This Document Contains Chapters 3 to 4 Chapter 03: Selling on the Web 1. All electronic commerce initiatives have the goal of providing revenue. a. True b. False Answer: False 2. Companies can adapt their catalog revenue model online by replacing or supplementing their print catalogs with information on their Web sites. a. True b. False Answer: True 3. A disadvantage of the Web catalog revenue model is that the products sold in physical stores cannot be sold on the Web. a. True b. False Answer: False 4. Web catalog retailers typically refrain from having return policies on unused merchandise. a. True b. False Answer: False 5. Companies using a digital content revenue model sell rights to access the information they own. a. True b. False Answer: True 6. The Web provides a way for technical content developers to reach retail customers. a. True b. False Answer: True 7. The advertising-supported revenue model is the one used by broadcast network television in the United States. a. True b. False Answer: True 8. Most successful advertising on the Web is targeted at specific groups. a. True b. False Answer: True 9. People spend less time at a sticky Web site and are thus, exposed to very little advertising. a. True b. False Answer: False 10. There has been little consensus on how to measure and charge for site visitor views, even after almost 20 years of experience with the medium. a. True b. False Answer: True 11. Advertisers pay less to have their ad appear near a discussion of a technology related to their product or on a page that reviews the product. a. True b. False Answer: False 12. Publishers do not experience sales losses as a result of online distribution. a. True b. False Answer: False 13. Web companies with unprofitable growth phases for long durations retained their revenue models to grow successfully. a. True b. False Answer: False 14. Many classified advertising sites generate substantial revenue, replacing newspapers’ historical role as the primary carrier of classified ads. a. True b. False Answer: True 15. On Web sites that use the advertising-subscription revenue model, subscribers are typically subjected to much more advertising than they are on sites supported completely by advertising. a. True b. False Answer: False 16. In the fee-for-service model, the fee is based on the number or size of transactions the service providers process. a. True b. False Answer: False 17. Although online banks let customers pay their bills electronically, most customers still receive their bills in the mail. a. True b. False Answer: True 18. Companies that have existing sales outlets and distribution networks often worry that their Web sites will take away sales from those outlets and networks. a. True b. False Answer: True 19. An organization's Web presence is of lesser importance than its presence in the physical world. a. True b. False Answer: False 20. A good Web site design can provide many image-creation and image-enhancing features very effectively—it can serve as a sales brochure, a product showroom, a financial report, an employment ad, and a customer contact point. a. True b. False Answer: True 21. The Internet is not a mass medium, even though a large number of people now use it and many companies seem to view their Web sites as billboards or broadcasts. a. True b. False Answer: True 22. When customers buy a product, they are also buying the service element included with that product. a. True b. False Answer: True 23. Companies change their revenue models to meet the needs of the new and changing Web users. a. True b. False Answer: True 24. Business-to-business sellers are passive adopters of the Web catalog model. a. True b. False Answer: False 25. The defining characteristic of the mass media promotion process is that the seller is active and the buyer is passive. a. True b. False Answer: True 26. A revenue model where the seller establishes a brand image, and then uses the strength of that image to sell through printed information mailed to prospective buyers, who place orders by mail or telephone is called the _________ model. a. digital content b. Web catalog c. catalog d. mass media Answer: c 27. One problem that the Web presents for clothing retailers of all types is that _________. a. customers are unwilling to buy clothing on-line b. the color settings on computer monitors vary widely c. the Web catalog revenue model is not flexible d. online retail sales are not cost-effective Answer: b 28. _________ offers a variety of information services for lawyers and law enforcement officials, court cases, public records, and resources for law libraries. a. ProQuest b. LexisNexis c. Dow Jones d. EBSCO Answer: b 29. The _________ of a Web site is its ability to keep visitors at the site and attract repeat visitors. a. image b. presence c. stickiness d. usability Answer: c 30. The New York Times and The Wall Street Journal use the _________ revenue model. a. advertising-subscription mixed b. advertising-supported c. fee-for-service d. multiple-marketing channel Answer: a 31. Online stock brokerage firms use a(n) _________ revenue model, which allows them to charge their customers a commission for each trade executed. a. fee-for-service b. fee-for-transaction c. information sales d. catalog Answer: b 32. The introduction of a new intermediary, such as a fee-for-transaction Web site, into a value chain is called _________. a. disinterment b. reintermediation c. reinterpretation d. disintermediation Answer: b 33. In the context of professional services using a fee-for-service revenue model, _________ was a pioneer in offering online therapy to patients in the United States. a. CPA Directory b. Cope Today c. Dow Jones d. Salon.com Answer: b 34. An approach where free content is available up to a point at which fees begin, is called a _________. a. bill presentment b. paywall c. disintermediation d. personal shopper Answer: b 35. The _________ is an intelligent agent program that learns the customer’s preferences and makes suggestions. a. personal shopper b. digital directory c. Web catalog d. virtual index Answer: a 36. Companies using _________ revenue model charge a fee based on the value of the service provided on the Web. a. Web catalog b. fee-for-service c. fee-for-transaction d. mail order Answer: b 37. Identify the force preventing U.S. professionals from extending their practices on the Web. a. The "Law on the Web" site b. The laws of the state c. The presence of a fee-for-service revenue model d. The lack of online jurisdiction Answer: b 38. _________ tend to have large up-front costs. Once those costs are incurred, additional units can be made at very low additional cost. a. Appliances b. Newspapers and magazines c. Automobiles d. Digital products Answer: d 39. Channel conflict is also referred to as _________. a. Web conflict b. account aggregation c. cannibalization d. knock down Answer: c 40. Many clothing Web sites offer virtual models on which customers can try clothes, such services are referred to as virtual _________. a. fitting rooms b. channels c. hosts d. memories Answer: a 41. A(n) _________ service provides an electronic version of an invoice with all of the details that would appear in the printed document. a. information dissemination b. prospecting c. account aggregation d. bill presentment Answer: d 42. A key goal for the Web sites of many not-for-profit organizations is _________. a. account aggregation b. information dissemination c. bill presentment d. multiple marketing Answer: b 43. In the context of accessibility, one of the best ways to accommodate a broad range of visitor needs is to build _________ into the Web site’s interface. a. flexibility b. virtual models c. conflict d. presence Answer: a 44. _________ is the testing and evaluation of a site by its owner to ensure ease of use for site visitors. a. Prototyping b. Archetyping c. Usability testing d. Grey-box testing Answer: c 45. Two pioneers of usability testing are _________ and Jakob Nielsen. a. Hickory Farms b. Ben Shneiderman c. J.C. Penney d. Aaron Montgomery Answer: b 46. _________ is an important element of creating an effective Web presence. a. Usability b. Cannibalization c. Inflexibility d. Disintermediation Answer: a 47. In the _________ approach, firms prepare advertising and promotional materials about the firm and its products or services and broadcast them to potential customers. a. mass media b. Web c. personal contact d. word-of-mouth Answer: a 48. _________ are advertising efforts directed to a known recipient and include mail, telephone calls, and e-mail. a. Social media b. Personal contacts c. Addressable media d. Broadcast networks Answer: c 49. Personal contact and mass media approaches are often called _________. a. communication modes b. market strategies c. marketing segments d. media destination modes Answer: a 50. According to Jeff Bezos, founder of Amazon.com, the _________ refers to markets that are too small to justify a mass media campaign, yet too large to cover using personal contact. a. hard middle b. demographic market c. niche d. mass market Answer: a 51. A(n) _________ is a graphic image built from customer measurements on which the customer can try clothes. Answer: virtual model 52. Each different pathway to customers is called a(n) _________. Answer: marketing channel 53. _________, a business-focused publisher of newspapers such as The Wall Street Journal and Barron’s, was one of the first publishers to create a Web site for selling subscriptions to digitized newspaper, magazine, and journal content. Answer: Dow Jones 54. The set of characteristics that marketers use to group visitors is called _________. Answer: demographic information 55. Visitors to Web sites are often reluctant to provide demographic information because of _________. Answer: privacy concerns 56. A(n) _________ is a site that people use as a launching point to enter the Web. Answer: Web portal 57. A(n) _________ almost always includes a Web directory or search engine, but it also includes other features that help visitors find what they are looking for on the Web and thus make the Web more useful. Answer: portal 58. A(n) _________ is a listing of hyperlinks to Web pages. Answer: Web directory 59. In a(n) _________ revenue model, subscribers pay a fee, but also accept some level of advertising. Answer: advertising-subscription mixed 60. The removal of an intermediary, such as a human agent, from a value chain is called _________. Answer: disintermediation 61. Online stock brokerage firms use a(n) _________ revenue model. Answer: fee-for-transaction 62. _________ is the ability to obtain bank, investment, loan, and other financial account information from multiple Web sites and display it all in one location at the bank's Web site. Answer: Account aggregation 63. _________ can occur whenever sales activities on a company's Web site interfere with its existing sales outlets. Answer: Channel conflict Cannibalization 64. Two or more companies who have joined forces to undertake an activity over a long period of time are said to have created a(n) _________. Answer: strategic alliance 65. The _________ of a firm include its customers, suppliers, employees, stockholders, neighbors, and the general public. Answer: stakeholders 66. An organization’s _________ is the public image it conveys to its stakeholders. Answer: presence 67. The catalog-based revenue model is also called the _________. Answer: mail-order model 68. Even when products are commodity items, the _________ element can be a powerful differentiating factor for which a customer will pay extra. Answer: service 69. A regular program of _________ can help organizations identify navigation issues on their Web sites and resolve them. Answer: usability testing 70. Putting the customer at the center of all site designs is called a(n) _________ approach to Web design. Answer: customer-centric 71. In the _________ model, a firm’s employees individually search for, qualify, and contact potential customers. Answer: personal contact Prospecting 72. The personal contact approach to identifying and reaching customers is sometimes called _________. Answer: prospecting 73. The defining characteristic of the _________ promotion process is that the seller is active and the buyer is passive. Answer: mass media 74. In the _________ communication model, both the buyer and the seller participate actively in the exchange of information. Answer: one-to-one personal contact 75. The process of providing customers access to a company's products through a coordinated presence in multiple distribution channels is called _________. Answer: channel cooperation 76. What are the business objectives of creating an effective online presence? Answer: 1) Attracting visitors to the Web site 2) Making the site interesting enough that visitors stay and explore 3) Convincing visitors to follow the site's links to obtain information 4) Creating an impression consistent with the organization's desired image 5) Building a trusting relationship with visitors 6) Reinforcing positive images that the visitor might already have about the organization 7) Encouraging visitors to return to the site 77. List the reasons why people visit Web sites. Answer: Visitors arrive for many different reasons, including these: 1) Learning about products or services that the company offers 2) Buying products or services that the company offers 3) Obtaining information about warranty, service, or repair policies for products they purchased 4) Obtaining general information about the company or organization 5) Obtaining financial information for making an investment or credit-granting decision 6) Identifying the people who manage the company or organization 7) Obtaining contact information for a person or department in the organization 8) Following a link into the site while searching for information about a related product, service, or topic 78. What are the accessibility goals that organizations should conform to for designing business Web sites? Answer: Business Web sites need to: 1) Offer easily accessible facts about the organization 2) Allow visitors to experience the site in different ways and at different levels 3) Provide visitors with a meaningful, two-way (interactive) communication link with the organization 4) Sustain visitor attention and encourage return visits 5) Offer easily accessible information about products and services and how to use them 79. List the guidelines that must be followed by Web designers when creating a Web site that is intended to meet the specific needs of customers. Answer: The guidelines that must be followed by Web designers when creating a Web site that is intended to meet the specific needs of customers include the following: 1) Design the site around how the visitors will navigate the links, not around the company’s organizational structure. 2) Help customers access information quickly. 3) Use concise descriptive language rather than inflated marketing statements in product or service descriptions. 4) Avoid using business jargon and specialized terms that visitors might not understand. 5) Build the site to work for visitors who are using older and slower devices connected through the lowest bandwidth connection, even if this means creating multiple versions of Web pages. 6) Be consistent in use of design features and colors throughout the site. 7) Avoid Web page design elements that look like banner ads. 8) Make sure that navigation controls are clearly labeled or otherwise distinguishable from other Web page design elements. 9) Test text visibility on a range of monitor sizes; text can become too small to read on a small monitor (or mobile device) and so large it shows jagged edges on a large monitor. 10) Check to make sure that color combinations do not impair viewing clarity for color-blind visitors. 80. What is the difference between the personal contact model of communicating on the Web and the mass media approach? Answer: In the personal contact model, the firm’s employees individually search for, qualify, and contact potential customers. In the mass media approach, firms prepare advertising and promotional materials about the firm and its products or services. They then deliver these messages to potential customers by broadcasting them on television or radio, printing them in newspapers or magazines, posting them on highway billboards, or mailing them. Chapter 04: Marketing on the Web 1. The promotion element of the marketing mix includes any means of spreading the word about the product. a. True b. False Answer: True 2. In the context of the four Ps of marketing, the issue of place is the need to have products or services available in many different locations. a. True b. False Answer: True 3. The price element of the marketing mix is a company's cost of producing a product. a. True b. False Answer: False 4. Media selection can be critical for an online-only firm because it does not have a physical presence. a. True b. False Answer: True 5. A disadvantage of using the Web to communicate with potential customers is that it does not offer the cost savings of mass media. a. True b. False Answer: False 6. Mass media offers the highest level of trust. a. True b. False Answer: False 7. On the Web, retailers can provide separate virtual spaces for different market segments. a. True b. False Answer: True 8. Touchpoint is a term for words used to prompt a visitor to stay and investigate the products or services offered on a site. a. True b. False Answer: False 9. One goal of marketing is to create strong relationships between a company and its customers. a. True b. False Answer: True 10. The reason that one-to-one marketing and usage-based segmentation are so valuable is that they help to strengthen companies’ relationships with their customers. a. True b. False Answer: True 11. Good customer experiences can help create an intense feeling of loyalty toward the company and its products or services. a. True b. False Answer: True 12. Companies want to see customers move into the separation stage only if they are costing more to serve than they are worth. a. True b. False Answer: True 13. The benefits of acquiring new visitors are the same for all Web businesses irrespective of different revenue models used. a. True b. False Answer: False 14. The cost of acquiring a new customer is less than the cost of retaining an existing one. a. True b. False Answer: False 15. A banner ad is a small rectangular object on a Web page that displays a stationary or moving graphic that includes a link to the advertiser's Web site. a. True b. False Answer: True 16. A key element in any e-mail marketing strategy is to obtain customers’ approvals before sending them any e-mail that includes a marketing or promotional message. a. True b. False Answer: True 17. Branded products are difficult to advertise and promote. a. True b. False Answer: False 18. Viral marketing strategies have always been developed with the assumption that the company would communicate with potential customers directly. a. True b. False Answer: False 19. Rational branding relies on a broad emotional appeal. a. True b. False Answer: False 20. Spam wastes time and storage space on servers and individuals’ computers, and it consumes bandwidth on the Internet. a. True b. False Answer: True 21. Web site designers can specify additional key words in the pages that are hidden from the view of Web site visitors but are visible to spiders. a. True b. False Answer: True 22. The weighting of the factors that search engines use to decide which URLs appear first on searches for a particular search term is called data indexing. a. True b. False Answer: False 23. Companies that have a well-established brand name or reputation in a particular line of business usually want the URLs for their Web sites to reflect that name or reputation. a. True b. False Answer: True 24. Obtaining identifiable names to use on the Web can be an important part of establishing a Web presence. a. True b. False Answer: True 25. The fees charged for domain name hosting are much higher than those for hosting an active Web site. a. True b. False Answer: False 26. The _________ element of the marketing mix is the physical item or service that a company is selling. a. principle b. price c. product d. promotion Answer: c 27. Customers' perceptions of a product are called the product's _________. a. brand b. attributes c. marketing mix d. Web logs Answer: a 28. The _________ provides a communication mode that is an intermediate step between mass media and personal contact. a. telephone b. Web c. newspaper network d. television network Answer: b 29. A _________ is the part of a Web site that keeps track of selected items for purchase and automates the purchasing process. a. trigger word b. shopping cart c. marketspace d. padlock Answer: b 30. According to the six behavior-based categories of Web visitors, _________ are visitors whose online objective is to stay in touch with others through chat rooms, discussion boards, and social networking websites. a. routiners b. surfers c. sportsters d. connectors Answer: d 31. Online and offline customer contact points are often called _________. a. business interfaces b. touchpoints c. distribution channels d. spiders Answer: b 32. In the _________ stage of customer relationship life cycle, customers develop a fierce loyalty or a strong preference for products or brands of a company. a. separation b. commitment c. exploration d. familiarity Answer: b 33. A(n) _________ is a short promotional message that does not use any graphic elements and is usually placed along the top or right side of a Web page. a. text ad b. active ad c. banner ad d. pop-up ad Answer: a 34. A(n) _________ is a banner ad that is designed to span the top or bottom of a Web page. a. leaderboard ad b. text ad c. skyscraper ad d. active ad Answer: a 35. _________ generate graphical activity that "floats" over the Web page itself instead of opening in a separate window. a. Interstitial ads b. Active ads c. Pop-up ads d. Skyscraper ads Answer: b 36. A(n) _________ occurs when a visitor requests a page from a Web site. a. impression b. visit c. click-through d. index Answer: b 37. The first time that a particular visitor loads a Web site page is called a(n) _________. a. trial visit b. ad view c. repeat visit d. page view Answer: a 38. Some Web pages have banner ads that continue to load and reload as long as the page is open in the visitor’s Web browser. Each time the banner ad loads is a(n) _________. a. view b. count c. impression d. click Answer: c 39. The practice of sending e-mail messages to people who request information on a particular topic or about a specific product is called _________. a. junk e-mail b. spam e-mail c. opt-in e-mail d. bulk e-mail Answer: c 40. The _________ rate of an advertising method is the percentage of recipients who respond to an ad or promotion. a. trigger b. click-through c. retention d. conversion Answer: d 41. The information that a Web site can gather about its visitors is called a _________. a. clickstream b. data mine c. return path d. touchpoint Answer: a 42. Technology-enabled relationship management is often called _________. a. business intelligence management b. customer relationship management c. vendor relationship management d. domain name management Answer: b 43. Researchers Jeffrey Rayport and John Sviokla refer to the virtual, information world as the _________. a. marketspace b. marketplace c. market store d. market sector Answer: a 44. _________ is the first condition that must be met to create a product or service brand. a. Product differentiation b. Perceived value c. Relevance d. Permission marketing Answer: a 45. According to researchers Young & Rubicam, one of the key elements of a brand is _________. a. marketspace b. style c. perceived value d. micromarketing Answer: c 46. _________ is the degree to which a product offers utility to a potential customer. a. Differentiation b. Relevance c. Perceived value d. Brand Answer: b 47. According to Ted Leonhardt and Bill Faust, a _________ is an emotional shortcut between a company and its customer. a. marketing strategy b. brand c. banner ad d. product Answer: b 48. Companies have traditionally used _________ appeals in their advertising and promotion efforts to establish and maintain brands. a. permitted b. perceived c. rational d. emotional Answer: d 49. On social media Web sites, followers of a particular company’s discussion activity are called _________. a. fans b. hosts c. spiders d. affiliates Answer: a 50. In cause marketing, when visitors click a link on the affiliate's Web page, a donation is made by a(n) _________ company. a. advertising b. marketing c. not-for-profit d. sponsoring Answer: d 51. A(n) _________ is the combination of elements a company uses to achieve its goals for selling and promoting its products and services. Answer: marketing mix 52. The total of all financial costs that a customer pays (including all transaction costs) to obtain a product is subtracted from the benefits that the customer derives from the product to yield the _________. Answer: customer value 53. Identifying specific portions of a market and targeting them with specific advertising messages is called _________. Answer: market segmentation 54. The highly customized approach to offering products and services that match the needs of a particular customer is called _________. Answer: one-to-one marketing 55. In general, the creation of a separate experience for customers based on their behavior is called _________. Answer: behavioral segmentation 56. Behavioral segmentation based on things that happen at a specific time is called _________. Answer: occasion segmentation 57. Of the six behavior-based categories of Internet users, _________ seek convenience. Answer: simplifiers 58. Of the six behavior-based categories of Internet users, _________ are in search of a good deal. Answer: bar gainers 59. In the _________ stage of customer loyalty, potential customers learn more about a company or its products. Answer: exploration 60. Customers who have completed several transactions and are aware of a company's policies regarding returns, credits, and pricing flexibility are in the _________ stage of their relationship with the company. Answer: familiarity 61. In the context of life-cycle segmentation, Claritas built _________ which identifies the demographic characteristics of people by neighborhood. Answer: PRIZM 62. Using the five stages of customer loyalty to create groups of customers that are in each stage is called _________. Answer: life-cycle segmentation 63. A pricing metric where mass media advertising is purchased by paying a dollar amount for every thousand people in the estimated audience is referred to as _________. Answer: cost per thousand CPM cost per thousand(CPM) 64. The _________ is a not-for-profit organization that promotes the use of Internet advertising and encourages effective Internet advertising. Answer: Interactive Advertising Bureau (IAB) Interactive Advertising Bureau IAB 65. The standard banner sizes that most Web sites have voluntarily agreed to use are called _________ ad formats. Answer: interactive marketing unit (IMU) IMU interactive marketing unit 66. A(n) _________ is an ad that appears in its own window when the user opens or closes a Web page. Answer: pop-up ad 67. _________ prevents banner ads and pop-up ads from loading. Answer: Ad-blocking software 68. The total amount of money that a site spends, on average, to induce one visitor to make a purchase, sign up for a subscription, or register is called the _________. Answer: conversion cost 69. Each page loaded by a visitor to a Web site counts as a(n) _________. Answer: page view 70. In the context of measuring Web audiences, if a visitor loads a page that contains an ad, the page load is called a(n) _________. Answer: ad view 71. _________ marketing relies on existing customers to tell other people—the company’s prospective customers—about the products or services they have enjoyed using. Answer: Viral 72. In a customer relationship management (CRM) system, the multiple sources of information about customers, their preferences, and their behavior is entered into a large database called a(n) _________. Answer: data warehouse 73. A(n) _________ is a company that serves as a clearinghouse or marketplace for sites that run affiliate programs and sites that want to become affiliates. Answer: affiliate program broker 74. A(n) _________ is a Web site that helps people find things on the Web. Answer: search engine Web directory 75. Hidden keywords that are visible to spiders are enclosed in an HTML tag set called _________. Answer: meta tags 76. When would a product-based marketing strategy be used? Answer: Managers at many companies think of their businesses in terms of the products and services they sell. This product-based marketing strategy is a logical way to think of a business because companies spend a great deal of effort, time, and money to design and create those products and services. When customers are likely to buy items from particular product categories or are likely to think of their needs in terms of product categories, this type of product-based organization works well. For example, both Office Depot and Staples use product categories (paper, ink and toner, printers) as the primary organizing theme in the design of their Web sites. 77. Describe the use of trigger words in attracting visitors to a Web site. Answer: Some visitors to a company’s Web site are just surfing or browsing. Web sites intended to appeal to potential customers in this mode must offer them something that piques their interest. The site should include words that are likely to jog the memories of visitors and remind them of something they want to buy on the site. These keywords are often called trigger words because they prompt a visitor to stay and investigate the products or services offered on the site. Links to explanations about the site or instructions for using the site can be particularly helpful to this type of customer. A site should include extra content related to the product or service the site sells. Such content can keep a visitor who is in browser mode interested long enough to stay at the site and develop a favorable impression of the company. Once visitors have developed this favorable impression, they are more likely to buy on this visit or bookmark the site for a return visit. 78. Identify the five stages of customer loyalty. Answer: The characteristics of the five stages of customer loyalty include the following: • Awareness: Customers who recognize the name of the company or one of its products are in the awareness stage of customer loyalty. They know that the company or product exists but have not had any interaction with the company. Advertising a brand or a company name is a common way for companies to achieve this level of relationship with potential customers. • Exploration: In the exploration stage, potential customers learn more about the company or its products. The potential customer might visit the company’s Web site to learn more, and the two parties will often communicate by telephone or e-mail. A large amount of information interchange can occur between the parties at this stage. • Familiarity: Customers who have completed several transactions and are aware of the company’s policies regarding returns, credits, and pricing flexibility are in the familiarity stage of their relationship with the company. In this stage, they are as likely to shop and buy from competitors as they are from the company. • Commitment: After experiencing a considerable number of highly satisfactory encounters with a company, some customers develop a fierce loyalty or strong preference for the products or brands of that company. These customers have reached the commitment stage and are often willing to tell others about how happy they are with their interactions. To lure customers from the familiarity stage to the commitment stage, companies sometimes make concessions on prices or terms. Usually, the value of the strong relationship is worth more to the company than the costs of these concessions. • Separation: Over time, the conditions that made the relationship valuable might change. The customer might be disappointed by changes in the level of service (either as provided by the company or as perceived by the customer) or product quality. The company can also evaluate the relationship and conclude that a particular loyal and committed customer is simply costing too much to maintain. As the intensity of the relationship fades, the parties enter a separation stage. 79. When does technology-enabled relationship management occur? Answer: Technology-enabled relationship management is important when promoting and selling on the Web. Technology-enabled relationship management occurs when a firm obtains detailed information about a customer's behavior, preferences, needs, and buying patterns and uses that information to set prices, negotiate terms, tailor promotions, add product features, and otherwise customize its entire relationship with that customer. 80. Identify the three elements of branding. Answer: The first element of branding is product differentiation. It is the first condition that must be met to create a product or service brand. The company must clearly distinguish its product from all others in the market. The second element of branding is relevance. It is the degree to which the product offers utility to a potential customer. The brand only has meaning to customers if they can visualize its place in their lives. The third branding component is perceived value. It is a key element in creating a brand that has value. Even if your product is different from others on the market and potential customers can see themselves using this product, they will not buy it unless they perceive value. Test Bank for Electronic Commerce Gary P. Schneider 9781285425436, 9781305867819, 9781133526827
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