Chapter 1

Question 1

What are the 3 sections of the Internet Marketing Paradigm?

Answer 1

1) Internet Marketing Core
2) Internet Marketing Inputs
3) Internet Marketing Actions

Question 2

What are the 4 misconceptions of the Internet bubble?

Answer 2

1) It is okay to sell products for less than what they cost you
2) Internet-based companies are immune to economic cycles
3) Internet companies cannot spend too much on advertising
4) Internet companies that carry no inventory are infinitely profitable

Question 3

What are the goals of Internet marketers (the core)?

Answer 3

1) Customer acquisition
2) Customer conversion
3) Customer retention
4) Customer value growth

Question 4

What are the different Internet marketing actions?

Answer 4

• Online advertising and promotion
• E-commerce
• Customer service and support

Question 5

What are the different Internet marketing inputs?

Answer 5

• Business models (transaction models, revenue models, multichannel marketing)
• Interactive channels
• Social media channels
• Offline channels
• Social and regulatory issues

Question 6

What are the 10 strategic drivers of the Internet economy?

Answer 6

1) Information creates greatest added value for products
2) Size & distance don’t matter in many types of transactions
3) Speed & flexibility of the business = success
4) People are the key assets
5) Growth in the network = increase in value
6) Marketers can deal with customers 1 on 1
7) Demand is easier to predict
8) Cost patterns shrink when transaction costs shrink
9) Customers have power in information-rich channels
10) An information economy is characterized by choice and abundance