banner ads
Answer: B
Diff: 3
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Information technology

13) The average click-through in terms of the percentage of consumers who click on a link for
________ is about 0.8 percent.
A) search engine optimization
B) pay-per-click ads
C) standard banner ads
D) microsites
E) rich media banner ads
Answer: C
Diff: 3
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Information technology

14) Internet users spend ________ of their time online searching for information.
A) 5 percent
B) 10 percent
C) 12 percent
D) 15 percent
E) 20 percent
Answer: A
Diff: 2
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Reflective thinking

15) When Johnson & Johnson's Tylenol headache reliever would pop up on brokers' Web sites
whenever the stock market fell by 100 points or more, they were using a(n) ________.
A) microsite
B) pay-per-click ad
C) interstitial
D) search ad
E) banner ad
Answer: C
Diff: 1
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Application of knowledge

16) Which of the following is NOT one of the ways to maximize the marketing value of e-mails?
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A) Give the customer a reason to respond.


B) Personalize the content of your e-mails.
C) Offer something the customer can get via direct mail.
D) Make it easy for customers to opt in as well as unsubscribe.
E) Combine e-mail with other communications.
Answer: C
Diff: 3
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Reflective thinking

17) ________ tracks eye movements with cameras to measure what people read on a computer
screen.
A) Heat mapping
B) An interstitial
C) A pay-per-click ad
D) A click-through rate
E) Animation
Answer: A
Diff: 1
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Information technology

18) Devin, an online marketing manager for the Gilt Groupe, sends more than 3,000 variations of
its daily e-mail for its flash-sale site based on recipients' past ________, browsing history, and
purchase history.
A) complaints
B) click-throughs
C) comments
D) ratings
E) interstitials
Answer: B
Diff: 1
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Application of knowledge

19) Doritos brand's "Crash the Super Bowl" contest resulted in a healthy uptick in Twitter,
Facebook, and other social media activity.
Answer: TRUE
Diff: 1
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Application of knowledge

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20) The newest and fastest-growing channels for communicating and selling directly to
customers are digital.
Answer: TRUE
Diff: 1
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Reflective thinking

21) Non-digital media provide marketers and consumers with opportunities for much greater
interaction and individualization than digital media.
Answer: FALSE
Diff: 2
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Reflective thinking

22) Paid media includes company-generated advertising, publicity, and other promotional
efforts.
Answer: TRUE
Diff: 2
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Reflective thinking

23) Earned media includes company-generated advertising, publicity, and other promotional
efforts.
Answer: FALSE
Diff: 2
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Reflective thinking

24) Social media play a key role in earned media.


Answer: TRUE
Diff: 3
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Information technology

25) It is difficult for marketers to trace the effects of online marketing communications.
Answer: FALSE
Diff: 2
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Information technology

26) Relative to online marketing communications, traditional media offers advantages related to
contextual placement.
Answer: FALSE
Diff: 2
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Information technology

27) Beauty pioneer Estée Lauder does not utilize Internet marketing because the multimillion-
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dollar cosmetics business uses three means of communication: "telephone, telegraph, and tell a
woman."
Answer: FALSE
Diff: 3
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Application of knowledge

28) Of the time US consumers spend with all media, almost half is spent online.
Answer: TRUE
Diff: 1
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Reflective thinking

29) In 2013, total digital ad spending surpassed TV advertising for the first time.
Answer: TRUE
Diff: 2
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Reflective thinking

30) The amount spent on search ads in 2013 was $12.8 billion.
Answer: FALSE
Diff: 3
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Reflective thinking

31) When Tough Mudder launched in 2010, it spent its entire $8,000 communication budget on
mobile advertising, which generated plenty of word of mouth.
Answer: FALSE
Diff: 3
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Application of knowledge

32) A Web site's ease of use means the site downloads quickly, the first page is easy to
understand, and it is easy to navigate to other pages that open quickly.
Answer: TRUE
Diff: 2
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Information technology

33) A Web site's physical attractiveness is ensured when the site downloads quickly, the first
page is easy to understand, and it is easy to navigate to other pages that open quickly.
Answer: FALSE
Diff: 2
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Information technology

34) J.D. Power found that consumers who were "delighted" with an automotive manufacturer's
Web site were more likely to test drive one of its vehicles as a result.
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Answer: TRUE
Diff: 1
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Reflective thinking

35) One of the key recommendations for managing Web site privacy "touch points" is preventing
human intrusion by using automation whenever possible.
Answer: TRUE
Diff: 3
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Information technology

36) Microsites are less relevant for companies selling low-interest products.
Answer: FALSE
Diff: 3
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Information technology

37) Average click-through for pay-per-click ads is about 0.08 percent.


Answer: FALSE
Diff: 2
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Information technology

38) Search engine optimization (SEO) describes activities designed to improve the likelihood
that a link for a brand is as high as possible in the rank order of all nonpaid links when
consumers search for relevant terms.
Answer: TRUE
Diff: 1
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Information technology

39) If Apple wanted to generate or convert sales leads, it should focus on broader search terms.
Answer: FALSE
Diff: 3
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Application of knowledge

40) Internet users spend only 5 percent of their time actually searching for information.
Answer: TRUE
Diff: 2
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Information technology

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41) When Johnson & Johnson's ads popped up on brokers' Web sites whenever the stock market
fell by 100 points or more, it was an example of an interstitial.
Answer: TRUE
Diff: 3
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Application of knowledge

42) Social media ads prompt purchase at least three times more often than e-mails, and the
average order value from social media ads is thought to be 17 percent higher.
Answer: FALSE
Diff: 3
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Application of knowledge

43) Williams-Sonoma reported a tenfold increase in response rates when it adopted personalized
e-mail offerings based on individuals' on-site and catalog shopping behavior.
Answer: TRUE
Diff: 2
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Application of knowledge

44) To increase the effectiveness of e-mails, some researchers are employing "heat mapping,"
which tracks eye movements with cameras to measure what people read on the computer screen.
Answer: TRUE
Diff: 2
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Information technology

45) Clickable graphic icons and buttons that link to more details of a marketing offer have lower
click-through rates than links that simply utilize an Internet address.
Answer: FALSE
Diff: 3
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Information technology

46) Social media play a key role in earned media. Distinguish between earned media and paid
media.
Answer: Paid media includes company-generated advertising, publicity, and other promotional
efforts. Earned media is all the PR and word-of-mouth benefits a firm receives without having
directly paid for anything — all the news stories, blogs, and social network conversations that
deal with a brand.
Diff: 1
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Analytical thinking

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47) What are the advantages and disadvantages of online marketing communications?
Answer: Advantages — companies can offer or send tailored information or messages that
engage consumers by reflecting their special interests and behavior; marketers can easily trace
their effects by noting how many unique visitors or "UVs" click on a page or ad, how long they
spend with it, what they do on it, and where they go afterward; the Internet offers contextual
placement, which means marketers can buy ads on sites related to their own offerings; marketers
can place advertising based on keywords customers type into search engines to reach people
when they've actually started the buying process. Disadvantages — consumers can screen out
messages; software-powered Web sites generate bogus clicks, which can throw off metrics;
marketers can lose control of online messages, which can be hacked or vandalized.
Diff: 2
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Analytical thinking

48) Given the disadvantages associated with online marketing communications, is it worth it for
companies to use them? In your response, please identify the disadvantages of online marketing
communications.
Answer: Online marketing communications are challenging because consumers can screen out
messages; software-powered Web sites generate bogus clicks, which can throw off metrics;
marketers can lose control of online messages, which can be hacked or vandalized. Consumers
control the flow of information by selecting who they interact with and engaging selectively in
the information. However, almost half of consumer media time is spent online, and marketers
must reach consumers where they are.
Diff: 2
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Analytical thinking

49) A Web site's ease of use and physical attractiveness are important to marketers because
consumers use them to judge a site's performance. Please explain three things marketers should
do to ensure high ratings on each.
Answer: Two criteria consumers use to judge a site's performance are ease of use and physical
attractiveness.
• Ease of use means: The site downloads quickly, the first page is easy to understand, and it is
easy to navigate to other pages that open quickly.
• Physical attractiveness is ensured when: Individual pages are clean and not crammed with
content, typefaces and font sizes are very readable, and the site makes good use of color (and
sound).
Diff: 2
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Information technology

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50) Identify three ways a marketer might transform online marketing touch points related to
privacy on the Web site into a positive customer experience.
Answer: The three ways include:
1. develop user-centric privacy controls to give customer control
2. avoid multiple intrusions
3. prevent human intrusion by using automation whenever possible
Diff: 1
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Information technology

51) What is a microsite? Provide an example of a firm that is likely to benefit from the use of a
microsite.
Answer: Microsites are individual Web pages or clusters of pages that function as supplements
to a primary site. They're particularly relevant for companies selling low-interest products.
People rarely visit an insurance company's Web site, for example, but the company can create a
microsite on used-car sites that offers advice for buyers of used cars and a good insurance deal at
the same time.
Diff: 1
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Analytical thinking

52) What is paid search advertising and why is it increasing in popularity?


Answer: Thirty-five percent of all searches are reportedly for products or services. Marketers
bid in a continuous auction on search terms that serve as a proxy for the consumer's product or
consumption interests. When a consumer searches for any of the words with Google, Yahoo!, or
Bing, the marketer's ad may appear above or next to the results, depending on the amount the
company bids and an algorithm the search engines use to determine an ad's relevance to a
particular search.Advertisers pay only if people click on the links, but marketers believe
consumers who have already expressed interest by engaging in search are prime prospects.
Average click-through in terms of the percentage of consumers who click on a link is about 2
percent, much more than for comparable online display ads, which range from 0.08 for standard
banner ads with graphics and images to 0.14 for rich media (expandable banners) ads that
incorporate audio and/or video.
Diff: 2
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Analytical thinking

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53) Identify two general guidelines for Search Engine Optimization and paid search ads.
Answer: Student answers will vary. Here are four general guidelines:
• Broader search terms ("MP3 player" or "iPod") are useful for general brand building; more
specific ones identifying a particular product model or service ("Apple iPod classic 160GB") are
useful for generating and converting sales leads.
• Search terms need to be spotlighted on the appropriate pages of the marketer's Web site so
search engines can easily identify them.
• Any one product can usually be identified by means of multiple keywords, but marketers
must bid on each keyword according to its likely return on revenue. It also helps to have popular
sites link back to the marketer's Web site.
• Data can be collected to track the effects of paid search.
Diff: 2
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Analytical thinking

54) Compare and contrast paid search ads, banner ads, and interstitials. In your response, please
identify the advantages and disadvantages of each advertising format.
Answer: In paid search ads, a marketer's ad is shown based on keywords the consumer is
searching, and the ads may appear above or next to the results, depending on the amount the
company bids and an algorithm the search engines use to determine an ad's relevance to a
particular search. Marketers pay only if the consumer clicks through on the ad. Marketers believe
that consumers who click the ads are pre-screened prospects. Search ads have a 2 percent click-
through rate, which is higher than banner ads or interstitials. However, Internet users only spend
about 5 percent of their time online searching for information. Further, the increased popularity
of search ads means popular keywords are more expensive. Marketers must be creative with their
ad placements and keyword bids.

Banner ads are small, rectangular boxes containing text and perhaps a picture that companies pay
to place on relevant Web sites. The larger the audience, the higher the cost. In the early days of
the Internet, viewers clicked on 2 percent to 3 percent of the banner ads they saw, but that
percentage has quickly plummeted, and advertisers have explored other forms of
communication. They are important because of the amount of time consumers spend online when
they are not searching, but they have to be more attention-getting and influential, better targeted,
and more closely tracked than they used to be.

Interstitials are advertisements, often with video or animation, that pop up between page changes
within a Web site or across Web sites. They can be targeted based on a consumer's needs or
anticipated needs, as opposed to what the consumer is looking for. Because consumers find such
pop-up ads intrusive and distracting, many use software to block them.
Diff: 3
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Analytical thinking

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55) Identify three ways marketers can maximize marketing effectiveness of e-mails.
Answer: Student answers will vary. Here are seven possible ways marketers can maximize
marketing effectiveness of e-mails:
• Give the customer a reason to respond (e.g., powerful incentives for reading e-mail pitches
and online ads, such as trivia games, scavenger hunts, and instant-win sweepstakes).
• Personalize the content of your e-mails and use an engaging subject line.
• Offer something the customer can't get via direct mail like time-sensitive information.
• Make it easy for customers to opt in as well as unsubscribe.
• Run controlled split tests to explore how location, color, and other factors affect "Sign Up
Now" messages. Controlled split tests assemble online matched samples of consumers with one
sample given a test message that manipulates one factor and the other being a status quo control.
• Combine e-mail with other communications such as social media.
• Employ "heat mapping," which tracks eye movements with cameras to measure what people
read on a computer screen.
Diff: 2
LO: 21.1: What are the pros and cons of online marketing?
AACSB: Analytical thinking

56) ________ are a means for consumers to share text, images, audio and video information with
each other and with companies, and vice versa.
A) Social media
B) Interstitials
C) Microsites
D) Pay-per-click ads
E) Mobile ads
Answer: A
Diff: 1
LO: 21.2: How can companies carry out effective social media campaigns?
AACSB: Reflective thinking

57) Dollar Shave Club's irreverent online video on YouTube is an example of ________.
A) social media
B) an interstitial
C) a microsite
D) a pay-per-click ad
E) a mobile ad
Answer: A
Diff: 1
LO: 21.2: How can companies carry out effective social media campaigns?
AACSB: Application of knowledge

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58) Apple hosts a large number of ________, which become customers' primary source of
product information after warranties expire and are organized by product lines and type of user
(consumer or professional).
A) niche networks
B) social networks
C) microblogs
D) blogs
E) online communities
Answer: E
Diff: 3
LO: 21.2: How can companies carry out effective social media campaigns?
AACSB: Application of knowledge

59) The social network which focuses on career-minded professionals is ________.


A) Facebook
B) LinkedIn
C) MySpace
D) Twitter
E) Gawker
Answer: B
Diff: 1
LO: 21.2: How can companies carry out effective social media campaigns?
AACSB: Reflective thinking

60) For which of the following product categories are consumers least likely to engage with on
social networks?
A) Purex laundry detergent
B) USA Today
C) Red Cross
D) Salvation Army
E) NBC News
Answer: A
Diff: 3
LO: 21.2: How can companies carry out effective social media campaigns?
AACSB: Application of knowledge

61) Which of the following is NOT a benefit of a social media presence for a brand?
A) Social media allows marketers to establish a public voice and presence online.
B) Social media can cost-effectively reinforce other communication activities.
C) Social media can encourage companies to stay innovative and relevant.
D) Social media can be used to build or tap into online communities.
E) Social media allows companies to have a short-term focus.
Answer: E
Diff: 3
LO: 21.2: How can companies carry out effective social media campaigns?
AACSB: Reflective thinking

62) Which of the following is a blog network?


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A) Facebook
B) Sugar
C) MySpace
D) Groupon
E) YouTube
Answer: B
Diff: 3
LO: 21.2: How can companies carry out effective social media campaigns?
AACSB: Reflective thinking

63) Faith is a big fan of a popular musical group, so she created a place for other fans to
communicate with each other online. Faith created a ________.
A) forum
B) microblog
C) blog
D) social network
E) microsite
Answer: A
Diff: 2
LO: 21.2: How can companies carry out effective social media campaigns?
AACSB: Application of knowledge

64) When GlaxoSmithKline sponsored a weight-loss community in preparation for the launch of
its first weight-loss drug, Alli, which of the following was the key benefit of the online
community?
A) Consumers did not have commercial interests or company affiliations.
B) Democratization of innovation for lowest-common denominator solutions.
C) Two-way information flow led to useful, hard-to-get customer information and insights.
D) A point of contact for product recalls.
E) One-way communication with customers.
Answer: C
Diff: 3
LO: 21.2: How can companies carry out effective social media campaigns?
AACSB: Application of knowledge

65) Social media allow marketers to build or tap into online communities, inviting participation
from consumers and creating a long-term marketing asset in the process.
Answer: TRUE
Diff: 1
LO: 21.2: How can companies carry out effective social media campaigns?
AACSB: Information technology

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66) Firms benefit when they democratize innovations and replace groundbreaking ideas with
lowest-common-denominator solutions.
Answer: FALSE
Diff: 2
LO: 21.2: How can companies carry out effective social media campaigns?
AACSB: Reflective thinking

67) At the PopSugar blog site, a team of bloggers tracks green consumer products for 5 million
unique visitors per month.
Answer: FALSE
Diff: 3
LO: 21.2: How can companies carry out effective social media campaigns?
AACSB: Application of knowledge

68) Bloggers do not need to disclose their relationship with marketers whose products they
endorse.
Answer: FALSE
Diff: 1
LO: 21.2: How can companies carry out effective social media campaigns?
AACSB: Application of knowledge

69) Facebook is an early warning system for firms that permits rapid response, whereas Twitter
allows deeper dives to engage consumers in more meaningful ways.
Answer: FALSE
Diff: 2
LO: 21.2: How can companies carry out effective social media campaigns?
AACSB: Analytical thinking

70) San Francisco bakery Mission Pie benefited from sending tweet alerts about its events on
TreeHugger.com.
Answer: FALSE
Diff: 2
LO: 21.2: How can companies carry out effective social media campaigns?
AACSB: Application of knowledge

71) When it comes to social media, only some consumers want to engage with some brands, and,
even then, only some of the time.
Answer: TRUE
Diff: 1
LO: 21.2: How can companies carry out effective social media campaigns?
AACSB: Reflective thinking

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72) Why are social media important to marketers?


Answer: Social media provide a means for consumers/companies to share text, images, audio,
and video information with each other and with companies/consumers. Social media allow
marketers to establish a public voice and presence online. They can cost-effectively reinforce
other communication activities. Because of their day-to-day immediacy, they can also encourage
companies to stay innovative and relevant. Marketers can build or tap into online communities,
inviting participation from consumers and creating a long-term marketing asset in the process.
Diff: 2
LO: 21.2: How can companies carry out effective social media campaigns?
AACSB: Reflective thinking

73) What are the three main platforms for social media?
Answer: The three main platforms for social media include:
1. online communities and forums
2. blogs (individual blogs and blog networks such as Sugar and Gawker)
3. social networks (like Facebook, Twitter, and YouTube)
Diff: 2
LO: 21.2: How can companies carry out effective social media campaigns?
AACSB: Information technology

74) Why should firms avoid too much democratization of innovation?


Answer: Groundbreaking ideas can be replaced by lowest-common-denominator solutions.
Diff: 2
LO: 21.2: How can companies carry out effective social media campaigns?
AACSB: Reflective thinking

75) Identify three reasons social media are rarely the only source of communications for a brand.
Answer: Student answers will vary. Here are five possible reasons social media are rarely the
only source of communications for a brand:
• Social media may not be as effective in attracting new users and driving brand penetration.
• Research by DDB suggests that brands and products vary widely in how social they are
online. Consumers are most likely to engage with media, charities, and fashion and least likely to
engage with consumer goods.
• Although consumers may use social media to get useful information or deals and promotions
or to enjoy interesting or entertaining brand-created content, a much smaller percentage want to
use social media to engage in two-way "conversations" with brands.
• Technology limitations may affect the ability to execute a high quality experience. The
Facebook app for contest submissions crashed the first day due to high traffic.
• The Internet permits scrutiny, criticism, and even "cheap shots" from consumers and
organizations.
Diff: 2
LO: 21.2: How can companies carry out effective social media campaigns?
AACSB: Analytical thinking

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76) AT&T found that one of the most effective drivers of its sales, along with unaided
advertising awareness was ________.
A) a blog
B) an online forum
C) social networks
D) WOM
E) pay-per-click ads
Answer: D
Diff: 3
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Reflective thinking

77) ________ is a form of online word of mouth, or "word of mouse," that encourages
consumers to pass along company-developed products and services or audio, video or written
information to others online.
A) Viral marketing
B) Guerrilla marketing
C) Microsite marketing
D) Interstitial marketing
E) Public relations
Answer: A
Diff: 2
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Reflective thinking

78) Which of the following increases the likelihood a brand is discussed in face-to-face, oral
communications?
A) brand novelty
B) brand salience
C) brand excitement
D) brand surprise
E) brand edginess
Answer: B
Diff: 3
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Reflective thinking

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79) What percentage of word-of-mouth content cascades to more than one person beyond the
initial recipient?
A) 4 percent
B) 6 percent
C) 8 percent
D) 10 percent
E) 25 percent
Answer: A
Diff: 3
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Reflective thinking

80) Which of the following extrinsic factors is most likely to sway a consumer's decision about
whether to contribute to social media?
A) whether they are having fun
B) whether they are learning
C) whether it affects their self-image
D) whether the brand is novel
E) whether their family is having fun
Answer: C
Diff: 3
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Analytical thinking

81) ________ has enrolled more than half a million mothers in Vocalpoint, a group built on the
premise that highly engaged individuals want to learn about products and share their opinions
with companies and other individuals.
A) Blendtec
B) SodaStream
C) Google
D) P&G
E) Vimeo
Answer: D
Diff: 3
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Application of knowledge

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82) ________ operates an international word-of-mouth media network powered by 1 million


demographically diverse, ordinary people who volunteer to talk up the products they deem worth
promoting.
A) Brand Advocates
B) Vocalpoint
C) P&G
D) BzzAgent
E) Influentials
Answer: D
Diff: 2
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Reflective thinking

83) Which of the following is NOT an example of viral marketing?


A) Quicksilver puts out surfing videos and surf-culture books for teens.
B) Johnson & Johnson has a popular parenting advice Web site.
C) Walmart places videos with money-saving tips on YouTube.
D) Mountain Dew has a record label and offers free downloads.
E) Hasbro places a Facebook ad about its TV channel.
Answer: E
Diff: 3
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Application of knowledge

84) Online customer reviews are the second-most trusted source of brand information. What is
the most trusted source?
A) print advertising
B) recommendations from friends and family
C) salesperson recommendation
D) celebrity endorsements
E) Facebook recommendations
Answer: B
Diff: 2
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Reflective thinking

85) Which of the following is NOT a limitation of online reviews?


A) People trust and value positive reviews more than negative reviews.
B) Online reviews can be biased.
C) Raters are influenced by previous, positive ratings.
D) Social influence can lead to disproportionally positive online ratings.
E) Online reviews can be fake.
Answer: A
Diff: 3
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Reflective thinking

86) According to media researcher Duncan Watts, the key to setting a song on the path to
20
David Issa 27/12/2015

popularity is a phenomenon called ________.


A) sampling
B) cumulative advantage
C) influence farming
D) entertainment trendspotting
E) buzz firing
Answer: B
Diff: 3
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Reflective thinking

87) Which of the following is NOT one of the steps that can improve the likelihood of starting
positive buzz?
A) Identify underserved, inactive individuals and devote extra effort to them.
B) Supply key people with product samples.
C) Work through community influentials.
D) Develop word-of-mouth referral channels to build business.
E) Provide compelling information that customers want to pass along.
Answer: A
Diff: 3
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Analytical thinking

88) The bottom rung of the customer loyalty ladder is ________.


A) word of mouth/buzz
B) repeat purchase
C) satisfaction
D) evangelism
E) ownership
Answer: C
Diff: 1
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Reflective thinking

89) ________ is the rung of the customer loyalty ladder where the customer convinces others to
purchase/join.
A) Word of mouth/buzz
B) Repeat purchase
C) Satisfaction
D) Evangelism
E) Ownership
Answer: D
Diff: 2
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Reflective thinking

90) Maria is flagged as a special customer at your firm because she is a satisfied customer,
returns to your company to buy, puts her reputation on the line to tell others about you, and
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convinces others to purchase from you, which suggests she is on the ________ rung of the
loyalty ladder.
A) word of mouth/buzz
B) repeat purchase
C) satisfaction
D) evangelism
E) ownership
Answer: D
Diff: 2
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Application of knowledge

91) When another customer complains about the hair salon where Georgeanna is a loyal
customer, she defends it because she feels responsible for the continued success of the hair salon.
This behavior suggests she has reached the ________ rung of the loyalty ladder.
A) word of mouth/buzz
B) repeat purchase
C) satisfaction
D) evangelism
E) ownership
Answer: E
Diff: 3
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Application of knowledge

92) The top rung of the loyalty ladder is the ________ rung.
A) word of mouth/buzz
B) repeat purchase
C) satisfaction
D) evangelism
E) ownership
Answer: E
Diff: 1
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Reflective thinking

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93) When Gerard and his team seek to evaluate blogs according to three dimensions —
relevance, sentiment, and authority — they are focused on characterizing the ________ of word
of mouth.
A) speed
B) source
C) scale
D) share
E) space
Answer: B
Diff: 2
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Application of knowledge

94) To monitor the Gatorade brand on social networks around the clock, ________ created a
Mission Control Center — set up like a broadcast television control room — in the middle of the
marketing department in its Chicago headquarters.
A) Coca-Cola
B) Cadbury Schweppes
C) PepsiCo
D) P&G
E) Nestlé
Answer: C
Diff: 2
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Application of knowledge

95) One of the measures of online word of mouth at DuPont was the effort's ________, or
whether it was not a one-shot deal.
A) authority
B) sentiment
C) relevance
D) scale
E) sustainability
Answer: E
Diff: 2
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Application of knowledge

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96) One of the measures of online word of mouth at DuPont was the effort's ________, or how
fast it spread.
A) authority
B) speed
C) relevance
D) scale
E) sustainability
Answer: B
Diff: 1
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Application of knowledge

97) ________ social media ground control and command center in Round Rock, Texas, has 70
employees and processes 25,000 daily social media events in 11 different languages, responding
to most queries and complaints within 24 hours.
A) DuPont's
B) Dell's
C) Gatorade's
D) Wells Fargo's
E) Nestlé's
Answer: B
Diff: 2
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Application of knowledge

98) AT&T found word of mouth was one of its most effective drivers of its sales.
Answer: TRUE
Diff: 1
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Application of knowledge

99) Viral marketing is a form of online word of mouth, or word of mouse, that encourages
consumers to pass along company-developed products and services or audio, video, or written
information to others online.
Answer: TRUE
Diff: 2
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Reflective thinking

100) Consumers are more likely to transmit negative WOM and pass on information about their
own negative consumption experiences.
Answer: FALSE
Diff: 3
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Reflective thinking

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101) Only 4 percent of content cascades to more than one person beyond the initial recipient.
Answer: TRUE
Diff: 2
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Reflective thinking

102) Consumers are more likely to share a viral video ad when the brand uses pulsing so it is not
too intrusive in the video.
Answer: TRUE
Diff: 2
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Analytical thinking

103) P&G's Vocalpoint is a group built on the premise that moms who have conversations with
three to five women each day are more influential than women who speak to 25 to 30 other
women during the day.
Answer: FALSE
Diff: 2
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Application of knowledge

104) BzzScapes are digital tools to activate widespread opinion-sharing throughout its own
social media site and each member's personal social circles.
Answer: TRUE
Diff: 2
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Application of knowledge

105) A recent Nielsen survey found that online customer reviews were the most trusted source of
brand information.
Answer: FALSE
Diff: 3
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Reflective thinking

106) Social influence can lead to disproportionally positive online ratings, and subsequent raters
are more likely to be influenced by previous negative ratings than positive ones.
Answer: FALSE
Diff: 3
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Information technology

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107) What is viral marketing? Please provide an example.


Answer: Student answers will vary. Viral marketing is a form of online word of mouth, or "word
of mouse," that encourages consumers to pass along company-developed products and services
or audio, video, or written information to others online. Student examples will vary, but an
example from the text is Blendtec's Will It Blend? videos.
Diff: 1
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Analytical thinking; Application of knowledge

108) What are four pieces of advice for getting a viral ad shared?
Answer: According to a viral advertising expert from Harvard Business School:
Utilize brand pulsing so the brand is not too intrusive within the video; open with joy or surprise
to hook those fickle viewers who are easily bored; build an emotional roller coaster within the ad
to keep viewers engaged throughout; and surprise but don't shock — if an ad makes viewers too
uncomfortable, they are unlikely to share it.
Diff: 3
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Reflective thinking

109) What are the two most trusted sources of brand information?
Answer: Recommendations from friends and family and online customer reviews.
Diff: 3
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Reflective thinking

110) From a consumer's perspective, what are the limitations of getting information from an
online review?
Answer: Online reviews can be biased or fake. Research has shown that social influence can
lead to disproportionally positive online ratings, and subsequent raters are more likely to be
influenced by previous positive ratings than negative ones. Consumers posting reviews are
susceptible to conformity pressures and adopting norms of others.
Diff: 2
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Analytical thinking

111) According to researchers, what steps can improve the likelihood of starting a buzz?
Answer: The steps that can improve the likelihood of starting a buzz include:
• Identify influential individuals and companies and devote extra effort to them.
• Supply key people with product samples.
• Work through community influentials.
• Develop word-of-mouth referral channels to build business.
• Provide compelling information that customers want to pass along.
Diff: 2
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Reflective thinking

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112) Identify and describe the rungs on the customer loyalty ladder in ascending order.
Answer:
1. Satisfaction — Sticks with your organization as long as expectations are met.
2. Repeat purchase — Returns to your company to buy again.
3. Word of mouth/buzz — Puts his or her reputation on the line to tell others about you.
4. Evangelism — Convinces others to purchase/join.
5. Ownership — Feels responsible for the continued success of your organization.
Diff: 3
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Reflective thinking

113) Provide five examples of things a marketer might track to measure buzz.
Answer: Student answers will vary. Marketers might track scale (how far the campaign
reached), speed (how fast it spread), share of voice in that space, share of voice in that speed,
whether it achieved positive lift in sentiment, whether the message was understood, whether it
was relevant, whether it had sustainability (and was not a one-shot deal), and how far it moved
from its source. Other marketers might characterize the source of the word of mouth. One
example evaluates blogs by their relevance, sentiment, and authority. Another group measures
the types of investments customers make in engaging with brands (e.g., efforts on blogs,
microblogs, cocreation, forums and discussion boards, product reviews, social networks, photo
and video sharing.
Diff: 2
LO: 21.3: What are some tips for enjoying positive word of mouth?
AACSB: Information technology

114) Which of the following is NOT one of the four distinctive characteristics of a mobile
device?
A) It is tied to one user.
B) It allows marketers to personalize messages.
C) It is virtually always "on."
D) It allows for immediate consumption as it is a distribution channel with a payment system.
E) It is highly interactive given it allows for geotracking and picture and video taking.
Answer: B
Diff: 2
LO: 21.4: What are important guidelines for mobile marketing?
AACSB: Analytical thinking

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115) Marcel downloaded an episode of his daughter's favorite program to his cell phone to ward
off a tantrum while they were shopping. Which of the four distinctive characteristics was most
critical to enable this action?
A) It is tied to one user.
B) It allows marketers to personalize messages.
C) It is virtually always "on."
D) It allows for immediate consumption as it is a distribution channel with a payment system.
E) It is highly interactive given it allows for geotracking and picture and video taking.
Answer: D
Diff: 1
LO: 21.4: What are important guidelines for mobile marketing?
AACSB: Application of knowledge

116) ________ out of every 10 US consumers owned a smart phone in 2014.


A) Two
B) Four
C) Six
D) Eight
E) Ten
Answer: C
Diff: 1
LO: 21.4: What are important guidelines for mobile marketing?
AACSB: Information technology

117) Which of the following is the "third screen"?


A) mobile phones
B) in-vehicle entertainment systems
C) televisions
D) computers
E) elevator screens
Answer: A
Diff: 1
LO: 21.4: What are important guidelines for mobile marketing?
AACSB: Information technology

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118) Which of the following best characterizes average consumers' current media consumption
patterns?
A) Consumers spend more time listening to the radio than on their mobile phones, but less time
on magazines and newspapers.
B) Consumers spend more time reading magazines and newspapers than on their mobile phones,
but less time listening to the radio.
C) Consumers spend more time on mobile devices than on radio, magazines, and newspapers
combined.
D) Consumers spend an average of two hours and 52 minutes on radio, magazines, and
newspapers combined.
E) Consumers spend an average of one hour and 46 minutes on mobile devices.
Answer: C
Diff: 2
LO: 21.4: What are important guidelines for mobile marketing?
AACSB: Reflective thinking

119) Mobile ad spending approached ________ worldwide in 2013.


A) $14 million
B) $18 million
C) $48 million
D) $18 billion
E) $48 billion
Answer: D
Diff: 2
LO: 21.4: What are important guidelines for mobile marketing?
AACSB: Reflective thinking

120) ________ are bite-sized software programs that can be downloaded to smart phones.
A) Mobile apps
B) Mini-billboards
C) Loyalty programs
D) Virtual maps
E) Cookies
Answer: A
Diff: 1
LO: 21.4: What are important guidelines for mobile marketing?
AACSB: Information technology

29
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121) VW chose to launch its GTI in the United States with a(n) ________, which was
downloaded 2 million times in three weeks.
A) interstitial
B) app
C) mini-billboard
D) Facebook page
E) LinkedIn ad
Answer: B
Diff: 2
LO: 21.4: What are important guidelines for mobile marketing?
AACSB: Information technology

122) ________ "Face Retirement" app used 3D "virtual makeover" imaging technology to show
people what they might look like as they approached retirement age as part of a campaign to
encourage young people to save for retirement.
A) Charles Schwab's
B) Ameritrade's
C) Prudential's
D) Bank of America's
E) Fidelity Investments's
Answer: D
Diff: 1
LO: 21.4: What are important guidelines for mobile marketing?
AACSB: Application of knowledge

123) Which of the following is NOT one of the ways companies can utilize cell phones to market
to or track consumers?
A) utilize GPS data to provide location-based offers
B) utilize digital in-store signs that dispense coupons to smart phones
C) utilize cookies to track mobile activity
D) track behavior across tablets and mobile devices using screen identities
E) track loyalty program participation
Answer: C
Diff: 3
LO: 21.4: What are important guidelines for mobile marketing?
AACSB: Analytical thinking

30
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124) Why is the Web experience different for mobile phone users than for people who are
surfing from a computer?
A) smaller screen sizes
B) longer download times
C) lack of software
D) all of the above
E) none of the above
Answer: D
Diff: 1
LO: 21.4: What are important guidelines for mobile marketing?
AACSB: Analytical thinking

125) Experts recommend mobile ad copy should occupy only ________ percent of the screen,
avoiding complex viewing experiences that may take a toll on consumers' battery and data
availability as well as their time.
A) 30
B) 40
C) 50
D) 60
E) 70
Answer: C
Diff: 3
LO: 21.4: What are important guidelines for mobile marketing?
AACSB: Reflective thinking

126) Nadya is designing a mobile ad to promote her company's widgets. Where should the
company's logo appear in the mobile ad?
A) in the middle of the ad
B) centered at the bottom
C) centered at the top
D) in the corner
E) it should not appear
Answer: D
Diff: 3
LO: 21.4: What are important guidelines for mobile marketing?
AACSB: Application of knowledge

31
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127) When it comes to ad design and copy, mobile ads should use which of the following
guidelines?
A) Use lots of bright colors but limit ad copy to a pair of phrases.
B) Do not use color and limit ad copy to one phrase.
C) Use no more than three bright colors and use as much copy as you want.
D) Use four bright colors and limit ad copy to one phrase.
E) Use at least one bright color, but no more than two, and limit ads to a pair of phrases.
Answer: E
Diff: 3
LO: 21.4: What are important guidelines for mobile marketing?
AACSB: Reflective thinking

128) Carlos is training his new graphic design intern on the use of color in mobile ads. Which of
the following is good advice when it comes to the use of color?
A) Only use one bright color.
B) Do not use bright colors.
C) Use at least three bright colors.
D) Use at least four bright colors.
E) Use a bright color to highlight calls to action.
Answer: E
Diff: 3
LO: 21.4: What are important guidelines for mobile marketing?

129) Why should mobile ad developers avoid complex viewing experiences?


A) They take a toll on consumers' battery.
B) Consumers may have limited data availability.
C) Consumers may have limited time.
D) All of the above
E) None of the above
Answer: D
Diff: 1
LO: 21.4: What are important guidelines for mobile marketing?
AACSB: Information technology

130) In which developed Asian market is mobile marketing becoming a central component of
customer experiences?
A) Hong Kong
B) Japan
C) Singapore
D) South Korea
E) All of the above
Answer: E
Diff: 2
LO: 21.4: What are important guidelines for mobile marketing?
AACSB: Diverse and multicultural work environments

32
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131) A pioneer in China, ________ created a national campaign asking Beijing residents to send
text messages guessing the high temperature in the city every day for just over a month for a
chance to win a one-year supply of its products.
A) PepsiCo
B) Coca-Cola
C) Red Bull
D) Poland Spring
E) Unilever
Answer: B
Diff: 2
LO: 21.4: What are important guidelines for mobile marketing?
AACSB: Application of knowledge; Diverse and multicultural work environments

132) Mobile ad copy should occupy only 50 percent of the screen, avoiding complex viewing
experiences that may take a toll on consumers' battery and data availability as well as their time.
Answer: TRUE
Diff: 2
LO: 21.4: What are important guidelines for mobile marketing?
AACSB: Information technology

133) In mobile ads, calls to action should be highlighted with a bright color.
Answer: TRUE
Diff: 2
LO: 21.4: What are important guidelines for mobile marketing?
AACSB: Information technology

134) What are four distinctive characteristics of a mobile device?


Answer: Four distinctive characteristics of a mobile device include:
1. it is uniquely tied to one user
2. it is virtually always "on" given it is typically carried everywhere
3. it allows for immediate consumption because it is in effect a channel of distribution with a
payment system
4. it is highly interactive given it allows for geotracking and picture and video taking
Diff: 2
LO: 21.4: What are important guidelines for mobile marketing?
AACSB: Information technology

135) What are mobile apps and how are they used?
Answer: Mobile apps are bite-sized software programs that can be downloaded to smart phones.
Apps can perform useful functions — adding convenience, social value, incentives, and
entertainment and making consumers' lives a little or a lot better.
Diff: 1
LO: 21.4: What are important guidelines for mobile marketing?
AACSB: Information technology

33
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136) What are some challenges associated with mobile marketing and how should advertisers
overcome them?
Answer: Even with newer-generation smart phones, the Web experience can be very different
for users given smaller screen sizes, longer download times, and the lack of some software
capabilities. Marketers should design simple, clear, and clean sites, paying even greater attention
than usual to user experience and navigation. Mobile ad copy should occupy only 50 percent of
the screen, avoiding complex viewing experiences that may take a toll on consumers' battery and
data availability as well as on their time. Brands should limit their ads to a pair of phrases — the
offer and the tagline. Brands should place their logo in the corner of the mobile ad frame.
Finally, ads should use at least one bright color, but no more than two. Calls to action should be
highlighted with a bright color.
Diff: 2
LO: 21.4: What are important guidelines for mobile marketing?
AACSB: Analytical thinking

137) Identify the 7Cs of design elements. Do you feel they are relevant in a mobile advertising
context? Why or why not?
Answer: The 7Cs of design elements are context, content, community, customization,
communication, connection, and commerce. Student opinions may vary regarding their relevance
in a mobile advertising context, but they should recognize the advice for mobile advertising:
Brands should limit their ads to a pair of phrases — the offer and the tagline. Brands should
place their logo in the corner of the mobile ad frame. Finally, ads should use at least one bright
color, but no more than two. Calls to action should be highlighted with a bright color.
Diff: 3
LO: 21.4: What are important guidelines for mobile marketing?
AACSB: Analytical thinking

138) What can US marketers learn about mobile marketing by looking overseas?
Answer: In developed Asian markets such as Hong Kong, Japan, Singapore, and South Korea,
mobile marketing is fast becoming a central component of customer experiences. In developing
markets, high smart-phone penetration also makes mobile marketing attractive. For example,
Coca-Cola created a national campaign asking Beijing residents to send text messages guessing
the high temperature in the city every day for just over a month for a chance to win a one-year
supply of Coke products. The campaign attracted more than 4 million messages over the course
of 35 days.
Diff: 2
LO: 21.4: What are important guidelines for mobile marketing?
AACSB: Analytical thinking

34