Expert Answers

Question 1
Surveys (described in the textbook) of more than 20,000 Internet users concluded that the psychographic data identified marketing opportunities in what percent of Internet user segments?
A. 54%
B. 48%
C. 46%
D. 37%

Question 2
Which of the following is true in regard to marketing to seniors?
A. By 2030, seniors will make up 20% of the U.S. population.
B. Baby Boomers (b. 1945-1965) will decrease steadily over the next 20 years.
C. Only 36% of seniors use the Internet on a daily basis, according to a 2002 report.
D. Seniors generally use the Internet for amusement, not business.

Question 3
Which of the following is FALSE in regard to teenage use of the Internet?
A. Teenagers in the U.S. are interested in influencing and purchasing high-tech products.
B. Since teenagers do not have access to credit cards, they are not generally big spenders on the Internet.
C. 40% of teenagers surveyed indicated that they would pay for high-tech purchases themselves.
D. 89% of teenagers have made an online purchase, according to a Jupiter Media Metrix report.

Question 4
Which of the following is true in regard to consumer spending of money online?
A. People are less willing to spend money using digital transfers.
B. When the transaction is desired, people are more likely to make the payment in digital form.
C. Online bill payment is more popular due to increased efficiency.
D. Electronic exchanges are less satisfying than tangible exchanges.

Question 5
Online reviews and expert opinions are successful in influencing consumer purchases of what type of goods?
A. Perishable
B. Search
C. Credence
D. Experience

Question 6
The two most fungible resources available for exchange on the Internet are:
A. goods and services.
B. money and information.
C. love and status.
D. love and money.

Question 7
The Internet inhibits shoppers of experience goods from:
A. retrieving a particular brand’s warranty.
B. consulting with experts on the quality of the goods prior to making the decision to purchase.
C. experiencing heterogeneity with respect to the goods available.
D. obtaining sensory knowledge of the product prior to purchase and delivery.

Question 8
Business decision making today is based primarily on which of Foa’s six basic Internet resources?
A. Information
B. Money
C. Goods and services
D. Status

Question 9
__________ provide(s) opportunities for consumer feedback, “word-of-mouth” advertising, and product/service complaints.
A. The e-commerce continuum
B. Intelligent agents
C. Heterogeneity
D. Online communities

Question 10
Travel services, such as Expedia and Travelocity, demonstrate that online marketing can boost consumption of:
A. perishable goods.
B. off-line services.
C. search goods.
D. search goods.

Question 11
Companies that move most rapidly through the e-commerce continuum tend to be:
A. smaller.
B. larger.
C. local.
D. multinational.

Question 12
Which of the following companies is most likely to remain in a Phase II e-commerce involvement?
A. A digital music provider
C. A chain restaurant
D. A specialty manufacturer

Question 13
Multichannel strategies are likely to be used by __________ companies.
A. Phase IV
B. pure-player
C. multinational
D. bricks-and-mortar

Question 14
Netcentricity is an especially effective measure of the online profitability of __________ companies.
A. Phase I
B. Phase II
C. Phase III
D. Phase IV

Question 15
Back-end applications are most likely to be used by __________ companies.
A. Phase I
B. Phase II
C. Phase III
D. Phase IV

Question 16
The ability to communicate instantly without regard to physical proximity has led to:
A. platforming.
B. telecommuting.
C. reintermediation.
D. multichanneling.

Question 17
Applications that streamline processes via document sharing and communications between business functions are known as:
A. workflow software.
B. instant messaging.
C. intranets.
D. employee Internet management software.

Question 18
In the Internet environment, business activity is most directly affected by the:
A. organizational culture.
B. general market conditions.
C. climate of the central exchange environment.
D. pace of product development.

Question 19
Which of the following is NOT an aspect of business competitive activity affected by the Internet?
A. Product development
B. Cooperation versus competition
C. Product consumption strategies
D. Customer acquisition costs

Question 20
By eliminating the need for middlemen, the Internet enables businesses to conduct which product distribution process?
A. Multichanneling
B. Disintermediation
C. Telecommuting
D. Reintermediation
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