Chapter 16: Social Networks and Communication
TRUE/FALSE
1. Social media leverage the power of electronic word of mouth.
2. International communications via social networks are a form of mass marketing.
3. Traditional marketing campaigns are dynamic and have an unlimited life.
4. Traditional media serve niche markets well.
5. The strength of the ties between marketers and consumers depends mainly on the frequency and
quality of customer interactions related to the firm’s products.
6. Podcasts are purely audio files for the iPod.
7. The dynamic nature of cyberspace means that a single person can take on the roles of opinion
provider, giver, and sharer.
8. Individualist cultures are more likely than collectivist cultures to value brand-oriented interactions
available through social media.
9. Social media provide the means to obtain information instantly about a given brand, product category,
and firm.
10. Viral marketing depends on a low pass-along rate.
11. The digital divide affects developed economies the most.
12. Online marketing requires minimum commitment of time and resources.
13. Measuring the effectiveness of social media is always easy.
14. The Internet has surpassed television as the largest market for advertising.
15. The online press room is a critical asset for publicizing the firm and its brands.
16. Offering coupons online increases the costs of development, distribution, and database creation.
17. Cultural differences have very little impact on the way social media are used around the world.
18. Differences in technology diffusion drive the way social media are used around the world.
19. To ensure social media success in international marketing, marketers should use mass media
techniques rather than customizing messages to the audience.
20. Continuous scanning helps a firm to deal proactively with emergent news stories that can harm the
firm’s good name.
MULTIPLE CHOICE
1. A _____ network is a communal structure consisting of individuals or organizations connected with
each other through friendship, common interest, commercial transactions, information exchange, or
other types of relationship.
a.
business
b.
technological
c.
social
d.
dependent
2. When a social network converges around shared interests, goals, values, or attitudes, it fosters a
common identity among its members, which is called _____.
a.
a social community
b.
social loafing
c.
a social contagion
d.
social marketing
3. Social _____ refers to the use of communications technology by firms to promote their brands and
connect with customers by creating Web pages, profiles, and advertising.
a.
facilitation
b.
contagion
c.
conceptualization
d.
media
4. The extent to which people are exposed to, and influenced by, the knowledge, attitude, or behavior of
others, particularly those in their peer group is known as social _____.
a.
undermining
b.
facilitation
c.
loafing
d.
contagion
5. Which of the following is an example of social contagion?
a.
A man purchasing an electronic gadget just because it was on sale
b.
A woman buying medicines over the counter that were prescribed by her doctor
c.
A retired man purchasing a house in an urban area so that he can socialize with wealthy
people
d.
A middle-aged woman purchasing an anti-wrinkle cream just because her colleagues
influenced her to try the product
6. Which of the following is true about traditional marketing communications?
a.
They are two-way.
b.
They are inexpensive.
c.
They are the most efficient form of communications.
d.
They are fragmenting.
7. Which of the following is true of traditional marketing communications?
a.
They are very well suited to smaller firms.
b.
They involve campaigns that have an unlimited life.
c.
They focus on a company-to-customer approach.
d.
They serve niche markets well.
8. Social media differ from traditional media in that social media are _____.
a.
expensive
b.
fragmenting
c.
inefficient
d.
interactive
9. Which of the following is true of social media?
a.
They emphasize pushing or cajoling consumers to buy the firm’s products.
b.
They implement campaigns that are static, with a limited life.
c.
They are slowly fragmenting.
d.
They provide the means for consumers to voice negative as well as positive views on
products and services.
10. A _____ is a Web site on which individuals make regular entries of commentary or descriptions of
events. It is the fastest growing medium of personal publishing on the Internet.
a.
wiki
b.
blog
c.
forum
d.
podcast
11. A(n) _____ is a Web site developed and maintained by a community of users who add informative
content on a variety of topics.
a.
podcast
b.
aggregator
c.
wiki
d.
VoIP
12. An Internet _____ is essentially a site where people hold conversations in the form of posted
messages.
a.
wiki
b.
forum
c.
podcast
d.
bulletin board
13. Which of the following is a factor behind the success of social media-based communications?
a.
Emphasis on pushing or cajoling consumers to buy the firm’s products
b.
Implementation of static campaigns with a limited lifespan
c.
Minimum requirement of time and resources
d.
Ability to measure consumer behavior and target highly specific market segments
14. Which of the following is a marketing technique that facilitates and encourages people to pass along a
marketing message to other users or sites, leading to a potentially exponential growth of
communications?
a.
Ambush marketing
b.
Transformational marketing
c.
Reverse marketing
d.
Viral marketing
15. Numerous firms in developing economies have accelerated marketing activities by skipping less
efficient or more expensive approaches and embracing cost-effective social media to achieve
marketing goals. This is known as:
a.
market cannibalization.
b.
astroturfing.
c.
technological leapfrogging.
d.
crowdsourcing.
16. Millennials, those born between 1980 and 2000, regard using the Internet for _____ as their favorite
media activity.
a.
sending/receiving e-mails
b.
getting religious information
c.
social or personal interests
d.
creating blogs
17. Brand _____ refers to customers developing a personal relationship with the brand.
a.
engagement
b.
identity
c.
extension
d.
equity
18. Which of the following is a major benefit that firms obtain by using social media in their international
marketing activities?
a.
They require minimum commitment of time and resources.
b.
It is easier to measure the effectiveness of social media over traditional media.
c.
They provide myriad opportunities to develop and maintain awareness of the firm’s
brands.
d.
Internationally, all people and organizations, including those in poor countries, have ready
access to social media.
19. Which of the following is an advantage of using social media?
a.
Social media enhances viral marketing.
b.
The world’s entire population has access to social media.
c.
The effectiveness of social media is easy to measure.
d.
Social media require the least amount of commitment in terms of time and resources.
20. Which of the following gives the appearance of a grassroots movement that is actually produced
behind the scenes by a firm promoting itself or its products?
a.
Crowdsourcing
b.
Insourcing
c.
Cannibalization
d.
Astroturfing
21. _____ is the act of mining a group of customers for new product ideas, improvements in marketing
methods, and other useful outcomes.
a.
Cannibalization
b.
Nano-campaigning
c.
Astroturfing
d.
Crowdsourcing
22. Sigma-Electro Inc. is a leading electronics company located in Philadelphia. As part of its new product
promotion strategy, the company has placed advertisements in several social networking sites
requesting marketing professionals to take part in an online discussion to suggest ways of promoting a
product which the company plans to launch in the market shortly. Which of the following is the
marketing technique implemented by Sigma-Electro?
a.
Astroturfing
b.
Crowdsourcing
c.
Nano-campaigning
d.
Cannibalization
23. Which of the following is a major benefit of using social media?
a.
Social media require minimum commitment of time and resources.
b.
Measuring the effectiveness of social media is relatively easy.
c.
People all over the world have access to social media.
d.
Social media can be used to develop ideas for new products and marketing approaches.
24. Which of the following is a disadvantage of using social media?
a.
They are conducted through expensive advertisements.
b.
They involve campaigns that are static with limited life.
c.
They exploit buyers by interrupting and even disrupting buyers’ lives.
d.
They can send the wrong message about the firm and its brands.
25. Which of the following is a shortcoming of social media?
a.
They require substantial commitment of time and resources.
b.
They drive traffic away from corporate Web sites.
c.
They fail to draw sufficient attention to a firm’s products or services.
d.
They are more expensive than traditional media.
26. Which of the following is a challenge associated with social media?
a.
They are considerably more expensive than traditional media.
b.
They involve campaigns that are static, with a limited life.
c.
It is difficult to measure their effectiveness.
d.
They emphasize pushing customers to buy the firm’s products.
27. Which of the following is a drawback of using social media?
a.
They involve campaigns that are static, with a limited life.
b.
They lack the means to engage target markets more efficiently.
c.
They restrict viral marketing.
d.
Many people around the world lack access to social media.
28. _____ consists of nonpaid news or editorial commentary intended to generate goodwill and a positive
image for the firm or its products.
a.
Advertising
b.
Podcasting
c.
Advocacy
d.
Public relations
29. Sales promotion:
a.
refers to short-term inducements that provide extra value and incentives to sales personnel,
intermediaries, and consumers.
b.
consists of nonpaid news intended to generate goodwill and a positive image for the firm
or its products.
c.
is most effective when the salesperson visits a prospect directly or by telephone.
d.
implies making several calls on prospective customers and being there when they are
ready to buy.
30. Which of the following is true about the use of social media for sales promotion?
a.
Offering coupons online significantly increases the costs of development, distribution, and
database creation.
b.
Firms offer coupons to entice customers to act immediately by visiting a Web site.
c.
Firms will have to incur costs on the printing of coupons.
d.
Consumers take considerably more time to search and organize online coupons.
31. Offering coupons, discounts, rebates, product sampling, contests, and premiums are all forms of
_____.
a.
personal selling
b.
advertising
c.
sales promotion
d.
publicity
32. Which of the following is true about the use of social media around the world?
a.
Differences in culture affect the way social media are used around the world.
b.
The world’s entire population has ready access to social media.
c.
The digital divide affects only developed countries.
d.
Economic conditions have no impact on the way social media are used.
33. Which of the following countries has the most Internet users?
a.
China
b.
The United States
c.
Germany
d.
France
34. Which of the following is a strategy that firms should follow to maximize the effectiveness of social
media in international marketing?
a.
Firms need to use mass media strategies to target the world’s entire population
simultaneously.
b.
Firms need to concentrate on targeting the entire market and avoid targeting only certain
segments of the market.
c.
Firms need to ignore gossip, complaints, rants of disgruntled consumers and activists, and
any such related news about it on the Internet.
d.
Firms need to gain credibility and loyalty by providing expertise online that addresses the
specific problems of target markets.
35. Which of the following is a social media success strategy in international marketing?
a.
Monitor the firm’s online reputation
b.
Implement static and limited campaigns
c.
Push consumers to buy the firm’s products
d.
Target the general, nonspecific market
ESSAY
1. What are blogs, wikis, forums, and podcast?
2. Discuss any one major benefit that firms obtain by using social media in their international marketing
activities.
3. Explain how social media benefits promotional activities.