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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
11
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
12
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
13
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
14
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
15
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
16
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
17
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
18
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
19
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
20
