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CHAPTER ONE PAST, PRESENT, AND FUTURE Multiple Choice 1. E-marketing affects traditional marketing in which of the following ways? a. increases efficiency of traditional marketing functions b. technologically transforms marketing strategies c. marginalizes customer value but increases profitability d. both A and B (d; Moderate; LO2; Use of Information Technology) 2. ________ is the subset of e-business focused on transactions that include buying/selling, digital value creation, and virtual marketplaces. a. E-commerce b. E-marketing c. Digital technology d. ESP (a; Easy; LO2; Use of Information Technology) 3. Convenient, quick access to digital information has the ability to transform all of the following except ________. a. individuals b. ecosystems c. societies d. businesses (b; Easy; LO1; Use of Information Technology) 4. The internet consists of all of the following except ________. a. computers with data b. users who send and receive data files, such as e-mail and text messages c. a technology infrastructure to create, move, share, and consume content d. a central mainframe (d; Moderate; LO1; Use of Information Technology) 5. Data, such as digital coupons or customer complaints, exchanged between companies and consumers typically travel via _____, while off-line electronic data collection, such as bar code scanners or databases, shared internally within an organization, travel via ________. a. internet; intranet b. extranet; internet c. extranet; intranet d. the Web; the social network (a; Moderate; LO1; Use of Information Technology) 6. All of the following e-marketing technologies exist without the World Wide Web, except ________. a. electronic data interchange b. e-mail c. text messaging d. hypertext navigation (a; Difficult; LO1; Use of Information Technology) 7. In its technical performance, the internet supports the following roles except ________. a. human users and computers that access content and send e-mail b. technology infrastructure to move, create, and view content c. content providers that create information, entertainment, and so forth d. none; all of the above roles are supported by the internet. (d; Moderate; LO4; Use of Information Technology) 8. The internet can deliver content to all the following except _________. a. televisions sets b. refrigerators c. paper shredders d. automobiles (c; Easy; LO4; Use of Information Technology) 9. Which of the following outcomes has been cited as a negative one in terms of the world becoming a globally networked world? a. growing class divisions due to digital divide b. removing cultural differences c. efficient markets driven by more workaholism d. all of the above (d; Difficult; LO5; Analytic Skills) 10. During the “first wave of internet disruption” companies essentially offered _________. a. high-end products for mass markets b. tangible products that can be compared easily and purchased at relatively low prices c. commodities available in bulk quantity d. real estate (b; Moderate; LO5; Analytic Skills) 11. In the era of the Plateau of Profitability, marketers focused more deliberately on _________. a. their traditional return-on-performance roots and well-grounded strategies b. diversified unique product mixes c. disintermediation of the marketing channel d. product benefits (a; Difficult; p. 11; LO5; Analytic Skills) 12. Charles Schwab pitted their online business vs. their established brick and mortar business. Which of the following is not a result of this competition? a. faster growing accounts and assets b. lower prices c. more sales of treasury bonds and less sales of private securities d. incorporation of successful e-marketing strategies (c; Difficult; LO1; Analytic Skills) 13. Internet properties, or characteristics, that impact marketing include________. a. global reach b. market deconstruction c. scalable capacity d. all of the above (d; Easy; LO1; Use of Information Technology) 14. As consumers become more demanding, the internet is a good way to deliver customer value because ________. a. most products on the internet are less expensive than on other marketing channels b. broadband allows marketers to put more cookies on computers c. marketers can send digital coupons to millions of customers instantly d. customers gain ability to create, share, and access information and entertainment at will (d; Moderate; LO3; Reflective Thinking Skills) 15. As a strategy, content marketing could involve: a. Creating content on websites b. Publishing content on social media c. An e-mail offering a free white paper d. All of the above (d; Moderate; LO3; Use of Information Technology) 16. The internet has the power to do all of the following except ________. a. create global communities based on interests b. decrease cultural and language differences c. prevent the upward mobility of people and countries at lower socioeconomic levels d. discourage workaholism (d; Moderate; LO1; Use of Information Technology) 17. Following the boom and bust of the first wave of the internet era, industrialized countries entered the ________. a. boom b. bust c. trough of disillusion d. maturity stage (d; Difficult; LO5; Analytic Skills) 18. Which of the following is true regarding print media? a. It is enjoying a new surge in popularity thanks to websites b. It is declining due to subscriber and advertiser declines c. Twitter, YouTube, and e-mail are used for breaking news d. Both b and c (d; Moderate; LO5; Analytic Skills) True/False 19. Individuals can be both users and content providers on the internet. a. True b. False (a; Moderate; LO1; Use of Information Technology) 20. E-marketing refers to the result of information technology applied to traditional marketing. a. True b. False (a; Moderate; LO2; Use of Information Technology) 21. The internet provides individual users abilities to access information, entertainment, and communication. a. True b. False (a; Easy; LO4; Use of Information Technology) 22. A blog is a type of online community, but a peer-to-peer file sharing website, such as Dropbox, is not. a. True b. False (b; Moderate; LO4; Use of Information Technology) 23. The highest proportion of global internet users (almost 50%) are located in Asia. a. True b. False (a; Difficult; LO5; Multicultural and Diversity Understanding) 24. Unsolicited communications, such as spam, represent a threat to the positive impact of e-marketing practices. a. True b. False (a; Moderate; LO1; Use of Information Technology) 25. Electronic marketing relies exclusively upon web-based technology. a. True b. False (b; Difficult; LO5; Use of Information Technology) 26. The internet has shifted the balance of power from sellers to buyers. a. True b. False (a; Easy; LO3; Reflective Thinking Skills) 27. The internet is largely the product of ARPANET, a project commissioned by the United States’ Department of Defense. a. True b. False (a; Difficult; LO5; Use of Information Technology) 28. Co-creation occurs when consumers /users help marketers develop products or promotional materials. a. True b. False (a; Easy; LO3; Reflective Thinking Skills) 29. An example of customer engagement via crowdsourcing is becoming a fan of a brand on Facebook. a. True b. False (a; Easy; LO3; Use of Information Technology) Essay Questions 30. What is the difference between the internet, an extranet and an intranet? § The internet is a global network of interconnected computers. Access to the internet is very broad and open. § An extranet is two or more proprietary or company owned networks that are joined to share information. Access to this network is limited. § An intranet is an internal network for a company that uses internet standards. Access is limited to internal company use only. (Easy; LO1; Use of Information Technology) 31. What is a content provider on the internet? Content providers are individuals and organizations that create digital text, video, audio, and graphics to be sent over the internet to users who receive it as information, entertainment or communications. (Moderate; LO1; Analytic Skills) 32. Define what community means for the internet and give examples. Communities for the internet are groups of users who come together to share information, hold discussions and exchange data. Examples include blogs or web logs, auctions, and peer-to peer networking. (Easy; LO1; Analytic Skills) 33. Concerning internet usage, what is the digital divide? Internet adoption is affected by money, literacy, and education. This creates a divide between those who have access to the internet and those who don’t. It impairs the upward mobility of those on the lower socioeconomic level, who don’t have access to the internet and the information that comes with it. This impacts individuals on the lower socioeconomic levels and those living in less developed countries. (Moderate; LO5; Reflective Thinking Skills) 34. Why did some manufacturers such as Levis stop selling on the internet? § Channel Conflict with retail accounts § Cannibalization § Inefficiency (Moderate; LO1; Analytic Skills) 35. The strength of the internet has affected traditional marketing in several ways. List three of them and how they affected marketing. § Power shift from sellers to buyers (focus on customer relationship management) § Market Fragmentation (more focus on small target markets and 1 to 1 marketing) § Death of distance or geographic location affect (less focus on place for marketing) § Knowledge management is key (Track results in real time and focus on database analysis) § Interdisciplinary focus (Marketers must understand technology and use it wisely) § Intellectual Capital rules (focus on creativity and imagination) (Difficult; LO5; Reflective Thinking Skills) 36. Marketers face new challenges with the advent of streaming, on-demand, and other digital video recorders. What is the main challenge and what have companies like Roku or Hulu done to alleviate some of the concerns of marketers? § The main challenge is the ability of consumers to speed through and skip commercials that advertisers have paid for based on their ability to communicate with consumers. § Roku (Hulu) has setup content with advertising included that viewers can watch at their leisure and Roku (Hulu) can provide specific metrics to the advertisers on these programs. (Difficult; LO4; Reflective Thinking Skills) CHAPTER TWO STRATEGIC E-MARKETING AND PERFORMANCE METRICS Multiple Choice 1. Which of the following is a goal oriented focus of strategic planning? a. growth b. competitive position c. geographic scope (e.g., expansion) d. all of the above (d; Easy; LO1; Analytic Skills) 2. The four performance areas of the balanced scorecard include all of the following except ________. a. customer perspective b. internal business perspective c. learning and growth perspective d. metrics perspective (d; Moderate; LO3; Analytic Skills) 3. Regarding customers and business partnerships, e-marketing is capable of improving the overall value propositions by ________. a. increasing benefits for customers b. decreasing costs for customers and the company c. increasing the revenues d. all of the above (d; Moderate; LO2; Analytic Skills) 4. The various levels of organizational commitment to e-business include all of the following, except ________. a. activity b. business process c. enterprise d. business policy (d; Moderate; LO2; Use of Information Technology) 5. Which of the following is true about business use of informational technology? a. It generally increases benefits to stakeholders. b. It generally lowers costs to stakeholders. c. It can lead to a decrease in value to stakeholders. d. All of the above. (d; Easy; LO1; Use of Information Technology) 6. Which of the following is not a viable competitive position for a firm within its given industry? a. industry leader (e.g., Google) b. price leader (e.g., Priceline) c. quality leader (e.g., Mercedes) d. business model leader (e.g., Borders) (d; Moderate; LO1; Analytic Skills) 7. Corporate level business strategies that include information technology components, such as internet, digital databases, are known as ________. a. marketing strategies b. e-business strategies c. e-marketing strategies d. corporate strategies (b; Easy; LO2; Use of Information Technology) 8. Which of the following is not one of the four appropriate rationales for choosing the objectives of a strategic plan? a. strategic justification b. personal justification c. technical justification d. financial justification (b; Moderate; LO1; Reflective Thinking Skills) 9. Important elements of value include all of the following except ________. a. customers’ perception of product benefits b. partners’ perception of product costs c. customer evaluations of support services d. all of the above (b, Moderate, LO3; Analytic Skills) 10. Which of the following processes is unlikely to be carried out at the activity level of e-business commitment? a. customer relationship management b. online purchasing c. e-mail d. dynamic pricing online (a; Difficult; LO2; Reflective Thinking Skills) 11. Which of the following is not an activity which is likely to be practiced at the business process level of e-business commitment? a. content publishing b. knowledge management c. direct selling d. database marketing (c; Difficult; LO2; Reflective Thinking Skills) 12. ________ are specific measures designed to evaluate the effectiveness and efficiency of an organization’s operations. a. Strategic outcomes b. Key performance metrics c. Business models d. Strategic objectives (b; Moderate; LO3; Analytic Skills) 13. ________ can be learned from dividing net profits by total assets. a. Return on investment (ROI) b. Market capitalization c. Earnings d. Income (a; Easy; LO3; Analytic Skills) 14. Profits and return on investment (ROI) are among the most common metrics used to assess performance from the ________ perspective. a. customer b. internal c. innovation/learning d. financial (d; Moderate; LO3; Reflective Thinking) 15. Content sponsorship, direct selling, and social networking, occur at the ________ of the
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