E-commerce 2019: business. technology. society, 15e (Laudon/Traver) Chapter 6 E-commerce Marketing and Advertising Concepts 1) Which of the following statements about Internet usage in the United States is nod true? A) In 2018, around 280 million people of all ages had aces B) In 2018, the growth in the number of new online users w: C) Over 90% of all U.S. Internet users access the Internet using a mobile device. D) Adults in the 25-to-54-age group have the highest percentage of Intemet use. Answer: D Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.1: Understand the key features of the Internet audience, the basic concepts of consumer behavior and purchasing, and how consumers behave online 2) Research shows the two key factors shaping the dei trust. Answer: TRUE Difficulty: Easy AACSB: Application of knowledge Learning Objective: 6.1: Understand the key features of the Internet audience, the basic concepts of consumer behavior and purchasing, and how consumers behave online ision to purchase online are utility and 3) Which of the following is tof one of the main stages of the online purchasing process? A) post-purchase service and loyalty B) awa C) engagement D) conversation Answer: D Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.1: Understand the key features of the Intemet audience, the basic concepts of consumer behavior and purchasing, and how consumers behave online 4) What is the approximate Internet penetration rate for individuals that have attained less than a high-school education? A) 55% B) 65% C) 75% D) 85% Answer: B Difficulty: Difficult AACSB: Application of knowledge Learning Objective: 6.1: Understand the key featur of cons s of the Internet audience, the basic concepts imer behavior and purchasing, and how consumers behave online, 5) All of the following are online communications used to support the evaluation of alternatives stages of the consumer decision process except A) search engines. l 0 Pearson Education, Ine. Copyright © 2B) online catalogs. C) social networks D) targeted banner ads. Answer: D Difficulty: Difficult AACSB: Application of knowledge Learning Objective: 6.1: Understand the key features of the Internet audience, the basic concepts of consumer behavior and purchasing, and how consumers behave online 6) Approximately OF U.S. Internet usersresearch online but do not buy. AVT™% B) 12.7% Cy 15% D) 19% Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.1: Understand the key features of the Intemet audience, the basic concepts of consumer behavior and purchasing, and how consumers behave online 7) In modeling online consumer behavior, the concept of "consumer skills" refers to the: A) education level of the consumer. B) communication skills of the consumer. C) knowledge consumers have about how to conduct online transactions, D) product evaluation skills of the consumer. Answer: C Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.1: Understand the key features of the Intemet audience, the basic concepts of constmer behavior and purchasing, and how consumers behave online 8) A roughly equal percentage of men and women use the Internet today. Answer: TRUE Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.1: Understand the key features of the Internet audience, the basic concepts of consumer behavior and purchasing, and how consumers behave online 9) Consumers choose the online channel primarily due to social media influence. Answer: FALSE Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.1: Understand the key features of the Intemet audience, the basic concepts of consumer behavior and purchasing, and how consumers behave online 10) Online traffic Answer: TRUE Difficulty: Easy s driven by offline brands and shopping. 20 Pearson Education, IeAACSB: Application of knowledge Learning Objective: 6.1: Understand the key features of the Internet audience, the basic concepts of constimer behavior and purchasing, and how consumers behave online. 11) The majority of online shoppers find vendors by clicking on display ads Answer: FALSE Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.1: Understand the key features of the Intemet audience, the basic concepts of consumer behavior and purchasing, and how consumers behave online 12) Which of the following online advertising formats attracted the feast amount of spending in 20187 A) search B) classifieds ©) rich media D) e-mail Answer: D Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools, 13) Google introduced which of the following changes to its search algorithm to weed out low quality sites from search results? A) Penguin B) Hummingbird ©) Panda D) Knowledge Graph Answer: C Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 14) Which of the following forms of online advertising is expected to grow the most between 2018 and 20227 A) paid search B) sponsorships C) search engines D) video Answer: D Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools, 15) Which of the following is of one of the four main methods advertisers use to behaviorally 3 Copyright © 2020 Pearson Education, Inetarget ads? A) Nielsen ratings B) data collected from social networks C) integration of online data with offline data 1D) elickstream data Answer: A Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and. advertising strategies and tools. 16) Which of the following search engine algorithm updates targets websites that violate Google's guidelines? A) Panda B) Penguin ©) Hummingbird D) Fred Answer: D Difficulty: Difficult AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 17) Which of the following is tor true about search engine advertising? A) Spending on search engine advertising constitutes about 44% of all online advertising spending, B) The top three search engine providers supply over 95% of all online searches. C) The click-through rate for search engine marketing has been fairly steady over the years, D) Search engine advertising is the slowest growing type of online advertising. Answer: D Difficulty: Difficult AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and. advertising strategies and tools, 18) Which of the following is not a practice that degrades the results and usefulness of search engines? A) social search B) link farms C) content farms D) click fraud Answer: A Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 19) Amazon's Associates program is an example of which of the following? 4 Copyright © 2020 Pearson Education, IneA) viral marketing B) local marketing ©) affiliate marketing D) lead generation marketing Answer: C Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 20) Ad blockers operate in a manner similar to which of the following? A) anti-virus software B) firewalls C) Flash cookies D) anonymous browsing Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 21) Which of the following is nor a primary source of ad fraud? A) browser extensions that insert ads into a premium publisher's website and then list the ads as available on a programmatic ad exchange B) ad targeting firms that create bots that imitate the behavior of real shoppers and then charge advertisers C) botnets hired by publishers to click on web pages to ereate phony traffic D) native advertising that is displayed on a social media site Answer: D Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools, 22) The percentage of all e-mail that is spam averaged around in 2017, A) 55% B) 65% 78% D) 85% Answer: A Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 23) Which of the following statements about CAN-SPAM is nor true’? A) CAN-SPAM went into effect in January 2004 B) CAN-SPAM prohibits unsolicited e-mail (spam). 5 Copyright © 2020 Pearson Education, IneC) CAN-SPAM prohibits the use of deceptive subject lines and false headers, D) Large spammers are among CAN-SPAM's biggest supporters, Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basie digital commerce marketing and advertising strategies and tools. 24) Which of the following statements about Canada's anti-spam law is nor true? A) Canada’s law is based on an opt-in model B) The law has no impact on companies located within the United States. C) The first phase of the law went into effect in 2014, 1D) The law applies to e-mail, texts, and social media messaging. Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and. advertising strategies and tools. 25) Which of the following is the most important too] in establishing a relationship with the customer? A) company website B) company CRM system C) Facebook D) search engine display ads Answer: A. Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and. advertising strategies and tools. 26) All of the following are "traditional" online marketing tools except A) affiliate marketing, B) e-mail and permission marketing, C) social marketing. D) sponsorship marketing. Answer: C Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and. advertising strategies and tools. 27) All of the following are among those most frequently affected by ad-blocking except A) gaming sites. B) newsgroup’forums C) social network sites. D) online retailers. Answer: D 6 Copyriaht © 2020 Pearson Education, IneDifficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 28) The Nike iD program is an example of which of the following marketing techniques? A) customer co-production B) transactive content ) price discrimination D) permission marketing Answer: A Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools, 29) The incremental cost of building the next unit ofa good is called the: A) Law of One Price. B) variable cost. ‘C) marginal cost. D) fixed cost, Answer: C Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools, 30) Which of the following statements about a free pricing strategy is false? A) Free products and services can knock out potential and actual competitors B) The fiee pricing strategy was born in the early days af the Web. C) It is difficult to convert free customers into paying customers. D) Free products and services can help build market awareness. Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the advertising strategies and tools. ic digital commerce marketing and 31) Creating multiple variations of information goods and selling these to different market segments at different prices is called A) bundling B) customization, ©) dynamic pricing. D) versioning. Answer: D Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the sic digital commerce marketing and Copyright © 2020 Pearson Education, Ineadvertising strategies and tools. 32) All of the following are fixed price strategies except: A) bundling B) versioning, ©) free pricing, D) yield management Answer: D Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 33) Which of the following involves getting customers to pass along a company's marketing, message to friends, family, and colleagues? A) affiliate marketing B) viral marketing ©) native advertising D) lead generation market Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 34) Group M, the world’s largest advertising buyer, requires which of the following in order for an ad to be considered viewable? A) 50% of the pixels must be in view for at least one second, B) 50% of the pixels must be in view for at least two seconds, C) 100% of the pixels must be in view for at least one second 1D) 100% of the pixels must be in view for at least two seconds Answer: C Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 35) Which of the following is based on the idea of complete price transparency in a perfect information marketplace’? A) the Law of One Price B) dynamic pricing C) price diserimination D) versioning Answer: A Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and. advertising strategies and tools, 8 Copyright © 2020 Pearson Education, Ine36) Which of the following industries accounts for the highest percentage of spending on online advertising? A) financial se B) retail C) automotive D) entertainment Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and de: advertising strategies and tools. ices ribe the basic digital commerce marketing and 37) Which of the following statements about native advertising is ror true? A) Native advertising’s share of mobile display ad revenues exceeds 75%. B) Native advertising is a new form of advertising found only online. C) Native advertising is growing rapidly, especially on social networks. D) Consumers look at native ads much more frequently than display ads. Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools, 38) Which of the following is an automated, auction-based method for matching demand and supply for online display ads? A) retargeting B) behavioral targeting C) programmatic advertising D) keyword advertising Answer: C Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and. advertising strategies and tools. 39) Research platforms are not Answer: TRUE Difficulty: Dif found that most of the ad impressions served across display advertising able. ult AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 40) The highest amount of online advertising spending is for online video ads, Answer: FALSE Difficulty: Moderate AACSB: Application of knowledge 9 Copyright © 2020 Pearson Education, IneLearning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools, 41) Evidence suggests that real-time customer chat increases the dollar value of transactions, Answer: TRUE Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and des advertising strategies and tools. ribe the basic digital commerce marketing and 42) Consumers tend to look at native ads more frequently than they look at display ads. Answer: TRUE Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools, 43) Lead generation marketing Answer: TRUE Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. in inbound marketing. ms special 44) The top four display ad companies together account for almost 60% of U.S. display ad revenues. Answer: TRUE Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. tomer experience. 45) The concept of "customer satisfaction” is broader than the concept of Answer: FALSE Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools 46) Bundling is the proces the sum of the two produc Answer: TRUE Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.2: Identify and describe the basie digital commerce marketing and advertising strategies and tools. of selling two or more products together for a price that is less than 's individual pri 47) How are blogs being used for marketing? 10 Copyright © 2020 Pearson Education, IneHummingbird, Knowledge Graph, an unnamed algorithm that has been nicknamed Mobilegeddon, and Possum. Panda was introduced in 2011 to Weed out low quality sites from search results. Those sites with thin content, duplicate content, content copied from elsewhere on the Web, and content that did not attract high-quality hits from other sources were systematically pushed down in the search results. Google introduced Penguin in 2012 to punish websites and theit SEO marketing firms who were manipulating links to their site in order to improve their rankings. The Google search engine rewards sites that have links from many other sites, What some marketers discovered is that Google could not tell the quality of these back links, and they began to manufacture links by put es, creating multiple blogs to link to their clients’ site, and paying others to link to their clients' sites. Penguin evaluates the quality of links to a site and pushes down in the rankings those sites that have poor-quality back links. Google introduced Hummingbird in September 2013, Rather than evalvate each word separately in a search, Google's semantically informed Hummingbird will try to evaluate an entire sentence. Semantic search more closely follows conversational search, or search as you would ordinarily speak it to another human being. Google introduced Knowledge Graph in 2012 as an effort to anticipate what you might want to know more about as you search on a topic or answer questions ‘you might not thought of asking. Since 2013, results of Knowledge Graph appear on the right of the screen and contain more information about the topic or person you are searching on. Not all search terms have a Knowledge Graph result. Google displays information based on what other "users have searched for in the past, as well as its database on over 500 million objects (people, places, and things), and some 18 billion facts. In 2015, Google released a new algorithm update (nicknamed Mobilegeddon) that made the "mobile-friendliness" of websites a much stronger ranking factor for mobile searches. Websites that are not optimized for mobile now have a much lower ranking in mobile search results. Starting in November 2015, Google also began lowering the search rank of mobile websites that display an ad that obscures the screen and asks users, whether they would like to install the site's mobile app, because such ads are less mobile friendly. In 2016, Google introduced Possum, an algorithm update that varies search results based on the user's location; so, for example, the closer a user is to a business's address, the more likely it is to appear among the local results. In 2017, Google released the Fred algorithm, which targets websites that violate Google's guidelines, primarily blogs with low-value, ad-centered content, Throughout 2018, Google also released several unnamed core algorithm updates, about which it did not provide many details. Difficulty: Moderate AACSB: Analytical thinking; Information technology; Written and oral communication Learning Objective: 6.2: Identify and describe the basic digital commerce marketing and advertising strategies and tools. 50) Which of the following would you implement to collect and analyze your company's big data? A) data warehouse B) Hadoop ©) SQL D) profiling Answer: B Difficulty: Moderate AACSB: Application of knowledge 2 Copyright © 2020 Pearson Education, IneLearning Objective: 6.3: Identify and describe the main technologies that support online marketing, 51) Which of the following statements about the Internet's impact on marketing is not true? A) The Internet has broadened the scope of marketing communications. B) The Internet has decreased the impact of brands C) The Internet has inereased the richness of marketing communications, 1D) The Internet has expanded the information intensity of the marketplace. Answer: B Difficulty: Difficult AACSB: Application of knowledge Learning Objective: 6.3: Identify and describe the main technologies that support online marketing, 52) Which of the following features of e-commerce technology has reduced the cost of delivering marketing messages and receiving feedback from users? A) ubiquity B) richness ) information density D) universal standards Answer: D Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.3: Identify and describe the main technologies t marketing. support online 53) Which feature of e-commerce technology decreases the cost of delivering marketing messages and receiving feedback from users? A) personalization/customization B) universal standards C) ubiquity D) interactivity Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.3: Identify and describe the main technologies that support online marketing 54) The richness made possible by e-commerce technologies does which of the following? A) It reduces the cost of delivering marketing messages and receiving feedback from users. B) It allows consumers to become co-producers of the goods and services being sold C) It allows video, audio, and text to be integrated into a single marketing message and consuming experience. D) It enables worldwide customer service and marketing communications. Answer: C Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.3: Identify and describe the main technologies that support online B Copyright © 2020 Pearson Education, Ine.marketing 55) Which of the following is a Google algorithm update related to local search? A) Pengu B) Hummingbird ©) Panda D) Possum Answer: D Difficulty: Moderate AACSB: Information technology Learning Objective: 6.3: Identify and describe the main technologi marketing. ss that support online 56) All of the following statements about cookies are true except: A) cookies can be used to create cross-site profiles of users, B) the data typically stored in cookies includes a unique ID and e-mail address. ©) cookies make shopping carts possible by allowing a site to keep track of a user's actions. D) the more cookies are deleted, the less accurate ad server metrics become. Answer: B Difficulty: Moderate AACSB: Information technology Learning Objective: 6.3: Identify and describe the main technologi marketing. 's that support online 57) A web beacon A) a cookie that carries a virus. B) an executable cookie. C) an automated applet for performing web searches. D) a tiny graphics file embedded in an e-mail or web page. Answer: D Difficulty: AACSB: Application of knowledge Learning Objective: 6.3: Identify and describe the main technologies that support online marketing. 58) is an open source database that can store and analyze both structured and unstructured data A) ASP B) PHP ©) Hadoop D)JsP Answer: C Difficulty: Eas AACSB: Information technology Learning Objective: 6.3: Identify and describe the main technologies that support online marketing. 59) A is a repository of customer information that records all contacts that a customer 4 Pea Copyright © 2 on Education, Inehas with a firm and generates a customer profile available to everyone in the firm with a need to know the customer A) customer service chat system B) CRM system C) data warehouse D) transactive content system Answer: B Difficulty: Easy AACSB: Information technology Learning Objective: 6.3: Identify and describe the main technologies that support online marketing. 60) The marketing technique known as involves merchants offering many products for which there is little demand. A) long tail marketing B) flash marketing C) yield management D) bait-and-switch swer: A Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.3: Identify and describe the main technologies that support online marketing, 61) Which of the following provides web marketers with customer and understanding his or her behavior at a site? A) transaction logs B) cookies C) registration forms D) data warehouses B ty: Moderate AACSB: Information technology Learning Objective: 6.3: Identify and describe the main technologies that support online marketing. quick means of identifying a 62) Transaction logs are built into client software. Answer: FALSE Difficulty: Easy AACSB: Information technology Learning Objective: 6.3: Identify and describe the main technologies that support online marketing. 63) Regular in-app cookies can be shared between apps. Answer: FALSE Difficulty: Moderate AACSB: Information technology Learning Objective: 6.3: Identify and describe the main technologies that support online 15 Copyright © 2020 Pearson Education, Ine.Answer: Customer relationship management systems are an important Intemet marketing technology. They serve as repositories for customer information that records all of the contacts a customer has with a firm including its website. CRM systems can generate a profile of each customer that is available to everyone in the firm who requests the data and they contain analytical software that will make this data valuable to the firm, In the past, firms generally did not maintain a single storchouse of customer information, and any customer data was organized along product lines with each product line maintaining a separate customer list. CRMs are part of the evolution towards customer-centric and segmented market-based businesses, and away from this product-based model. CRMS use database technology with capabilities for assessing the needs of individual customers and differentiating products {0 meet those needs. The customer profiles generated by a CRM can include a map of the customer's relationship with the firm, the products he or she has bought and the frequency of purchases, the demographic and psychographic profile for each customer, profitability measures, a complete contact history, and marketing and sales information containing marketing campaigns that the customer received and the customer's responses to them. With these profiles, CRMs ean be used to sell additional products and services, develop new products, increase product utilization, reduce marketing costs, identify and retain profitable customers, optimize service delivery costs, retain high Lifetime value customers, enable personal communications, improve customer loyalty, and increase product profitability Difficulty: Moderate AACSB: Analytical thinking; Information technology; Written and oral communication Learning Objective: 6.3: Identify and deseribe the main technologies that support online marketing. 69) If you want to determine the size of your website's audience, the metric you will use for the most accurate measurement will be: A) page views. B) unique visitors. Ohits D) reach. Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.4: Understand the costs and benefits of online marketing communications. 70) Cross-platform attribution refers to: A) how to assign credit to different marketing initiatives, B) understanding why visitors to a website purchase a product. C) understanding how impressions lead to visits D) understanding why people elick on ads. Answer: A Difficulty: Moderate AACSB: Application of knowledge Is Copyright © 2020 Pearson Education, IneLearning Objective: 6.4: Understand the costs and benefits of online marketing communications. 71) VIR measures the response rate to an ad. A) 30-minute B) 24-hour ©) Talay D) 30-day Answer: D Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.4: Understand the costs and benefits of online marketing communications, 72) Uber has been criticized for using which of the following? A) flash marketing B) bundling, C) surge pricing D) freemium. Answer: C Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.4: Understand the costs and benefits of online marketi 73) What kinds of ads have the lowest CTR? A) video ads B) e-mails to an in-house list C) social network display ads 1D) banner display ads Answer: D Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.4: Understand the costs and benefits of online marketing communications. 74) Purchasing an online ad on a CPA basis means that the advertiser: A) pays for impressions in 1,000 unit lots. B) pays a pre-negotiated fee for each click an ad receives ©) pays only for those users who perform a specific action, such as registe: D) exchanges something of equal value for the ad space. Answer: C Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.4: Understand the costs and benefits of online marketi purchasing, ete. mmunications, 75) eCPM measures the ROT of an ad by dividing the total earnings of the ad by which of the following? A) the total number of impressions B) the total number of impressions in hundreds, C) the total number of impressions in thousands 1D) the total number of impressions in millions 0 Copyright © 2020 Pearson Education, Ine.Answer: C Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.4: Understand the costs and benefits of online marketing communications. 76) Which of the following measures the average length of stay at a website? A) loyalty B) stickiness ©) page views D) retention rate Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.4: Understand the costs and benefits of online marketing communications. 77) Acquisition rate is a measure of the: A) percentage of visitors who indicate an interest in a site's products by registering o visiting a product's pages. B) percentage of visitors who become customers. C) percentage of existing customers who continue to buy on a regalar basis. D) percentage of shoppers who do not return within a year after their initial purchase, Answer: A Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.4: Understand the costs and benefits of online ma ting communications. 78) Recency refers to the: A) percentage of customers who do not return during the next year after an initial purchase. B) time elapsed since the last visit made by a customer. C) percentage of existing customers who continue to buy on a regular basis D) percentage of customers who return to the site within a year to make additional purchases, Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.4: Understand the costs and benefits of online marketing communications. 79) View-to-cart ratio is a measure of the: A) percentage of visitors who indicate an interest in a site's products by registering or visiting a product's pages. B) percentage of views that lead to an add-to-cart action, C) percentage of existing customers who continue to buy on a regular basis D) percentage of shoppers who do not return within a year after their initial purchase, Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.4: Understand the costs and benefits of online marketing communications. 80) Which of the following measures the ratio of items purchased to product views? 20 Copyright © 2020 Pearson Education, Ine.A) conversion rate B) cart conversion rate C) browse-to-buy ratio D) view-to-cart ratio Answer: C Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.4: Understand the costs and benefits of online marketing communications, 81) Which of the following measures the percentage of e-mails that could not be delivered? A) abandonment rate B) unsubscribe rate C) bounce-back rate D) attrition rate Answer: C Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.4: Understand the costs and benefits of online marketing communications 82) Which of the following is the most meaningful metric for video ads? A) view time B)CTR ©) completion rate D) skip rate Answer: C Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.4: Understand the costs and benefits of online marketing « munications. 83) Which of the following measures the percentage of times an ad is clicked? A) retention rate B)CTR C) loyalty rate D) conversion rate Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 6.4: Understand the costs and benefits of online marketing commu 84) What is cross-platform attribution and why is it difficult? Answer: Cross-platform attribution involves understanding how to assign appropriate credit to different marketing initiatives on a variety of platforms that may have influenced a consumer along the way to an ultimate purchase. There is inereasing recognition that first-click and last- click models that focus on either the first or last marketing channel or advertising format that a consumer engages with prior to a purchase, are not sufficient. Cross-platform attribution i difficult because there is a lengthy path from simple online ad impressions, website visits, and page views to the purchase of a product. Difficulty: Moderate 21 10 Pearson Education, Ine. Copyright © 2