Multiple Choice Answers

Question 1 Which of the following is NOT a basic B2C channel structure? A. Manufacturer -> Retailer -> Consumer B. Manufacturer -> Warehouse -> Consumer C. Manufacturer -> Consumer D. Manufacturer -> Wholesaler -> Retailer -> Consumer

Question 2 The majority of product categories use __________ channel members. A. two B. three C. four D. five

Question 3 Basically, the relationship between channel structure and performance can be described as a series of: A. exchanges and logistics. B. negotiations and promotions. C. functions and flows. D. strategies and transactions.

Question 4 The activities associated with making sure that products are available to channel members at the appropriate times are known as: A. channel exchanges. B. product strategies. C. product transactions. D. logistic functions.

Question 5 Results of integrating the Internet into channel structure can result in: A. reduction in channel participants in the distribution process. B. increases in channel participants in the distribution process. C. substitution of channel participants in the distribution process. D. All of the above

Question 6 Organizations developed solely for the purpose of operating as online channel members to meet channel needs in the digital business environment are known as: A. disintermediaries. B. infomediaries. C. reintermediaries. D. ancillaries.

Question 7 Retailers may wish to engage in virtual aggregation using the Internet to: A. relax constraints on inventory by space. B. reduce the assortment of products that need to be displayed. C. tailor a sales presentation to all target segments. D. become a pure-player.

Question 8 Which of the following is a benefit of the Internet as a channel resource? A. It is easier for businesses to create perceptions of differences between product offerings. B. More and more products become available through online channels. C. Shoppers have the opportunity to examine and compare products. D. Businesses can differentiate their product offerings from that of the competition.

Question 9 Your company has decided to change from a channel structure in which retailers are responsible for customer contact to an interactive, customer-created Web page. Which of the following is an issue with which you must contend? A. How to manage the logistics of distribution B. How to develop or transfer the retailers’ customer knowledge bases C. How to ensure piecemeal order fulfillment D. How to transfer more buying power to the customer

Question 10 Which of the following is most useful in cultivating customer trust on the Internet? A. Company reputation B. Company location C. Transaction security D. Heuristics

Question 11 Which of the following is NOT a component in a basic communication model? A. Source B. Message C. Receiver D. Modality

Question 12 The processing of information to be communicated consists of: A. sending and receiving. B. encoding and decoding. C. narrowcasting and broadcasting. D. modal and non-modal.

Question 13 The Internet enables companies to send messages to specifically targeted audiences, a process known as: A. broadcasting. B. non-modality. C. narrowcasting. D. spamming.

Question 14 Spamming is a form of which type of communication? A. Push communication B. Pull communication C. Pointcasting D. Modal

Question 15 A business that uses the Internet to provide content that matches the individual needs of each customer is engaging in: A. personalization. B. customization. C. pointcasting. D. modularization.

Question 16 The use of customer preferences in setting up your company’s Web site is an example of __________, while the subsequent advertisement of online product news is an example of __________. A. customization; personalization B. modal communication; non-modal communication C. narrow customization; mass customization D. pull communication; push communication

Question 17 After the U.S. Civil War, grave memorial companies offered a different type of marker for the graves of Union soldiers than for Confederate soldiers. One company, however, offered markers in the form of a statue of each fallen soldier with a handmade replica of the soldier’s likeness on the face. These two offerings are examples of __________ and __________, respectively. A. customization; personalization B. modal communication; non-modal communication C. mass customization; narrow customization D. pull communication; push communication

Question 18 Choosing from product options on a series of drop-down menus on a Web page is an example of: A. collaborative customization. B. adaptive customization. C. collaborative personalization. D. adaptive personalization.

Question 19 According to market research by DoubleClick, 780 out of the 1,000 online customers surveyed had made a purchase after: A. visiting a microsite. B. receiving spam. C. receiving opt-in e-mail. D. viewing a Shoshkele.

Question 20 Companies with Web sites with no history of visitor activity or search engines with high amounts of traffic usually choose to use the __________ payment model for online advertising. A. cost-per-thousand exposures B. Shoshkele C. cost per click-through D. flat-fee