Download 2008 EMDM Regional Exam

2008 DECA Ontario Regionals
Test 979
INTERNET MARKETING / E-COMMERCE
1
1. What type of contracts may be legally binding even though the terms of the contract differ from state statutory and
common law?
A. Contracts prepared by lawyers
C. Contracts that are notarized
B. Contracts that have three witnesses
D. Contracts made by private law
2. Many nations have developed environmental regulations in order to encourage
A. industrialization.
C. moral conduct.
B. ethical behavior.
D. conservation.
3. Ross Industries is updating its computer equipment with 30 new IBM computers. Which channel of distribution would
be most efficient?
A. Producer to agent to industrial distributor to industrial user
B. Producer to agent to industrial user
C. Producer to industrial distributor to industrial user
D. Producer to industrial user
4. A benefit to online businesses that use electronic data interchange (EDI) systems is
A. fewer packing errors.
C. higher stock turnover.
B. competent intermediaries.
D. effective inventory management.
5. Which of the following is often a characteristic of products that use the exclusive level of distribution strategy:
A. No service required
C. Purchased infrequently
B. Available everywhere
D. Priced inexpensively
6. One reason Internet-based businesses evaluate their channel members on a regular basis is to determine if it is
necessary to
A. reschedule shipments.
C. make adjustments.
B. increase maintenance.
D. eliminate customers.
7. Which of the following is a reason why Kate, an employee of SimpleTreasures.com, might write a letter of inquiry:
A. To request an appointment
C. To forward a document
B. To acknowledge an order
D. To complain about a product
8. One of the main goals when writing content for use on the Internet is to develop content that
A. reinforces sales.
C. exaggerates details.
B. oversells products.
D. attacks competitors.
9. Which of the following is an effective technique for giving directions for completing job tasks:
A. Interviewing
C. Listening
B. Questioning
D. Demonstrating
10. Which of the following groups in the e-commerce industry would most benefit from a customer-service mindset, in
terms of reducing complaints and increasing profits:
A. Businesses
C. Customers
B. Employees
D. Competitors
11. How can an e-tailer measure customer satisfaction levels in relation to the distribution process?
A. By sending out questionnaires to authorized distribution channel members
B. By hiring an outside consultant to conduct an inventory needs analysis
C. By establishing performance standards from the viewpoint of the customer
D. By evaluating each product's packaging appeal in specific target markets
12. An e-tailer evaluating the number of items that are on back order and the number of items that customers return is an
example of assessing the
A. purchasing procedure.
C. incoming shipment system.
B. distribution method.
D. order fulfillment process.
2008 DECA Ontario Regionals
Test 979
INTERNET MARKETING / E-COMMERCE
13. Which of the following is not an acceptable reason for returning goods to vendors:
A. Some items did not sell.
C. The goods were imperfect.
B. Too many items were shipped.
D. The order was delivered late.
14. What has a business eliminated by selling products directly to customers through its web site?
A. Inventory control
C. Competition
B. Intermediaries
D. Security risks
15. One factor that might limit the human resources available for certain jobs is a(n)
A. appealing company image.
C. good safety record.
B. inadequate pay level.
D. organized training program.
16. Which type of utility does marketing NOT affect directly?
A. Time
C. Form
B. Place
D. Possession
17. One reason that society relies on manufacturers to make materials useful is because very few materials are actually
A. needed in modern society.
C. used in their raw form.
B. available in nature.
D. produced for consumption.
18. In a private enterprise economic system, the interaction of supply and demand primarily determines
A. product prices.
C. the extent of pollution.
B. economic choices.
D. government regulation.
19. The formula that is generally used to measure productivity is
A. goods divided by time.
C. outputs divided by inputs.
B. labor divided by resources.
D. inputs divided by labor.
20. If an online business produces and sells 2,700 items and the marginal revenue per item is $4.75, what is the total
revenue?
A. $12,960
C. $12,825
B. $12,690
D. $12,555
21. Which of the following is a factor that measures the condition of a country's economy:
A. Financial cycle
C. Profit margin
B. Fiscal policy
D. Price stability
22. Which of the following do many economists consider the most significant economic impact of e-commerce:
A. Reduced transaction costs
C. Reduced delivery time
B. Increased hardware and software sales
D. Increased employment opportunities
23. What is the best action for an online company to take in a disaster when one of its products has been sabotaged by
people outside the company?
A. Being open and candid
B. Refusing to talk to all media
C. Selecting one medium and giving it exclusive rights to the story
D. Avoiding answering any questions until all the facts about the incident are known
24. To persuade e-business employees to perform in a certain way, managers should appeal to the employees'
A. desires.
C. goals.
B. wants.
D. needs.
25. One reason why consensus building encourages commitment and support from all group members is because
A. everyone agrees with the decision.
C. everyone has equal power.
B. the process encourages creativity.
D. the process promotes thinking.
2
2008 DECA Ontario Regionals
Test 979
INTERNET MARKETING / E-COMMERCE
3
26. Why do many e-businesses encourage team building?
A. To obtain feedback
C. To develop training
B. To improve performance
D. To understand diversity
27. In order to provide goods and services to consumers, marketing depends on
A. managing.
C. financing.
B. accounting.
D. purchasing.
28. Online businesses that buy products in order to resell them must take into consideration the flow of cash needed to
purchase
A. manufacturing tools.
C. raw materials.
B. adequate inventories.
D. production supplies.
29. An online business prepares an invoice for a customer who has purchased the following: three items at $28.50 each
and two items at $41.75 each. If shipping costs are $17.60, what is the total amount of the invoice?
A. $186.60
C. $168.25
B. $179.40
D. $191.00
30. One reason e-tailers conduct a cost/benefit analysis is to evaluate
A. specialties.
C. resources.
B. procedures.
D. alternatives.
31. Calculate the amount an online business can budget to spend on new equipment if it estimates sales of $850,000,
expenses of $415,000, and designates 20% of profit for equipment purchases.
A. $86,750
C. $85,500
B. $87,000
D. $88,250
32. An Internet business calculates its debt ratio by dividing the company's total liabilities by the
A. net income.
C. total assets.
B. current liabilities.
D. quick assets.
33. What type of costs is Hatco.com attempting to lower by hiring a company to provide the server space its website needs
rather than doing it in-house?
A. Web design
C. Web hosting
B. Human resource
D. Promotion
34. Which of the following should be done first to resolve an employee complaint:
A. Identify the problem
C. Consider solutions
B. Follow up
D. Check effects of solution
35. Which of the following is a personnel record that e-businesses usually maintain:
A. Job applications
C. Payroll stubs
B. Safety regulations
D. Office newsletters
36. Job orientation helps to balance a new employee's need for security in the job with the online business's need for
A. respect.
C. productivity.
B. recognition.
D. financing.
37. An e-tail employee who, after four weeks of employment and weekly evaluations, has not accepted responsibility,
improved skills, or corrected errors in performance and attitude, should be
A. retrained.
C. released.
B. promoted.
D. transferred.
38. Why do Internet businesses review job applications/resumes and contact the individuals listed as references?
A. To verify accuracy of information
C. To determine training needs
B. To obtain personal data
D. To compare job descriptions
2008 DECA Ontario Regionals
Test 979
INTERNET MARKETING / E-COMMERCE
4
39. Which of the following is most likely to occur if an e-tailer intentionally presents marketing information in an unethical or
deceptive way:
A. Higher integrity
C. Increased loyalty
B. Lower credibility
D. Decreased visibility
40. Why do many Internet businesses use computer technology to manage marketing information?
A. To prepare informational questionnaires
C. To send direct-mail pieces to customers
B. To merge a variety of data into one database D. To develop software that fits a specific need
41. When assessing marketing-information needs, Internet-based businesses should first determine if the information is
already available from
A. primary research.
C. local competitors.
B. secondary sources.
D. executive opinion.
42. Which of the following is an advantage of using secondary data in a marketing-research project:
A. Secondary data are less expensive to collect than primary data.
B. Secondary data are more up-to-date than primary data.
C. Secondary data are less likely to be available to competitors.
D. Secondary data are more relevant than primary data.
43. Which of the following is a type of report that may help an online business determine why its customers are dissatisfied
with its goods and services:
A. Statistical
C. Inventory
B. Complaint
D. Financial
44. Which of the following is a privacy issue in e-commerce:
A. Obtaining information from children
C. Identifying target audiences
B. Posting questionnaires online
D. Asking customers for mailing addresses
45. Which of the following is a marketing activity:
A. Balancing
B. Promoting
C. Leading
D. Committing
46. Which of the following is a merchandising activity:
A. Planning how much to buy
B. Designing visual displays
C. Organizing special events
D. Deciding what to advertise
47. If an online business decides to make product changes, it must also make changes in all the other elements of the
A. marketing mix.
C. sales policy.
B. strategic goal.
D. master plan.
48. When Internet marketers group consumers on the basis of the regions, states, cities, and rural areas in which they live,
the marketers are using __________ segmentation.
A. demographic
C. behavioral
B. geographic
D. psychographic
49. A SWOT analysis is an important element of the
A. task-delegation process.
B. employee-training function.
C. marketing-planning process.
D. promotion-evaluation process.
50. Which of the following is an important component of a marketing plan:
A. Situation analysis
C. Publicity format
B. Management chart
D. Occupational scan
2008 DECA Ontario Regionals
Test 979
INTERNET MARKETING / E-COMMERCE
5
51. When conducting a market analysis, an Internet business considers the total possible demand for a product, which is
known as the
A. target market.
C. market potential.
B. sales growth.
D. supply factor.
52. Why is it important for online businesses to analyze the competition on a regular basis?
A. To understand laws regulating competition
C. To determine ways to compete
B. To eliminate competitors
D. To compete on an ethical basis
53. Which of the following is a source of information for qualitative methods of forecasting sales:
A. Customer surveys
C. Market research
B. Industry experts
D. Economic trends
54. One of the objectives in an e-tailer's marketing plan is to increase sales by 15% by reaching more customers. What
dollar amount is 15% if the e-tailer currently has 250 customers who each spend $10,000 per year?
A. $250,000
C. $425,000
B. $375,000
D. $515,000
55. The ultimate goal of a marketing audit is to improve an e-tailer's marketing
A. mix.
C. performance.
B. information.
D. research.
56. Which of the following forms of communication is the most efficient way to bring four coworkers who are located in
different cities together to simultaneously discuss a common business issue:
A. Audio conferencing
C. Text messaging
B. Voice mail
D. Facsimile
57. Because more businesses and their customers are accessing the Internet for information, communication is becoming
more
A. passive.
C. predictable.
B. efficient.
D. trustworthy.
58. Which of the following allows users to create and edit text and graphics to produce an attractive brochure:
A. Presentation software
C. Desktop publishing
B. Word processing programs
D. Web page editors
59. In order to handle workplace accidents effectively, employees need to
A. know the proper way to respond.
C. have formal medical training.
B. understand the accident report form.
D. memorize the Good Samaritan Law.
60. Providing Internet-based businesses with an uninterrupted flow of goods or materials is one of the main functions of
A. marketing.
C. producing.
B. warehousing.
D. purchasing.
61. Who is responsible for developing a quality culture in an Internet business?
A. Management
C. Salespeople
B. Production staff
D. All employees
62. Determine whether the following statement is true or false: Employees have a role in controlling an online business's
expenses.
A. False, expense control is a function of management that doesn't involve employees.
B. False, employees do not have a role in controlling expenses.
C. True, most business expenses are controlled by employees.
D. True, there are many ways that employees can help to control business expenses.
2008 DECA Ontario Regionals
Test 979
INTERNET MARKETING / E-COMMERCE
6
63. An online bookstore's full-time warehouse employee resigned and the bookstore decided to hire two part-time
employees to each work four hours a day, five days a week. Calculate the savings to the bookstore for a four-week
period if the full-time employee earned $650 a week and the part-time employees will be paid $12.50 an hour.
A. $600
C. $500
B. $550
D. $650
64. An important reason why most click and brick businesses carry out regular maintenance activities is to
A. protect their investment.
C. pass health inspections.
B. comply with construction codes.
D. prevent misuse of equipment.
65. Why do online businesses use data encryption?
A. To update software
B. To destroy a virus
C. To ensure privacy
D. To monitor e-mail
66. The Internet has impacted purchasing because it has
A. made the ordering process more difficult.
B. raised the price of supplies.
C. opened up the door to new suppliers.
D. made it harder to compare what suppliers have to offer.
67. Identifying and writing down your objectives will
A. help to focus your attention on important activities.
B. include the identification of time wasters.
C. force you to prioritize important activities.
D. allow you to standardize tasks.
68. Accessing the web sites of businesses and professional organizations is one way to obtain
A. career information.
C. work experience.
B. job applications.
D. interview appointments.
69. When applying for an e-commerce position, is it an acceptable business practice to prepare a job résumé without listing
any references?
A. No, a list of references should be at the beginning of the résumé.
B. Yes, providing references is a courtesy that is not really necessary.
C. No, a job résumé is incomplete unless it contains a list of references.
D. Yes, the résumé can state that references will be provided upon request.
70. An online business that refuses to raise the price of its goods and services that are in high demand in a certain part of
the country because of a natural disaster is being
A. socially responsible.
C. legally reasonable.
B. economically unsound.
D. politically correct.
71. Why is obtaining, maintaining, or increasing market share important to an online business?
A. Market share serves as a measure of the success of the business.
B. Consumers are interested in a firm's market share.
C. A large market share ensures large profits.
D. Market share must constantly increase in order for the business to succeed.
72. Which of the following is an example of a group that might have responsibility for product planning:
A. Venture teams
C. Financial panels
B. Research crews
D. Survey compilers
73. What do online businesses include on their product labels in an attempt to be ethical by making it easy for customers to
contact them to obtain additional product information?
A. Company name
C. Recommended use
B. Expiration date
D. Web address
2008 DECA Ontario Regionals
Test 979
INTERNET MARKETING / E-COMMERCE
7
74. If a market is willing to buy the product, the product idea may be
A. impractical.
C. feasible.
B. costly.
D. challenging.
75. The online business sold glow sticks that its web site said would light up, but the glow sticks wouldn't glow. The
business refunded all purchasers' money based on the business's product
A. liability.
C. guarantee.
B. warranty.
D. analysis.
76. What government regulatory agency has broader influence on marketing activities than any other government
regulatory agency?
A. Food and Drug Administration (FDA)
B. Federal Trade Commission (FTC)
C. Consumer Product Safety Commission (CPSC)
D. National Highway Traffic Safety Administration (NHTSA)
77. Internet-based businesses often consider what customers want products to do for them when identifying products that
will
A. fill customers' needs.
C. be available on demand.
B. sell for low prices.
D. be purchased on credit.
78. The basic consideration in selecting product-mix strategies is whether to
A. use a downward-stretch or upward-stretch strategy. C. add or delete a product from a product line.
B. market domestically or internationally.
D. determine the correct stage of the product life cycle.
79. What often occurs when a brick-and-click business fails to plan its services so that it can accommodate anticipated
increases in demand?
A. Customer defection
C. Lower competition
B. Economic slowdown
D. Higher market share
80. Which of the following is an example of a web-site maintenance task that is very time consuming:
A. Updating stock quotes regularly
C. Advertising a sale
B. Correcting misspelled words
D. Adding new content occasionally
81. When an e-business emphasizes a product's degree of excellence, it is positioning the product by its
A. skill.
B. competition.
C. market.
D.
quality.
82. Which of the following would be characteristic of a good brand name:
A. Long and impressive
C. Easily pronounced
B. Difficult to spell
D. Not easily recognized
83. How much BOM stock should be planned to support sales of $5,000 for the month if the stock/sales ratio is 2:1?
A. $5,000
B. $10,000
C. $7,500
D.
$2,500
84. While marketers often use online surveys to assess their customers' experience, this method has distinct
disadvantages, including the fact that
A. they are too expensive.
C. electronic data are difficult to tabulate.
B. the process is long and complex.
D. the authenticity of respondents is often in question.
85. Which of the following is a way that promotion benefits society and the economy:
A. Adds value
C. Creates jobs
B. Builds inventory
D. Increases prices
86. How do promotional activities benefit the consumer?
A. Provide economic growth
B. Create jobs
C. Provide a higher standard of living
D. Increase number of products available
2008 DECA Ontario Regionals
Test 979
INTERNET MARKETING / E-COMMERCE
87. A coupon for $2 off the customer's next purchase from the online business would be an example of sales promotion
known as
A. a premium.
B. publicity.
C. a rebate.
D.
public relations.
88. Which of the following statements is true regarding the regulation of Internet promotional activities:
A. Consumer groups have very little influence with the government regarding advertising legislation.
B. The regulation of promotional activities applies only to television, radio, and newspaper venues.
C. Governmental restrictions in regard to promotional activities vary by country.
D. International laws make it difficult for consumers to sue large companies for unfair advertising practices.
89. The primary cost factors that online bookstores must consider when developing a direct advertising campaign include
list acquisition, delivery, and
A. research.
B. inventory.
C. production.
D.
follow-up.
90. An e-business should design its online sales campaign so that all of the campaign elements are coordinated to
communicate a(n) ___________ message.
A. unstructured
B. vague
C. original
D.
consistent
91. What should brand-new web sites spend money on to make individuals aware of their existence?
A. Promotion
B. Human resources
C. Maintenance
D.
Internet connections
92. Why do many online businesses use a variety of sales-promotion techniques?
A. To appeal to different customers
C. To include public relations
B. To save money on advertisements
D. To follow up after sales transactions
93. One way that an online business builds a clientele is by establishing desirable business
A. budgets.
B. slogans.
C. policies.
D. objectives.
94. One way that web-site design salespeople often are able to gain the trust and confidence of their customers is by
A. entertaining lavishly.
C. lowering prices.
B. behaving ethically.
D. making promises.
95. Which of the following is an example of explaining the obvious benefits of a product to a customer:
A. "Portable CD players allow you to listen to music anywhere."
B. "Radial tires give you better gas mileage on the highway."
C. "This watch is the only one that recharges automatically."
D. "Graphite golf clubs are designed to increase distance."
96. One of the best ways online marketers can provide quick customer support for simple concerns is
A. online communities.
C. e-mail messages.
B. various forms of self-help.
D. frequently asked questions (FAQs).
97. Which of the following is likely to be part of reaffirming the buyer-seller relationship in the selling process:
A. Prescribing solutions
C. Reaching closure
B. Discovering client needs
D. Checking on delivery
98. Which of the following is an effective online sales strategy:
A. Avoiding answering objections and questions C. Focusing on a long list of goods and services
B. Making it easy to locate the correct product
D. Developing a complicated closing page
99. The number of levels of management that an e-business needs usually depends upon the
A. age of the employees.
C. goals of the company.
B. size of the business.
D. location of the facility.
100. If an online business budgets $92,000 in monthly sales, and sales for one month are $88,500, the actual sales are
what percent of budgeted sales?
A. 92%
B. 98%
C. 96%
D.
94%
8
Test 979
INTERNET MARKETING—KEY
9
1. D
Contracts made by private law. Contracts made by private law may be legally binding even though the
terms of the contract differ from state statutory and common law. Private law principally includes the
terms of the agreement between the parties who are exchanging promises to do something in return for
receiving something. This private law may override many of the rules otherwise established by state law.
Even a simple agreement between two people can constitute a contract made by private law. Contracts
do not need to be notarized, witnessed, or prepared by lawyers to be legally binding.
SOURCE: BL:002
SOURCE: Legal Information Institute, Cornell Law School. (n.d.). Contracts: An overview. Retrieved
September 17, 2008, from http://topics.law.cornell.edu/wex/contracts
2. D
Conservation. Many nations have developed environmental regulations to conserve their natural
resources by requiring businesses to control pollution, dispose of hazardous waste properly, and use
nonrenewable resources wisely. These regulations set pollution standards that businesses must meet,
establish rules for disposing of waste, encourage recycling, and monitor illegal dumping. Nations realize
that natural resources are limited and must be conserved or renewed in order to be available for future
generations. Nations did not develop environmental regulations to encourage ethical behavior or moral
conduct, although some environmental regulations deal with ethical and moral issues. Industrialization is
the changeover from producing goods by hand labor to the use of machines and the organization of such
production into industries.
SOURCE: BL:073
SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.)
[pp. 41-43]. Cincinnati: South-Western.
3. D
Producer to industrial user. This channel is a straight path from producer (IBM) to industrial user (Ross).
Producer to industrial distributor to user involves buying large quantities of goods and raw materials from
producers and selling small quantities to industrial users. Producer to agent to user involves producers
who contract with agents to sell and promote their goods to industrial users. A producer to agent to
industrial distributor to user channel is used by producers who sell to an agent who sells smaller
quantities to industrial distributors who sell to industrial users.
SOURCE: CM:003
SOURCE: Farese, L. S., Kimbrell, G., & Woloszyk, C. A. (2009). Marketing essentials (pp. 450-451).
Woodland Hills, CA: Glencoe/McGraw-Hill.
4. D
Effective inventory management. An electronic data interchange (EDI) system automatically transmits an
online business's sales information to its vendors via computer, which allows the vendors to quickly
process the online business's orders. The EDI system helps reduce telephone calls and paperwork. EDI
systems help online businesses to effectively and efficiently manage their inventories, which is a benefit
to online businesses that use these types of systems. Using an EDI system does not necessarily
increase the intermediaries' competency levels, lead to higher stock turnover, or reduce packing errors.
SOURCE: CM:004
SOURCE: Grewal, D., & Levy, M. (2008). Marketing (pp. 418-419). Woodland Hills, CA: McGraw-Hill
Irwin.
5. C
Purchased infrequently. Exclusive distribution is appropriate for specialty goods and luxury items.
Products that are usually purchased infrequently and consumed over a long period of time utilize an
exclusive level of distribution. The producer wants to maintain an exclusive image. Products that are
purchased infrequently include expensive jewelry. Products that are available everywhere, require little or
no service, and are priced inexpensively use the intensive level of distribution strategy.
SOURCE: CM:009
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 455). New
York: Glencoe/McGraw-Hill.
Test 979
INTERNET MARKETING—KEY
10
6. C
Make adjustments. One reason Internet-based businesses evaluate their channel members on a regular
basis is to review performance to determine if the members are meeting established standards. In some
situations, Internet-based businesses may find that channel members are not performing as expected. If
this happens, Internet-based businesses usually make adjustments, which might include providing
training, or terminating members if they continue to perform in an unacceptable manner. It is important to
evaluate channel members because members who are not performing well might cost the Internet-based
business money in terms of lost sales or dissatisfied customers. Internet-based businesses do not
evaluate channel members to determine if it is necessary to increase maintenance, reschedule
shipments, or eliminate customers.
SOURCE: CM:011
SOURCE: Kotler, P. (2000). Marketing management (10th ed.) [pp. 502-504]. Upper Saddle River, NJ:
Prentice Hall.
7. A
To request an appointment. The function of a letter of inquiry usually is to make a request. Employees
who work for Internet-based companies often write letters of inquiry to request an appointment with a
current customer or a potential customer, or to request information from a supplier. An acknowledgement
letter would be written to acknowledge the receipt of an order. A claim letter would be written to complain
about a problem with a product. A transmittal letter would be written to accompany a document that the
employee forwards by mail.
SOURCE: CO:040
SOURCE: Locker, K.O. (2000). Business and administrative communication (5th ed.) [pp. 222, 225].
Boston: Irwin/McGraw-Hill.
8. A
Reinforces sales. It is important for businesses to write effective content for use on the Internet to attract
customers and provide necessary sales information. Effective content usually reinforces sales by making
the information easy to understand and use. Customers should be able to find descriptions of products
and methods of buying without having to read a lot of unrelated content. The goal is to provide
information that encourages customers to buy and makes it easy for them to buy. Content should not
oversell products, exaggerate details, or attack competitors.
SOURCE: CO:180
SOURCE: Tiernan, B. (2000). e-tailing (pp. 120-121). Chicago: Dearborn Financial.
9. D
Demonstrating. In many cases, actually demonstrating how to complete a job task is an effective
technique for giving directions. During the demonstration, the manager is able to explain how the task
should be performed while showing the correct method for completing the task. While the demonstration
is in progress, employees usually listen and may ask questions. Interviewing is part of the job application
process.
SOURCE: CO:139
SOURCE: Dessler, G. (2000). Human resource management (8th ed.) [pp. 259-260]. Upper Saddle
River, NJ: Prentice Hall.
10. A
Businesses. Reduced complaints, repeat business, and greater profits are normally the results of having
a customer-service mindset. Benefits to the employees may include promotions or raises. Benefits to the
customers would include having a more satisfactory experience with the business. Competitors would not
benefit from another business practicing a customer-service mindset.
SOURCE: CR:004
SOURCE: HR LAP 32—Customer-Service Mindset
Test 979
INTERNET MARKETING—KEY
11
11. C
By establishing performance standards from the viewpoint of the customer. By understanding customers'
desires, needs, and expectations, an e-tailer's distribution function can set specific goals to meet those
needs to satisfy the customer. Standards can be established so that appropriate inventory levels are
maintained, which reduces back-ordered items. In addition, goals can be established for lead time,
delivery time, accurate and appropriate packing methods, as well as accurate invoicing practices.
Distributing questionnaires to channel members or hiring an outside consultant to conduct an inventory
needs analysis might provide feedback to enhance distribution efficiency, but does not necessarily
measure customer satisfaction levels. Evaluating a product's packaging appeal does not measure
customer satisfaction levels in terms of product distribution.
SOURCE: DS:029
SOURCE: Coyle, J.J., Bardi, E.J., & Langley, C.J. (2003). The management of business logistics:
A supply chain perspective (7th ed.) [pp. 102-103]. Mason, OH: South-Western.
12. D
Order fulfillment process. Order fulfillment encompasses many interrelated components, including taking
an order, picking and packing the order, checking the accuracy of the order, and shipping the order. One
way e-tailers can assess the effectiveness of the order fulfillment process is to evaluate the number of
items that are on back order. Items that are not available to meet customer demand cannot be shipped to
fulfill orders. A high number of back orders might indicate a problem in the fulfillment system. In addition,
e-tailers must evaluate why items are returned by customers. One reason customers return items is
because they receive incorrect merchandise. A high rate of product returns might indicate a failure in the
order-taking process or order-picking process. Evaluating the number of items that are on back order and
the number of items that customers return is not an example of assessing the distribution method, the
incoming shipment system, or the purchasing procedure.
SOURCE: DS:089
SOURCE: Coyle, J.J., Bardi, E.J., & Langley, C.J. (2003). The management of business logistics:
A supply chain perspective (7th ed.) [pp. 101-102]. Mason, OH: South-Western.
13. A
Some items did not sell. This is a buyer's error, and the vendor cannot be expected to absorb the loss.
Receiving imperfect goods, too many items, and late delivery are all acceptable reasons to return goods
to vendors as these are errors caused by the vendor.
SOURCE: DS:009
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 431].
Woodland Hills, CA: Glencoe/McGraw-Hill.
14. B
Intermediaries. By selling directly to customers, an online business eliminates the use of some
intermediaries such as wholesalers and retailers. The online business has not eliminated security risks
because there is always a chance that hackers can break into the business's database and steal
sensitive information. The online business has not eliminated the need for inventory control because this
function is an important part of keeping track of the products that the online business has on hand, has
on order, and has sold. The Internet has actually increased competition because it has opened up new
opportunities for e-tailers to sell products to people all over the world.
SOURCE: DS:082
SOURCE: Farese, L. S., Kimbrell, G., & Woloszyk, C. A. (2009). Marketing essentials (pp. 450-451).
Woodland Hills, CA: Glencoe/McGraw-Hill.
Test 979
INTERNET MARKETING—KEY
12
15. B
Inadequate pay level. Although the population of the world is increasing, there are reasons why human
resources are limited for certain jobs. An inadequate pay level is one factor that might limit the number of
people available for certain jobs. People do not want to take jobs that pay less than they think is
adequate for the amount or type of labor required. Appealing company image, good safety record, and
organized training programs are factors that attract workers to jobs.
SOURCE: EC:003
SOURCE: Preston, C. (2007, March 27). Burnout, low pay may drive young charity workers away,
survey finds. Retrieved September 17, 2008, from
http://philanthropy.com/free/articles/v19/i11/11003601.htm
16. C
Form. Form utility occurs when the shape or form of a product is altered in order to make it more useful to
the consumer. Marketing indirectly affects form utility through marketing research and planning.
Marketing has a direct effect on other forms of utility. It affects place utility by making products available
where consumers want them. It affects time utility by making products available when consumers want to
buy them. And, it affects possession utility by creating circumstances under which ownership of the
product can be transferred from seller to buyer.
SOURCE: EC:004
SOURCE: EC LAP 13—Use It (Utility)
17. C
Used in their raw form. Since very few materials are actually used in their raw form, society relies on
manufacturers to change the shapes, or forms, of materials so that they will be useful to consumers.
Materials in their raw form such as sand, wheat, or crude oil are of little or no use to the average
consumer. However, when manufacturers turn these materials into glass, cereal, or gasoline, they are
quite useful. Raw materials are available in nature, are needed in modern society, and are produced for
consumption.
SOURCE: EC:070
SOURCE: EC LAP 20—Business Connections (Business and Society)
18. A
Product prices. For example, when demand for a product is greater than supply, the price will rise. If the
price rises too high, the demand will drop. When the supply exceeds the demand, the price will fall.
Government regulation ensures that individuals and businesses follow the rules. Pollution is related to
business practices. Economic choices are the decisions people are free to make, such as what to buy
and what jobs to hold.
SOURCE: EC:009
SOURCE: EC LAP 15—People Power (Private Enterprise)
19. C
Outputs divided by inputs. The formula for calculating productivity is goods and services produced
(outputs) divided by the resources utilized to produce the goods (inputs). Labor is one of several
resources available for use. Goods are only one type of output, and time is only one of several resources.
SOURCE: EC:013
SOURCE: EC LAP 18—Make the Most of it (Productivity)
20. C
$12,825. Marginal revenue is the change in revenue generated by the sale of one additional item. In
some cases, the marginal revenue per item is constant. However, in other situations, the marginal
revenue may increase or decrease with the addition or subtraction of items being sold. In this example,
the marginal revenue per item is constant at $4.75. To calculate total revenue, multiply the number of
items sold by the marginal revenue per item (2,700 x $4.75 = $12,825).
SOURCE: EC:023
SOURCE: Gottheil, F.M. (1999). Principles of economics (2nd ed.) [pp. 203-205]. Cincinnati: SouthWestern College.
Test 979
INTERNET MARKETING—KEY
13
21. D
Price stability. Price stability means that price levels remain fairly constant. When prices are stable, they
do not drastically fluctuate up or down. Price stability is one way to measure the condition of a country's
economy. If prices are stable, the economy is also stable. Large upswings or downswings in prices
indicate that the economy is not stable. Fiscal policy is the government policy that sets levels of
government spending and taxation. Profit margin is a ratio of net profit divided by net sales that reflects
the profit per dollar of sales. Financial cycle is not a factor that measures the condition of a country's
economy.
SOURCE: EC:083
SOURCE: McConnell, C.R., & Brue, S.L. (2005). Economics: Principles, problems, and policies
(16th ed.) [pp. 8-9]. Boston: McGraw-Hill/Irwin.
22. A
Reduced transaction costs. Transaction costs are the total of all costs that a buyer and a seller incur as
they gather information and negotiate a purchase-sale transaction. E-commerce reduces the cost of
searching for information about potential buyers and sellers and increases the number of potential market
participants. Increased hardware and software sales and increased employment opportunities occur as a
result of reduced transaction costs. Reduced delivery time may or may not occur because of ecommerce. E-commerce has impacted delivery time, but it is not the most significant economic impact.
SOURCE: EC:063
SOURCE: Schneider, G.P., Perry, J.T. (2000). Electronic commerce (pp. 19-22). Mason, OH:
Thompson Learning.
23. A
Being open and candid. It is important that company officials be open, honest, and direct with all
inquiries. Refusal to talk with the media hurts an online company's credibility and does nothing to dispel
rumors. An open line of communication must be available to all consumers and media. All questions must
be answered to the best of a company's ability. Withholding information or evading questions inevitably
backfires.
SOURCE: EI:038
SOURCE: Arens, W.F. (1999). Contemporary advertising (7th ed.) [pp. 314-315]. Boston:
Irwin/McGraw-Hill.
24. D
Needs. A need is something required or essential that is lacking. Managers should identify and appeal to
e-business employees' needs when persuading them to perform in a certain way. For example, if a
manager wants to transfer an employee to another location, the manager should identify what need will
persuade the employee to accept the transfer. The need may be basic, such as more money to support
the family, or the need may be to be promoted and recognized as an achiever. Managers are more likely
to successfully persuade employees if they appeal to their needs. Wants are desires that may or may not
be required. Goals are objectives to achieve.
SOURCE: EI:012
SOURCE: Hyden, J.S., Jordan, A.K., Steinauer, M.H., & Jones, M.J. (1999). Communicating for
success (2nd ed.) [pp. 324-325]. Cincinnati: South-Western Educational.
25. A
Everyone agrees with the decision. Consensus building is the group's process of coming to an
agreement. The result is that everyone in the group agrees with the decision. When each member
agrees, s/he is committed to the decision and supports putting the decision into action. This means that
the group can, and wants to, bring about change. Consensus building encourages creativity and
promotes thinking, but these are not reasons why consensus building encourages commitment and
support from all members. Consensus building does not encourage commitment and support because
everyone has equal power.
SOURCE: EI:011
SOURCE: QS LAP 17—All Aboard!
Test 979
INTERNET MARKETING—KEY
14
26. B
To improve performance. Team building involves developing cooperative efforts among employees and
management to accomplish company goals and objectives. One reason why many e-businesses
encourage team building is that it tends to improve the performance of the group so they are better able
to achieve specific objectives. When team members work together for a common purpose, they usually
are more effective and perform better than when employees work independently to achieve a common
goal. Businesses do not encourage team building to obtain feedback, develop training, or understand
diversity.
SOURCE: EI:044
SOURCE: Lussier, R.N. (2003). Management fundamentals: Concepts, applications, skill development
(2nd ed.) [pp. 222-223]. Mason, OH: South-Western.
27. C
Financing. Financing is the business process of funding a business activity or project through debt,
equity, or venture capital. The marketing function relies on the financing process because the funds
obtained through financing is used to make and distribute goods and services. Therefore, obtaining the
necessary capital through financing is essential before any marketing activity can take place. Purchasing
is a business activity that involves planning and implementing procedures to obtain goods and services
for use in the business or for resale. Accounting is the process of keeping financial records. Managing is
the process of coordinating resources in order to accomplish an organization's goals.
SOURCE: FI:001
SOURCE: Gitman, L. J., & Madura, J. (2001). Introduction to finance (pp. 2-3). Boston: Addison
Wesley.
28. B
Adequate inventories. Inventory costs are the monies spent for goods intended for resale. An online
business that buys products for resale must take into consideration the flow of cash needed to purchase
an adequate level of inventory. Without the funds available to purchase an adequate supply of inventory,
an online business would be unable to meet the needs of customers and earn a profit. Online businesses
that actually produce the goods must take into consideration the flow of cash needed to purchase raw
materials, manufacturing tools, and production supplies.
SOURCE: FI:091
SOURCE: FI LAP 6—Count the Cash (Cash Flow)
29. A
$186.60. In order to prepare the invoice, the online business first needs to calculate the extensions. In
this case, the customer purchased three items at $28.50 each, which totaled $85.50 and two items at
$41.75 each, which totaled $83.50 ($28.50 x 3 = $85.50; $41.75 x 2 = $83.50). Then, the business adds
the totals of each extension, plus the shipping charges of $17.60 to determine the total invoice amount
($85.50 + $83.50 + $17.60 = $186.60).
SOURCE: FI:087
SOURCE: Stull, W.A. (1999). Marketing and essential math skills: Teacher's edition (pp. 71-73).
Cincinnati: South-Western Educational.
30. D
Alternatives. Businesses often conduct a cost/benefit analysis when making economic decisions. One
reason to do this is to evaluate the various alternatives before making a decision. For example, a large etailer that is planning to expand would consider the cost of building a new location, renting an existing
facility, sharing space with another business, etc. These are alternatives. E-tailers analyze the cost of
each alternative and the benefit to decide which alternative is the best choice. E-tailers do not conduct a
cost/benefit analysis to evaluate procedures, resources, or specialties.
SOURCE: FI:357
SOURCE: Clayton, G.E. (2005). Economics: Principles & practices (pp. 19-24). New York:
Glencoe/McGraw-Hill.
Test 979
INTERNET MARKETING—KEY
15
31. B
$87,000. When online businesses develop budgets, they usually prepare a capital budget, which allows a
certain amount of money for the purchase of new or replacement equipment. In many cases, the amount
they budget is based on a percentage of profit. In this example, to calculate the amount an online
business can budget for new equipment, first determine the amount of profit by subtracting expenses
from sales ($850,000 - $415,000 = $435,000). Then calculate 20% of profit ($435,000 x 20% or .20 =
$87,000).
SOURCE: FI:099
SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.)
[pp. 396-398]. Cincinnati: South-Western.
32. C
Total assets. Total assets refers to everything of value that a business owns (e.g., equipment, property).
An Internet business determines its debt ratio by dividing the sum of the entire liability (e.g., debt, loan)
by the sum of all assets. Current liability refers to the debt that a business must pay within a year. Net
income refers to the money remaining after operating expenses are subtracted from gross profit. Quick
assets refers to anything of value that a business can sell or use to pay debt quickly (e.g., cash).
SOURCE: FI:097
SOURCE: Cunningham, B.M., Nikolai, L.A., & Bazley, J.D. (2000). Accounting: Information for business
decisions (pp. 209-211, 215). Orlando, FL: Harcourt.
33. C
Web hosting. A business can put up a site on the Web by purchasing, installing, and maintaining its own
server equipment or by paying a web-hosting service a yearly or monthly fee to do it for them. The former
method can cost hundreds of thousands of dollars; whereas, a web host may charge a fraction of that
price. Promotion costs involve the money that is spent trying to attract visitors to web sites; one way they
can be lowered is by using less expensive advertising methods. Human resource costs involve the
money that is spent paying staff members and consultants. Some web sites lower their human resource
costs by contracting with virtual workers who live in geographical areas where salaries tend to be lower.
Web design costs involve all of the things that go into creating a web site. They can be lowered by
creating the web site in-house rather than hiring a design firm.
SOURCE: FI:306
SOURCE: Rayport, J. F., & Jaworski, B. J. (2004). Introduction to e-commerce (2nd ed.) [pp. 363-364].
Boston: McGraw-Hill/Irwin.
34. A
Identify the problem. The first major step in resolving employee complaints is to identify the problem. This
involves demonstrating a helpful, honest attitude; showing a sincere desire to resolve the complaint;
giving the employee a time frame in which to expect action to be taken; avoiding jumping to conclusions;
determining the real cause of the complaint; and keeping personal judgments to a minimum. The other
alternatives occur later in the complaint-handling process.
SOURCE: HR:366
SOURCE: Farese, L. S., Kimbrell, G., & Woloszyk, C. A. (2009). Marketing essentials (p. 248).
Woodland Hills, CA: Glencoe/McGraw-Hill.
35. A
Job applications. One type of personnel record that businesses usually keep on file is the job application.
E-businesses maintain the applications of current employees as well as new applicants who have applied
for advertised positions. Many businesses keep new applications on file for a certain period of time, such
as six months or one year, in order to access those records in the event that another position becomes
available. Then, the business can contact former applicants who are qualified and have expressed an
interest in working for the business. Safety regulations and office newsletters are not personnel records,
although businesses usually keep copies of them. Payroll stubs are attached to employees' paychecks
and are meant to be receipts for the employees.
SOURCE: HR:359
SOURCE: Dessler, G. (2000). Human resource management (8th ed.) [p. 131]. Upper Saddle River,
NJ: Prentice Hall.
Test 979
INTERNET MARKETING—KEY
16
36. C
Productivity. Online businesses need to help employees reach acceptable levels of productivity as
quickly as possible. Orientation helps to dispel most of the anxiety felt by new employees and lets them
know what is expected of them so that they can achieve acceptable levels of productivity quickly. Job
orientations are unrelated to an online business's need for financing and are not given for the purpose of
gaining company recognition or respect.
SOURCE: HR:361
SOURCE: MN LAP 44—Orienting New Employees
37. C
Released. This decision is based on the following formula: poor performance plus poor attitude equals
release. Such an employee is a liability rather than an asset to the e-tailer and would probably not
change to a productive worker if he/she were transferred or retrained. This individual certainly does not
qualify for promotion.
SOURCE: HR:368
SOURCE: Hilgert, R.R., & Leonard, E.C. (2001). Supervision: Concepts and practices of management
(8th ed.) [pp. 426-427]. Cincinnati: South-Western College Publishing.
38. A
To verify accuracy of information. Internet businesses review, or screen, job applications/resumes to
identify the best candidates to interview. Part of the screening process usually involves contacting the
individuals listed as references to verify the accuracy of the information provided. By contacting
references, such as former employers, businesses can find out if applicants did the type of work they said
they did. Businesses do not contact the individuals listed as references to obtain personal data,
determine training needs, or compare job descriptions.
SOURCE: HR:354
SOURCE: Lussier, R.N. (2003). Management fundamentals: Concepts, applications, skill development
(2nd ed.) [p. 241]. Mason, OH: South-Western.
39. B
Lower credibility. If an e-tailer presents marketing data in a deceptive way, the e-tailer is acting
unethically. Reporting incorrect statistics and intentionally ignoring certain variables to reflect a specific
outcome is deceptive. If the dishonest behavior is uncovered, the e-tailer is most likely to lose credibility.
If an e-tailer is deceptive about its marketing research, and it experiences a lower level of credibility, the
e-tailer might find that its customer loyalty levels decrease because the customers view the e-tailer as
dishonest. Depending on the size and reputation of the e-tailer that reports deceptive marketing
information, the e-tailer's visibility in the media may increase for a short time.
SOURCE: IM:025
SOURCE: Shao, A. (2002). Marketing research: An aid to decision making (2nd ed.) [p. 352]. Mason,
OH: South-Western.
40. B
To merge a variety of data into one database. Internet businesses often obtain information about
customers from a variety of sources such as questionnaires, warranty cards, or sweepstakes entries. All
of this information is valuable if the businesses are able to merge it into a database that is easily
accessible. A business's customer database might include information about name, address, types of
recent purchases, dollar amounts spent, general interests, income, brand preferences, etc. Businesses
use the merged database to target specific customers or identify trends in order to remain competitive.
Businesses might purchase software in order to prepare questionnaires or direct-mail pieces that will be
sent to customers, but not to manage marketing information.
SOURCE: IM:183
SOURCE: Etzel, M.J., Walker, B.J., & Stanton, W.J. (2007). Marketing (14th ed.) [pp. 174-176]. Boston:
McGraw-Hill/Irwin.
Test 979
INTERNET MARKETING—KEY
17
41. B
Secondary sources. Secondary sources often provide sufficient information for Internet-based
businesses that are analyzing various marketing factors or trends. Once an Internet-based business
decides what type of information it needs, it might look to government agencies, trade associations, or
internal sources to obtain the data. Many organizations collect specific types of data that are useful to
Internet-based businesses. This information also is less expensive for Internet-based businesses to
obtain because it already exists and often is available free or for a minimum cost. If the needed
information is not already available, an Internet-based business might need to conduct primary research.
Local competitors usually are not willing to share marketing information. Surveying the opinions of
executives is a form of primary research.
SOURCE: IM:182
SOURCE: Zikmund, W.G., & d'Amico, M. (1999). Marketing (6th ed.) [pp. 139-140]. Cincinnati: SouthWestern College.
42. A
Secondary data are less expensive to collect than primary data. Secondary data are facts that have been
collected for purposes other than the purpose at hand. They are quicker, easier, and less expensive to
collect than primary data. Examples of secondary data include industry reports, government census
figures, and trade association surveys. This information is readily available to competitors. A drawback of
secondary data is they are less likely to be up-to-date and relevant than primary data.
SOURCE: IM:010
SOURCE: Etzel, M.J., Walker, B.J., & Stanton, W.J. (2007). Marketing (14th ed.) [pp. 180-182]. Boston:
McGraw-Hill/Irwin.
43. B
Complaint. Online businesses monitor different information so they can make sound marketing decisions.
Complaint reports summarize the problems that customers report to the online business about its service,
personnel, products, etc. By reviewing customer complaint reports, the online business can determine if a
lot of customers report the same type of complaint over a certain period. If the online business
recognizes that it has an ongoing problem, it can take steps to fix it, which can improve customersatisfaction levels. Statistical, inventory, and financial reports are helpful to online businesses in making
some types of marketing decisions; however, the reports do not indicate specific reasons for the
customers' dissatisfaction.
SOURCE: IM:184
SOURCE: Educational Institute of the American Hotel & Motel Association. (1999). Lodging
management program: Year one (pp. 84-88). Lansing, MI: Author.
44. A
Obtaining information from children. Some Internet sites are designed specifically to attract children.
Privacy becomes an issue if these sites try to obtain personal information without the permission of the
children's parents. Children are more likely to provide information online than adults because many
children are unaware of the dangers involved. Consequently, ethical Internet sites obtain permission
before asking children for information. Posting questionnaires online is not a privacy issue because
visitors may choose not to answer the questions. Internet sites can identify target audiences without
violating their privacy. Internet businesses need customers' mailing addresses in order to ship the items
they purchase.
SOURCE: IM:228
SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an
e-commerce world (7th ed.) [p. 136]. Mason, OH: South-Western.
45. B
Promoting. Promoting is a marketing activity, along with planning, pricing, and distributing. Leading could
be a person's customary inclination. Balancing could be used during pricing to weigh the customer's view
of value with the firm's objectives. Committing could describe what a company should do to make sure
that everyone is part of marketing, from the top down.
SOURCE: MK:001
SOURCE: BA LAP 11—Have It Your Way
Test 979
INTERNET MARKETING—KEY
18
46. A
Planning how much to buy. Merchandising is the process of having the right goods in the right place at
the right time in order to make a profit. Planning how much to buy is an important merchandising activity
because it involves controlling the level of inventory in order to have enough goods in stock to meet
customer demand without purchasing more than will sell. Buying too much or too little will have a
negative impact on a business's profits. Designing visual displays, deciding what to advertise, and
organizing special events are promotional activities.
SOURCE: MK:009
SOURCE: Farese, L. S., Kimbrell, G., & Woloszyk, C. A. (2009). Marketing essentials (p. 485).
Woodland Hills, CA: Glencoe/McGraw-Hill.
47. A
Marketing mix. The marketing mix is the combination of the four elements of marketing—product, place,
promotion, and price. The elements of the marketing mix are interrelated, and they depend on each
other. A change in one element, therefore, will need to be coordinated with a change in the other
elements. A master plan is an organized list of all the activities an individual plans to accomplish in a
given amount of time on a specific day. A strategic goal is a long-range objective. A sales policy is a
general rule established by management to guide the personal selling effort and outline sales
procedures.
SOURCE: MP:001
SOURCE: IM LAP 7—Pick the Mix
48. B
Geographic. Geographic segmentation is the division of a market on the basis of where consumers are
located. It is one of the oldest methods of market segmentation. Behavioral segmentation is the division
of a market on the basis of consumers' responses to a product. Psychographic segmentation is the
division of a market on the basis of consumers' lifestyles and personalities. Demographic segmentation is
the division of a market on the basis of characteristics people have in common that affect their
purchasing power.
SOURCE: MP:003
SOURCE: IM LAP 9—Have We Met? (Market Identification)
49. C
Marketing-planning process. Marketing planning is the process of determining ways to attract the target
customer to the business. Before a business can execute marketing plans, it must understand its current
situation, which is done by conducting and analyzing a SWOT analysis. The SWOT analysis is a
marketing tool that investigates the business's strengths, weaknesses, opportunities, and threats in an
organized fashion. Employee training, task delegation, and promotional evaluations may be strengths or
weaknesses that the company considers during the SWOT analysis.
SOURCE: MP:006
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 26-27, 34).
New York: Glencoe/McGraw-Hill.
50. A
Situation analysis. This is a determination of a firm's current business situation and the direction in which
the business is headed. It is a summary of the internal factors that affect the business's strengths and
weaknesses, as well as external factors that affect opportunities and threats. Management chart, publicity
format, and occupational scan are not components of a marketing plan.
SOURCE: MP:007
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 33-35). New
York: Glencoe/McGraw-Hill.
Test 979
INTERNET MARKETING—KEY
19
51. C
Market potential. There are several factors that Internet businesses consider when conducting a market
analysis. One factor is market potential, which is the total possible demand for a product during a certain
period of time. Market potential indicates the best-case scenario for sales of a certain product throughout
the market. For example, if 100 consumers want a product, the total demand for that product is 100. If
several businesses sell that product, they will share the market and no one business will sell to all 100
consumers. Businesses need to determine the market potential because they need to decide if the
demand is large enough to generate a profit for all the businesses that sell a certain product. The total
possible demand for a product is not known as the sales growth or the supply factor. The target market is
the particular group of customers a business seeks to attract.
SOURCE: MP:009
SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an
e-commerce world (7th ed.) [p. 144]. Mason, OH: South-Western.
52. C
To determine ways to compete. Online businesses need to analyze the competition on a regular basis in
order to understand their competitors and to develop ways to effectively compete in the marketplace. The
competitive environment changes constantly. Therefore, online businesses must keep up to date with
what their competitors are doing in order to remain successful. Online businesses do not analyze the
competition in order to eliminate competitors, understand laws regulating competition, or compete on an
ethical basis.
SOURCE: MP:012
SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [pp. 66-67]. Mason,
OH: Thomson/South-Western.
53. B
Industry experts. Qualitative methods of forecasting sales are based on expert opinion. An Internet-based
business may prepare its sales forecast by asking the opinions of experienced sales representatives,
marketing consultants, distributors, or executives. These individuals are informed about current market
and industry trends and the activities of competitors. Quantitative methods of forecasting sales use
customer surveys, market research, and economic trends as sources of information.
SOURCE: MP:013
SOURCE: Etzel, M.J., Walker, B.J., & Stanton, W.J. (2007). Marketing (14th ed.) [pp. 160-164]. Boston:
McGraw-Hill/Irwin.
54. B
$375,000. The objectives in a marketing plan are intended to lead to sales and an increase in revenue.
When preparing its marketing plan, an e-tailer develops specific objectives to follow that should be clear
and measurable, such as increasing sales by 15%. If an e-tailer increases sales by 15%, it will probably
increase revenue also. To determine the amount of increase in this example, first determine the current
level of sales by multiplying the amount each customer spends by the number of customers ($10,000 x
250 = $2,500,000). Then, multiply current sales by the projected increase ($2,500,000 x 15% or .15 =
$375,000). Therefore, if the e-tailer achieves the objective in its marketing plan, it will increase sales by
$375,000.
SOURCE: MP:018
SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [pp. 41-42]. Mason,
OH: Thomson/South-Western.
Test 979
INTERNET MARKETING—KEY
20
55. C
Performance. The ultimate goal of the marketing audit is to identify problems, and to determine which
techniques are working effectively for the e-tailer. Once the e-tailer reviews the audit, it can make
adjustments to improve the e-tailer's marketing performance. The purpose of marketing is to get goods
and services from producers to consumers. A marketing audit indicates whether an e-tailer is performing
as expected and fulfilling its purpose. Marketing research is the systematic gathering, recording, and
analyzing of data about a specific issue, situation, or concern. Marketing information is all the marketingrelated data available from inside and outside the business. Marketing mix is the combination of the four
elements of marketing.
SOURCE: MP:024
SOURCE: Kotler, P. (2000). Marketing management (10th ed.) [pp. 708-711]. Upper Saddle River, NJ:
Prentice Hall.
56. A
Audio conferencing. Audio conferencing is a communication method that allows several individuals to
simultaneously hold a discussion by telephone. Although each person is in a different location, each
person can speak and hear all of the conference participants. Voice mail and facsimile machines are not
business tools that allow several people to communicate simultaneously. Typing a text message on the
computer or on a cell phone can take time, so it is not as efficient as holding an audio conference.
SOURCE: NF:011
SOURCE: Net Access. (n.d.). Groupware (intranet). Retrieved September 17, 2008, from
http://www.netxs.com.pk/intranet/groupware.html
57. B
Efficient. The Internet enables computer users to access information and allows them to communicate
with others. Because Internet communication is fast, interactive, available all of the time, and allows
users to contact many people at one time (e.g., e-mail), worldwide communication is more efficient than
ever before. The Internet does not make communication passive, predictable, or trustworthy.
SOURCE: NF:025
SOURCE: Hanson, W. (2000). Principles of Internet marketing (pp. 4-5). Cincinnati: South-Western
College.
58. C
Desktop publishing. Desktop publishing programs allow Internet-based businesses to create a variety of
attractive, printed promotional materials that contain both graphics and text. The Internet-based
business's employees can use the programs to design brochures, newsletters, and other documents that
include both graphics and text. Word processing programs are used mainly to create text documents.
Presentation software is used to develop multimedia presentations. Web page editors are software
programs that allow Internet-based businesses to create web pages.
SOURCE: NF:043
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 199-203). New
York: Glencoe/McGraw-Hill.
59. A
Know the proper way to respond. Businesses should have established guidelines for employees to follow
if accidents occur. And, employees should learn their employer's procedures for handling accidents so
they can respond appropriately if an accident occurs. Not all employees are expected to have formal
medical training. The Good Samaritan Law is in effect in most states to protect individuals from liability
when they administer accepted first-aid techniques. Employees need to know whether they are covered
by such a law. Understanding the accident report form is only part of the procedure.
SOURCE: OP:009
SOURCE: Spears, M.C., & Gregoire, M.B. (2004). Foodservice organizations: A managerial and
systems approach (5th ed.) [pp. 320-323]. Upper Saddle River, NJ: Prentice Hall.
Test 979
INTERNET MARKETING—KEY
21
60. D
Purchasing. Purchasing is the planning and procedures necessary to obtain goods and services for use
in the business or for resale. Purchasing plays an important role in the smooth operation and success of
an Internet-based business by providing an uninterrupted flow of goods or materials. Effective purchasing
guarantees that the goods or materials a business needs to operate are delivered when required.
Warehousing is placing goods in safe locations until they are needed, but the goods must be purchased
before they can be warehoused. Businesses often purchase materials in order to produce goods and
services. Purchasing is one of several important marketing functions.
SOURCE: OP:015
SOURCE: OP LAP 2—Buy Right (Nature of Purchasing)
61. D
All employees. A quality culture cannot exist in an Internet business unless all employees are involved.
Although some employees are more directly involved, everyone must participate. For example,
management must provide the guidance and direction, as well as the tools necessary, for employees to
do quality work. The production staff must do their best to produce a quality product, and salespeople
must provide quality service to customers. Support personnel, such as accounting clerks and delivery
people, also must be committed to doing a quality job. Everyone must do their part and work together to
develop a quality culture.
SOURCE: OP:019
SOURCE: Gibson, J.L., Ivancevich, J.M., Donnelly, J.H., & Konopaske, R. (2003). Organizations:
Behavior, structure, processes (11th ed.) [p. 102]. Boston: Irwin/McGraw-Hill.
62. D
True, there are many ways that employees can help to control business expenses. Management is
responsible for controlling many of an online business's expenses and for encouraging employees to
control expenses. However, employees play an important role in expense control for most online
businesses. Some of the ways employees can help control expenses are by not wasting supplies, turning
off equipment when not in use, being on time for work and not wasting time, and not taking company
supplies home.
SOURCE: OP:025
SOURCE: MN LAP 56—Employee Role in Expense Control
63. A
$600. Many online bookstores control expenses by hiring part-time employees at an hourly rate rather
than salaried full-time employees. The advantage to the bookstore is the same number of employees
working during a given time period, but for less wages. To calculate the savings in this situation, first
determine the payroll expense for the full-time employee by multiplying the weekly salary by four weeks
($650 x 4 = $2,600). Then, determine the payroll expense for one part-time employee by multiplying the
number of hours worked each day by five days to find the number of hours worked each week (4 x 5 =
20). Then, multiply that number by the hourly rate to determine the weekly pay ($12.50 x 20 = $250).
Multiply the weekly pay by four weeks ($250 x 4 = $1,000) and the four-week total by the two part-time
employees ($1,000 x 2 = $2,000). Determine the savings by subtracting the part-time payroll from the
full-time payroll ($2,600 - $2,000 = $600).
SOURCE: OP:029
SOURCE: BizMove.com. (n.d.). How to reduce costs. Retrieved September 17, 2008, from
http://www.bizmove.com/finance/m3k.htm
64. A
Protect their investment. A click and brick business usually has a considerable amount of money tied up
in whatever kind of equipment is needed to operate the business. The business can protect this
investment by maintaining the equipment so that it will last as long as possible. Misuse of equipment can
be prevented by instructing employees in proper handling of the equipment. Construction codes are laws
that apply to building a structure. Not all businesses need to pass health inspections.
SOURCE: OP:032
SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)
[pp. 318-319]. Upper Saddle River, NJ: Prentice Hall.
Test 979
INTERNET MARKETING—KEY
22
65. C
To ensure privacy. Encryption technology makes it possible to scramble data so only authorized people
can read it. Online businesses use data encryption to ensure privacy so unauthorized people are not able
to obtain the information. Online businesses often encrypt sensitive data, such as a customer's creditcard number, to protect the customer's privacy and prevent theft. Businesses do not use data encryption
to destroy a virus, update software, or monitor e-mail.
SOURCE: OP:061
SOURCE: Tiernan, B. (2000). e-tailing (pp. 197-199). Chicago: Dearborn Financial.
66. C
Opened up the door to new suppliers. Purchasing managers can go online and search using key words
related to the supplies they are interested in, and a list of suppliers will appear. These suppliers are not
limited to the United States, and often there are hundreds of them from which to choose. If anything, the
Internet has caused the cost for supplies to decrease because competition drives down prices.
Purchasing managers can easily compare what suppliers have to offer by accessing their web sites. The
Internet has actually made the ordering process easier because purchasing managers can look through
an online catalog, submit an order, and have the product shipped immediately.
SOURCE: OP:116
SOURCE: Boone, L.E., & Kurtz, D.L. (2002). Contemporary marketing (p. 144). Mason, OH: SouthWestern.
67. A
Help to focus your attention on important activities. When an individual writes down objectives, s/he is
forced to think about what needs to be accomplished but not necessarily to prioritize those tasks. Writing
objectives down will not necessarily identify time wasters or standardize tasks.
SOURCE: PD:019
SOURCE: OP LAP 1—About Time (Time Management in Business)
68. A
Career information. Many businesses and professional organizations maintain web sites that often
contain valuable career information. These sites may explain the types of jobs available in certain
businesses, the necessary qualifications, and the pay ranges. The sites of professional organizations
might also provide information about employment trends, such as which occupations are in demand.
Accessing these web sites is not a way to obtain work experience or interview appointments. The web
sites of businesses might include downloadable job applications, but the web sites of professional
organizations would not.
SOURCE: PD:022
SOURCE: Bailey, L.J. (2003). Working: Career success for the 21st century (3rd ed.) [p. 198]. Mason,
OH: South-Western.
69. D
Yes, the résumé can state that references will be provided upon request. This statement is often made at
the end of the résumé where the references would customarily be listed. It indicates that the job applicant
has references available and that s/he will provide their names, telephone numbers, and addresses if
asked to do so. This is an acceptable business practice since the employer does not need the names
unless s/he is considering hiring the applicant. A résumé is complete if it contains all other necessary
information and either a list of references or the promise of them.
SOURCE: PD:031
SOURCE: Kimbrell, G., & Vineyard, B.S. (2006). Succeeding in the world of work (pp. 121, 135). New
York: Glencoe/McGraw-Hill.
Test 979
INTERNET MARKETING—KEY
23
70. A
Socially responsible. Social responsibility is the duty of business to contribute to the well-being of society.
Online businesses are being socially responsible if they refuse to take advantage of unfortunate
situations, such as damage caused by natural disasters, by raising the prices of goods and services that
people need in order to rebuild. Online businesses that focus on contributing to society usually build
goodwill within the community and develop long-term relationships that are far more profitable than the
quick money they earn by raising prices during a disaster. Therefore, refusing to raise prices is not
economically unsound because the online business will profit in the future from its responsible actions.
Refusing to raise prices during a natural disaster is not a political or legal issue.
SOURCE: PI:015
SOURCE: Farese, L. S., Kimbrell, G., & Woloszyk, C. A. (2009). Marketing essentials (pp. 139-140).
Woodland Hills, CA: Glencoe/McGraw-Hill.
71. A
Market share serves as a measure of the success of the business. Many online businesses feel that the
size of their share of the market is so important that they set specific goals for obtaining or increasing
market share. Most consumers are unaware of or uninterested in a firm's share of the market. Having a
large share of the market may lead to large profits, but there is no guarantee that this will happen. It is not
necessary for market share to increase constantly in order for the online business to be successful.
Some online businesses simply try to maintain their share of the market by keeping their prices at a
stable level.
SOURCE: PI:002
SOURCE: Etzel, M.J., Walker, B.J., & Stanton, W.J. (2007). Marketing (14th ed.) [pp. 325-330]. Boston:
McGraw-Hill/Irwin.
72. A
Venture teams. A venture team is a small group composed of representatives from different areas of the
company for the purpose of seeking new ventures, or opportunities, for the business. Venture teams
often are made up of personnel from such departments as engineering, production, finance, and market
research. Their goal is usually to enter a new market in a profitable manner. Groups such as research
crews, financial panels, and survey compilers may be a part of a venture team, but they would not be the
only members.
SOURCE: PM:001
SOURCE: Global Entrepreneurship Institute (2007, November 25). How will you manage your venture
team? Retrieved September 17, 2008, from http://blog.gcase.org/archives/191
73. D
Web address. Online businesses often include their web address on product labels to make it easy for
customers to access additional product information. This is an example of ethical behavior because the
online business is making sure that customers can find the information they want if they have questions
about the product. The expiration date and recommended use are included on the labels of certain types
of products, but this does not make it easy for customers to contact the online business. Labels include
the company name, but without an address or phone number on the label, it may be extremely difficult for
customers to contact the business.
SOURCE: PM:040
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)
[pp. 578-579]. Woodland Hills, CA: Glencoe/McGraw-Hill.
74. C
Feasible. A step in the product development process includes determining the feasibility of the product
idea—a business must determine if the idea is worth pursuing. Several factors influence an idea's
feasibility—human resources, raw materials, costs, and possible product demand. It would not be
feasible to produce a good or service if a market is not willing to buy it. If a market exists that is willing to
buy the product, it might be practical to continue the development process, regardless of its cost or
production challenges.
SOURCE: PM:129
SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (pp. 279-281). Tinley Park,
IL: Goodheart-Willcox.
Test 979
INTERNET MARKETING—KEY
24
75. C
Guarantee. A guarantee is a promise made by the seller to the consumer that the seller will refund the
consumer's purchase price if the product does not perform as expected. These are sometimes referred to
as money-back guarantees. A warranty is a promise made by the seller to the consumer that the seller
will repair or replace a product that does not perform as expected. Product liability is the producer's
responsibility for any injury that the business's products may cause. Product analysis is preparing a list of
the product's features to use in a sales presentation.
SOURCE: PM:020
SOURCE: Farese, L. S., Kimbrell, G., & Woloszyk, C. A. (2009). Marketing essentials (pp. 674-677).
Woodland Hills, CA: Glencoe/McGraw-Hill.
76. B
Federal Trade Commission (FTC). One of the major goals of the FTC is to protect consumers by helping
them make good buying decisions. The FTC enforces laws regulating a number of different areas of
consumer protection including: advertising activities, sales and credit practices, marketing practices, and
warranty practices. The FDA is the federal regulatory agency established to enforce laws that protect
consumers' health. The National Highway Traffic Safety Administration is the federal agency created to
administer laws that regulate the safety of both new and used tires and motor vehicles. The Consumer
Product Safety Commission is the federal agency that has the bulk of the responsibility for product safety,
including: setting safety standards for products, requiring producers to test their products, requiring
producers to provide warnings and instructions, requiring producers to correct product problems, recalling
or banning unsafe products, educating the public about hazardous products, and bringing criminal
charges against businesses.
SOURCE: PM:017
SOURCE: Farese, L. S., Kimbrell, G., & Woloszyk, C. A. (2009). Marketing essentials (pp. 126-130).
Woodland Hills, CA: Glencoe/McGraw-Hill.
77. A
Fill customers' needs. Before developing new products or revising existing products, Internet-based
businesses consider what customers want those products to do for them. Internet-based businesses
need to understand what customers want before they can offer products that will fill customers' needs.
Some people want products to provide them with a special feeling or to make them feel pampered. As a
result, they are usually willing to pay more for products that fill those needs. Customers will not buy
products that do not fill their needs even if those products sell for low prices, are available on demand, or
can be purchased on credit.
SOURCE: PM:130
SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [p. 240]. Mason, OH:
Thomson/South-Western.
78. C
Add or delete a product from a product line. Adding similar products to product lines or removing less
profitable ones tend to increase growth and profit for a business. It is an important consideration in
selecting product-mix strategies. Marketing strategies include deciding where a product is to be sold.
Downward- and upward-stretch strategies are considerations when adding to a product line. Product life
cycle is a tool to analyze product standings in the target market and can be used in determining whether
to delete a product from the product line.
SOURCE: PM:006
SOURCE: Bearden, W.O., Ingram. T.N., & LaForge, R.W. (2001). Marketing: Principles and
perspectives (3rd ed.) [pp. 230-233]. Boston: Irwin.
Test 979
INTERNET MARKETING—KEY
25
79. A
Customer defection. When customers are dissatisfied with a brick-and-click business's goods and
services, they often go to the business's competitors to purchase products—this is called customer
defection. Businesses often have busy seasons and need to increase staffing to accommodate the
customers' service needs. For example, retailers often hire temporary help to work through the
December holiday season because demand for gift items is high. When a business does not plan to
accommodate demand increases, customers often become frustrated because they must wait to obtain
products. And, because the customers' needs are not being met, they go to another business that can
provide the products when the customers want them. An economic slowdown does not occur when one
business fails to plan for demand increases. Failing to plan services to accommodate demand increases
often results in more competition for the business and lower market share if customers go to the
competition to have their needs met.
SOURCE: PM:036
SOURCE: Hoffman, K., & Bateson, J. (2002). Essentials of services marketing: Concepts, strategies,
& cases (2nd ed.) [p. 56]. Orlando, FL: Harcourt.
80. A
Updating stock quotes regularly. The time needed for web-site maintenance depends upon what needs
to be done. Extensive tasks, such as regularly updating stock quotes on an hourly basis, are very time
consuming. On the other hand, smaller tasks, such as advertising a sale, correcting misspelled words, or
occasionally adding new content take very little time.
SOURCE: PM:113
SOURCE: PM LAP 9—WWW Site Maintenance
81. D
Quality. Quality is a product's degree of excellence. A luxury car, a five-star hotel, and designer clothing
are often associated with a high degree of excellence. Product durability and price are also factors that
people associate with quality. Competition, market, and skill do not always indicate a product's degree of
excellence.
SOURCE: PM:042
SOURCE: Etzel, M.J., Walker, B.J., & Stanton, W.J. (2007). Marketing (14th ed.) [pp. 235-236]. Boston:
McGraw-Hill/Irwin.
82. C
Easily pronounced. A good brand name should also be short, easy to spell, distinctive, adaptable, easily
recognized, timely, and versatile. Selling well-known brand names is a good way to get repeat business.
SOURCE: PM:126
SOURCE: PM LAP 10—Building Your Business's Brand
83. B
$10,000. In the stock/sales ratio method of planning stock, the beginning of the month stock needed to
support sales for the month is calculated by multiplying anticipated sales by the stock figure in the ratio.
In this instance, with a ratio of 2:1, the amount of stock needed is twice as much as anticipated sales (2 x
$5,000 = $10,000).
SOURCE: PM:062
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 486-487). New
York: Glencoe/McGraw-Hill.
Test 979
INTERNET MARKETING—KEY
26
84. D
The authenticity of respondents is often in question. While this is a problem with any survey that
participants administer themselves, it seems to be of particular concern on the Internet. Many web users
construct fictitious identities online: Research indicates that anywhere from 20 to 50 percent have posed
as the opposite sex, and children are known to pose as adults. This is not an easy situation to correct
and obviously biases survey results. Online surveys are not expensive; in fact, one of their biggest
advantages is that they are inexpensive. Likewise, the online-survey process is not long and complex; it
is often quick and relatively simple. Lastly, electronic data are relatively easy to tabulate, adding yet
another item to the list of online survey advantages.
SOURCE: PM:119
SOURCE: Tiernan, B. (2000). e-tailing (pp. 96-99). Chicago: Dearborn Financial.
85. C
Creates jobs. Promotion benefits society and the economy by providing many job opportunities. Today,
millions of people are employed in the field of promotion. Promotion also increases demand for a product,
which results in an increase in production. The need for mass production creates additional jobs, which
also benefits society and the economy. Increasing prices, building inventory, and adding value are not
ways that promotion benefits society and the economy.
SOURCE: PR:001
SOURCE: PR LAP 2—Promotion
86. C
Provide a higher standard of living. The benefits of a promotional activity for consumers is a higher
standard of living, which makes consumers aware of the goods and services available to meet their
needs. The creation of jobs and economic growth are promotional benefits to society. The increase in the
number of products available is a promotional benefit to the companies that offer the products.
SOURCE: PR:002
SOURCE: PR LAP 4—Know Your Options (Types of Promotion)
87. A
A premium. Premiums, such as coupons, trading stamps, and free gifts, are incentives used in sales
promotion to increase purchases. Sales promotion is promotional activities other than advertising,
personal selling, and publicity that stimulate customer purchases. Publicity is any nonpersonal
presentation of ideas, goods, or services that is not paid for by the company or individual that receives it.
A rebate is a return of part of the price a customer pays for a product, usually offered by the manufacturer
of the product. Public-relations promotions are created to deal with controversial issues that are in the
public's interest but also somehow related to the company or its products.
SOURCE: PR:003
SOURCE: PR LAP 1—Promotional Mix
88. C
Governmental restrictions in regard to promotional activities vary by country. Because each government
is structured differently, regulation varies from country to country. Consumer advocate groups are
organizations that work to influence industry and government policies on behalf of the consumer.
Consumer advocate groups often influence government regulation and policies. Because laws vary by
country, it would be difficult to develop and fully enforce international laws regarding unfair advertising
practices. The ability to sue a company is dependent on the individual country's laws and policies. Many
promotional activities are subject to regulation including media venues (television, radio, print);
telemarketing; contests; and sweepstakes.
SOURCE: PR:101
SOURCE: Wells, W., Burnett, J., & Moriarty, S. (2003). Advertising principles and practice (6th ed.)
[pp. 191-193]. Upper Saddle River, NJ: Prentice Hall.
Test 979
INTERNET MARKETING—KEY
27
89. C
Production. The development or production of the direct advertising campaign might include the layout
and printing costs of a brochure or catalog. Production needs are often outsourced to other companies
and can be very expensive. Therefore, production costs are primary considerations when developing a
direct advertising campaign. Inventory refers to the product that a company has available in stock.
Research is the act of collecting information. Although research may cost a company money in terms of
locating vendors (e.g., printers), this is not usually as costly as production. Therefore, research is not a
primary cost. Follow-up is the determination of a customer's satisfaction with a good or service after a
sales presentation regardless of whether or not a sale was made.
SOURCE: PR:089
SOURCE: Arens, W.F. (1999). Contemporary advertising (7th ed.) [p. 529]. Boston: Irwin/McGraw-Hill.
90. D
Consistent. An online sales campaign might use many types of tools to promote and sell products. Some
tools might include shopping cart content, opt-in e-mail, and coupons. Each message should
communicate the same information (e.g., price, sale dates) in order to be consistent. Online sales
campaigns can be original or creative, but they should not be vague or unstructured.
SOURCE: PR:221
SOURCE: Tiernan, B. (2000). e-tailing (p. 125). Chicago: Dearborn Financial Publishing, Inc.
91. A
Promotion. Brand-new web sites should spend more money on promotion to make individuals aware of
their existence. Some experts recommend that amount be as much as 50% of gross revenues during the
initial year. This figure isn't so bad when you consider that a web site won't do any good if no one knows
where to find it. Brand-new web sites spend money on human resources, site maintenance, and Internet
connections, but these costs do not make individuals aware of the site's existence.
SOURCE: PR:103
SOURCE: PR LAP 15—Planning Your Web Site
92. A
To appeal to different customers. Sales promotion is promotional activities other than advertising,
personal selling, and publicity that stimulate customer purchases. Online businesses know that different
sales-promotion techniques appeal to different customers. For example, some customers are attracted to
sales promotions that offer discounts while other customers are attracted to contests or offers of free
shipping. By using a variety of sales-promotion techniques, online businesses have a better chance of
appealing to many different customers. Advertising and public relations are not sales-promotion
techniques. Sales-promotion techniques are used to attract customers rather than to follow up sales.
SOURCE: PR:169
SOURCE: Tiernan, B. (2000). e-tailing (pp. 118-119). Chicago: Dearborn Financial.
93. C
Policies. Business policies are statements outlining practices the online business follows, such as
warranties and maintenance contracts. By establishing desirable business policies and services, the
company provides an environment which helps to build a loyal clientele. These policies make an
important contribution to the creation of goodwill and the cultivation of client loyalty. A slogan is a phrase
that is easy to remember. A budget is an estimate of what income and expenses will be for a specific
period of time. Objectives are goals the business wants to achieve.
SOURCE: SE:828
SOURCE: SE LAP 115—Keep Them Loyal
Test 979
INTERNET MARKETING—KEY
28
94. B
Behaving ethically. Ethics are the basic principles that govern a salesperson's behavior. Web-site design
salespeople who are ethical treat customers fairly, present their goods and services truthfully, and
provide as much information as possible. Ethical salespeople usually are able to gain the trust and
confidence of their customers because the customers feel that the salespeople are being honest with
them. As a result of their ethical behavior, salespeople often are able to develop long-term relationships
with customers. Entertaining lavishly, lowering prices, and making promises they cannot keep are not
ways of gaining a customer's trust and confidence.
SOURCE: SE:106
SOURCE: SE LAP 129—Keep It Real—In Sales (Ethics in Sales)
95. A
"Portable CD players allow you to listen to music anywhere." Obvious, or apparent, benefits are
advantages that need little explanation by the salesperson. The customer already knows, or can easily
recognize, the benefit. An example is a portable CD player that customers can take with them anywhere
they go. Because it is portable, customers know that they can listen to music wherever they might be.
Graphite golf clubs increasing distance and radial tires giving better gas mileage are examples of hidden
benefits, or advantages, that cannot be seen or understood without the assistance of a salesperson. A
unique or exclusive benefit is a watch that is the only one that recharges automatically.
SOURCE: SE:109
SOURCE: SE LAP 113—Find Features, Boost Benefits (Feature-Benefit Selling)
96. D
Frequently asked questions (FAQs). Online marketers have tried several different approaches to
providing support to their customers. For questions that have uncomplicated and straightforward
answers, providing a list of frequently asked questions, or FAQs, has proven effective. Online marketers
now routinely use these to address their customers' most basic concerns. Online marketers are finding
that various forms of self-help often are not effective because online shoppers demand speed and
convenience in all aspects of their online activity. E-mail messages can be effective, but only when an
instant response is not required. Online communities facilitate the exchange of information among
consumers, and are popular, but usually involve more complex discussions.
SOURCE: SE:303
SOURCE: Tiernan, B. (2000). e-tailing (pp. 176-177). Chicago: Dearborn Financial.
97. D
Checking on delivery. Reaffirming the buyer-seller relationship is the final phase of the selling process in
which the salesperson uses follow-up to reassure customers that they have made a good buying
decision. Other activities that may be included in this phase are using suggestion selling, answering any
lingering questions, explaining the sales contract fully, supervising installation or adjustment of the
product, training the customer's personnel, and calling the customer to ensure his/her satisfaction.
Discovering client needs, prescribing solutions to those needs, and reaching closure are earlier steps in
the selling process.
SOURCE: SE:048
SOURCE: Farese, L. S., Kimbrell, G., & Woloszyk, C. A. (2009). Marketing essentials (pp. 323-326).
Woodland Hills, CA: Glencoe/McGraw-Hill.
98. B
Making it easy to locate the correct product. Effective online sales strategies are similar to traditional
sales strategies. An effective strategy for both is to make it easy for customers to locate the correct
product. This often occurs online by asking the customer to answer a few specific questions that lead to
the correct product. This is much more effective than forcing the customer to click through a long list of
goods and services. Effective sales strategies also include answering objections and questions, and
developing a simple closing page.
SOURCE: SE:346
SOURCE: Tiernan, B. (2000). e-tailing (p. 94). Chicago: Dearborn Financial.
Test 979
INTERNET MARKETING—KEY
29
99. B
Size of the business. There are different levels of management in almost all e-businesses. The number of
levels the e-business needs usually depends on the size of the e-business. A large, national e-business
would have managers at all levels, while a small, family-owned e-business might have only one level of
management. The number of levels of management does not depend on the age of the employees, the
goals of the company, or the location of the facility.
SOURCE: SM:001
SOURCE: BA LAP 6—Manage This!
100. C
96%. Online businesses analyze their operating results in relation to budget estimates in order to
determine how well they are doing compared to projections. Comparing actual sales to projected sales is
important because it indicates if an online business will earn the desired amount of profit. In order to
determine the relationship between actual and projected sales, divide actual sales by projected sales
($88,500 ÷ $92,000 = .961 or .96). Convert that figure to a percentage by multiplying by 100 (.96 x 100 =
96%). In this example, actual monthly sales are 96% of budgeted sales. The online business might use
this information to make changes in order to increase sales to reach the budgeted level.
SOURCE: SM:005
SOURCE: Louderback, J.G., & Holmen, J.S. (2003). Managerial accounting (10th ed.) [p. 420]. Mason,
OH: South-Western.