978-0133866339 Chapter 08 Part 2

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41) To be successful in using financially-based incentives to encourage online purchases, the

incentives:

A) must match the target market of the website.

B) should offer something free.

C) apply to all customers, not just first time purchasers.

D) should be meaningful to those visiting the website and be changed periodically.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 8-3

42) Access to a website 24 hours a day is an example of ________ incentives.

A) financial

B) cyberbait

C) convenience

D) value-added

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 8-3

43) Which type of incentive is designed to change purchasing habits over the long term?

A) Financial

B) Consumer

C) Convenience

D) Value-added

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 8-3

44) Forever 21 offering an easy “how to measure” chart on its website is an example of a

________ e-commerce incentive.

A) financial

B) convenience

C) value-added

D) cyberbait

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 8-3

45) Value-added incentives are designed to:

A) attract attention.

B) provide shipment information.

C) change purchasing habits over the long term.

D) change short-term buying decisions.

Question Tag: Definition (Concept)

AACSB Category: Reflective thinking

Objective: 8-3

46) Based on web analytics, a hotel’s front desk staff knows a customer often stays for a week

and offers that person a discount for booking online, which is an example of:

A) merchandising.

B) a financial incentive.

C) a convenience incentive.

D) a value-added incentive.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 8-3

47) A financial incentive may cause a consumer to switch to e-commerce; a value-added

incentive is designed to:

A) change purchasing habits more permanently.

B) create brand awareness.

C) substitute payment plans.

D) find new buyers.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 8-3

48) All of the following are examples of value-added incentives designed to encourage web

visitors, except:

A) offering merchandise on the website that is not available in a catalog or in retail stores.

B) offering free shipping and handling.

C) weekly or daily tips on a topic meaningful to the web visitor.

D) personalizing products to individual consumers based on previous visits to the website and

past purchases.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 8-3

49) When Tide offers tips on how to get tough stains out of clothes, which type of incentive is

being used?

A) Financial

B) Convenience

C) Value-added

D) Supportive

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 8-3

50) Leah does not shop online because she is afraid that her identity will be stolen. This is an

example of which e-commerce concern?

A) Security concern

B) Seller opportunism concern

C) Cognitive dissonance

D) Information privacy issues

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 8-3

51) Confidence in e-commerce website security has increased as consumers become used to

purchase products over the internet. Currently, approximately ________ percent of consumers

have faith that web purchases are secure.

A) 40

B) 55

C) 66

D) 75

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 8-3

52) Aubrey does not like to purchase anything online because she does not want cookies tracking

her web activity and then using it to market products to her. This is an example of which e-

commerce concern?

A) Seller opportunism

B) Security issues

C) Changing purchasing habits

D) Privacy issues

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 8-3

53) The key to allaying fears about privacy and security issues in e-commerce is:

A) empathy.

B) convenience.

C) trust.

D) financial incentives.

Question Tag: Definition (Concept)

AACSB Category: Reflective thinking

Objective: 8-3

54) E-commerce focuses on selling goods or services on the internet.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 8-3

55) Online sales account for nearly one-fifth of all retail activity.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 8-3

56) Web 4.0 forced e-commerce firms to include real-time communication and engagement for

consumers.

Question Tag: Definition (Concept)

AACSB Category: Information technology

Objective: 8-3

57) A primary cause of customer dissatisfaction and lost sales with e-commerce is slow load-

times of web pages, especially the main page.

Question Tag: Definition (Concept)

AACSB Category: Information technology

Objective: 8-3

58) Channel integration involves making sure all aspects beyond the web work together.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 8-3

59) Brand engagement typically focuses on direct mail and toll free numbers to drive customers

to e-commerce sites to make purchases.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 8-3

60) Common venues for brand engagement with e-commerce sites are blogs, feedback

mechanism, customer reviews, and social media.

Question Tag: Definition (Concept)

AACSB Category: Information technology

Objective: 8-3

61) While many e-commerce sites allow customer reviews and feedback, most immediately

delete any negative comments or screen comments prior to posting to prevent negative

comments from appearing.

Question Tag: Definition (Concept)

AACSB Category: Information technology

Objective: 8-3

62) A component of brand engagement for e-commerce is customization, which welcomes a

person back to a website by name.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 8-3

63) When Tiffany accesses the Forever 21 website, merchandise similar to what she has

purchased and searched for on the web previously appears. This is an example of personalization

of an e-commerce site.

Question Tag: Application

AACSB Category: Application of knowledge

Objective: 8-3

64) Hidden charges, difficulty checking out, and requiring customers to register at an e-

commerce site are common causes of shopping cart abandonment.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 8-3

65) A low percentage of online shoppers abandon shopping carts prior to checkout.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 8-3

66) Cyberbait includes any type of lure or attraction that brings web customers to visit a brick-

and-mortar store.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 8-3

67) Three types of incentives used to encourage customers to make online purchases include

financially-based incentives, convenience-based incentives, and price-based incentives.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 8-3

68) Typically, the most effective financial incentives offer something free or at a discount.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 8-3

69) According to BizRateResearch, the most popular online promotion is a price-off offer.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 8-3

70) Availability 24/7 is an example of a convenience incentive that can be used to attract people

to an e-commerce site.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 8-3

71) A value-added incentive should be designed to inspire a short-term purchase rather than

trying to influence long-term buying habits.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 8-3

72) An example of a value-added incentive to attract people to an e-commerce site is a

customized shopping experience.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 8-3

73) Financial incentives are an effective means of encouraging consumers and businesses to

return to a website on a regular basis.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 8-3

74) Consumers are wary of shopping privacy issues and security issues on the web.

Question Tag: Definition (Concept)

AACSB Category: Reflective thinking

Objective: 8-3

75) Consumer fears about e-commerce security issues are based on credit card numbers being

stolen, identity theft, and fraud.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 8-3

76) While trust is one key to overcoming concerns about privacy and security, most consumers

do not know information can be tracked and recorded and thus are not worried.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 8-3

77) Beyond apprehension about identity theft and fraud with e-commerce, consumers worry that

firms will sell personal information that should remain private.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 8-3

78) Describe the characteristics of a successful e-commerce site.

Question Tag: Definition (Concept)

AACSB Category: Information technology

Objective: 8-3

79) What kinds of e-commerce incentives can be offered to encourage consumers to purchase

products over the internet?

Question Tag: Definition (Concept)

AACSB Category: Information technology

Objective: 8-3

80) What consumer concerns influence e-commerce online purchasing?

Question Tag: Definition (Concept)

AACSB Category: Information technology

Objective: 8-3

81) Marketing on cell phones and smartphones is called ________ marketing.

A) passive

B) active

C) mobile

D) customer-driven

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 8-4

82) The use of QR codes, watermarks, and 2D barcodes are all part of ________ marketing.

A) Web 1.0

B) direct

C) mobile

D) embedded

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 8-4

83) Effective mobile marketing involves:

A) utilizing web analytics to create targeted messages.

B) brand engagement through social media.

C) channel integration and brand engagement.

D) understanding the social and shopping nature of mobile phone owners.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 8-4

84) Keys to effective text message advertising include:

A) utilizing web analytics to create targeted messages.

B) gaining the permission of the mobile owner and careful timing of the message.

C) brand engagement and geo-targeting.

D) understanding the social and shopping nature of mobile phone users.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 8-4

85) A Nellymosser study revealed that the greatest usage of action codes in magazines was for:

A) access to the brand’s social media site.

B) downloading something free, such as a recipe.

C) videos.

D) discounts.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 8-4

86) On average, individuals spend over 4 hours per day using some type of mobile device.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 8-4

87) Mobile marketing provides a social device that links individuals to social networks where

they can post comments, pictures, and videos as well as read the thoughts of others.

Question Tag: Definition (Concept)

AACSB Category: Information technology

Objective: 8-4