Chapter 9 – The Internet
TRUE/FALSE
1. The over 1.8 billion users of the World Wide Web today represent the majority of the world’s
consumer population. This is particularly true in developing nations.
2. T
2. There are three main components of Internet media for advertising: electronic mail, Usenet, and the
World Wide Web.
3. Usenet is a collection of advertisements on the Internet.
4. Junk email sent to consumers who haven’t requested is Spam, a term from a Monty Python skit.
5. The WWW or World Wide Web provides the least diverse opportunity of the online technologies for
advertising and IMC.
6. Internet advertising has emerged as a media option of great opportunity for advertisers because of its
superior target market selectivity, detailed and full-color graphics capability, ability to deliver
customized messages and ability to engage in two-way information exchanges with consumers, among
other reasons.
7. The cost of Internet advertising remains far lower than traditional media.
8. The challenge of creating and displaying banner ads is not just to catch consumer attention, but to
make them buy the sponsor’s product.
9. One advantage associated with using the World Wide Web is the concept of pop-up ads which most
consumers love to see while searching for information.
10. If a person grants permission to an advertiser to send updates, specials and other incentives via email
communication, this is referred to as permission marketing.
11. Cameras.com advertises its products via banner ads on various sites. The company truthfully asserts
that its high hit rate indicates its ability to attract consumers to its site.
12. Viral marketing is the process of consumers marketing to consumers using the Internet.
13. Second Life is a virtual world where participants log into a space, then use their mouse and keyboard
to roam landscapes, chat, create virtual homes or conduct real business.
14. Most Internet users fear invasion of privacy – as documented by consumer research.
15. Page views provides an excellent measure of how many pages has been sent to someone’s computer;
thus it can tell you how many visitors a given page has had in a week.
16. Visits are the number of occasions in which a user X has interacted with Y site during Z time.
17. Click fraud, while heartily annoying to advertisers, is not a crime.
18. Online brand communities behave much like a community in traditional sense, like an actual small
town or ethnic community.
19. From a technological standpoint wireless communication and Web-launched video are the two that
will have the biggest impact on the Internet future with IMC.
20. Internet technology is growing so fast that it is guaranteed to become the “lead tool” in IMC within the
next 5 years.
MULTIPLE CHOICE
1. The Internet is comprised of computers from a variety of sources. Which of the following is not one of
these sources?
a.
Educational
c.
Governmental
b.
Personal
d.
Military
2. As the Internet has changed—becoming a legitimate option for advertisers—which of the following is
likely to happen?
a.
It will not replace traditional forms of advertising
b.
Ad spending on the WWW will grow beyond the $12 Billion spent in 2005
c.
Its value to consumers is growing daily
d.
All of these statements about the changing role of the Internet are true
3. ____ are starting points for Internet exploring and are interested in channeling surfers to particular
sites, especially commercial ones.
a.
Windows
c.
“Bots”
b.
Portals
d.
Corporate home pages
4. A ‘mash–up” is
a.
what happens when a website crashes during a consumer transaction
b.
a combined for-profit and pro bono website where sales benefit a charity
c.
what happens with the Air Force recruiting site invades the Army site
d.
a combination of one or more websites into a single site like Chicagocrime.org
5. One of the advantages of advertising on the Internet is:
a.
Target Market selectivity
c.
Theatre of the Mind
b.
Emotional expressiveness
d.
Media geodynamics
6. On a cost-per-thousand (CPM) basis, the cost of Web ads for the most part
a.
does not cost anything, because there is no charge to subscribe.
b.
compares favorably with ads placed in traditional media.
c.
is much less expensive.
d.
is a great deal more expensive than traditional media.
7. Which of the following is a strong advantage of the World Wide Web:
a.
that it only uses visual transmission.
b.
the technology allows for partial information exchange.
c.
one-way information exchange.
d.
24-hour availability.
8. As marketing manager of Fly-By-Night, a commuter airline that specializes in red-eye flights, you
believe that the Internet is a good way to reach businesspeople with your communications. But you
know this target audience ignores most advertising and actively hates distractions like pop-up or pop-
under ads. Therefore, you put your money behind the development of messages for
a.
banner ads
c.
viral marketing
b.
email distribution.
d.
interactive gaming channels.
9. Rich Media/Video and Audio is the process by which a Web ad uses advanced technology that
interacts with the user when his or her mouse passes over the ad. Its advantage(s), is(are) that
a.
it offers much greater click-through rates than banner ads
b.
academic research indicates that adding animation to ads enhances click-through, recall
and favorability
c.
it offers intrinsically more interesting ads – that is why it is called “rich”
d.
all of these statements are true of Rich Media
10. Crayola offers a ____ that provides more than information about the firm and its brands; it focuses on
the needs of parents and children who use Crayola crayons.
a.
a concept blog
c.
a fantasy site
b.
a corporate website
d.
a virtual mall
11. One difference between a banner advertisement and a corporate home page is that
a.
a corporate home page does not promote specific products.
b.
a banner advertisement clearly identifies the sponsoring company.
c.
a banner advertisement is a paid advertisement that is placed on a site driven by editorial
content.
d.
a banner advertisement most often deals with lifestyle issues.
12. Many service providers are offering blockers that greatly reduce an advertiser’s ability to get these
types of advertisements onto a users screen.
a.
newspaper ads.
c.
telephone call.
b.
popups.
d.
TV ads prior to a favorite TV program.
13. Streaming video and audio is a technique that sometimes uses:
a.
military hardware.
b.
only accredited agencies.
c.
print advertising.
d.
film clips or webisodes inserted into Rich Media online ads
14. “Widgets” are
a.
a module of software that people can drag and drop into their personal web page
b.
a new technology that can carry advertisers’ brands into consumers own web pages
c.
enable users to customize an advertiser’s brand virtually
d.
all of these statements describe “Widgets”
15. The real challenge for today’s Internet advertisers is to:
a.
sell products on each visit.
c.
develop corporate websites.
b.
get click-through on banner ads.
d.
get visitors to return to the website.
16. Accomplishing the objective of having repeat visitors to a firm’s website is a function of:
a.
site substance.
c.
entertainment value of the site.
b.
ease of use of the site.
d.
all of these
17. For optimal business results from a site, it should be human-message (interactive) or human-human
interaction (like a chat room) because:
a.
these approaches generate curiosity and therefore involvement with the advertiser’s brand
b.
research shows that when consumers engage in these types they have more positive
attitude toward the ad and in turn higher purchase intentions
c.
research shows such approaches create a bond with subsequent social pressure to buy the
sponsor’s brand
d.
such approaches personalize and “warm up” the coldness of the technology involved in
communicating the brand message
18. As part of your company’s Internet strategy, it has bought a domain name [MyBigCo.net] from
Register.com. This means that
a.
No other site will be able to use your name as an Internet location.
b.
No other site in the same TLD can use your name, but if they want the name MyBigCo.org
it may be available.
c.
Should another company file for your name ICANN can give it permission to do so.
d.
Your company receives from 5¢ to 25¢ every time that someone “hits” onto your site.
19. You have built a World Wide Web site assuming “If you build it, they will come.” They’re not coming.
Which one of the following is not a good way to promote the site?
a.
Register the website with search engines.
b.
Send out press releases to Internet news sites.
c.
Notify all Usenet and LISTSERV groups.
d.
All of these statements are good ways to promote a website.
20. Web analytic software
a.
enables site owners to count traffic to the site
b.
provides information on hits, pages, visits, and users
c.
can track behavior on the site, enabling the site owner to diagnose where it may be
unappealing
d.
all of these statements are true of analytic software
21. There are different ways Internet marketers measure the effectiveness of the ads they run on the Web.
Which of the following is NOT one of those ways.
a.
Hits
c.
Click throughs
b.
Page views
d.
Syndicated site ratings
22. Which of the following is a currently troublesome privacy/security issue faced by website sponsors?
a.
Rising use of WiFi and WiMax are subject to easy monitoring.
b.
In-home or in-office wireless systems are vulnerable to hack without the security systems
that constrain their easy use.
c.
In countries with a “weak rule of law” privacy/security issues affect the perceived value of
a website.
d.
All of these statements are privacy/security issues currently troubling website sponsors.
23. The measurement of Web audience that is the least accurate is
a.
hits.
c.
visits.
b.
pages.
d.
users.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
ANS: A PTS: 1 DIF: Moderate REF: p. 190
OBJ: 9-4
24. Which of the following is (are) true of click fraud?
a.
It occurs when the advertiser has a flat site management fee in place with the site provider.
b.
Over 60% of on-line advertisers have suffered from click fraud in the past year.
c.
Not only is it annoying and costly, it is illegal.
d.
It is only a serious problem for small entrepreneurial businesses who don’t have the
security procedures in place that large firms do.
25. Creating an e-community for a brand today makes use of which of the following characteristics of
Internet commerce?
a.
The fact that the Internet gives consumers a new and efficient way to communicate with
each other.
b.
Internet presence legitimized brands that claim to be technological.
c.
The opportunities for enticing and informative creative techniques in message design
allows it to be emotionally compelling like never before.
d.
The fact that the Internet is always evolving, just as strong brands do when managed by
smart marketers.
Scenario 9-1
The hottest sites on the World Wide Web can attract thousands of visitors. In one month alone, online
dating service eHarmony had 3.2 million unique visitors and was the fifth most-visited online dating
site. Consumer spending on online personals was $235.3 million in the first half of 2004, up from
$214.3 million in the first half of 2003, according to the Online Publishers Association and comScore
Networks. (“Friendster, eHarmony in matchmaking deal,” Reuters, MSNBCOnline, November 30,
2004)
26. (Scenario 9-1) One way to discover the eHarmony site is to go to Google! and look under dating
services. Google is:
a.
a mash up
c.
a website
b.
a search engine.
d.
a analytical software system
27. (Scenario 9-1) Because eHarmony advertises heavily on television about the benefits of their service,
and each ad sends consumers to their website
a.
consumers who actually go to the website are already interested in what eHarmony has to
offer and eHarmony is engaging in permission marketing
b.
it is likely that eHarmony will have a problem being considered to be Spam
c.
eHarmony is not really making advertising use of the Internet
d.
eHarmony is engaging in “paid search”
28. (Scenario 9-1) To get more people to visit the site, the eHarmony sent out press releases to
conventional media to get them to run stories about the site. Which of the following is not another way
the eHarmony could have promoted the site?
a.
Using email as a direct mail tactic.
b.
Registering the site with Internet yellow pages providers.
c.
Registering the site with search engines.
d.
Registering with the Internal Revenue Service
Scenario 9-2
You go to your school computer lab to write a term paper for a class. Before you start, you play a few
games of solitaire. Then, you decide that maybe you should check your email before you get to work.
You have several messages, which you answer. You look at the clock, and about an hour has passed
since you arrived. Since you’re already logged on, you decide to check out the latest posts on a few
music websites. Another 45 minutes have gone by.
Finally, you head out on the Web for a few minutes, just to get your brain going and maybe pick up a
piece of information or two that you can work into your term paper. But first, you take a cybertour of
Graceland, stop by Coupons Online and print out a coupon for your favorite brand of frozen pizza,
solve a murder mystery, and submit a haiku about Spam to a site that already has more than 1,500 of
them.
It’s time to get down to work. You click over to a search engine to run a few keywords on your project.
As you’re doing it, the lab monitor says it’s closing time. You look up at the clock—two more hours had
gone by while you were on the Web. You leave the lab grumbling how inefficient computers are,
seeing as you never seem to get much done working on them.
29. (Scenario 9-2) Your trip to the music discussion group engaged the use of ____, one of the three main
components of Internet media for advertising.
a.
electronic mail
c.
the Usenet
b.
the information highway
d.
the University Intranet
30. (Scenario 9-2) When the lab monitor closed the lab, you were in the process of running a keyword
search using Google. This places you in the
a.
75% of web-using American consumers who use it for email
b.
50% of web-using Americans who use it to access the latest news and special topic
information
c.
34% of American consumers who use the web to access the latest news and special topic
information
d.
31% of American consumers who use it to pay bills
31. (Scenario 9-2) The site where you solved a murder mystery is sponsored by a company that specializes
in publishing mystery novels. Part of the site is devoted to a full catalog listing all of the company’s
titles currently in print. This type of site is referred to as
a.
a catalog site.
c.
a direct response site.
b.
a corporate home page.
d.
a banner site.
32. (Scenario 9-2) When you used Coupons Online, you saw a an ad that emerged onto your screen while
you waited for the Coupons site to load. It was a coupon for one dollar off the price of your favorite
brand of pizza. What kind of ad appeared?
a.
Direct email
c.
Pop-Up.
b.
Pop-Under
d.
Placard.
Scenario 9-3
World Wide Web sites can be used to deliver many different types of information. For example, one
Web page tries to teach visitors the ins and outs of creating a successful Web page. The title of the site
is “Build Your Own Web Page.”
This guide has a table of contents that includes sections on Web Sites 101, deciding on content,
organization and style, finding a Web server, and advertising your site. In addition, it has a guest book
that visitors are urged to sign with their email and password. (www.build-website.com)
33. (Scenario 9-3) Potential visitors to this site have several different ways in which they may have found
out about it. Which one of the following is not likely to have been one of them?
a.
Word of mouth by a satisfied user
b.
Through a search engine like Google, Yahoo or the Online Yellow Pages
c.
The Library of Congress
d.
Via a Pop-Up
34. (Scenario 9-3) This website is loaded with ideas for ways people and businesses with home pages can
promote their sites. One way is to contact an Internet link exchange. This is a service that connects
website owners to each other so they can trade free banner ads on each other’s sites. The primary
purpose of a banner ad for an advertiser is to
a.
build brand awareness.
b.
create positive attitudes toward the brand.
c.
convince the viewer to clip a cybercoupon.
d.
entice them to visit the marketer’s home page
35. (Scenario 9-3) Once the advertiser’s banner ad has successfully enticed a consumer to its homepage,
what is the next task?
a.
Sell them on the brand
b.
Get their email addresses and as much other info as they will part with
c.
Get them to stay on the page for awhile
d.
Communicate the brand’s cultural significance
36. (Scenario 9-3) Although the Internet is a new technology and many people are moving toward it, the
authors of the text say that the Internet will not
a.
be replacing all other forms of advertising.
b.
meaningful to all users.
c.
open for review.
d.
download quickly.
Scenario 9-4
As part of your duties as marketing manager for a company that manufactures exercise equipment for
in-home use, you decide to champion your company’s jump onto the Internet. The job is especially
tough, since many of your bosses have no idea what it entails. In fact, you suspect that the only reason
they are considering devoting money to the project is that your major competitor is building a Web
presence, and your bosses don’t want to be left behind. Your task is to educate your bosses so they will
fund the effort.
37. (Scenario 9-4) One of the higher-ups at your company says that he’s willing to go along with your
recommendation to place a banner ad on the Internet as long as the cost per thousand is reasonable.
You tell him that
a.
the cost per thousand is less than a local 30-second TV, a full-color ad in a regional
magazine, and above that of a radio spot.
b.
the cost per thousand is not calculated
c.
the cost per thousand is not regulated.
d.
the cost per thousand compares favorably with traditional media
38. (Scenario 9-4) One member of the board of directors says she has run some numbers and has
determined that the company can reach more than 6 million people on the Internet for less than $500.
All the company has to do is post messages about its products in every newsgroup it can find. In her
mind, that’s a pretty efficient media buy. You tell her that this is called ____, and it runs the risk of
turning the entire cybercommunity against the company.
a.
mail bombing
c.
overbrowsing
b.
spamming
d.
anticoverage
39. (Scenario 9-4) Another boss expresses her concern that the company will spend a bunch of money
building a website and no one will come. She asks about your plans to promote the site. You tell her
that one recommendation you are making is to register the site with Yahoo!, choosing the keywords to
associate with your site carefully. You explain further that this means that
a.
when someone uses that keyword for a search, the company’s site and a click through
option will appear.
b.
whenever someone uses the keyword in an email or on the Usenet, the company will
receive his or her email address.
c.
every use of that word on the World Wide Web will be a link to your home page.
d.
your company receives from 5¢ to 25¢ every time that keyword is used in a search.
40. (Scenario 9-4) One manager says that the only way he’ll support the website project is if he can have
exact data on the number of times the page is accessed and by whom, so he can judge for himself
whether this highfalutin cybergizmo advertising stuff works. You explain to him that not all this can
(or should) be provided. However, you are recommending the company purchase ____ so that it can
keep track of hits, pages, visits, and users, as well as patterns of traffic within the website.
a.
web analytic software
c.
hierarchical software
b.
browser-shadowing software
d.
IRC software
OBJ: 9-4
Scenario 9-5
John Deere and Company has manufactured farm equipment for many years and is now a strong
competitor in the residential lawn care equipment market. Deere makes a variety of riding and push
mowers that are used by home owners and lawn care companies. Deere has not actively marketed
these mowers on the Internet and has hired an Internet advertising consulting firm, Phat Chance to help
most this effort forward. John Deere has set a goal for Internet sales of its lawn care products to
represent 7.5% of total category sales by the end of next year.
41. (Scenario 9-5) Managers at John Deere would like to better understand the cost implications of
advertising on the Internet. Phat Chance’s staff media researchers prepared a presentation using four
national traditional media placements to compare. While the Banner Ad CPM fell somewhere less than
the cost of top 10 market newspapers and magazines but potentially more than television, Phat Chance
pointed out the immeasurable advantage offered by the Banner Ad’s
a.
capacity for blanketing the world of online consumers with the John Deere brand
b.
ability to deliver highly desirable, highly segmentable and highly motivated audiences
c.
quick-change ad options if the marketing team changes its mind about the creative
d.
subversive ability to insert the ad into interactive situations where consumers don’t expect
to see an ad
42. (Scenario 9-5) Phat Chance has told John Deere managers that they believe the first step in fostering
Internet sales is to post extensive product information, specifications, prices, and dealer locations
where customers would expect to find them. This most likely means that John Deere should set up a
____.
a.
search engine
c.
corporate home page
b.
banner ad
d.
portal
43. (Scenario 9-5) Phat Chance‘s research people have determined that many sod farms and nurseries have
websites for local customers to learn more about lawn and garden care. They have suggested to John
Deere that because the brand has such a strong equity among consumers that a web page should be
designed to provide free information about lawn that also encourages current John Deere owners to
offer their own tips. Promoting social interaction around a brand like this is
a.
a waste of time
b.
referred to as “brand community” and has worked for Harley Davidson among other
iconic brands
c.
actually a sneaky form of direct mail promotion
d.
too “kumbayah” to be a business activity
OBJ: 9-4
44. (Scenario 9-5) Phat Chance relates to managers at John Deere that banner ads have some problems in
the marketplace. Which of the following is a common problem with banner ads placed on other firm’s
websites?
a.
only a small percent of surfers click on banner ads
b.
many consumers resent banner ads
c.
banner ads increase Web page load times
d.
all of these are problems with banner ads
45. (Scenario 9-5) John Deere’s senior lawn care sector manager has asked Phat Chance to suggest which
of the following is the best measure of unique visitors to the corporate home page. They reply that it is
a.
hits
c.
users
b.
reach
d.
visits
Scenario 9-6
Acrobat Results Marketing is an organization that specializes in Internet/Web advertising issues. In
particular, they design Web surveys and offer consulting on website measurement issues. They have
prepared a simple document that they give to clients to help them understand the basic terminology
and measurement concerns of Web advertisers. The following is an excerpt from this document:
(term A) represent the number of elements requested from a given page.
(term B) are defined as the number of html files sent to the requesting site.
(term C) are the number of occasions in which a user X interacted with site Y after time Z has
elapsed.
(term D) are the number of different people viewing a site during a specified period of time.
46. (Scenario 9-6) Which of the following is “term A”?
a.
Reach
c.
Hits
b.
Pages
d.
Visits
47. (Scenario 9-6) Which of the following is “term B”?
a.
Reach
c.
Hits
b.
Page views
d.
Unique Visits
48. (Scenario 9-6) Which of the following is “term C”?
a.
Reach
c.
Hits
b.
Pages
d.
Visits
49. (Scenario 9-6) Which of the following is “term D”?
a.
Unique Visits
c.
Hits
b.
Pages
d.
Visits
50. (Scenario 9-6) What caution do Acrobat’s representatives give clients after they have discussed this
terminology?
a.
Because many Internet providers use dynamic IP numbers to identify users in their logs, a
single visitor might show up as 30 if he or she visits the site daily for a month
b.
No measurement system is perfect and this one is no exception.
c.
Hits may be miscounted due to users requesting multiple pages
d.
Unique Visitors may not be unique to the client’s brand
OBJ: 9-4
ESSAY
1. List and describe the three main media used to communicate with consumers on the Internet.
Summarize the ways product information is conveyed in each medium.
2. Compare and contrast what “paid search” and “search engine optimization” refer to. Discuss the
possibilities for each. Provide examples when possible to illustrate your answer.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Paid search is a process by which advertisers pay websites and portals to place ads in or near relevant
search results based on key words. For example, if you Google “running shoes” you will find links to
Onlineshoes.com and Zappos.com which is another e-shoe dealer. Paid search can also be fine tuned a
web-user’s search to focus on relevant and specific sites. An example is when an astronomy buff
enters the word “Saturn” and the paid search results are for the planet not the car.
Search engine optimization (SEO) is a process whereby the volume and quality of traffic to a website
from search engines is improved based on surfer’s profiles. The more surfers visit a site, the more
likely the site is to be presented in an individual surfer’s search results. (No direct example is given in
the text.)
So, “paid search” is an action of an advertiser but SEO results from consumer behavior on the Web.
PTS: 1 DIF: Moderate REF: p. 183 OBJ: 9-3
3. As an advertiser, what tools can you use to make your website as visited as possible?
4. As a website designer, you have been asked to set up a “sticky” website for a major airline. What does
this term mean and what considerations should you take into account while developing the site?