Core: Marketing, 8e (Kerin)
Chapter 14 Implementing Interactive and Multichannel Marketing
1) Seven Cycles’ tagline, “One Bike. Yours.” reflects the company’s
A) reputation for customized detailing of the finest motorcycles in competitive racing.
B) commitment to incorporating individual customer input for every single bike.
C) unique antitheft electronic GPS tracer built into every frame.
D) creativity promise, guaranteeing that the color (paint job) is completely unique for each
touring bike it makes.
E) “one product-one market” segmentation strategy, in which all bikes are exactly alike.
2) Seven Cycles uses ________ to create customer value, build relationships, and produce
customer experiences in novel ways.
A) the Internet
B) just-in-time delivery
C) marketing dashboards
D) logistics management
E) its own retail stores exclusively
3) Seven Cycles’ business model includes the Internet, which enables customers to collaborate on
the bike design using the company’s ________ fitting system that considers the rider’s size,
aspirations, and riding habits.
A) Rider Kit
B) Cyclo Kit
C) Custom Kit
D) Proviso Kit
E) Seven Fit
4) Seven Cycles has a ________ with its nearly 200 authorized retailers in the United States and
30 international distributors in 40 countries.
A) contentious relationship
B) reciprocity agreement
C) joint venture
D) franchise contract
E) collaborative relationship
5) The greatest marketspace opportunity for Seven Cycles lies in its potential for creating
A) form utility.
B) time utility.
C) price utility.
D) place utility.
E) possession utility.
6) Consumers and companies populate two market environments today. One is the traditional
________ and the other is the ________.
A) extranet; intranet
B) superstore; hypermarket
C) marketplace; marketspace
D) shopping mall; virtual mall
E) online store; virtual store
7) In the traditional sense, a ________ is where buyers and sellers engage in face-to-face
exchange relationships in a material environment characterized by physical facilities and mostly
tangible objects.
A) marketspace
B) multichannel online mall
C) cyberstore
D) virtual store
E) marketplace
8) An Internet-enabled digital environment characterized by face-to-screen exchange
relationships and electronic images and offerings is referred to as
A) an extranet.
B) an intranet.
C) a marketplace.
D) a marketspace
E) a web portal.
9) The key difference between the traditional marketplace and the new marketspace is that the
latter is a________ exchange environment.
A) tangible
B) competitive
C) physical
D) material
E) digital
10) Which of the following transactions occurred in the marketspace?
A) Rebecca sold Discovery Toys creative puzzles at an in-home demonstration.
B) Maddie bought a brand new pair of TOMS shoes through Zappos.com.
C) Shelby purchased an iPhone case at a kiosk at the airport.
D) Corey bought a double-dipped chocolate ice cream cone from the ice cream vendor when his
mobile ice cream truck came down the street.
E) Josh bought his mother a menorah through the Source for Everything Jewish gift catalog by
calling a toll-free telephone number.
11) About ________ percent of Internet users aged 15 and older shop online in the United States.
A) 19
B) 29
C) 48
D) 67
E) 90
12) Internet users aged 15 and older are expected to buy about ________ worth of products and
services online in 2022 (excluding travel, automobile, and prescription drugs).
A) $200 million
B) $900 million
C) $40 billion
D) $100 billion
E) $500 billion
13) Legacy companies that sell luxury fashions
A) offer lower prices and have smaller margins when selling online.
B) are the fastest growing category in e-commerce.
C) have been leaders in creating the online experience.
D) generate the highest profit when they offer discount merchandise only online.
E) are not likely to sell them online.
14) What do online eyeglass retailer Warby Parker, online mattress seller Casper Sleep, clothing
online retailer Bonobos, jewelry online retailer Blue Nile, and Amazon have in common?
A) They are experimenting with ways to deliver products and services available to customers
faster.
B) They provide price match guarantees and make comparison shopping easier right from the
website.
C) They have opened physical showrooms that allow shoppers an opportunity to experience the
company’s products.
D) They offer easily customized products and services.
E) They provide simple two-way communication so that consumers can tell marketers exactly
what they want in the marketspace.
15) Which of the following characteristics of electronic commerce creates customer value by
contributing to time and place utility?
A) Electronic commerce makes products and services available to customers faster.
B) Comparison shopping is easier in the marketspace than in the marketplace.
C) Customers can shop in the marketspace anywhere at any time.
D) Products available in the marketspace are more easily customized.
E) Consumers can tell marketers exactly what they want in the marketspace.
16) Although Recreational Equipment, Inc. (www.rei.com) has typical retail store hours, 35
percent of its orders are placed between the hours of 10 p.m. and 7 a.m. This shows how
electronic commerce contributes to customer value through the creation of
A) time utility.
B) place utility.
C) possession utility.
D) form utility.
E) access utility.
17) Amazon.com is an Internet retailer located in the United States. About 45 percent of its sales
are to customers who live outside the United States. This shows how electronic commerce
contributes to customer value through the creation of
A) service utility.
B) place utility.
C) possession utility.
D) form utility.
E) time and possession utility.
18) Marks & Spencer is a well-known British department store. Customers from Chicago or
Dallas can shop for clothing as easily as a person living in London. This shows how electronic
commerce contributes to customer value through the creation of
A) service utility.
B) possession utility.
C) form utility.
D) possession and place utility.
E) place utility.
19) The General offers automobile insurance online. Buyers can purchase a policy over the
Internet and the company will provide immediate proof of insurance to get legal drivers on the
road quickly. This shows how electronic commerce contributes to customer value through the
creation of
A) service utility.
B) form utility.
C) place utility.
D) possession utility.
E) price utility.
20) The greatest marketspace opportunity for marketers lies in its potential for creating
________ since communication capabilities there invite consumers to tell marketers specifically
what their requirements are.
A) time utility
B) price utility
C) form utility
D) possession utility
E) place utility
21) In the marketspace, consumers can tell marketers specifically what their requirements are,
making possible the customization of a product or service to fit their exact needs. This means
that marketers can use electronic commerce to enhance customer value by providing
A) place utility.
B) form utility.
C) time utility.
D) possession utility.
E) product utility.
22) Seven Cycles creates ________ in its creation of customized bikes for its customers in 40
countries.
A) time utility
B) form utility
C) place utility
D) possession utility
E) possession and place utility
23) Which of the following examples demonstrates how electronic commerce creates customer
value through form utility?
A) Recreational Equipment, an outdoor gear marketer, receives 35 percent of its orders between
the hours of 10 p.m. and 7 a.m. when its retail stores are closed.
B) Forty-five percent of sales at Amazon.com are from buyers who live outside the United
States.
C) Travelocity.com provides almost immediate access to and confirmation of travel
arrangements and accommodations.
D) Bluefly.com, an apparel company, encourages customers to create their own uniquely
designed shirts.
E) Pediatricians can purchase dinosaur stethoscope covers at AllHeart.com.
24) Matthew is planning a trip to Mexico for spring break. One night about midnight, he decides
to visit Orbitz, an airline, car rental, and lodging electronic reservation system, to book his flight
using the computer in his dorm room. He connects to Orbitz, where he is prompted to enter his
preferred travel dates and times and to specify that price is the most important factor to him. Data
about several flights on various airlines, arranged from least to most expensive, appear on his
screen. He requests aisle seats on a two-stop itinerary because this best meets his needs. Orbitz
then prompts Matt to provide his credit card information to complete the booking process. After
the transaction, a copy of his receipt and itinerary are emailed to him. The total time to complete
the transaction is less than five minutes. Orbitz created customer value for Matt by contributing
to which of the following form(s) of utility?
A) time utility
B) place utility
C) possession utility
D) form utility
E) all four utilities: time, place, possession, and form
25) Two unique capabilities of digital technology, ________, promote and sustain customer
relationships for the marketer.
A) choice and control
B) cost and convenience
C) interactivity and individuality
D) communication and information
E) choiceboards and collaborative filtering
26) Individuality and interactivity are important building blocks for buyer-seller relationships.
For these relationships to develop, companies must treat customers as individuals and empower
them to (1) influence the timing and extent of the buyer-seller interaction and (2)
A) demand product quality and timely service at lower prices than brick-and-mortar stores.
B) shop confidently without fear of identity theft.
C) speed up the click-through process with advanced technology.
D) have a say in the kind of products and services they buy, the information they receive, and
even the prices they pay.
E) comparison shop with the prices of competitors alongside those of the firm.
27) Interactive marketing refers to
A) the two-way buyer-seller electronic communication in a computer-mediated environment in
which the buyer controls the kind and amount of information received from the seller.
B) the two-way buyer-seller electronic communication in a computer-mediated environment in
which the seller controls the kind and amount of information received from the buyer.
C) the interactive, Internet-enabled system that allows individual customers to design their own
products and services by answering a few questions and choosing from a menu of product or
service attributes, prices, and delivery options.
D) the consumer-initiated practice of generating content on a marketer’s website that is custom-
tailored to an individual’s specific needs and preferences.
E) an Internet-enabled digital environment characterized by face-to-screen exchange
relationships and electronic images and offerings.
28) With interactive marketing,
A) the seller controls the kind and amount of information presented to the buyer.
B) buyers and sellers communicate face-to-face in the traditional marketplace.
C) a website high in media richness is necessary for an exchange to take place.
D) the buyer controls the kind and amount of information received from the seller.
E) real-time transactions are impossible.
29) Interactive marketing often makes use of
A) niche marketspaces.
B) sophisticated choiceboards.
C) the digital divide, which separates online consumers from traditional marketplace consumers.
D) a marketing mix strategy that de-emphasizes the promotion element.
E) human-to-human mediated online “chat room” communication prior to the purchase.
30) An interactive, Internet-enabled system that allows individual customers to design their own
products by answering a few questions and choosing from a menu of product attributes, prices,
and delivery options, is referred to as a
A) wiki.
B) cookie.
C) choiceboard.
D) chat bot.
E) collaborative filter.
31) Because ________ collect precise information about preferences and behavior of individual
buyers, a company becomes more knowledgeable about a customer and better able to anticipate
and fulfill that customer’s needs.
A) wikis
B) choiceboards
C) social media
D) cookies
E) collaborative filters
32) Mars, Inc. uses ________ technology to let customers decorate M&M’s with personal photos
and messages.
A) bot
B) cookie
C) choiceboard
D) filtering
E) print screen
33) The Reebok Design Your Own website is an example of how the firm has effectively used
________ technology to allow its customers to customize their athletic shoes.
A) wiki
B) social media
C) choiceboard
D) cookie
E) collaborative filter
34) Customers can build their own bicycle at SevenCycles.com by answering a few questions
and choosing from a menu of product attributes, prices, and delivery options. The design of a
precise bicycle is made possible through the use of a
A) wiki.
B) cookie.
C) bot.
D) choiceboard.
E) collaborative filter.
35) Nike is a recognized innovator in the use of ________ for creating interactivity,
individuality, and customer relationships. Its NIKEiD product configurator invites customers to
create one-of-a-kind shoes, messenger bags, and backpacks by simply answering a few questions
and viewing the finished product from numerous angles.
A) wikis
B) cookies
C) bot
D) collaborative filtering
E) choiceboards
36) Customers can build their own computers with Dell’s online configurator. They simply have
to answer a few questions and choose from a menu of product attributes, prices, and delivery
options. The design of a Dell customized computer is made possible through the use of a
A) choiceboard.
B) permission-based email.
C) cookie.
D) bot.
E) collaborative filter.
37) A process that automatically groups people with similar buying intentions, preferences, and
behaviors and then predicts future purchases is referred to as
A) a choiceboard.
B) collaborative filtering.
C) connectivity.
D) interactive marketing.
E) personalization.
38) Collaborative filtering is
A) a process that automatically groups people with similar buying intentions, preferences, and
behaviors and predicts future purchases.
B) the two-way buyer-seller electronic communication in a computer-mediated environment in
which the buyer controls the kind and amount of information received from the seller.
C) the interactive, Internet-enabled system that allows individual customers to design their own
products and services by answering a few questions and choosing from a menu of product or
service attributes, prices, and delivery options.
D) the consumer-initiated practice of generating content on a marketer’s website that is custom-
tailored to an individual’s specific needs and preferences.
E) an Internet-enabled digital environment characterized by face-to-screen exchange
relationships and electronic images and offerings.