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Chapter 15—Electronic Marketing Channels
MULTIPLE CHOICE
1. According to the text, the Internet has had ________ impact on the design and management of
marketing channels.
a.
little
b.
a major
c.
no
d.
an overwhelming
e.
some
2. Some observers predict that the Internet will so radically transform marketing channel
structure and strategy that the __________ of the future will be profoundly different from
what we see today.
a.
bandwidth
b.
interstate highway system
c.
distribution landscape
d.
cyberspace salespeople
e.
franchise system
3. Which of the following terms cannot be considered as synonymous with “electronic
marketing channels” as stated in the text?
a.
Computer marketing
b.
Facebook commerce
c.
Social commerce
d.
Electronic commerce
e.
Internet commerce
4. Which of the following must be present to define electronic commerce as portrayed in the
textbook?
a.
Purchases can be made via interactive electronic means
b.
The consumer must use a personal computer
c.
The consumer must also make use of the telephone
d.
Orders can only be placed by using e-mail
e.
Payments must be made using smart cards
Electronic Marketing Channels
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5. If sellers list their products on the Internet and if customers who locate these products at the
firm’s Web site still have to use the telephone to order them:
a.
This is still considered to be an electronic marketing channel.
b.
It removes two steps from the electronic marketing channel.
c.
Then all the conditions for the definition of electronic marketing have not been
met.
d.
Customers are considered electronically illiterate.
e.
Customers are being efficient in their ordering.
6. The reduction in the number of middlemen in marketing channels resulting from the use of
Internet-based marketing channels is referred to as:
a.
Reintermediation.
b.
Disproportion.
c.
Disintermediation.
d.
Rationalized distribution.
e.
Vertical disintegration.
7. The addition of new middlemen in marketing channels resulting from the use of Internet-
based marketing channels is referred to as:
a.
Disintermediation.
b.
Vertical integration.
c.
Rationalized distribution.
d.
Reintermediation.
e.
Vertical channel structure.
8. The discussion of Amazon.com in the text presents an example of:
a.
Disintermediation.
b.
Reintermediation.
c.
Vertical integration.
d.
Distribution intensity.
e.
Virtual integration.
9. Autobytel, Inc., is really a:
a.
Broker.
b.
Conventional retailer.
c.
Auto dealer.
d.
Software company.
e.
Wholesale auto distributor.
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10. The Internet-based marketing channel that Peapod, Inc. represents may best be described as:
a.
A conventional supermarket.
b.
An electronic warehouse distributor.
c.
An example of reintermediation.
d.
A food wholesaler.
e.
A door-to-door sales company.
11. The textbook concludes that __________ will definitely be far more common than
__________ as a result of the Internet-based electronic marketing channels.
a.
reintermediation; disintermediation
b.
disintermediation; reintermediation
c.
shorter channels; larger channels
d.
longer channels; shorter channels
e.
it is too soon to reach a conclusion.
12. Which of the following companies is an example of disintermediation?
a.
Online retailers like Amazon.com
b.
Peapod Inc.
c.
Conventional travel agents
d.
Autobytel Corp.
e.
Webvan
13. All but one of the following flows can be digitized for electronic transfer over the Internet.
a.
Negotiation
b.
Ownership
c.
Information
d.
Product
e.
Promotion
14. According to the textbook, it is safe to say that for the foreseeable future all customers will
want only:
a.
Virtual stores.
b.
Virtual malls.
c.
Cyberspace shopping.
d.
“Bricks and mortar” retailers.
e.
A choice in where they buy.
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15. Within the virtual or online channel, more customers:
a.
Will use brick and mortar stores in greater numbers to make purchases.
b.
Will seek more face to face contact with retailers.
c.
Will expect additional choices such as being able to use smartphones.
d.
Will begin to abandon the use of online social networking sites.
e.
Within 35 years, are expected to do all shopping online.
16. Which of the following is not a product category that accounts for a significant portion of
online consumer spending?
a.
Personal computers
b.
Furniture
c.
Apparel
d.
Books
e.
Software
17. In studies of online shoppers, it was found that with regard to the ages of shoppers:
a.
The largest percentage of online shoppers are between 31 and 45.
b.
The overwhelming majority are over 65.
c.
The highest proportion of shoppers is between 18 and 30.
d.
Almost 90 percent were under 21.
e.
About 20% are over 50.
18. With regard to income level among online shoppers:
a.
The highest percentage of shoppers earn between $50,000 and $99,999.
b.
The majority earned over $200,000.
c.
There is a strong correlation between income and online shopping.
d.
The highest percentage had incomes under $50,000.
e.
Computer ownership does not seem to affect online buying.
19. The study of online shoppers quoted in the textbook reported that with regard to income:
a.
Most online shoppers were low income consumers looking to save money.
b.
Earned their income mainly from investments and so have the time to shop on the
Internet.
c.
The highest percentage of shoppers earn between $50,000 and $99,999.
d.
The majority are wealthy with annual incomes in excess of $250,000.
e.
The majority have incomes of less than $35,000.
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20. Which of the following is a false statement about online shopping?
a.
Online sales topped $175 billion in 2010.
b.
Online sales are expected to grow substantially through 2015
c.
The rate of sales growth for online sales is ten times greater than the expected
growth of conventional retail channels.
d.
The pace of growth is expected to drop from the high of 12.1 % in 2010 to 7.7 %
in 2015.
e.
Online sales are expected to be a significant part of retail sales for years to come.
21. Regarding the definition of electronic marketing channels, which of the following statements
is false?
a.
Involves the use of the Internet.
b.
Involves accessibility of products and services to customers
c.
The target markets must use some type of technologies that provide access to the
Internet.
d.
Consumers can shop online but not complete their transactions.
e.
Web-enabled devices range from computers to e-readers to the Apple iPad.
22. In the year 2009, online sales were ________ percent of retail sales.
a.
0.7
b.
1.0
c.
8.0
d.
12.5
e.
15.5
23. By 2009, almost ________ million Internet households had engaged in shopping online.
a.
8.5
b.
12.0
c.
21.0
d.
53.0
e.
73.0
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24. Which of the following was not cited in the text as an advantage of electronic marketing
channels?
a.
Global scope and reach
b.
Higher customer retention rate
c.
Convenience/rapid transaction processing
d.
Lower sales and distribution costs
e.
Information processing efficiency and flexibility
25. The most important reason that consumers offer for shopping on the Internet is:
a.
Lower price.
b.
Convenience.
c.
More choices.
d.
Peer pressure.
e.
No bothersome salesclerks.
26. The electronic marketing channels provide the channel manager an opportunity for:
a.
Increasing costs.
b.
Increasing customer contact.
c.
Improving evaluation procedures.
d.
Great efficiency and flexibility.
e.
Streamlining communications with channel members.
27. In order to help and encourage customers to purchase outfits on its Web site, Lands’ End has
created:
a.
Online quantity discounts.
b.
An extensive catalog of clothing items.
c.
A free shipping return policy.
d.
Interactive software.
e.
My Virtual Model.
28. Which of the following was not cited in the text as a disadvantage of electronic marketing
channels?
a.
Lack of contact with actual products
b.
Clutter and confusion on the Internet
c.
Nonpurchase motives for shopping not addressed
d.
Logistics costs are at least double
e.
Security concerns of customers
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29. Which of the following products cannot be delivered electronically via the Internet?
a.
Music
b.
Printed material
c.
Airline tickets
d.
Wine
e.
Financial investments
30. In a classic article of shopping behavior by Tauber, the author found that:
a.
People shop only to make purchases.
b.
People generally hate to shop.
c.
Shopping is a purely economic endeavor.
d.
Most people love to shop.
e.
There are many personal and social motives for shopping.
31. One of the concerns about the security of shopping on the Internet is:
a.
Fast delivery of products.
b.
Privacy of information.
c.
Buying from unknown firms.
d.
Downloading free software.
e.
Violating copyright laws.
32. According to the text, the introduction of the Internet is likely to result in __________ channel
design decisions.
a.
less complex
b.
more complex
c.
the elimination
d.
far less need for
e.
automatic
33. With regard to channel management, the availability of the Internet means that:
a.
Channel management can move to “automatic pilot”.
b.
Coordinating the marketing mix is not as crucial.
c.
Decisions concerning channels will be less complicated.
d.
Decisions concerning channels will be more complex.
e.
Gaining information about channel members will be easier.
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34. With the advent of online shopping, developing __________ marketing strategy has become
crucial.
a.
a Web based
b.
a multi-channel
c.
a bricks and mortar
d.
a computer based promotional
e.
a one-stop shopping