Chapter 6

Question 1

About half of the American population access the internet by using…

Answer 1

Mobile smartphones or tablets

Question 2

Overall, there remains a strong relationship between ____, ____, ______, ______ and internet usage

Answer 2

Age, Income, Ethnicity, Education

Question 3

Once firms have an understanding of who is online, they need to focus on ……

Answer 3

how consumers behave online

Question 4

Consumer behaviour is a…

Answer 4

social science discipline that attempts to model and understand the behavior of humans in the marketplace

Question 5

Culture is the broadest factor in consumer behavior because it shapes …

Answer 5

basic human values, wants, perceptions and behaviours

Question 6

Subcultures are

Answer 6

Subset of cultures that form around major social differences

Question 7

It is important to understand different subcultures because…

Answer 7

It allows a business to distinctively target a group of individuals EX. Toyota using the internet targeting hispanic customers

Question 8

A direct reference group is

Answer 8

a persons family, profession, occupation, religion, neighbourhood and school (the offline face to face world)

Question 9

An indirect reference group is

Answer 9

One’s life cycle stage, social class, and life style group

Question 10

Opinion leaders (viral influencers)

Answer 10

Influence the behaviour of others through their personality, skills or other factors (Adam has his charm and he is an opinion leader because we trust his advice regarding what is good and bad)

Question 11

Lifestyle group

Answer 11

a unique kind of reference group that has an integrated pattern of activities, interests and opinions

Question 12

A psychological profile is a

Answer 12

set of needs, drives, motivations, perceptions and learned behaviours

Question 13

The number of internet Users online in the U.S in 2011 was around….

Answer 13

232 million

Question 14

The rate of growth in the U.S has begun to…

Answer 14

Slow down

Question 15

Both _____ and __________ are increasing with around 77% of adult users in the United States logging on in a typical day….

Answer 15

Intensity and scope of use

Question 16

Some demographic groups have a much ______ percentages of online usage than other groups

Answer 16

Higher

Question 17

The more time individuals spend using the internet, the less time they spend….

Answer 17

using traditional media

Question 18

Factors that impact buying behaviour include

Answer 18

Cultural Factors
Social Factors
Psychological Factors

Question 19

There are five stage in the consumer decision process:

Answer 19

Awareness of need
Search for more information
Evaluation of Alternatives
The Actual Purchase decision 
Post Purchase contact with the firm

Question 20

The online consumer decision process is basically the same with the addition of two new factors:

Answer 20

Web site capabilities

Consumer Clickstream behaviour - STALKING WHAT YOU CLICK ON

Question 21

The key objective of internet marketing is to use the web and establish…

Answer 21

A positive, long-term relationship with customers to create a competitive advantage with customers

Question 22

List some factors that e-commerce vendors could take to increase customer repetition

Answer 22

Better security of credit card, privacy and personal information, lower shipping costs and easy returns

Question 23

Firms within an industry compete with one another on four dimensions:

Answer 23

Differentiation, costs, focus, and scope

Question 24

Competitive markets are ones with lots of

Answer 24

Substitute products, easy entry, low differentiation among suppliers and strong bargaining power of customers and suppliers

Question 25

Brand Equity is the…

Answer 25

estimated value of the premium customers are willing to pay for using a branded product compared to unbranded competitors

Question 26

Web transaction logs -

Answer 26

records that document user activity at a website

Question 27

Tracking files

Answer 27

Various files like cookies, web beacons, flash cookies and apps that follow users and track their behaviour as they visit sites across the entire web

Question 28

Databases, data warehouses, data mining and profiling

Answer 28

Technologies that allow marketers to identify exactly who the online customer is and what they want and then to present the customer with exactly what they want, when they want it and for the right price

Question 29

CRM - Systems

Answer 29

A repository of customer information that records all the contacts a customer has with a firm and generates a customer profile available to everyone in the firm who has a need to “know the customer”

Question 30

Internet Marketing strategies for market entry - new firms include

Answer 30

pure clicks/first movers, bricks and clicks/alliances,

Question 31

Existing firm strategies include

Answer 31

Pure clicks/ fast-follwer and mixed bricks and clicks/ brand extender

Question 32

What are some online techniques for straightening customer relations

Answer 32

one to one marketing, customization and customer co production, customer service - Live chat, FAQ, intelligence agents automated response systems

Question 33

Online pricing strategies include offering…

Answer 33

products and services for free (freemium maybe), versioning, bundling and dynamic packaging