Internet Marketing Integrating Online and Offline Strategies 3rd Edition By Robeerts And Zahay – Test Bank


Sample  Questions


Chapter 3: Business Models and Strategies




  1. ________ is an important element of any business model.


a. Value proposition
b. Competitive analysis
c. Financial forecasting


ANS:  A                    REF:   p. 63


  1. A business model is:


a. how a company makes money.
b. how a not-for-profit achieves its revenue goals.
c. both the above.


ANS:  C                    REF:   p. 61


  1. Music file sharing is an example of which Internet business model?


a. Brokerage
b. Peer-to-peer
c. Community


ANS:  C                    REF:   pp. 64, 75


  1. ________ is making recommendations to visitors based on preferences generated by the purchases of similar visitors.


a. Collaborative filtering
b. Collaboration
c. Co-creation


ANS:  A                    REF:   p. 73


  1. Disintermediation means:


a. Syndication
b. Eliminate the middleman
c. Direct Selling


ANS:  B                    REF:   p. 74


  1. ________ is the business model used to describe a site that resells large amounts of content on the web.


a. Portal
b. Machine-to-Machine
c. Infomediary


ANS:  C                    REF:   p. 71


  1. Among the functions filled by business models are:


a. to conduct a detailed SWOT analysis.
b. to describe the value proposition.
c. to provide detailed pro forma financial statements.


ANS:  B                    REF:   p. 62


  1. Which of the following is not an element to be considered when preparing an Internet business model?


a. How value will be created for customers.
b. How customers will use the product or service.
c. The importance of multiple revenue streams.


ANS:  B                    REF:   p. 63


  1. Elements of a value proposition do not include:


a. a description of the capabilities of the business.
b. a description of customer service strategy.
c. a description of the target customer.


ANS:  B                    REF:   p. 63


  1. Revenue models for online businesses include:


a. Bringing buyers and sellers together.
b. Reaching buyers directly.
c. both of the above.


ANS:  C                    REF:   p. 64


  1. Which of the following is a true statement about Internet business models?


a. The business models for B2C and B2B markets are different.
b. The best business models are supported by advertising.
c. Nonprofit organizations and governmental agencies make use of a variety of business models.


ANS:  C                    REF:   p. 64


  1. Examples of the infomediary business model include:


a. Amazon.
b. Yahoo!.
c. Wall Street Journal Online.


ANS:  C                    REF:   p. 64


  1. ________ is making recommendations to visitors based on preferences provided by similar visitors.


a. Co-creation
b. Collaboration
c. Collaborative filtering


ANS:  C                    REF:   p. 73


  1. Companies share information within the organization on:


a. extranets.
b. intranets.
c. open source networks.


ANS:  B                    REF:   p. 76


  1. The ________ manages and distributes data on the Internet.


a. portal
b. disintermediator
c. infomediary


ANS:  C                    REF:   p. 71


  1. One of the most famous examples of the brokerage model:


a. Dell.
b. Yahoo!.
c. eBay.


ANS:  C                    REF:   p. 66


  1. Which of the following is a type of business marketplace?


a. Consortium
b. Private exchange
c. Both the above


ANS:  C                    REF:   p. 67


  1. Which of the following is an example of the utility model?


a. Skype
b. Slashdot
c. Both of the above


ANS:  C                    REF:   p. 77


  1. Possible applications of the Community model include:


a. fundraising.
b. open collaboration.
c. both of the above.


ANS:  C                    REF:   p. 76


  1. The main function of a portal is to:


a. provide a huge amount of content.
b. provide access to the Internet.
c. provide free services.


ANS:  B                    REF:   p. 69


  1. A statistical technique to identify underlying patterns in data:


a. provide a huge amount of content.
b. predictive modeling.
c. aggregation.


ANS:  B                    REF:   p. 73


  1. A company selling shoes online to consumers is following which business model?


a. Merchant
b. Brokerage
c. Aggregation


ANS:  A                    REF:   p. 72


  1. Selling software-based services on the Internet is an example of which type of model?


a. Merchant
b. Brokerage
c. Manufacturer


ANS:  C                    REF:   p. 74


  1. RSS feeds are:


a. a method of generating revenue from website content.
b. a method of syndicating content.
c. used by large corporations to transmit information over the Internet.


ANS:  B                    REF:   p. 76


  1.      The advertising model is an extension of which traditional model?


a. Media Broadcast
b. Banner Advertising
c. Marketplace


ANS:  A                    REF:   p. 67


  1.      eToys illustrates the following concept:


a. Internet firms often have large initial investments in technology and order fulfillment facilities.
b. the importance of various cost elements does not vary greatly from offline to online businesses.
c. for the customer, costs of switching from one supplier to another are high.


ANS:  A                    REF:   p. 62


  1. The key function of the affiliate model is to:


a. manage and distribute software-based services and solutions.
b. provide financial incentives to partners.
c. share revenue through banner ads.


ANS:  B                    REF:   p. 71






  1. The value proposition concept only applies to online banking.


ANS:  F                    REF:   p. 63


  1. A business model describes how the enterprise creates value for customers and generates revenue.


ANS:  T                    REF:   p. 61


  1. Business model and business plan are synonymous terms.


ANS:  F                    REF:   p. 63


  1. A value proposition describes the value created for all customers who purchase this type of product.


ANS:  F                    REF:   p. 65


  1. When creating their business model Internet marketers must choose a single, specific revenue model.


ANS:  F                    REF:   p. 68


  1. Business models in the B2C space are entirely different from business models in the B2B space.


ANS:  F                    REF:   p. 65, 67


  1. Advertising is the only feasible revenue stream for most Internet businesses.


ANS:  F                    REF:   p. 68


  1. Affiliate programs are worthwhile but expensive for marketers to operate.


ANS:  F                    REF:   p. 75


  1. Application Service Providers (ASPs) provide software applications and services to small companies.


ANS:  F                    REF:   p. 77


  1. Infomediaries are present only in the B2C marketspace.


ANS:  F                    REF:   p. 64


  1. With the demise of Napster the Peer-to-Peer application is no longer viable.


ANS:  F                    REF:   p. 75


  1. The advertising model is an excellent way for a new business to consider making money.


ANS:  F                    REF:   p. 68


  1. Ecommerce is not applicable to nonprofit markets:


ANS:  F                    REF:   p. 61


  1. The subscription model is not applicable to nonprofit markets:


ANS:  F                    REF:   p. 77


  1. A proprietary system is usually not sold or licensed.


ANS:  F                    REF:   p. 74





  1. In your own words describe the functions of a business model and explain why the concept is important.



The functions include specifying the value proposition, the target market segment, the value chain and the firm’s position in it, the cost structure and profit potential, and its basic competitive strategy.


The conceptual importance of the business model is to help us understand the key elements of an existing or prospective business. The practical importance is that a business plan is an essential part of obtaining start-up capital for a new business. A business model can refer to both online and offline businesses.


REF:   pp. 62-63


  1. The text discussed several business models that are important in the B2C space. Choose one of the models. Describe in detail the characteristics of that model and provide an example of it, preferably an example different from those used in the text. Be sure to explain how and why your example illustrates that particular business model.



Table 3.1 lists the business models and gives examples of each. This question can focus on B2B or the nonprofit space, depending on the emphasis in your coverage.


REF:   p. 64


  1. The value proposition is an important marketing concept. Explain the concept and give an example of how an Internet business creates value for customers.



The value proposition describes the needs that drive customer purchases and the capabilities the business has that can be used to meet those needs.


The description of Amazon’s many features is one good example of creating customer value. continues to add functionalities and services that provide value and thereby attract visitors.


REF:   p. 63

Chapter 5: Online Branding and Video Marketing




  1. Among the factors that have created consumer expectations for on-demand media include:


  1. smartphones and tablets.
  2. the Internet itself.
  3. both of the above.


ANS:  C           REF:    p. 117


  1. ________ is one tool that enables consumers to enjoy media on their own schedule.


  1. Electronic TV schedule or guide
  2. Video streaming
  3. Image search


ANS:  B           REF:    p. 117


  1. Which of the following is a true statement about online display advertising?


  1. It is more expensive than offline display advertising.
  2. It is effective in acquiring customers and making sales.
  3. Neither of the above


ANS:  B           REF:    pp. 119-120


  1. Online advertising is ­­­________ effective than television advertising in creating customer awareness.


  1. more
  2. less
  3. equally


ANS:  B           REF:    p. 121


  1. ________ is the concept that describes the degree of positive or negative feelings about a brand.


  1. Brand equity
  2. Brand prestige
  3. Brand image


ANS:  C           REF:    p. 123


  1. Among the metrics used to measure the effectiveness of branding efforts are:


a. brand equity and brand recognition.
b. brand image and brand authority.
c. brand expenditures and brand equity.


ANS:    A          REF:    p. 123


  1. Effective brand building on the Internet requires:


  1. intensive use of online advertising.
  2. combining interactivity and information-driven direct-response marketing.
  3. higher expenditures than offline brand building.


ANS:  B           REF:    p. 124


  1. Effective brand building requires:


  1. balancing the online and offline media mix.
  2. ensuring the best possible customer experience.
  3. both of the above.


ANS:  C           REF:    p. 125, 126


  1. Advantages of a brand community include:


  1. members are likely to feel more brand loyalty.
  2. members feel they are part of an exclusive club.
  3. both of the above.


ANS:  A           REF:    p. 127


  1. The concept of a vook is:


  1. make interactive videos relevant to the brand.
  2. embed high-quality video in textual content.
  3. encourage users to create their own video.


ANS:  B           REF:    p. 128


  1. A true statement about marketer use of video is:


  1. marketers need to distinguish between video viewed on TV and video viewed on the Internet.
  2. marketers need to make video available on whatever device users desire.
  3. marketers should not expect video to have direct impact on sales.


ANS:  B           REF:    p. 129


  1. Types of marketing videos include:


  1. case studies and testimonials.
  2. user-created videos.
  3. animated cartoons.


ANS:  A           REF:    p. 131


  1. Elements of video marketing strategy include:


  1. content creation.
  2. video production.
  3. optimization.


ANS:  C           REF:    p. 132


  1. ________ are one platform that is effective in delivering videos to customers.


  1. Websites
  2. Paid video platforms
  3. Blogs


ANS:  C           REF:    p. 133, 134


  1. One way to develop consumer-relevant content is to:


  1. do marketing research to determine interests.
  2. tell engaging stories about product use and benefits.
  3. film videos on location.


ANS:   B          REF:    p. 136


  1. Optimizing videos for visibility requires:


  1. use of relevant keywords wherever possible.
  2. uploading to paid video sites.
  3. a paid channel on YouTube.


ANS:  A           REF:    p. 137


  1. Consumers are most likely to share videos that are posted on:


  1. YouTube.
  2. Facebook.
  3. corporate websites.


ANS:  B           REF:    p. 138


  1. Promotion of videos can take a number of forms including:


  1. posting the video on all corporate channels and platforms.
  2. posting on the channels of others like business partners.
  3. both of the above.


ANS:  C           REF:    p. 138


  1. Common video metrics include:


  1. engagement.
  2. page views.
  3. paid placements.


ANS:  A           REF:    p. 140


  1. Small businesses can utilize video advertising by:


  1. using a video production house.
  2. creating their own video channel.
  3. neither of the above.


ANS:  B           REF:    p. 142





  1. Video and online advertising can both be part of effective integrated marketing campaigns.


ANS:  T           REF:    p. 117


  1. Media developments that have changed the nature of video viewing include TV Pay per View and Video on Demand.


ANS:  T           REF:    p. 118


  1. Increasing use of mobile phones does not change the way consumers access video.


ANS:  F            REF:    p. 118


  1. Online advertising is most effective when used alone.


ANS:  F            REF:    p. 120


  1. There is little opportunity to develop new and engaging online advertising formats.


ANS:  F            REF:    p. 122


  1. Marketer-driven marketing activities are most effective in closing the consumer decision to purchase a product.


ANS:  F            REF:    p. 123


  1. Brand awareness may be sufficient to drive purchasing action for a low-involvement product.


ANS:  T           REF:    p. 124


  1. Marketers should set specific objectives for brand development activities.


ANS:  T           REF:    p. 125


  1. The Harley Owners Group is an example of a marketer-initiated brand community.


ANS:  F            REF:    p. 127


  1. It is not possible to find videos about many specialized B2B products.


ANS:  F            REF:    p. 128


  1. Effective videos can increase the volume of sales on retail sites.


ANS:  T           REF:    p. 129


  1. Younger Internet users are more active consumers of content than their older counterparts.


ANS: T            REF:    p. 130


  1. Unlike video content, video advertising is not experiencing substantial growth.


ANS:  F.           REF:    p. 130


  1. It is important that all marketing videos be of the highest production quality.


ANS:  F            REF:    p. 131


  1. Video marketing strategy has a clear set of elements that are necessary for success.


ANS:  T           REF:    p. 132


  1. Social media does not play an important role in the dissemination of video content.


ANS:  F            REF:    p. 134


  1. Video can be considered both a channel of communications and a marketing tool.


ANS:  T           REF:    p. 135


  1. Small retailers cannot make effective use of expensive tools like video.


ANS:  F            REF:    p. 141





  1. Consumer media use practices have changed significantly in recent years, driven by but not limited to video use. Identify two or three specific changes and discuss them.



Changes highlighted in this chapter (in the introductory section and in the video section) include:

  • Increasing use of cell phones
  • Increasing use of smart devices like smartphones and tablets
  • Apps/mobile apps for accessing content
  • Timeshifting (on demand content)
  • Decline of traditional print media
  • Video contributing to continued strong TV viewing
  • Heavy use of social media platforms by young consumers
  • Use of social media platforms by older and more affluent consumers
  • Videos viewed by majority of Internet users
  • Adults 25 to 34 are heavy viewers of video
  • Demonstrable impact of videos on purchasing behavior
  • Increased viewing of professionally produced video (primarily TV shows) on the Internet
  • Apparent willingness of young consumers to pay for content if necessary

and they may think of more.


Students should make clear the marketing relevance of the changes they have chosen. Many of them reflect the ability to access content at any time on any device—the mobile revolution. Others suggest the blurring of lines between traditional and new media; the decline of newspapers and the importance of newspaper websites, for example. Social media has impact, not only for consumer communications, but for communications with brand marketers and the sharing of marketer-initiated content.


  1. There are several stages that are part of the brand development process. Identify the stages and describe the nature and importance of each. [Illustrate each stage with an example of the behavior a consumer might exhibit when going through that stage.]



The stages of banding are shown in Figure 5.5.


  • Brand Awareness is essentially the ability to recognize (unaided) or to recall (aided) the brand. [The consumer recognizes a known brand, say a new video game) when it is seen on the store shelf.]
  • Brand Familiarity is the possession of some, perhaps limited, knowledge about the brand. The knowledge might include knowing something about its features, or better, its benefits when used by the target customer. [The consumer remembers hearing that there is a new game from one of his favorite developers that has been reviewed favorably on several gaming sites from which he receives newsletters.]
  • Positive (or it could be negative) Brand Imagery is the perceptions and attitudes target customers hold about the brand. [The consumer remember both the positive reviews and having heard on a discussion forum that the game is fun and challenging. He has also noticed that a lot of people are playing it online, which is something he likes to do.]
  • Completed transaction is the final activity of purchasing the product. Students should recognize that a purchase is also a stage in a process; consumer use, experience and evaluation will follow. The post purchase steps are likely to have a large impact on future purchases, or lack thereof. [The consumer purchases the game and downloads it to his mobile phone using the store’s WiFi. He tries it out on the bus on the way home and finds it as good as he hoped it would be.]


  1. Making a marketing video is more than just shooting some cool footage. The text discusses some of the best practices for making use of the power of marketing videos. Discuss three things that should be done in order to have the best chance of making a video that will have marketing impact.



The text lists the following as best practices:


  • Set social goals, not financial ones. Videos are one part of a content marketing strategy and, as such, are impossible to link to specific financial goals like sales.
  • Have a marketing plan.
  • Have a social media presence, which gives you channels to distribute your video content.
  • Include sharing options in your video posts and marketing campaign activities like emails.
  • Encourage commentary and respond as needed.
  • Measure results.
  • Look at video as a relationship building tool more than as a direct sales generation tool.
  • Monitor what people say about the campaign in other channels (Facebook, Twitter, trade industry publications, for example).
  • Have a formal debriefing at the end of the formal campaign to assess effectiveness and pinpoint things learned that will make future campaigns better.


These best practices add up to having a strategy and a specific plan for each video or each video campaign. It’s not just fun and games, it’s a marketing message that contributes to the overall brand theme or marketing campaign objective, better to both.


Students may also discuss one or more of the four elements of video strategy—publish, optimize, promote and analyze—in this context. That conveys the same message; marketing videos are part of broader marketing activities and must be planned and managed in a goal-oriented manner.