EXTRA 3

Question 1

Formula regression analysis

Answer 1

Y = B0 + B1*X1 + … + BnXn + e

Question 2

Formula difference-in-differences analysis

Answer 2

Y = B0 + B1treatment + B2after + B3treatmentafter + e

Question 3

Formula before-during-after analysis

Answer 3

Sales = B0 + B1During + B2After + e; or

Sales = B0 +B1During + B2After + B3temperature + B4holiday + e

Question 4

Formula before-after analysis

Answer 4

Sales = B0 + B1*After + e; or
Sales = B0 + B1*After + B2*temperature + B3*holiday + B4*searches + e

Question 5

Advantages ad blocking software for companies

Answer 5

• It is self-filtering mechanism.
• People using ad blocking software are more likely to pay for ad-free content on sites, leading to a new business model.

Question 6

Basket-to-conversion rate

Answer 6

The number of sessions with at least one product put into the shopping basket divided by the number of sessions with at least one product purchased.

Question 7

Five forms of perceived product category-related risk

Answer 7

• Functional risk
• Financial risk
• Privacy and safety risk
• Psychological risk
• Social risk

Question 8

Why is the use of multiple channels by customers important to companies?

Answer 8

Because these types of customers are more connected to the firm and are therefore more valuable.

Question 9

In which phase are mobile devices preferred?

Answer 9

In the prepurchase determination phase.

Question 10

Reasons people switch from more mobile to less mobile devices

Answer 10

• Because of the high purchase risk involved.

- Because of their own inexperience with the product, brand, or online retailer.

Question 11

When does the purchase conversion probability become higher?

Answer 11

When customers switch from a more mobile device to a less mobile device.

Question 12

Ubiquity

Answer 12

The ability of a channel to offer instant internet access wherever and whenever users want.

Mobile channels overcome this limitation.

Question 13

When is a new channel most useful?

Answer 13

When it is able to provide additional utility to what consumers are receiving from the existing channels.

Question 14

What is the effect of cross-device browsing?

Answer 14

Cross-device browsing behaviour tends to enhance sales.

Question 15

Explain the use of tablets

Answer 15

Tablets act as a complementary product for smartphones.
Tablets act as a substitute product for PCs.

Tablets increase casual browsing, which leads to the purchase of more impulse products and a wider diversity of products.

Question 16

What is the best predictor of future performance?

Answer 16

Negative eWoM

Question 17

What kind of correlation exists between customer satisfaction and a firm’s market share?

Answer 17

A negative correlation.

Firms with a high market share often have a more heterogeneous customer base which tends to be more difficult to satisfy.

Question 18

Factors that negatively influence the number of likes

Answer 18

• Entertainment

- Question

Question 19

Where does the brand-post popularity consist of?

Answer 19

The amount of likes

The amount of comments

Question 20

Factors that influence brand-post popularity

Answer 20

• Valence of comments
• Vividness
• Interactivity
• Position of the post
• Content of brand post

Question 21

Difference banners and brand posts

Answer 21

People voluntarily decide to visit a brand fan page, whereas banners are shown involuntarily.

Question 22

Social networking sites

Answer 22

Networks of friends for social and professional interactions.

Question 23

Advantages brand communities

Answer 23

• Brand fans are more loyal and committed to the brand than non-brand fans.
• Brand fans will create positive word of mouth.

Question 24

How to create brand communities?

Answer 24

By forming brand fan pages on social networking sites.

Question 25

Which type of customer is not influenced by display advertising?

Answer 25

The visitor.

That is because the visitor has already visited the website and decided not to continue.

Showing an ad will not provide this type of customer with any new information.

Question 26

Lag effect

Answer 26

The likelihood that we will recall information when time between repeated exposure to that information increases.

Question 27

AB testing

Answer 27

Method of comparing two versions of a webpage or app against each other to determine which one performs better.

Question 28

Arbitrary sample

Answer 28

A sample determined by chance, whim, or impulse, and not by necessity, reason, or principle.

Question 29

Designated Market Area

Answer 29

Geographic area where residents can receive the same local tv, radio stations, and online content.

Question 30

In which phase are mobile devices preferred?

Answer 30

In the prepurchase determination phase.