2008 IMDM Exam and Key 926 - DECA U Ontario

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Test
926

INTERNET MARKETING

1





Copyright © 200
8

by Marketing Education Resource Center
®
, Columbu
s, Ohio



1.

A hacker who manipulates an online business's software program and deletes information or changes
information is involved in

A.

computer
-
based fraud.

C.

web
-
site vandalism.

B.

sending e
-
mail viruses.

D.

denying Internet access.




2.

After her seven
th month in business, Martha realized that her new online venture was paying off, and she
would be earning a $1,000 profit for the month. Finally, she could reap the financial rewards of being the
boss. This is an advantage of what type of business ownersh
ip?

A.

Merger

C.

Corporation

B.

Partnership

D.

Sole proprietorship




3.

Why is it important for the home office of an Internet
-
based company to comply with the Occupational
Safety and Health Administration's (OSHA) workplace regulations?

A.

To avoid pa
ying penalties

C.

To prevent on
-
site inspections

B.

To monitor work
-
related accidents

D.

To eliminate all complaints




4.

An online retailer whose goal is to make sure the company's products are at the right place in time for
purchase by consumers shoul
d focus on the marketing function of

A.

utility.

C.

distribution.

B.

selling.

D.

packaging.




5.

Intermediaries buy large quantities of goods from producers and sell smaller quantities to other
intermediaries or to consumers. The result is that interme
diaries __________ the per
-
unit cost of a good.

A.

control

C.

reduce

B.

increase

D.

stabilize




6.

How has the use of the Internet impacted the distribution process?

A.

It has enabled end users to negotiate product terms and pricing with each member of

the supply
chain.

B.

It has created a need for concentrated shipment destinations and warehousing accommodations.

C.

It has changed the shipment types from smaller diverse lots to larger bulk lots.

D.

It has shifted the supply chain from a predictable or
dering schedule to one that is more flexible.




7.

The dealers who are authorized by manufacturers to distribute the manufacturers' products are the ones
who usually are negatively affected by

A.

personal selling.

C.

volume buying.

B.

gray marketing.

D.

sale pricing.




8.

Why is it important for Internet
-
based businesses to coordinate distribution with other marketing
activities?

A.

To provide customer service

C.

To plan warehouse space

B.

To arrange transportation

D.

To manage inventory levels




9.

Which of the following often is the goal of online retailers that use the channel strategy of intensive
distribution:

A.

Create an upscale image

C.

Target a specific area

B.

Saturate the market

D.

Eliminate the middleman



10.

E
-
businesses regularly m
eet with channel members to discuss problems and improve performance in
order to develop

A.

cost
-
effective inventories.

C.

transportation systems.

B.

long
-
term partnerships.

D.

routine buying procedures.



11.

One of the purposes of staff communication i
s for Internet
-
based business managers to provide

A.

customers with product information.

C.

stockholders with financial reports.

B.

employees with access to the grapevine.

D.

employees with guidance and direction.


Test
926

INTERNET MARKETING


2






12.

When participating in staff meetin
gs, an Internet
-
based company's employees should be prepared to

A.

remain silent.

C.

comment on every detail.

B.

join in the discussion.

D.

argue.



13.

When giving job instructions to employees, an Internet
-
based company's managers should take into
co
nsideration the employees' level of

A.

professionalism.

C.

authority.

B.

income.

D.

experience.



14.

Why should you summarize your online customers' problems when responding to their e
-
mail messages?

A.

To thank customers for their business

B.

To show

that you fully understand the problem

C.

To decide how the problem can be resolved

D.

To apologize for any inconvenience



15.

What do managers often develop to create positive relations with their online customers?

A.

Operating procedures

C.

Sales stra
tegies

B.

Service policies

D.

Marketing tactics



16.

Which of the following provides an e
-
tailer with the most control over fulfillment processes:

A.

Outsourcing all of the processes to a fulfillment house

B.

Keeping inventory on hand until customer orde
rs are received

C.

Contracting with a drop
-
shipper to deliver products to customers

D.

Purchasing products from a local distributor after customer orders are received



17.

Bart, a receiving clerk with GoodProducts.com, usually counts each item in a shipme
nt and marks it off
the purchase order in order to

A.

warehouse excess goods.

C.

distribute stock.

B.

label merchandise.

D.

identify discrepancies.



18.

Calculate the least expensive way to combine and ship eight 10
-
pound packages if the parcel post ra
te is
$4.55 for a 10
-
pound package, $5.90 for a 20
-
pound package, $7.05 for a 30
-
pound package, and $8.35
for a 40
-
pound package.

A.

Three 20
-
pound packages and two 10
-
pound packages

B.

Eight 10
-
pound packages

C.

Two 30
-
pound packages and one 20
-
pound pack
age

D.

Two 40
-
pound packages



19.

Visual control of inventory often involves the use of __________ to rotate stock.

A.

tickler control

C.

color coding

B.

reorder control

D.

check
-
out scanner



20.

E
-
tailers develop real time inventory systems in order
to

A.

know if products listed for sale on their web sites are actually in stock.

B.

keep track of the items that visitors put in their online shopping carts.

C.

prevent hackers from deleting products from the business's web site.

D.

send out e
-
mail message
s to customers when back
-
ordered items appear in stock.



21.

One way that an online business's customer
-
service department can facilitate the distribution process is
to make sure the customer

A.

tells others about the product.

C.

pays full price for the
product.

B.

accepts delivery of the product.

D.

receives the correct product.



22.

Cash
-
register tapes and shipping forms used by an online business would be classified as industrial

A.

supplies.

C.

parts.

B.

equipment.

D.

materials.


Test
926

INTERNET MARKETING


3






23.

In market ec
onomies, which of the following is the most critical factor in deciding how products will be
produced:

A.

Competition

C.

Tradition

B.

Government

D.

Distribution



24.

When a rival's product on the market reduces sales of your online company's product,
your online
company is experiencing economic risk caused by

A.

shifts in consumer demand.

C.

product obsolescence.

B.

the efforts of competitors.

D.

government intervention.



25.

An e
-
commerce business's market structure in an industry can be describ
ed as

A.

a tool for measuring economic activity.

B.

a method of categorizing goods and services.

C.

a way for suppliers and demanders to interact.

D.

a means of gauging a business's financial success.



26.

What does price level measure in a given yea
r?

A.

What prices may look like in the future

B.

How fast prices rose last month

C.

How high or low prices are

D.

How fast prices have dropped in the last decade



27.

What often happens to an economy during a mildly inflationary period?

A.

Increased g
rowth

C.

Decreased profits

B.

Decreased prosperity

D.

Increased unemployment



28.

An online business's employee is trying to reduce the level of stress s/he is experiencing by focusing on
a peaceful beach scene and trying to imagine the sights and sound
s of the scene. This is an example of
which stress management and relaxation technique?

A.

Muscular relaxation

C.

Positive self
-
talk

B.

Deep breathing

D.

Visualization



29.

The way in which e
-
tail supervisors guide the work of employees depends upon t
heir

A.

desire for success.

C.

management style.

B.

technical skills.

D.

level of education.



30.

Which of the following is a guideline for giving effective recognition:

A.

Limit compliments

C.

Exaggerate praise

B.

Be general

D.

Be timely



31.

A

credit account in which the purchaser usually makes a down payment and signs a contract to make a
series of scheduled payments and finance charges describes which of the following:

A.

Open account

C.

Revolving credit

B.

Installment credit

D.

Layaway pla
n



32.

Which of the following is a reason why Internet
-
based businesses should evaluate speculative risks:

A.

To estimate the level of property damage

C.

To reduce the possibility of theft

B.

To obtain adequate insurance coverage

D.

To determine the p
otential for loss



33.

Joe is the owner of Newgoods.com. His employees plugged the electrical cord for display lights into an
old, worn, extension cord. Joe instructed them to get a new, heavy
-
duty cord. Joe is implementing
__________ measures.

A.

expens
e
-
control

C.

employee
-
control

B.

loss
-
prevention

D.

security
-
precaution


Test
926

INTERNET MARKETING


4






34.

Which of the following are the categories that web
-
based companies use to summarize information on
their balance sheets:

A.

Liabilities, equipment and sales

C.

Assets, liabil
ities, and equity

B.

Equity, budget, and cash

D.

Cash, budget, and credit



35.

On an e
-
tailer's income statement, the difference between the cost of goods sold and net sales is

A.

gross sales.

C.

gross margin.

B.

net profit.

D.

net expenses.



36.

If an online business sells an item for $26.75 and has costs and expenses of $22.25 per item, what is the
business's return on investment for each item?

A.

22%

C.

24%

B.

20%

D.

26%



37.

When determining its hiring needs, an e
-
business must first consid
er its financial status and its
__________ needs.

A.

uniform

C.

productivity

B.

secondary

D.

temporary



38.

When concluding an interview with a job applicant, the interviewer should explain the

A.

next step in the process.

C.

performance evaluation
system.

B.

requirements of the position.

D.

problems in the business.



39.

An e
-
tailer's current employees often assist with the orientation process by helping the new employees to

A.

negotiate contracts.

C.

develop work skills.

B.

ask questions.

D.

learn their jobs.



40.

Since not all of an e
-
tailer's training and development needs are as important as others, the e
-
tailer
needs to prioritize its needs according to the

A.

trainees' personal needs.

C.

population to be served.

B.

implementation che
cklist.

D.

training offered by competitors.



41.

Which function of a marketing
-
information management system involves collecting data from internal and
external sources on an ongoing basis:

A.

Information processing

C.

Sales forecasts

B.

Information gat
hering

D.

Information reporting



42.

What technological tool allows marketers to find valuable information in remote locations?

A.

Cookies

C.

Internet

B.

E
-
mail

D.

Cell phones



43.

CarlsCandy.com needs more information in order to define the reason

for its research and to decide
which direction to take. What type of marketing research would CarlsCandy.com use?

A.

Causal

C.

Predictive

B.

Descriptive

D.

Exploratory



44.

As a result of tracking how often customers visit a web site and what they buy
, an e
-
business might use
that information to

A.

prepare an online privacy statement.

C.

negotiate with a key supplier.

B.

decide which products to feature.

D.

collect primary research data.



45.

The sale of goods and services on the Internet is havin
g a negative effect on many salespeople by

A.

reducing the need for product knowledge.

C.

increasing commission rates.

B.

decreasing job opportunities.

D.

promoting additional customer contact.


Test
926

INTERNET MARKETING


5






46.

Marketing strategies are designed and implemented for
the overall purpose of

A.

changing the image of an e
-
business.

C.

achieving planned goals.

B.

improving management techniques.

D.

increasing an e
-
tailer's profits immediately.



47.

One way e
-
businesses segment their markets is by studying

A.

human r
elations.

C.

their employees.

B.

mass marketing.

D.

consumers' characteristics.



48.

When an e
-
business selects a target market, the most useful or desirable market segments to the
business are those that are measurable and

A.

inflexible.

C.

concentrat
ed.

B.

undifferentiated.

D.

accessible.



49.

Why is it important for e
-
businesses to regularly analyze the external environment in which they operate?

A.

To be socially responsible

C.

To behave ethically

B.

To understand change

D.

To calculate profi
t



50.

Which of the following is an internal strength that an e
-
business might identify during a SWOT analysis:

A.

Financial resources

C.

Increased expenses

B.

Extensive regulations

D.

Limited competition



51.

Which of the following is a global trend
that Internet
-
based businesses might identify as being an
opportunity:

A.

Increased language barrier

C.

Decreased population growth

B.

Increased political unrest

D.

Decreased trade regulation



52.

A manufacturer expects product sales to decrease durin
g the coming year. How does this information
affect the production of goods?

A.

Production should remain the same.

C.

Production should increase.

B.

Production should decrease.

D.

Production should not be affected.



53.

Jackie wants to start her own web
-
based business and is beginning to develop her business plan. What
are the three major sections of a well
-
organized business plan?

A.

Marketing plan, financial plan, and business situation analysis

B.

Financial plan, manufacturing plan, and market segmen
t analysis

C.

Projected income report, marketing plan, and SWOT analysis

D.

Business situation analysis, SWOT analysis, and trading area analysis



54.

Which of the following is an adjustment that an e
-
tailer might make to its marketing plan after condu
cting
a profitability analysis:

A.

Increase compensation and benefit package

B.

Reduce the number of employees in the accounting department

C.

Buy more equipment for the warehouse

D.

Eliminate certain items from the product mix



55.

Which of the follo
wing is a characteristic of a search engine that uses web spiders to obtain information:

A.

Can return a large number of hits

C.

Only retrieves data from secure locations

B.

Usually has a high rate of repetitive hits

D.

Requires users to provide meta ta
gs



56.

When creating web pages, an online business should be sure to include a __________ the home page.

A.

summary of

C.

link to

B.

picture on

D.

reason for



57.

How must a web page be formatted, so that it can be viewed on a computer screen?

A.

Hy
pertext transport protocol (HTTP)

C.

Internet service provider (ISP)

B.

Hypertext markup language (HTML)

D.

Secure sockets layer (SSL)


Test
926

INTERNET MARKETING


6






58.

Online businesses should organize their records in a systematic manner so that information can be

A.

available t
o everyone.

C.

distributed freely.

B.

accessed when needed.

D.

published in newsletters.



59.

As a result of conducting an environmental scan, an e
-
tailer might find that the rate of unemployment is
slowly increasing, which is an example of a(n) _______
___ factor.

A.

economic

C.

political

B.

geographic

D.

cultural



60.

Darla is concerned about the security of customers' transactions on her online company's web site.
Which of the following methods can Darla use to protect her online business and her
customers:

A.

Use encryption algorithms

B.

Hire a professional to try to break into the system

C.

Have an 800 number for customers to call and charge purchases

D.

Transfer the user to a page that explains transaction security



61.

DeluxeProducts.com rout
inely has employees take office supplies for personal use. This is an example of

A.

shoplifting.

C.

burglary.

B.

pilferage.

D.

robbery.



62.

In relation to production activities, a shirt, a car, and a computer are examples of

A.

raw materials.

C.

outpu
ts.

B.

inputs.

D.

robotics.



63.

Calculate an e
-
business's gross profit if it had sales of $370,500, fixed costs of $115,200, $500 in
charitable donations, and spent $135,750 on cost of goods sold.

A.

$226,600

C.

$241,250

B.

$255,300

D.

$234,750



64.

Why does an e
-
business conduct a break
-
even analysis?

A.

To determine the approximate consumer demand levels

B.

So it can receive a tax break from the government

C.

So it can evaluate product sales from the previous year

D.

To determine a product'
s possible range of profit



65.

Which of the following would help an Internet
-
based business to control payroll expenses:

A.

Hiring part
-
time employees

C.

Scheduling overtime shifts

B.

Monitoring operating costs

D.

Changing purchasing policies



66.

A
n e
-
tailer budgets a 6% increase in sales next month and expects a 4% increase in expenses which
usually are 52% of sales. If current sales are $68,500, what amount will the e
-
tailer spend on expenses
next month?

A.

$37,757.70

C.

$40,023.40

B.

$40,661.60


D.

$35,520.50



67.

A skill that e
-
tail employees often need to be able to move up the career ladder is the ability to

A.

assign blame.

C.

ignore personal rights.

B.

dominate others.

D.

delegate responsibility.



68.

Julie, a newly promoted e
-
tail
manager, doesn't have time to prepare the employees' work schedules and
assigns this duty to the assistant manager. Which of the following time management techniques is Julie
using:

A.

Setting objectives

C.

Standardizing tasks

B.

Delegating activities

D.



Test
926

INTERNET MARKETING


7






69.

Which of the following statements about pricing is true:

A.

The cost of the product determines its selling price.

B.

The selling price can never be set too low.

C.

The price must satisfy both buyers and sellers.

D.

Once prices

are set, e
-
tailers should not adjust them.



70.

Evidence exists that two online businesses have communicated and decided to charge consumers the
same prices for similar products. In some countries, this is an illegal practice referred to as price

A.

coe
rcion.

C.

fixing.

B.

discrimination.

D.

altering.



71.

An e
-
tailer that uses sales
-
oriented pricing objectives wants to increase the

A.

cost of its marketing efforts.

C.

amount of promotion it uses.

B.

total amount of its income from sales.

D.

ineffi
ciency of its human resources.



72.

Online businesses use different marketing strategies from one stage of the product's __________ to
another.

A.

feasibility analysis

C.

test
-
marketing

B.

research studies

D.

life cycle



73.

During which stage of a pr
oduct life cycle do sales and profit usually increase even though competition is
intense?

A.

Existing

C.

Universal

B.

Introduction

D.

Maturity



74.

One way online businesses use computer technology to obtain information to improve their
product/servic
e mix is by

A.

preparing interactive software programs.

C.

compiling detailed databases.

B.

mailing questionnaires to customers' homes.

D.

tracking visitors to their web sites.



75.

When using synectics to develop unique product ideas for an existing
market, an entrepreneur might
generate ideas by focusing on

A.

positive attributes.

C.

general needs.

B.

personal wants.

D.

specific details.



76.

A feasible product idea should provide the target market with a good or service that offers

A.

attribute
s.

C.

depth.

B.

value.

D.

standards.



77.

What type of standard is an e
-
business setting when it requires all invoices to be free of pricing errors?

A.

Quantity

C.

Quality

B.

Industry

D.

Activity



78.

Why is it important for Internet businesses t
o update the information and appearance of their web site?

A.

So they can reach Internet surfers who are connected to different networks

B.

So that additional promotional activities can be eliminated

C.

To reduce the expenses associated with maintenance ou
tsourcing

D.

To encourage repeat business and to attract new customers



79.

An online office supply store that sells ink pens claims that no other pen on the market uses a type of ink
that changes color when exposed to light. The store is positioning its

product according to what strategy?

A.

Price and quality

C.

Unique characteristics

B.

Features and benefits

D.

Relation to other products in a line



80.

A distinctive symbol, design, or group of letters that cannot be spoken is known as a

A.

trade nam
e.

C.

brand.

B.

brand mark.

D.

trade character.


Test
926

INTERNET MARKETING


8






81.

A primary reason for an e
-
tailer to provide customer service is to increase

A.

employee responsibility.

C.

sales volume.

B.

the number of salespeople.

D.

the use of facilities.



82.

Emotional conn
ections with customers are frequently strengthened by

A.

an e
-
business owner's personality.

B.

a brand's personality.

C.

pleasing colors and textures on the company's web site.

D.

changing a brand's core values to meet customers' changing needs.



83.

Pa
rt of planning purchases is determining open
-
to
-
buy, which refers to the

A.

planned purchases minus goods on order.

C.

ratio of sales to stock on hand.

B.

percentage of markup on goods.

D.

number of items to be ordered.



84.

When developing content for a

web site, it is most important to make sure that the information is accurate
and

A.

complex.

C.

timely.

B.

in
-
depth.

D.

bilingual.



85.

When is an e
-
tailer most likely to increase its inventory level?

A.

Prior to peak selling season

C.

During peak s
elling season

B.

After physical stock counts

D.

Before physical stock counts



86.

An online business that decides when to buy based on the supplier's lead time is considering

A.

the number of steps in the receiving process.

B.

how quickly the merchandise

turns over.

C.

how long it takes to order and receive goods.

D.

the location of shipping and delivery companies.



87.

Promotion is thought of as being at the heart of Internet
-
based marketing because it allows sellers to

A.

bypass middlemen such as manu
facturers.

B.

distribute online products carefully.

C.

create new products.

D.

communicate the benefits of products to online buyers.



88.

Which of the following statements is
true

about regulating promotional activities:

A.

Businesses must submit al
l promotional materials to the International Ad Coalition for approval.

B.

A business must understand that the laws governing promotional activities vary by country.

C.

Governments bear the sole responsibility of monitoring promotional materials and regu
lations.

D.

Most countries have a system of checks and balances to verify that promotion regulations are
fair.



89.

When an online business wants to notify preferred customers of a special offer, the most efficient and
promotional medium to use is

A.

op
t
-
in e
-
mail.

C.

compulsory e
-
mail.

B.

online newspaper.

D.

closed
-
circuit television.



90.

When an e
-
business decides to create an infomercial to advertise its new product, it can maximize its
customer response rate by requesting a call to action __
________ the infomercial.

A.

at the beginning of

C.

several times during

B.

at the end of

D.

in the middle of



91.

What do many businesses do in order to increase the number of people who receive their e
-
mails?

A.

Purchase lists from providers

C.

Send questionnaires to customers

B.

Rent space on web sites

D.

Use information in telephone directories


Test
926

INTERNET MARKETING


9






92.

Which of the following is an example of an objective that businesses consider when planning their web
sites:

A.

To design components

C.

To crea
te systems

B.

To develop policies

D.

To support customers



93.

Which of the following is an online promotional activity that should be coordinated with a business's
advertising:

A.

Trade shows

C.

Printable coupons

B.

Special orders

D.

Target market
s



94.

Which of the following is the most cost
-
effective method of providing online customer support for Internet
-
based businesses:

A.

Using e
-
mail to communicate with customers

B.

Including helpful information on the business's web site

C.

Hiring employe
es to chat with customers online

D.

Establishing a customer call center



95.

Which of the following is a benefit to the online business of building a clientele:

A.

Increased sales volume

C.

Increased knowledge

B.

Increased selling costs

D.

Personal sat
isfaction



96.

On which of the following products would you expect to find safety information:

A.

Knitting yarn

C.

Paper

B.

Apparel

D.

Spray paint



97.

A salesperson should obtain information about competitors' products because buyers tend to compari
son
shop when they are purchasing

A.

high
-
priced products.

C.

value
-
priced items.

B.

staple goods.

D.

novelty items.



98.

Which of the following is not a reason for using brand names in selling:

A.

Customers are usually familiar with established brand

names.

B.

Customers may feel an established brand offers good quality.

C.

Brand
-
name items are generally cheaper for customers to buy.

D.

Many brand
-
name items have a reputation for good performance.



99.

Why is it important for businesses to evaluate on
line prospects?

A.

To control the number of customers who make daily purchases

B.

To identify customers who visit the sites of competitors

C.

To prevent unauthorized customers from viewing a web site

D.

To avoid spending time and money on customers who
will not buy



100.

Which of the following brings together the resources that are needed in the production of goods or
services:

A.

Research

C.

Management

B.

Economizing

D.

Marketing


Test
926

INTERNET MARKETING



KEY


10






1.

C

Web
-
site vandalism. Web sites, both big and small, are somet
imes altered or destroyed by vandalism.
Vandalism occurs when a hacker manipulates the web pages' HTML code and changes the prices of
items or deletes those items from the web site. Other vandalism occurrences include the insertion of
offensive material on
to the web page. A hacker who manipulates an online business's software program
is not involved in sending e
-
mail viruses, computer
-
based fraud, or denying Internet access.

SOURCE:

BA:211

SOURCE:

BA LAP 4

Issues in E
-
Commerce




2
.

D

Sole proprietorship. T
his is a form of business ownership in which the business is owned by only one
person, and that person receives any profits made by the business. A merger is the absorption of one
company by another rather than a type of business ownership. A partnership i
s owned by two or more
people, and profits would be split between them. A corporation is owned by people who own stock in the
business, and they split the profits.

SOURCE:

BL:003

SOURCE:

BA LAP 7

Own It Your Way




3
.

A

To avoid paying penalties. The Occup
ational Safety and Health Administration (OSHA) is a federal
governmental agency that writes and enforces safety and health standards for businesses (e.g., Internet
-
based companies' home offices). OSHA has the authority to impose financial penalties on bus
inesses
that are in violation of OSHA regulations. These penalties may be significant depending on the type of
violation. Also, OSHA may give a business a certain amount of time to correct the violation and impose
additional penalties if the problem is not

corrected by then. OSHA has the authority to make on
-
site
inspections at any time. Businesses comply with OSHA regulations to prevent work
-
related accidents
rather than to monitor the number of accidents. Complying with OSHA will not eliminate all complai
nts but
will make the workplace safer for employees.

SOURCE:

BL:008

SOURCE:

Dessler, G. (2000).

Human resource management

(8th ed.) [pp. 564
-
568]. Upper Saddle
River, NJ: Prentice Hall.




4
.

C

Distribution. Distribution is all the activities involved in m
oving, storing, locating and/or transferring the
ownership of goods or services. Packaging is enclosing products in appropriate wrappings or containers.
Selling is a marketing function that involves responding to consumer needs and wants through planned,
p
ersonalized communications intended to influence purchase decisions and enhance future business
opportunities. Utility is a product's usefulness or ability to satisfy wants and needs.

SOURCE:

CM:001

SOURCE:

DS LAP 1

Distribution




5
.

C

Reduce. When interm
ediaries buy large quantities of goods from producers, large
-
scale production
enables the producers to reduce the per
-
unit cost of the items. Intermediaries do not have the power to
stabilize or control prices.

SOURCE:

CM:003

SOURCE:

MB LAP 3

Channels of D
istribution


Test
926

INTERNET MARKETING



KEY


11







6
.

D

It has shifted the supply chain from a predictable ordering schedule to one that is more flexible. The
inception of the Internet has altered the dynamics of product distribution. Because of technological
advancement, customers demand fa
ster delivery and service as well as product customization. To stay
competitive, businesses are accommodating these demands. As a result, the distribution process has
changed dramatically, including the way businesses order products. Businesses previously
ordered
products on a set or predictable schedule. Technological advancements such as the Internet have made
the ordering process more sporadic and flexible. Since the ordering process is sporadic, businesses are
generally shipping smaller lots of some pro
ducts instead of the larger bulk lots. Because of increased
order flexibility and small shipments, shipment destinations are more dispersed, or spread out, over a
large area. Drop shipping products directly to customers is becoming more common. When orders

are
processed in bulk, concentrated destinations such as large, regional warehousing facilities are generally
used. Technological advancements have not encouraged end users to negotiate terms and pricing with
all channel members.

SOURCE:

CM:004

SOURCE:

Co
yle, J., Bardi, E. & Langley, C. (2003).
The management of business logistics: A supply
chain perspective
(7th ed.) [p. 458]. South
-
Western.




7
.

B

Gray marketing. Gray market goods are foreign
-
made products that are imported into countries by
suppliers t
hat are not authorized by the manufacturers. The distribution of gray market goods bypasses
the authorized distribution channels, which enables them to sell the goods at low prices. Businesses that
buy gray market goods for resale often charge discounted p
rices. This practice has a negative effect on
authorized dealers that purchased the same goods from the manufacturers and are not able to offer large
discounts. Sale pricing is pricing items at low levels and promoting them for a limited period of time.
Pe
rsonal selling is the form of promotion that determines client needs and wants and responds through
planned, personalized communication that influences purchase decisions and enhances future business
opportunities. Volume buying involves buying in large qu
antities, which often results in receiving a
discount.

SOURCE:

CM:006

SOURCE:

Boone, L.E., & Kurtz, D.L. (2004).
Contemporary marketing

(11th ed.) [pp. 446
-
447].

Mason, OH: Thomson/South
-
Western.




8
.

A

To provide customer service. Distribution and marke
ting activities are closely related because goods
must be available when and where customers want them. If Internet
-
based businesses do not have the
goods in stock, customers cannot buy. Internet
-
based businesses are only able to serve customers when
they
have the advertised items on hand and at the right price. Arranging transportation, planning
warehouse space, and managing inventory levels are types of distribution activities that should be
coordinated with marketing activities to provide customer servic
e.

SOURCE:

CM:007

SOURCE:

Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006).
Marketing essentials


(pp. 16
-
17, 464
-
465). New York: Glencoe/McGraw
-
Hill.




9
.

B

Saturate the market. An intensive distribution strategy involves making a product available in

all possible
locations to make it easy for customers to buy. Products that most consumers buy on a regular basis
usually are available everywhere because the goal is to saturate the market with the products. By
saturating the market, the retailer business

often increases sales because products are always
accessible. Exclusive distribution may create an upscale image and may target a specific area. Intensive
distribution is not intended to eliminate the middleman.

SOURCE:

CM:009

SOURCE:

Boone, L.E., & Kurtz
, D.L. (2002).
Contemporary marketing

(pp. 398
-
400). Mason, OH:
South
-
Western.


Test
926

INTERNET MARKETING



KEY


12






10
.

B

Long
-
term partnerships. Most e
-
businesses want to develop long
-
term partnerships with channel
members because it is more cost effective to maintain a relationship with a
n existing member than to
locate new channel members. To accomplish this, businesses often meet regularly with channel
members to discuss problems and evaluate performance. This gives both the business and the channel
members an opportunity to discuss prob
lems and decide on a mutually satisfactory solution. By working
together, the business and the channel members can improve performance and develop a long
-
term
partnership. Businesses and channel members do not meet regularly to develop transportation syste
ms,
cost
-
effective inventories, or routine buying procedures.

SOURCE:

CM:011

SOURCE:

Kotler, P. (2000).
Marketing management

(10th ed.) [pp. 501
-
502]. Upper Saddle River, NJ:
Prentice Hall.



11
.

D

Employees with guidance and direction. Communicating the I
nternet
-
based business's objectives to
employees and giving them guidance about doing their work in a manner that will help the firm to achieve
those objectives is an important function of effective staff communication. Employees circulate rumors
and infor
mation among themselves, and this communication is called the grapevine. Staff communication
is not addressed to customers or stockholders.

SOURCE:

CO:014

SOURCE:

Lesikar, R.V., Pettit, J.D., Jr., & Flatley, M.E. (1999).

Lesikar's basic business communicat
ion

(8th ed.) [pp. 4
-
5]. Boston: Irwin/McGraw
-
Hill.



12
.

B

Join in the discussion. For staff meetings to be effective, all employees should participate in the
discussion. The purpose of staff meetings usually is to discuss issues that are of importance to

the
Internet
-
based company, or to solve problems. Therefore, employees should join in the discussion rather
than remain silent because their ideas and opinions are valuable. Employees should not comment on
every detail. Employees should adequately explain

their ideas, but it is not effective to start an argument
with those who disagree.

SOURCE:

CO:063

SOURCE:

Lussier, R.N. (2003).
Management fundamentals: Concepts, applications, skill development
(2nd ed.) [pp. 327
-
330]. Mason, OH: South
-
Western.



13
.

D

E
xperience. When giving instructions, an Internet
-
based company's managers should take into
consideration how much experience the employees have. New employees may need specific, detailed
instructions because they are not entirely familiar with the job. Emp
loyees who have been on the job a
long time may need only brief instructions because they know exactly what is expected of them.
Managers should tailor their instructions to the experience level of employees. Managers do not consider
the employees' level o
f income, professionalism, or authority when giving instructions.

SOURCE:

CO:139

SOURCE:

Hyden, J.S., Jordan, A.K., Steinauer, M.H., & Jones, M.J. (1999).
Communicating for
success

(2
nd

ed.) [pp. 109
-
110]. Cincinnati: South
-
Western Educational.



14
.

B

To
show that you fully understand the problem. Summarizing the problem shows that you fully
understand the situation and gives customers an opportunity to verify the accuracy of the information.
Apologizing for any inconvenience indicates empathy for customer
s and their situations. Deciding how a
problem can be resolved occurs after you have verified your understanding of the situation. You should
express your gratitude for customers' business by thanking them.

SOURCE:

CR:004

SOURCE:

HR LAP 32

Customer
-
Service

Mindset


Test
926

INTERNET MARKETING



KEY


13






15
.

B

Service policies. Service policies are guidelines governing the support an online company provides to the
customers after the sale through return, repair, and installation policies. Managers often develop service
policies to meet the needs

of their specific customers. The result of implementing these policies is that
the online business creates positive relations with its customers. For example, offering free repair is a
service policy that appeals to many customers and encourages them to r
emain loyal to the online
business. Operating procedures are the step
-
by
-
step processes an online business follows to perform
certain tasks. Sales strategies are the plans for achieving sales goals. Marketing tactics are the specific
actions that will be u
sed to carry out marketing strategies.

SOURCE:

CR:008

SOURCE:

Longenecker, J.G., Moore, C.W., & Petty, J.W. (2003).
Small business management: An
entrepreneurial emphasis

(12th ed.) [pp. 370
-
372]. Cincinnati: Thomson/South
-
Western.



16
.

B

Keeping inventor
y on hand until customer orders are received. By keeping inventory on hand until
customer orders are received, the e
-
tailer maintains control over its inventory, packaging techniques,
shipping schedules, customer service, and so forth. Outsourcing all of t
he processes to a fulfillment
house offers the least amount of control because the e
-
tailer is not responsible for maintaining inventory,
order taking, shipping, or customer service. E
-
tailers that hire a drop
-
shipper lose control over picking,
packing, pu
lling, and shipping products; however, they do maintain control over order processing.
Purchasing products from a local distributor after customer orders are received causes the e
-
tailer to be
dependent upon the distributor's inventory.

SOURCE:

DS:089

SOUR
CE:

Wilson, R.F. (2002).
Planning your Internet marketing strategy

(pp. 148
-
153). New York:
John Wiley & Sons.



17
.

D

Identify discrepancies. One way to identify shipping discrepancies is for receiving clerks to count the
items in a shipment and mark them

off the purchase order. By counting each item, the receiving clerks
will find out if certain items are missing or if more items were shipped than ordered. Labeling
merchandise, distributing stock, and warehousing excess goods are other aspects of receivin
g.

SOURCE:

DS:086

SOURCE:

Monczka, R., Trent, R., & Handfield, R. (2002).
Purchasing and supply chain management

(2
nd

ed.) [p. 44]. Mason, OH: South
-
Western.



18
.

D

Two 40
-
pound packages. The least expensive shipping method is to combine the eight 10
-
poun
d
packages into two 40
-
pound packages. The total cost for shipping the two larger packages is $16.70
($8.35 + $8.35 =$16.70). Eight 10
-
pound packages would cost $36.40 ($4.55 x 8 = $36.40). The cost for
two 30
-
pound packages and one 20
-
pound package would
be $20, and the cost for three 20
-
pound
packages and two 10
-
pound packages would be $26.80.

SOURCE:

DS:057

SOURCE:

Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006).
Marketing essentials

(pp. 350
-
351).

New York: Glencoe/McGraw
-
Hill.



19
.

C

Color coding
. The color assigned to each shipment of goods indicates the date it was received, which
tells the marketer how long it has been in inventory. This makes it easy to see which goods should be
used first. Tickler control is a system by which buyers estimate
the entire inventory for a given period by
counting portions of the stock at regular intervals. Reorder control system uses reminder cards or labels
for buyers when the inventory level of an item reaches a certain level. A check
-
out scanner is a device
use
d to read product information for an electronic cash register.

SOURCE:

DS:022

SOURCE:

DS LAP 3

Unit Inventory Control Systems


Test
926

INTERNET MARKETING



KEY


14






20
.

A

Know if products listed for sale on their web sites are actually in stock. By developing real time inventory
systems, e
-
ta
ilers gain important knowledge about whether the products listed on their web site are
actually in stock. This is possible because inventory information is integrated with the information that is
available on their web sites. E
-
tailers need to develop HTML

coding that is free of holes in order to
prevent hackers from deleting products from their web sites, not an inventory control system. Although
inventory control systems might be used to indicate when back
-
ordered items appear in stock, they do
not automa
tically send out e
-
mail notifications to customers. The actual software that supports the
shopping cart system is what keeps track of items that customers want to purchase, not an inventory
control system.

SOURCE:

DS:092

SOURCE:

Farese, L.S., Kimbrell, G.,

& Woloszyk, C.A. (2006).
Marketing essentials

(p. 442).

New York: Glencoe/McGraw
-
Hill.



21
.

D

Receives the correct product. One of the functions of customer service in the distribution process is to
make sure the customer receives the correct product. C
ustomers buy specific products that meet their
needs and expect to receive those products. If they are not satisfied with the products they purchase,
they may return them or decide not to buy from the online business again. Taking accurate orders,
followin
g up on delivery, and handling problems or complaints are ways that customer service can make
sure the customer receives the correct product. Customer service does not facilitate the distribution
process by making sure the customer pays full price for the

product, accepts delivery of the product, or
tells others about the product.

SOURCE:

DS:029

SOURCE:

Everard, K.E., & Burrow, J.L. (2001).
Business principles and management
(11th ed.)

[pp. 575
-
576]. Cincinnati: South
-
Western.



22
.

A

Supplies. Supplies a
re products that are constantly being purchased and used up in the operation of an
online business. Parts are items that will become part of a final product without additional processing.
Materials become part of a finished product after they have been pro
cessed. Equipment is industrial
products used in the operation of a business but not in the actual production of a good or service.

SOURCE:

EC:002

SOURCE:

EC LAP 10

Goods and Services



23
.

A

Competition. In market economies, competition is a very importan
t factor in deciding how products will be
produced. Producers try to choose a production method that will enable them to offer products at prices
that are attractive to customers. Each producer must try to use resources in the most efficient method
possibl
e in order to compete with other producers and to make maximum profits. Tradition is an important
factor in traditional economic systems. Government is an important factor in command economic
systems. Distribution is not a factor.

SOURCE:

EC:007

SOURCE:

EC

LAP 17

Economic Systems



24
.

B

The efforts of competitors. Competition can be an economic risk to an online business. The online
company in this situation may be forced to lower its prices or to change its product. Shifts in customer
demand are an econom
ic risk caused by customers' changing needs and wants. Government
intervention includes any actions taken by government that affect what will be profitable for a business to
sell. Product obsolescence occurs when the usefulness or stylishness of a product
declines.

SOURCE:

EC:011

SOURCE:

EC LAP 3

Lose, Win, or Draw (Business Risk)


Test
926

INTERNET MARKETING



KEY


15






25
.

C

A way for suppliers and demanders to interact. An e
-
commerce business's market structure in an
industry can be described as a way for suppliers and demanders to interact.
This means that the market
is structured in a way that makes it easy and efficient for an e
-
commerce business to obtain and sell
products. It is not a method of categorizing goods and services, a tool for measuring economic activity, or
a means of gauging
an e
-
commerce business's financial success.

SOURCE:

EC:075

SOURCE:

University of Michigan. (n.d.).
Deardorff's glossary of international economics.

Retrieved

July 27, 2007, from http://www
-
personal.umich.edu/~alandear/glossary/m.html



26
.

C

How high or l
ow prices are. Price level is one of two terms economists use to describe prices; the other is
inflation. To measure price level, economists select a market basket of goods and construct a price
index, such as the Consumer Price Index, which is a widely us
ed measure of the price level. They are
then able to compute price levels and rates of inflation. Price level is generally used for comparative
purposes; today's price level may be higher, lower, or about the same as prices five years ago. Inflation
measur
es the rate of increase in prices. Economists can use some of these variables in predicting prices
in the future, but price level does not look at future prices. Deflation occurs when price levels drop.

SOURCE:

EC:080

SOURCE:

O'Sullivan, A., & Sheffrin, S.
M. (2003).
Economics: Principles in action

(pp. 58, 307).

Upper Saddle River, NJ: Prentice Hall.



27
.

A

Increased growth. During a mildly inflationary period, wages usually increase more slowly than the prices
of goods. Therefore, the cost of the goods s
old is higher than the cost of labor. As a result, businesses
earn more profits which enables them to expand and hire more employees. The economy grows because
more people are working and have income to spend. This situation occurs only during a mildly
inf
lationary period because if inflation rises to a higher level, the economy experiences a decrease in
prosperity. High inflation also causes increased unemployment and decreased profits for businesses.

SOURCE:

EC:083

SOURCE:

Arnold, R.A. (2004).

Economics

(
6th ed.) [pp. 218
-
219]. Cincinnati: Thomson/South
-
Western.



28
.

D

Visualization. The visualization technique of stress management involves imagining a pleasant scene
and invoking as many senses as possible in order to imagine being in the scene. Deep brea
thing
involves taking deep, slow breaths to physiologically relax the body. Positive self
-
talk involves asking
yourself questions about what is important and what you can realistically accomplish. Muscular relaxation
involves focusing on relaxing muscle gr
oups in order to reduce stress.

SOURCE:

EI:028

SOURCE:

Sarmiento, R.F. (n.d.).
Stress management. CyberPsychologist.

Retrieved July 27, 2007,
from http://www.cyberpsych.com/stress.html



29
.

C

Management style. The way in which e
-
tail supervisors guide the

work of employees depends upon their
management style. Management style is the way or manner in which a person goes about the task of
influencing others. Management styles include authoritarian, democratic, and laissez
-
faire. An e
-
tail
supervisor's level
of education, technical skills, and desire for success may affect the choice of
management style.

SOURCE:

EI:037

SOURCE:

EI LAP 5

Can You Relate? (Positive Working Relationships)



30
.

D

Be timely. Recognition is more effective the closer it follows the be
havior. When you see or experience
something positive, comment on it right away. Otherwise, a person is left to wonder if you noticed the
effort at all. Recognition should be personal rather than general. It is not effective to exaggerate praise or
to limi
t compliments. The recognition should match the effort.

SOURCE:

EI:014

SOURCE:

QS LAP 13

Gimme Five!


Test
926

INTERNET MARKETING



KEY


16






31
.

B

Installment credit. Installment credit is frequently used in the purchase of big
-
ticket items such as
furniture. An open, or regular, credit accoun
t allows credit users to buy at any time during a set period,
usually 30 days. A revolving credit account limits the total amount of money that may be owed and
charges interest on outstanding balances. Layaway is paying over a period of time for merchandis
e held
by the store until the customer pays in full.

SOURCE:

FI:002

SOURCE:

FI LAP 2

Credit and Its Importance



32
.

D

To determine the potential for loss. Speculative risks are chances of loss that may result in loss, no
change, or gain. When an Internet
-
based business takes a speculative risk, there is always the possibility
of failure. Therefore, before taking speculative risks, Internet
-
based businesses usually evaluate them in
order to determine the potential for loss. Internet
-
based businesses may dec
ide not to take the risk
because the potential for loss is too high. Internet
-
based businesses cannot obtain insurance for
speculative risks. Internet
-
based businesses usually purchase insurance to cover losses due to theft or
property damage.

SOURCE:

FI:0
80

SOURCE:

Longenecker, J.G., Moore, C.W., & Petty, J.W. (2000).
Small business management: An
entrepreneurial emphasis

(11
th

ed.) [pp. 544
-
545]. Cincinnati: South
-
Western College.



33
.

B

Loss
-
prevention. Loss
-
prevention measures that eliminate safety haz
ards should be part of an online
business's risk
-
management plan. Risk management is the reduction of loss through prevention or
transfer. Joe is trying to prevent a possible fire. Expense control is a business concept but not a risk
-
management measure. Se
curity precautions reduce the risk of loss due to employee and/or customer
theft. The employees are being instructed, not controlled.

SOURCE:

FI:084

SOURCE:

BA LAP 2

Risk Management



34
.

C

Assets, liabilities, and equity. A balance sheet is a financial st
atement that captures the financial
condition of the web
-
based company at a particular moment. The web
-
based company summarizes its
financial condition by categorizing data into three groups

assets, liabilities, and equity. An asset is
anything that the we
b
-
based company owns or that can be converted into cash. Assets include cash,
equipment, and sales income. Liabilities are the web
-
based company's debts. As a liability, a credit
balance is money that a web
-
based company owes to its suppliers or lenders. E
quity is the net worth of
the web
-
based company after subtracting all liabilities from all assets. A budget is an estimate of income
and expenses for a certain period of time. A budget is not a category of information that is listed on a
balance sheet.

SOU
RCE:

FI:093

SOURCE:

Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006).
Marketing essentials
(p. 772).

New York: Glencoe/McGraw
-
Hill.



35
.

C

Gross margin. Gross margin on an income statement is the difference between the cost of goods sold
and net sales
. Gross margin is not the same as net profit, which is the money remaining after operating
expenses are subtracted from gross profit. Gross sales is the total value of goods or services sold in a
period of time.

SOURCE:

FI:102

SOURCE:

Stull, W.A. (1999).
M
arketing and essential math skills: Teacher's edition

(pp. 234
-
235).
Cincinnati: South
-
Western Educational.


Test
926

INTERNET MARKETING



KEY


17






36
.

B

20%. Return on investment is a cost/benefit analysis that is calculated by dividing the profit by the
investment, which includes the total c
osts and expenses. First, determine the profit by subtracting the
costs and expenses from the selling price ($26.75
-

$22.25 = $4.50). Then, divide that figure by the
investment (4.50/22.25 = 0.202 or 20%). In this example, the online business invested $22
.25 in each
item, sold each item for $26.75, and achieved a 20% return on investment. Businesses calculate return
on investment to determine if they are earning a sufficient profit based on the cost.

SOURCE:

FI:302

SOURCE:

Farese, L.S., Kimbrell, G., & Wol
oszyk, C.A. (2002).
Marketing essentials

(3rd ed.) [p. 453].
Woodland Hills, CA: Glencoe/McGraw
-
Hill.



37
.

C

Productivity. Productivity is the amount of work that employees perform in a given period. Before an


e
-
business decides to hire new employee
s, it must have the financial resources to pay the employee, and
it must have the need to increase its outputs. When an e
-
business expects higher sales, it needs to
increase its outputs, and therefore, needs more inputs (e.g., personnel) to satisfy the hi
gher product
demand. When deciding to hire employees, an e
-
business does not first consider its secondary, uniform,
or temporary needs.

SOURCE:

HR:353

SOURCE:

Dessler, G. (2000).
Human resource management

(8th ed.) [p.124]. Upper Saddle River, NJ:
Prentice

Hall.



38
.

A

Next step in the process. When concluding an interview with a job applicant, it is important for the
interviewer to explain what will happen next. The interviewer might have more applicants to interview
before making a decision. Each applica
nt should know when the process will be completed, such as by
the end of the week. They also are entitled to know if they will receive a phone call if the job is being
offered to them or a letter of thanks for their interest. The requirements of the positi
on and the
performance evaluation system would be discussed during the interview rather than at the conclusion.
Interviewers should not explain the problems in the business with job applicants.

SOURCE:

HR:355

SOURCE:

Lussier, R.N. (2003).
Management fundam
entals: Concepts, applications, skill development

(2nd ed.) [p. 245]. Mason, OH: South
-
Western.



39
.

D

Learn their jobs. A e
-
tailer's current employees can help new employees learn their jobs and provide
them with information about company procedures. Bus
inesses often assign new employees to work with
experienced employees who will be able to help train them and give them directions about job duties.
Current employees usually are able to answer new employees' questions. New employees are expected
to posses
s the work skills necessary to do the jobs for which they were hired. New employees negotiate
contracts with businesses before starting to work.

SOURCE:

HR:360

SOURCE:

Jackson, S., & Schuler, R. (2003).
Managing human resources through strategic
partnershi
ps

(8th ed.) [p. 368]. Cincinnati: Thomson/South
-
Western.



40
.

C

Population to be served. In order for the e
-
tailer to get the best return from its training and development
expenditures, it should try to spend the funds where they will do the maximum amou
nt of good. This
means providing training and development opportunities for the population with the most pressing
problem first. The trainees' personal needs and the training offered by competitors are not factors in this
decision. The implementation check
list helps the training process to go smoothly.

SOURCE:

HR:363

SOURCE:

MN LAP 50

Manager/Supervisor Training


Test
926

INTERNET MARKETING



KEY


18






41
.

B

Information gathering. The basic function of a marketing
-
information management system is to gather
information important to the business.
This information should be gathered from both internal and
external sources on an ongoing basis. Information processing involves examining the collected data and
putting them into formats that are useful to the business. Information reporting involves dist
ributing
information to those who make marketing decisions. A sales forecast is not a function of a marketing
-
information management system. Instead, it is a prediction of future sales over a specific period of time.

SOURCE:

IM:001

SOURCE:

IM LAP 2

Marketi
ng
-
Information Management



42
.

C

Internet. The Internet is the interconnection of thousands of computers and computer networks all over
the world. The Internet allows computer users to exchange information, search for data in remote
locations, and communi
cate with others throughout the world. Marketing
-
information managers often use
the search capabilities of the Internet to look for data that they otherwise would not be able to access
because it is available in remote locations. E
-
mail is the electronic t
ransmission of messages across
computer networks. Cookies are bits of data stored on an Internet user's computer. Cell phones are a
personal communication device.

SOURCE:

IM:183

SOURCE:

Hair, J.F., Jr., Bush, R.P., & Ortinau, D.J. (2000).
Marketing researc
h: A practical approach
for the new millennium

(pp. 120
-
124). Boston: Irwin/McGraw
-
Hill.



43
.

D

Exploratory. Exploratory research collects information to help the e
-
business define its issue, situation, or
concern and decide which direction to go in order

to address it. Descriptive research is used to gather
specific information that is related to the identified issue, situation, or concern. Causal research focuses
on cause and effect and tests "what if" theories. Predictive research is used to help the e
-
business
forecast future business developments.

SOURCE:

IM:010

SOURCE:

IM LAP 5

Nature of Marketing Research



44
.

B

Decide which products to feature. Most e
-
businesses use some type of tracking method to obtain
information about visitors to their web site
s such as how often they visit the site and what they buy. The
purpose of tracking this information is to use it to make decisions to make the site more effective. One
way that an e
-
business might use the information is to decide which products to feature.

If tracking
information indicates that customers prefer certain products, the e
-
business probably would feature those
products in order to satisfy customers and increase sales. Tracking methods collect primary data, but that
data is helpful only if e
-
busi
nesses use it to make decisions. An e
-
business does not use tracking
information to prepare privacy statements or negotiate with key suppliers.

SOURCE:

IM:234

SOURCE:

Broadbent, B. (1998).
Using the internet smarter & faster

(pp. 125
-
126). Menlo Park, CA:
Crisp Publications.



45
.

B

Decreasing job opportunities. Many businesses are only selling their products online. This decreases the
need for experienced salespeople to answer customer questions and encourage purchase decisions. In
many cases, the Web is b
ecoming the selling tool, and the traditional sales positions are no longer
needed. Online businesses that employ salespeople still expect those employees to be knowledgeable
about the products they sell. The sale of goods and services on the Internet does

not increase
commission rates or promote customer contact. However, if it did, those would be positive benefits rather
than negative effects.

SOURCE:

MK:010

SOURCE:

BA LAP 3

Internet's Impact on Marketing


Test
926

INTERNET MARKETING



KEY


19






46
.

C

Achieving planned goals. The e
-
business's
goals and strategies for achieving those goals may change
frequently. Changing the e
-
business's image, increasing its profits, or improving management techniques
might be specific goals at any point in time.

SOURCE:

MP:001

SOURCE:

IM LAP 7

Pick the Mix



4
7
.

D

Consumers' characteristics. In order to satisfy their customers, many e
-
businesses segment the whole
market into smaller groups and focus their marketing efforts on a specific group. Consumer
characteristics that they consider include age, occupation,

gender, educational level, and life stage. Mass
marketing is designing products and directing marketing activities in order to appeal to the whole market.
A firm's employees would not necessarily provide information about the target market. Studying human

relations

all the ways that people form and conduct relationships with one another

would not help a
firm to segment its market.

SOURCE:

MP:003

SOURCE:

IM LAP 9

Have We Met?



48
.

D

Accessible. So that an e
-
business can promote and sell products, it must b
e able to reach its target
market; so, the market must be accessible. Undifferentiated refers to a marketing strategy in which a
business offers one option to the entire segment without considering market segments' differences.
Concentrated refers to a tac
tic in which a business appeals to one or a few small markets with the goal of
developing and maintaining customer loyalty. Inflexible means unwilling to adapt and is not usually a
characteristic of a desirable target market.

SOURCE:

MP:005

SOURCE:

Armstro
ng, G., & Kotler, P. (2000).
Marketing: An introduction

(5th ed.) [p. 199].

Upper Saddle River, NJ: Prentice Hall.



49
.

B

To understand change. E
-
businesses need to understand changes in their external environment in order
to adapt and remain competitive
. To do this, they often conduct situational analyses to gather information
about changes or trends that are beginning to develop in the environment or marketplace. This procedure
allows e
-
businesses to identify changes at an early stage and decide if they

present a threat to the way
the e
-
business is currently operating. E
-
businesses do not analyze their external environment in order to
be socially responsible, behave ethically, or calculate profit.

SOURCE:

MP:008

SOURCE:

Zikmund, W., & d'Amico, M. (2001).

Marketing: Creating and keeping customers in an

e
-
commerce world

(7th ed.) [pp. 41
-
42]. Mason, OH: South
-
Western.



50
.

A

Financial resources. A SWOT analysis is the systematic evaluation of an e
-
business's internal strengths
and weaknesses and external
opportunities and threats. SWOT stands for strengths, weaknesses,
opportunities, and threats. One of the internal strengths that a SWOT analysis might identify is a
business's financial resources. Having sufficient financial resources to develop new produc
ts and
services is an internal strength that a business can use to grow and prosper. Extensive regulations is an
external threat, while limited competition is an external opportunity. Increased expenses is an internal
weakness.

SOURCE:

MP:010

SOURCE:

Churc
hill, G.A., Jr., & Peter, J.P. (1998).

Marketing: Creating value for customers

(2nd ed.)
[pp. 88
-
90]. Boston: Irwin/McGraw
-
Hill.


Test
926

INTERNET MARKETING



KEY


20






51
.

D

Decreased trade regulation. Internet
-
based businesses often assess global trends in order to identify
possible opportun
ities. Decreased trade regulation in certain parts of the world is a trend that presents an
opportunity for many Internet
-
based businesses. For example, the North American Free Trade
Agreement (NAFTA) and the European Union have eliminated or lessened many

trade restrictions
between the countries involved. As a result, businesses in those countries have more opportunities to
market their products in other countries. Increased political unrest, decreased population growth, and
increased language barrier are
potential threats rather than opportunities.

SOURCE:

MP:011

SOURCE:

Boone, L.E., & Kurtz, D.L. (2004).
Contemporary marketing

(11th ed.) [pp. 102
-
103].

Mason, OH: Thomson/South
-
Western.



52
.

B

Production should decrease. Businesses need to forecast the a
mount of products they can expect to sell
in order to plan the most efficient production of those products. In this case, anticipated decreases in
sales should be matched by decreased production in order to meet the shift in demand. Increasing
production o
r keeping it at the same level will create too much inventory. The business might have to
reduce its prices in order to sell the inventory.

SOURCE:

MP:013

SOURCE:

IM LAP 3

Nature of Sales Forecasts



53
.

A

Marketing plan, financial plan, and business situa
tion analysis. A well
-
organized business plan consists
of three major sections. The business situation analysis is the first section of the business plan. It
provides a description about the business including the type of business, philosophy, product desc
ription,
and self
-
analysis for entrepreneurs. The second section describes the web
-
based business's marketing
plan and also addresses organizational issues. The last section is the financial plan, which discusses the
web
-
based business's overall financial
status and needs. The market segment analysis, SWOT analysis,
and trading area analysis are components of the business situation analysis. The manufacturing plan
applies only to manufacturing businesses and is a component of the organizational section of t
he
business plan. The projected income report is a component of the financial plan.

SOURCE:

MP:018

SOURCE:

Farese, L.S., Kimbrell, G., & Woloszyk C.A. (2006).
Marketing essentials

(4th ed.) [p. 740].
Woodland Hills, CA: Glencoe/McGraw
-
Hill.



54
.

D

Elimina
te certain items from the product mix. A profitability analysis measures whether an e
-
tailer is
making an acceptable profit on the sale of goods and services. After conducting a profitability analysis,
an e
-
tailer will be able to decide whether to make adj
ustments to its marketing plan. For example, if the
profitability analysis indicates that certain items are not generating enough profit, the e
-
tailer might decide
to eliminate those items from its product mix. By deciding not to market certain products, t
he e
-
tailer will
be able to concentrate on promoting those items that generate the desired amount of profit. Reducing the
number of employees in the accounting department, buying more equipment for the warehouse, and
increasing the compensation and benefit

package are not adjustments that an e
-
tailer would make to its
marketing plan.

SOURCE:

MP:019

SOURCE:

Kotler, P. (2000).
Marketing management

(10th ed.) [pp. 701
-
702]. Upper Saddle River, NJ:
Prentice Hall.


Test
926

INTERNET MARKETING



KEY


21






55
.

A

Can return a large number of hits. A sea
rch engine is a software program that crawls the Web looking for
information pertaining to specified search terms that an Internet user types into a search field, and then
retrieves and displays the information for the Internet user. Search engines that us
e web spiders to
obtain information can find data for narrow or very specific searches and return a large number of hits.
The display results may contain secure and unsecured information. Metacrawler search engines search
all other search engines. However,

the disadvantage of using Metacrawler search engines is that they
tend to have a high rate of repetitive hits because many web sites are registered on all major search
engines. Meta tags are HTML codes that display information about web pages.

SOURCE:

NF:
029

SOURCE:

Kleindl, B.A. (2001).
Strategic electronic marketing: Managing e
-
business

(p. 62). Cincinnati:
South
-
Western College.



56
.

C

Link to. An online business's web site usually contains several pages so specialized information can be
explained in m
ore detail. For example, online businesses often have pages that describe the history of
the company, list the key employees, explain products, provide shopping options, offer customer service,
etc. It is important that each page include a link to the home

page so users can return to the main page
easily. Users often want to access each page, and it is easier to do so if they can quickly link to the home
page. It is not necessary to include a summary of the home page or a reason for the home page. Online
bu
sinesses usually include illustrations or pictures on the home page, although that is not necessary.

SOURCE:

NF:042

SOURCE:

Locker, K.O. (2000).
Business and administrative communication

(5
th

ed.) [pp. 142
-
143].
Boston: Irwin/McGraw
-
Hill.



57
.

B

Hypertex
t markup language (HTML). Hypertext markup language is the most basic programming
language used to create web pages. It tells a web browser how and when to display words and images
on the computer screen. Secure sockets layer is a security measure that pro
tects online credit
-
card
transactions using encryption and a mechanism by which only the merchant's software is able to
unscramble the data. Hypertext transport protocol (HTTP) is what is used to link web pages together, not
to create web pages. An Interne
t service provider (ISP) is a company that provides access to web pages.

SOURCE:

NF:062

SOURCE:

Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002).
Marketing essentials (
3rd ed.)

[pp. 165
-
166]. Woodland Hills, CA: Glencoe/McGraw
-
Hill.



58
.

B

Accessed wh
en needed. Online businesses need to organize their records in a systematic manner so
that information can be accessed when it is needed. This is what record keeping is all about

managing
the information that an online business needs in order to make opera
tional and financial decisions. Some
business records contain confidential information and should not be distributed freely, available to
everyone, or published in newsletters. However, this information should be organized so that employees
who are suppose
d to use it can access it when needed.

SOURCE:

NF:001

SOURCE:

NF LAP 1

Record It (Business Records)



59
.

A

Economic. An environmental scan is an analysis of external forces that influence a business's success.
The fluctuation of unemployment rates is an e
conomic factor because unemployment has an effect on
consumers' ability to buy goods and services. If consumers are unemployed, they do not have income to
spend. As a result, businesses (e.g., e
-
tailers) do not sell as much because consumers are not buying
.
When this situation occurs, businesses often reduce expenses in an attempt to stay in business until the
rate of employment starts to rise again. The rate of unemployment is not a geographic, political, or
cultural factor.

SOURCE:

NF:015

SOURCE:

Farese,
L.S., Kimbrell, G., & Woloszyk, C.A. (2006).
Marketing essentials

(pp. 30
-
32, 84
-
86).
New York: Glencoe/McGraw
-
Hill.


Test
926

INTERNET MARKETING



KEY


22






60
.

B

Hire a professional to try to break into the system. Professionals can recognize flaws in the security
system and make recommendati
ons to make it more secure. Encryption algorithms protect transaction
information in transit, but do not stop dishonest merchants or employees. While having an 800 number
for customers to call and charge purchases may reassure customers who do not wish to
disclose their
credit
-
card numbers online, it may dissuade customers who want the convenience of purchasing online.
Transferring the user to a page that explains transaction security gives the purchaser peace of mind;
however, some online companies do not
provide adequate protection of records stored in their
computers.

SOURCE:

OP:125

SOURCE:

Strauss, J., & Frost, R. (1999).
Marketing on the Internet: Principles of online marketing


(pp. 382
-
384). Upper Saddle River, NJ: Prentice Hall.



61
.

B

Pilferage. Pi
lferage is the theft of small sums of money or inexpensive items from an online business.
Shoplifting is the theft of goods by customers. Burglary is any illegal entry into a building to commit a
theft. Robbery is theft that involves the use of force, viol
ence, or fear.

SOURCE:

OP:013

SOURCE:

RM LAP 4

Security Precautions



62
.

C

Outputs. Outputs are the goods and service produced as the result of combining inputs. In other words,
outputs are finished products. Inputs are the specific economic resources tha
t a business uses to
produce goods and services. Raw materials, or items in their natural state, are inputs. Robotics is a mass
production technique in which equipment is programmed to do a manufacturing task with little or no help
from humans.

SOURCE:

OP:
018

SOURCE:

Clark, B., Sobel, J., & Basteri, C.G. (2006).
Marketing dynamics

(pp. 290
-
291, 296).

Tinley Park, IL: Goodheart
-
Willcox.



63
.

D

$234,750. Gross profit results from the subtraction of cost of goods sold from total revenue. In this case,
the e
-
business had sales of $370,500 and $135,750 in cost of goods sold ($370,500
-

$135,750 =
$234,750). Net profit results from subtracting operating expenses from the gross profit. Fixed costs and
charitable donations are included in operating expenses.

SOURC
E:

OP:024

SOURCE:

MN LAP 57

Operating Expenses



64
.

D

To determine a product's possible range of profit. The purpose of conducting a break
-
even analysis is to
identify the level of sales needed to reach the break
-
even point at various prices. The break
-
ev
en point is
the level of sales at which revenues equal total costs. To determine break
-
even point, an e
-
business
must consider three factors

the price per unit, the cost per unit, and the total fixed costs. An e
-
business
does not conduct a break
-
even analy
sis so it can receive a tax break from the government, so it can
evaluate product sales from the previous year, or to determine the approximate consumer demand
levels.

SOURCE:

OP:192

SOURCE:

Burrow, J.L. (2006).
Marketing

(2nd ed.) [pp.155, 386]. Mason, OH
: South
-
Western.


Test
926

INTERNET MARKETING



KEY


23






65
.

A

Hiring part
-
time employees. Payroll is usually an Internet
-
based business's greatest expense. One way of
controlling payroll expenses is to hire part
-
time employees who work only when needed. Part
-
time
employees receive an hourly w
age, but the company saves money because it doesn't have to pay them
for vacation or sick time or provide additional costly benefits that full
-
time employees receive. Scheduling
overtime shifts would increase payroll expenses. Monitoring operating costs an
d changing purchasing
policies will not help an Internet
-
based business to control payroll expenses.

SOURCE:

OP:029

SOURCE:

Meyer, E.C., & Allen, K.R. (2000).
Entrepreneurship and small business management:
Teacher's manual

(2nd ed.) [pp. 345
-
346]. New Yor
k: Glencoe/McGraw
-
Hill.



66
.

B

$40,661.60. Businesses use budget information to monitor sales and expenses and predict future income
and costs. In this example, the e
-
tailer's actual sales are expected to increase but so will the amount
budgeted for expen
ses. To determine the amount the e
-
tailer will spend on expenses next month, first
calculate the increase in sales by multiplying current sales by the estimated increase ($68,500 x 6% or
.06 = $4,110), and add that figure to current sales ($68,500 + $4,110

= $72,610). The e
-
tailer expects
$72,610 in sales next month. The e
-
tailer usually spends 52% of sales on expenses but expects a 4%
increase next month for a total of 56%. To determine the amount the e
-
tailer will spend on expenses next
month, multiply ne
xt month's sales by 56% ($72,610 x 56% or .56 = $40,661.60).

SOURCE:

OP:030

SOURCE:

Louderback, J.G., Holmen, J.S., & Dominiak, G.F. (2000).
Managerial accounting

(9th ed.)
[pp. 228
-
232, 235
-
238, 284]. Mason, OH: South
-
Western.



67
.

D

Delegate responsibil
ity. The ability to delegate responsibility is a characteristic of someone who has
leadership skills. Individuals who are leaders realize that they cannot do all of the work or make all of the
decisions. Therefore, they delegate responsibility to others wh
ile continuing to guide and direct the
actions of others so they will perform in a desired manner. To move up the career ladder, e
-
tail
employees need to exhibit leadership skills, which include delegating responsibility. Dominating others,
ignoring person
al rights, and assigning blame are not skills. They are characteristics of individuals who
might have difficulty moving up the career ladder.

SOURCE:

PD:035

SOURCE:

Kimbrell, G., & Vineyard, B.S. (2006).
Succeeding in the world of work

(pp. 285
-
286).

New
York: Glencoe/McGraw
-
Hill.



68
.

B

Delegating activities. Julie is delegating, or giving, one of her duties to another capable e
-
tail employee.
She is not procrastinating, or postponing, the job because another employee is doing the job. Setting
objectives

involves establishing goals to be met. Standardizing tasks creates a method of performing a
duty that will stay the same.

SOURCE:

PD:019

SOURCE:

PD LAP 1

Time Management



69
.

C

The price must satisfy both buyers and sellers. Buyers want low prices, and s
ellers want high prices.
Both groups must feel that they are getting the most value from the product in order for customers to be
satisfied and the e
-
tailer to be successful. Customers associate price with quality. If a price is lower than
a customer expec
ts to pay, the customer may not buy. Businesses (e.g., e
-
tailers) must be willing to
adjust their prices according to circumstances. Selling price includes the cost of the product and all of its
associated costs, such as transportation charges and promotio
n expenses.

SOURCE:

PI:001

SOURCE:

PI LAP 2

Pricing


Test
926

INTERNET MARKETING



KEY


24






70
.

C

Fixing. Price fixing is an illegal business agreement in which businesses agree on prices of their goods
and services, resulting in little choice for the consumer. Price discrimination is an illeg
al activity in which a
business charges different customers different prices for similar amounts and types of products. Coercion
is forcing a person to do something s/he does not want to do. Altering is changing prices, which is not
always an illegal actio
n.

SOURCE:

PI:017

SOURCE:

Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006).
Marketing essentials

(p. 536).

New York: Glencoe/McGraw
-
Hill.



71
.

B

Total amount of its income from sales. The purpose of sales
-
oriented pricing objectives is to increase the

total amount of income from sales. In most cases, this results in more efficient use of human resources.
The e
-
tailer may need to increase its promotion, but that is not a goal of the pricing objective. The e
-
tailer
would need to control its marketing cos
ts, not increase them, in order to be successful.

SOURCE:

PI:002

SOURCE:

PI LAP 3

Factors Affecting Selling Price



72
.

D

Life cycle. The course that a product follows in the market, including the stages of introduction, growth,
maturity, and decline, is k
nown as the product life cycle. After being introduced on the market, all
products move through the life
-
cycle stages at different rates, requiring different marketing strategies.
Online businesses should plan marketing strategies that will be most effecti
ve for the product at each
stage of its life cycle. Research studies are often used to aid product/service management in order to
gather information concerning consumer needs and preferences. Test
-
marketing is the process of
introducing a new product to a
limited market to determine what its acceptance will be. Feasibility
analysis is examining such factors as demand, costs, competition, capital investment required, and
potential profit of a good or service to determine how it will fit into the online compa
ny's product mix.

SOURCE:

PM:001

SOURCE:

PP LAP 5

Product/Service Planning



73
.

D

Maturity. Maturity is the stage in the product life cycle in which sales peak and profits increase. However,
many businesses are competing for those sales because the produc
t is popular and in demand.
Businesses expect to make money selling products in the maturity stage, but they realize that they will
need to be competitive. During the introduction phase of a product, a business is more likely to lose
money than to make it.

Universal and existing are not stages of a product life cycle.

SOURCE:

PM:024

SOURCE:

Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006).
Marketing essentials

(pp. 644
-
645).

New York: Glencoe/McGraw
-
Hill.



74
.

D

Tracking visitors to their web sites. C
omputer technology allows businesses to have web sites and makes
it possible for those businesses to track the visitors to their web sites. As a result, they can obtain
information about them such as name, address, type of purchase, amount of sale, etc. On
line businesses
often use this information to improve their product/service mix. For example, if an online business
determines that customers are not buying a certain product, they might improve the product or replace it.
Online businesses do not use compu
ter technology to mail questionnaires to customers' homes. Online
businesses often compile the information they obtain through their web sites in databases. However, the
information is not useful until the online businesses analyze it. Simply preparing int
eractive software
programs will not help online businesses to obtain information.

SOURCE:

PM:039

SOURCE:

Zikmund, W., & d'Amico, M. (2001).
Marketing: Creating and keeping customers in an

e
-
commerce world

(7th ed.) [pp. 127
-
128]. Mason, OH: South
-
Western
.


Test
926

INTERNET MARKETING



KEY


25






75
.

D

Specific details. A common use of synectics is to describe a topic in great detail. The goal is to generate
ideas by focusing on the details of a situation. The technique is often useful to develop ideas when a
good or service exists. Often, the
goal is to determine potential market opportunities and identify unique
attributes of the product that might appeal to the potential market. To identify the market opportunities,
the synectics' process involves identifying many specific details about the p
roduct and the potential
market. The detail
-
orientation synectics' technique might begin by addressing general needs, personal
wants, or positive attributes; however, the creative
-
thinking process must evolve and identify all
components in great detail.

SO
URCE:

PM:127

SOURCE:

PM LAP 11

Unleash Your Oh! Zone



76
.

B

Value. A feasible or practical product idea should provide the product purchasers or users with a certain
amount of satisfaction or value. Developing and marketing products is an expensive proces
s, so it is
important to make sure that the product idea translates into sellable goods and services. An attribute is a
characteristic. Depth describes a product
-
mix dimension referring to the number of products and the
assortment of sizes, colors, and mod
els offered in a product line. Standards are specifications or
statements that are used as a basis for comparing goods or services.

SOURCE:

PM:129

SOURCE:

Kotler, P., & Armstrong, G. (1999).
Principles of marketing

(8th ed.) [p. 277]. Upper Saddle
River,
NJ: Prentice Hall.



77
.

C

Quality. Many e
-
businesses establish quality standards that indicate the degree of excellence to be
expected from a good or service. In some cases, perfection may be the only acceptable standard for an
e
-
business's goods and serv
ices. For example, an invoice containing pricing errors cannot be sent to a
customer. Industry standards are standards that all businesses in a particular industry are expected to
follow. Quantity standards specify the amount of work to be done. Activity i
s not a type of standard.

SOURCE:

PM:019

SOURCE:

PM LAP 8

Grades and Standards



78
.

D

To encourage repeat business and to attract new customers. Internet businesses often add and delete
items from their product line or change pricing. Therefore, it is imp
ortant that updated information is
posted on their web sites. To encourage repeat business, Internet businesses often update their web
sites by enhancing the pages' appearance and by making the web site more user
-
friendly. Networking
systems do not necessa
rily influence web
-
site maintenance needs. Successful Internet businesses
update and maintain their web sites on a regular basis by in
-
house personnel or outsourced services.
Updating information on a web site does not necessarily eliminate the need for bu
sinesses to promote
their web sites. Not all businesses outsource their web
-
site maintenance needs.

SOURCE:

PM:113

SOURCE:

PM LAP 9

WWW Site Maintenance



79
.

C

Unique characteristics. The online office supply store is positioning its product according to
unique
characteristics because it is claiming that its product does something that no other product can do. The
ink changing color in light is a feature, but it is a unique characteristic that is not available on other pens.
The store is not positioning ac
cording to the quality or price of the pens or their relationship to other
products.

SOURCE:

PM:042

SOURCE:

Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002).
Marketing essentials

(3rd ed.)

[pp. 559
-
561]. Woodland Hills, CA: Glencoe/McGraw
-
Hill.


Test
926

INTERNET MARKETING



KEY


26






80
.

B

Brand mark. The hollow tree on a box of Keebler cookies is an example of a brand mark. A brand is the
name, term, symbol, or design that identifies a product and distinguishes one product from another. The
trade name identifies a company or organization.
The trade character is a lifelike symbol associated with
a product or company.

SOURCE:

PM:021

SOURCE:

PM LAP 6

It's a Brand, Brand, Brand World! (The Nature of Branding)



81
.

C

Sales volume. To survive in today's competitive marketplace, an e
-
tailer must
make a profit. By providing
good customer service, the e
-
tailer builds ongoing customer relationships. These relationships lead to
repeat business, which increases sales volume. Employee responsibility and the number of salespeople
may not increase, as th
e service offered may attract only a limited number of customers who purchase a
lot of products or high
-
priced products. Increased use of facilities may result from customer services but
would not be a primary reason.

SOURCE:

PM:013

SOURCE:

PM LAP 1

Custom
er Service Supersized!



82
.

B

A brand's personality. Brands connect with customers on emotional and rational levels. It is often a
brand's personality that establishes and maintains emotional links to customers, when brands have
features and characteristi
cs that customers can readily relate to, much as they do other people. An e
-
business owner's personality may influence the development of an e
-
business's brand but does not have
a direct impact on emotional connections with consumers. An attractive web sit
e will entice customers to
frequent a business but will not likely, in and of itself, be a key influence on the brand's emotional
connection with consumers. An e
-
business should not change its core values to meet the changing
needs of customers. It can ad
apt its operations, policies, etc., but should always keep its core values
intact.

SOURCE:

PM:126

SOURCE:

PM LAP 10

Building Your Business's Brand



83
.

A

Planned purchases minus goods on order. Open
-
to
-
buy is the amount of merchandise that can be
purchase
d in a particular period. It is calculated by subtracting goods on order from planned purchases.
The dollar amount of open
-
to
-
buy determines the number of goods to be ordered. The percentage of
markup and the ratio of sales to stock are separate calculatio
ns.

SOURCE:

PM:064

SOURCE:

Cash, R. P., Thomas, C., Wingate, J. W., & Friedlander, J. S. (2006).
Management of retail

buying

(pp. 99
-
101). Hoboken, NJ: John Wiley & Sons, Inc.



84
.

C

Timely. A business must make sure that the content that it posts on its
web site is accurate and timely. If
information is incorrect (e.g., product pricing) or outdated, customers may develop a negative view of the
company and not purchase its products. Content does not necessarily need to be in
-
depth, complex, or
bilingual.

S
OURCE:

PM:180

SOURCE:

Hanson, W. (2000).
Principles of Internet marketing

(pp. 410
-
411). Cincinnati:

South
-
Western College.


Test
926

INTERNET MARKETING



KEY


27






85
.

A

Prior to peak selling season. An e
-
tailer's peak selling season occurs when customer demand for certain
products is very hi
gh. For example, the demand for beachwear is usually highest during the spring and
summer months in the northern hemisphere. Therefore, e
-
tailers generally try to order these types of
items so they have enough on hand to meet demand. If e
-
tailers order hig
her quantities of items while in
the peak season, they run the risk of stockouts or back orders from their vendors. As a result, e
-
tailers
cannot meet customer demand for seasonal products. Therefore, it is best to order higher amounts of
inventory prior t
o peak season. Most e
-
tailers do not order higher amounts of stock before conducting
physical inventory counts because the process involves more counting and administrative work. Although
it is possible that businesses order higher quantities of products a
fter a physical inventory, that it is not
always true.

SOURCE:

PM:261

SOURCE:

Berman, B., & Evans, J.R. (1998).
Retail management: A strategic approach

(7th ed.)

[p. 454]. Upper Saddle River, NJ: Prentice Hall.



86
.

C

How long it takes to order and recei
ve goods. Lead time is the amount of time that passes between
placing an order and receiving the stock. When deciding when to buy goods, an online business
considers a supplier's lead time because that has an effect on when the goods will actually be deliv
ered.
If an online business knows that it usually takes a supplier approximately 15 days to process an order
and deliver the goods, the online business will place an order at least 15 days before it needs the goods.
An online business also considers how qu
ickly the merchandise turns over when deciding when to buy,
but this does not involve lead time. Lead time does not involve the number of steps in the receiving
process or the location of shipping and delivery companies.

SOURCE:

PM:262

SOURCE:

Berman, B.,
& Evans, J.R. (2004).
Retail management: A strategic approach

(9
th

ed.)

[pp. 356
-
357]. Upper Saddle River, NJ: Prentice Hall.



87
.

D

Communicate the benefits of products to online buyers. Sellers need to point out the benefits of products
sold via the In
ternet because people buy benefits, not features. Promotion contributes to the marketing
effort, but it does not enable marketers to distribute online products carefully or create new products.
Manufacturers produce goods and are not middlemen.

SOURCE:

PR:
001

SOURCE:

PR LAP 2

Promotion



88
.

B

A business must understand that the laws governing promotional activities vary by country. Some
countries have strict promotional laws that marketers must follow, while other countries' laws are lenient.
A business th
at breaks a promotional law may have to pay government fines, which is costly to the
business. Therefore, it is important for marketers to understand which promotional activities are, and are
not, permissible in the countries where they sell and promote pr
oducts. The International Ad Coalition is a
fictitious organization. In some countries, industry and consumer groups influence how the governments
regulate promotion. Some, rather than most, countries have a system of checks and balances to verify
that pro
motion regulations are fair.

SOURCE:

PR:101

SOURCE:

Arens, W.F. (2004).
Contemporary advertising

(9th ed.) [pp. 74
-
76]. Boston: Irwin/McGraw
Hill.



89
.

A

Opt
-
in e
-
mail. Opt
-
in e
-
mail refers to electronic messages that are sent with a recipient's permissio
n and
allow the recipient to request removal from the subscriber list at any time. Since a specific, interested
audience can be targeted, the online business does not waste time and energy promoting products to
uninterested people. An online newspaper an
d closed
-
circuit television attract audiences that may or may
not include the online business's preferred customers. Compulsory e
-
mail is a fictitious term.

SOURCE:

PR:007

SOURCE:

PR LAP 3

Ad
-
quipping Your Business (Types of Promotional Media)


Test
926

INTERNET MARKETING



KEY


28






90
.

C

Seve
ral times during. As a form of direct advertising, an infomercial is a lengthy commercial (broadcast
advertisement) that looks like a television program. To increase the number of viewers who respond to
the advertisement, the e
-
business should request a ca
ll to action (e.g., place order, ask for more
information) several times during the duration of the infomercial. This is because viewers do not always
watch the entire infomercial. If the call to action appears only at the beginning, in the middle, or at t
he end
of the broadcast, the viewers may miss it and not respond to the advertisement. When requesting a call
to action, the infomercial should repeat the phone number, e
-
mail address, or web address many times,
which may increase response rates.

SOURCE:

P
R:089

SOURCE:

O'Guinn, T.C., Allen, C.T., & Semenik, R.J. (2003).
Advertising and integrated brand
promotion

(3rd ed.) [pp. 688
-
689]. Mason, OH: South
-
Western.



91
.

A

Purchase lists from providers. To increase the number of e
-
mail recipients, businesses o
ften purchase or
rent e
-
mail lists from list providers. However, care should be taken to ensure that the recipients are part
of the target market that the business wants to receive its e
-
mails. Otherwise, the recipients might believe
the e
-
mail is spam and

delete it. Businesses do not increase the number of people who receive their e
-
mails by renting space on web sites, using information in telephone directories, or sending questionnaires
to customers.

SOURCE:

PR:166

SOURCE:

PR LAP 14

Executing Targeted E
-
M
ails



92
.

D

To support customers. Many different objectives can be served on a single web site. One of the most
common objectives is to support customers. One way that a web site supports customers is by providing
a variety of features such as a "Frequent
ly Asked Questions" page that helps customers troubleshoot any
problems they are having. Other objectives include informing, selling products, and providing a service.
Policies and systems are components of a web site rather than objectives.

SOURCE:

PR:103

SOURCE:

PR LAP 15

Planning Your Web Site



93
.

C

Printable coupons. All aspects of a promotional campaign should be coordinated in order to obtain
maximum results. For example, if a business advertises a product and directs the customer to the
company's w
eb site to print a coupon, the coupon should be posted on the web site and in a printable
format for use. Trade shows are exhibitions at which manufacturers and suppliers in a particular industry
display their goods. Special orders are orders placed to mee
t customers' specific wants. Target markets
are particular groups of customers that businesses seek to attract.

SOURCE:

PR:076

SOURCE:

Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002).

Marketing essentials

(3rd ed.)

[pp. 308, 319]. Woodland Hills, CA:
Glencoe/McGraw
-
Hill.



94
.

B

Including helpful information on the business's web site. It hardly costs the business anything to post a
frequently asked questions page that provides information that customers commonly seek. All of the
other alternatives inv
olve hiring customer
-
service representatives to communicate with customers, which
can cost the Internet
-
based business a significant sum of money. For example, staff members with good
writing skills would be needed to respond to e
-
mail inquiries and to cha
t with customers online. Also,
customer
-
service representatives with good oral communication skills would be needed to answer
telephones at a customer call center.

SOURCE:

SE:304

SOURCE:

Rayport, J. F., & Jaworski, B. J. (2004).

Introduction to e
-
commerce

(2nd ed.) [p.175].

New York: McGraw
-
Hill.


Test
926

INTERNET MARKETING



KEY


29






95
.

A

Increased sales volume. A clientele is a group of regular, repeat customers. An increase in sales is a
direct result of building a clientele. Loyal customers return to buy regularly, thus providing the fin
ancial
backbone for a growing online business. Building a clientele helps to reduce selling costs. Personal
satisfaction and increased knowledge are salesperson benefits of building a clientele.

SOURCE:

SE:828

SOURCE:

SE LAP 115

Keep Them Loyal



96
.

D

Spr
ay paint. Products which are hazardous if not properly used, handled, or stored usually are labeled
with safety information. Information is attached to the product so consumers will know how to use it
safely. For example, spray paint may be toxic if not us
ed in a well
-
ventilated area. None of the other
products would be considered hazardous products that would require safety information.

SOURCE:

SE:062

SOURCE:

Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006).
Marketing essentials

(pp. 665
-
666).

New York
: Glencoe/McGraw
-
Hill.



97
.

A

High
-
priced products. When people are planning to purchase high
-
priced items such as cars, computers,
fine jewelry, or vacation packages, they tend to comparison shop. When consumers are buying
expensive items, they usually w
ant to get as many benefits and features as possible

they want to get
the most out of their hard
-
earned money. Staple goods are items that people use or need everyday, such
as milk or socks. Value
-
priced items are usually cheaper and include generic goods
and products that
have minimal features and benefits. Novelty items are often unusual, nonessential goods that vary in
price range. People do not tend to comparison shop when purchasing staple goods, value
-
priced items,
and novelty items.

SOURCE:

SE:109

SO
URCE:

SE LAP 113

Find Features, Boost Benefits (Feature
-
Benefit Selling)



98
.

C

Brand
-
name items are generally cheaper for customers to buy. Brand
-
name items are usually more
highly priced than generic items. All of the other alternatives are reasons for
using brand names in
selling. Customers are usually familiar with established brands, and the brands' reputation for quality and
performance makes customers more comfortable about purchasing them.

SOURCE:

SE:019

SOURCE:

Farese, L.S., Kimbrell, G., & Wolosz
yk, C.A. (2006).

Marketing essentials

(pp. 656
-
658).

New York: Glencoe/McGraw
-
Hill.



99
.

D

To avoid spending time and money on customers who will not buy. It is important for online businesses to
evaluate their prospects to reduce the amount of time and
money they spend on customers who will not
buy. One way to do this is to design and post a detailed response form that obtains valuable information
about customers. The information requested will help the business decide if the prospect has a need for
the
product, the authority to make the purchase, and the financial resources to pay. Once the business
identifies a legitimate prospect, it can send follow
-
up information or have a salesperson call on the
customer directly. It is not important for businesses t
o evaluate online prospects to identify customers
who visit the sites of competitors, to prevent unauthorized customers from viewing a web site, or to
control the number of customers who make daily purchases.

SOURCE:

SE:309

SOURCE:

Wilson, R.F. (2002).
Pla
nning your Internet marketing strategy
(pp. 13
-
14). New York:

John Wiley & Sons.


Test
926

INTERNET MARKETING



KEY


30






100.

C

Management. Management is the process of coordinating resources in order to accomplish an
organization's goals. The functions of management include planning, organiz
ing, staffing, directing, and
controlling. Marketing is the process of planning and executing the conception, pricing, promotion, and
distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational
objectives. Econ
omizing is deciding how scarce resources will be used. Research is an investigation or
inquiry.

SOURCE:

SM:001

SOURCE:

BA LAP 6

Manage This!