Ecommerce 2016 - Quiz Chapter 07

E-commerce 2016: Business. Technology. Society., 12e (Laudon)
Questions Answers and Case Guides

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E-commerce 2016: Business. Technology. Society., 12e (Laudon)
Chapter 7   Social, Mobile, and Local Marketing

1) All of the following were popular types of online marketing before 2007 except:

1. A) e-mail.
2. B) corporate Web sites.
3. C) mobile marketing.
4. D) display ads.

Answer:  C
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.1: Understand the difference between traditional online marketing and the new social-mobile-local marketing platforms and the relationships between social, mobile, and local marketing.

2) Which of the following is not true about social marketing?

1. A) More than 50% of Twitter's ad revenues are generated by desktop users.
2. B) Social marketing is growing at around 30% a year.
3. C) Social marketing differs markedly from traditional online marketing.
4. D) In social marketing, business cannot tightly control their brand messaging.

Answer:  A
Difficulty:  Difficult
AACSB:  Application of knowledge
LO:  7.1: Understand the difference between traditional online marketing and the new social-mobile-local marketing platforms and the relationships between social, mobile, and local marketing.

3) The second most popular social network in terms of average minutes per visitor is:

1. A) Instagram.
2. B) Pinterest.
3. C) LinkedIn.
4. D) Tumblr.

Answer:  D
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.1: Understand the difference between traditional online marketing and the new social-mobile-local marketing platforms and the relationships between social, mobile, and local marketing.


4) Which of the following most helped Dagny Aslin of ExchangeHunterJumper.com in establishing her brand in the niche area of selling high-end competition horses?

1. A) integrating online and offline marketing techniques to establish a consistent brand
2. B) adapting marketing techniques to keep up with new Internet technologies
3. C) valuing quality over quantity at each stage in the Web site development process
4. D) establishing customer needs and habits as the top priority in all marketing decisions

Answer:  D
Difficulty:  Difficult
AACSB:  Analytical thinking
LO:  7.1: Understand the difference between traditional online marketing and the new social-mobile-local marketing platforms and the relationships between social, mobile, and local marketing.
5) By 2015, spending on social marketing will be more than double the amount spent on mobile marketing.
Answer:  FALSE
Difficulty:  Easy
AACSB:  Application of knowledge
LO:  7.1: Understand the difference between traditional online marketing and the new social-mobile-local marketing platforms and the relationships between social, mobile, and local marketing.

6) In 2014, spending on mobile marketing was almost three times the amount spent on local online marketing.
Answer:  FALSE
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.1: Understand the difference between traditional online marketing and the new social-mobile-local marketing platforms and the relationships between social, mobile, and local marketing.

7) Traditional desktop marketing has become the smallest part of all online marketing.
Answer:  FALSE
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.1: Understand the difference between traditional online marketing and the new social-mobile-local marketing platforms and the relationships between social, mobile, and local marketing.



8) What has changed in online marketing since 2007?
Answer:  Since 2007, Facebook and other social networking sites have grown rapidly, smartphones have taken the market by storm, and local marketing has taken off. Prior to 2007, online marketing consisted of creating a corporate Web site, buying display ads on Yahoo and purchasing AdWords on Google, and sending e-mail. The display ad was the most prevalent form of online advertising. "Eyeballs" were the primary measure of a site's success, and "impressions" were the measure of an advertising campaign's success. Today, marketing is based on businesses marketing themselves as partners in multiple online conversations with customers and critics. Marketing requires firms to locate and participate in conversations happening on social media. Businesses can no longer tightly control their brand messaging. In addition, in 2007, mobile marketing was in its infancy, but it is now more than double the size of social marketing and location-based marketing.
Difficulty:  Moderate
AACSB:  Analytical thinking; Written and oral communication
LO:  7.1: Understand the difference between traditional online marketing and the new social-mobile-local marketing platforms and the relationships between social, mobile, and local marketing.

9) Which of the following is known primarily for blogs?

1. A) Facebook
2. B) Tumblr
3. C) Google
4. D) Instagram

Answer:  B
Difficulty:  Easy
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.
10) Which of the following is the first step in the social marketing process?

1. A) community
2. B) amplification
3. C) fan acquisition
4. D) engagement

Answer:  C
Difficulty:  Easy
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.


11) Encouraging users to click a Like button is an example of which step in the social marketing process?

1. A) fan acquisition
2. B) brand strength
3. C) community
4. D) amplification

Answer:  D
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.

12) Your Facebook News Feed includes all of the following except:

1. A) status updates.
2. B) app activity.
3. C) Likes.
4. D) tweets.

Answer:  D
Difficulty:  Easy
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.

13) Which of the following statements about Facebook Exchange is not true?

1. A) It competes with DoubleClick.
2. B) It allows advertisers to target ads.
3. C) It is a social search engine.
4. D) It involves cookies.

Answer:  C
Difficulty:  Difficult
AACSB:  Information technology
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.
14) Ads that appear in a Facebook user's News Feed are called:

1. A) Marketplace Ads.
2. B) Promoted Ads.
3. C) Page Post Ads.
4. D) Brand Ads.

Answer:  C
Difficulty:  Easy
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.


15) Which of the following do Facebook users spend the most time on?

1. A) News Feed
2. B) Photos
3. C) Profiles
4. D) Graph Search

Answer:  A
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.

16) Which of the following is a history of your actions on Facebook?

1. A) News Feed
2. B) Timeline
3. C) Ticker
4. D) Open Graph

Answer:  B
Difficulty:  Moderate
AACSB:  Information technology
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.

17) Which of the following statements is not true?

1. A) About 75% of Facebook's ad revenue in 2015 is expected to come from its mobile ad platform.
2. B) The only way to access Facebook from a mobile device is to use a mobile app.
3. C) Mobile ads are displayed in users' News Feeds.
4. D) Facebook's mobile ad revenues are its fastest growing revenue stream.

Answer:  B
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.
18) All of the following marketing tools on Facebook require payment except:

1. A) Brand Pages.
2. B) Right-Hand Sidebar Ads.
3. C) News Feed Page Post Ads.
4. D) Mobile Ads.

Answer:  A
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.


19) The ratio of impressions to fans is a measure of:

1. A) engagement.
2. B) amplification.
3. C) community.
4. D) fan acquisition.

Answer:  D
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.



20) Which of the following provides marketers with a real-time digital dashboard so they can see tweet activity about a TV show, commercial, or brand?

1. A) Enhanced Profile Pages
2. B) Amplify
3. C) Lead Generation Cards
4. D) Promoted Accounts

Answer:  B
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.

21) Which of the following involves a coupon or other promotional offer that appears in users' Twitter timeline?

1. A) Promoted Tweet
2. B) Promoted Trend
3. C) Promoted Account
4. D) Lead Generation Card

Answer:  D
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.
22) Which of the following statements about Pinterest is not true?

1. A) Pinned photos and photo boards are available to all Pinterest users.
2. B) Pinterest users are overwhelmingly female.
3. C) Pinterest enables users to integrate their pins into their Facebook News Feeds and Twitter streams.
4. D) Pinterest is the only one of the major social networks that does not accept paid advertising.

Answer:  D
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.

23) Which of the following are features of both Pinterest and Twitter?

1. A) tweets
2. B) hashtags
3. C) pins
4. D) Image Hover widget

Answer:  B
Difficulty:  Moderate
AACSB:  Information technology
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.

24) All of the following are Pinterest marketing tools except:

1. A) Brand pages.
2. B) Product Pins.
3. C) Promoted Pins.
4. D) Promoted Accounts.

Answer:  D
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.

25) The number of people exposed to pins is a measure of which of the following?

1. A) engagement
2. B) community
3. C) brand strength
4. D) fan acquisition

Answer:  D
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.
26) Which of the following is an online service specifically aimed at measuring the impact of Pinterest and other visual social media?

1. A) TweetDeck
2. B) Curalate
3. C) Amplify
4. D) Webtrends

Answer:  B
Difficulty:  Moderate
AACSB:  Information technology
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.


27) Which of the following is another term for amplification?

1. A) impressions
2. B) reach
3. C) conversation rate
4. D) conversion ratio

Answer:  B
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.

28) All of the following are examples of dark social except:

1. A) e-mail.
2. B) tweets.
3. C) SMS texts.
4. D) Snapchat.

Answer:  B
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.

29) Facebook's share price fell dramatically after its IPO because investors feared that:

1. A) Facebook's new marketing solutions would be difficult to monetize.
2. B) new social networks such as Instagram were cannibalizing Facebook's audience.
3. C) privacy concerns were driving users away.
4. D) Facebook would be unable to increase advertising revenues fast enough to justify its price.

Answer:  D
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.
30) Which of the following allows Facebook to track user behavior on other sites and then sell the information to marketers?

1. A) Open Graph
2. B) Like button
3. C) hashtags
4. D) Whatsapp

Answer:  B
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.


31) Which of the following is not true about Facebook News Feed Page Post Ads?

1. A) They have a tiny tag indicating that they are sponsored.
2. B) They can be liked, shared, and commented on, just like any News Feed post.
3. C) They cannot contain links.
4. D) They have social context.

Answer:  C
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.

32) Which of the following is a micro-blogging social network site that allows users to send and receive 140-character messages?

1. A) Facebook
2. B) Twitter
3. C) Pinterest
4. D) Instagram

Answer:  B
Difficulty:  Easy
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.

33) Companies are not permitted to collect personal information from children under the age of ________ without parental consent.

1. A) 8
2. B) 10
3. C) 13
4. D) 16

Answer:  C
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.
34) Which of the following was the object of the FTC's first-ever COPPA enforcement action involving mobile apps?

1. A) Disney's Playdom
2. B) W3 Innovation
3. C) Snapchat
4. D) Yelp

Answer:  B
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.

35) Which of the following is most similar to Pinterest?

1. A) LinkedIn
2. B) Instagram
3. C) YouTube
4. D) Tumblr

Answer:  B
Difficulty:  Difficult
AACSB:  Analytical thinking
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.

36) Which social marketing proved the most effective for ExchangeHunterJumper.com?

1. A) Facebook
2. B) YouTube
3. C) Pinterest
4. D) Instagram

Answer:  A
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.

37) Which of the following refers to the number of interactions among members of a group and reflects the "connectedness" of the group, even if these connections are forced on users?

1. A) engagement
2. B) information density
3. C) social density
4. D) amplification

Answer:  C
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.
38) Which of the following refers to those forms of social sharing that occur off the major social networks, through alternative communication tools?

1. A) social density
2. B) dark social
3. C) amplification
4. D) engagement

Answer:  B
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.


39) Which of the following is a real-time bidding system that allows advertisers to target their ads to specific users based on personal information provided by Facebook?

1. A) Amplify
2. B) FBX
3. C) DoubleClick
4. D) PTAT

Answer:  B
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.

40) All of the following are in the process of either testing or offering Buy button to advertisers except:

1. A) Facebook.
2. B) LinkedIn.
3. C) Pinterest.
4. D) Instagram.

Answer:  B
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.

41) Which of the following involves using a variety of tools to encourage users to interact with content and brand?

1. A) social density
2. B) engagement
3. C) amplification
4. D) dark social

Answer:  B
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.
42) Which of the following involves using the inherent strength of social networks to encourage visitors and fans to share their Likes and comments with friends?

1. A) social density
2. B) engagement
3. C) amplification
4. D) dark social

Answer:  C
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.

43) Which of the following is a Facebook feature that allows app developers to integrate their apps into the Facebook pages of users who sign up for the app?

1. A) Whatsapp
2. B) Like button
3. C) Graph Search
4. D) Open Graph

Answer:  D
Difficulty:  Moderate
AACSB:  Information technology
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.

44) Visitors spend significantly more time on Facebook than any other social network site.
Answer:  TRUE
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.

45) Facebook's Search functionality includes everyone's public posts, Likes, photos, and interests, and makes them available to all users of Facebook, even those who are not friends.
Answer:  TRUE
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.

46) Facebook does not sell display ads.
Answer:  FALSE
Difficulty:  Easy
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.

47) Brand pages on Facebook typically attract more visitors than a brand's Web site.
Answer:  TRUE
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.

48) Promoted Trends is Twitter's version of Google's Ad Words.
Answer:  FALSE
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.

49) Pinterest's visitors are predominantly women.
Answer:  TRUE
Difficulty:  Easy
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.

50) Over 65% of Facebook's ad revenue is generated by its mobile audience.
Answer:  TRUE
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.

51) What are some of the downsides of social marketing?
Answer:  Social marketing is not without its disadvantages. One problem is that brands lose a substantial amount of control over where their ads appear in terms of other content and what people say about their brands on social sites. Ads placed on Facebook according to an algorithm can be placed near content that does not represent the values of the brand. This is not peculiar to social marketing, as advertising using Google's advertising platform faces the same problem. This is very different, however, from TV ads where brands maintain near complete control. Social sites are unique in that disgruntled consumers, or just malicious people, can post material that is inaccurate and/or embarrassing.
Difficulty:  Moderate
AACSB:  Application of knowledge; Written and oral communication
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.

52) Name and describe the five steps in the social marketing process.
Answer:  The five steps in the social marketing process are fan acquisition, engagement, amplification, community, and brand strength.

Social marketing campaigns begin with fan acquisition, which involves using any of a variety of means, from display ads to News Feed and page pop-ups, to attract people to your Facebook page, Twitter feed, or other platform like a Web page. The next step is to generate engagement, which involves using a variety of tools to encourage users to interact with your content and brand located on your Facebook or Web pages. You can think of this as "starting the conversation" around your brand.

Once you have engaged visitors, you can begin to use social site features to amplify your messages by encouraging users to tell their friends by clicking a Like or +1 button, or by sending a message to their followers on Twitter. Amplification involves using the inherent strength of social networks to continue the spread of its message. Once you have gathered enough engaged fans, you will have created the foundation for a community – a more or less stable group of fans who are engaged and communicating with one another over a substantial period of time (say several months or more). The ultimate goal is to enlarge your firm's "share of the online conversation." The process ends with strengthening the brand and, hopefully, additional sales of products and services.
Difficulty:  Moderate
AACSB:  Application of knowledge; Written and oral communication
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.


53) Name and describe five of the marketing tools available with Facebook.
Answer:  Some of the many marketing tools available via Facebook are Right-hand Sidebar Ads, News Feed Page Post Ads, Brand Pages, Like Buttons, mobile ads, and Facebook Exchange (FBX).

Right-hand Sidebar Ads are display ads shown in the right column on a user's profile and home Facebook pages. They are often used to direct users to off-Facebook content such as Web site landing pages and content offers. Facebook has recently reduced the number of ads that appear in the right-hand column sidebar from seven to two, increased their size, and made them consistent with the format of News Feed Page Post Ads in an effort to enhance their performance.

The News Feed is the most prominent place for advertisements. The News Feed is the center of the action for Facebook users and where Facebook users spend most of their time because that is where posts from their friends appear. Page Post Ads appear in a user's News Feed along with all of the other posts and status updates that normally appear from friends. Page Post Ads have a tiny tag that indicates that they are sponsored (i.e., are advertisements) but otherwise look very similar to posts from friends. They have social context ("John Smith and Jane Doe like Pottery Barn") and can be liked, shared, and commented on, just like any other post. Page Post Ads can contain text, photos, video, and links. They can be used for many of marketing objectives, such as increasing brand engagement, obtaining Likes for the brand's Facebook page, and encouraging app installs and engagement. Companies pay to promote or boost Page Post Ads in order to extend their reach.

Nearly all Fortune 1000 companies, and hundreds of thousands of smaller firms, have Facebook brand pages, similar to brand Web sites, on Facebook as an adjunct to their main Web site. The purpose of a brand page is to develop fans of the brand by providing users opportunities to interact with the brand through comments, contests, and offerings. Using social calls to action, such as "Like us on Facebook" and "Share," brand pages can escape their isolation and make it more easily into users' social networks, where friends can hear the message. Social brand pages have many more social opportunities for fans to like and comment than are typical of traditional Web pages. However, corporate Web sites have, over time, adopted many social features and the two are now often indistinguishable. Brand pages on Facebook typically attract more visitors than a brand's Web site.

The Like button enables users to share their feelings with friends and friends of friends about content and other objects they are viewing and Web sites they are visiting. The Like button provides amplification for marketers.

Facebook also offers mobile display and app-install ads (its mobile ad platform is its fastest growing revenue stream), and Facebook Exchange (FBX), a real-time ad exchange, which enables marketers to sells ads and retarget ads.
Difficulty:  Moderate
AACSB:  Application of knowledge; Written and oral communication
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.


54) What are the basic steps in creating a Pinterest marketing campaign?
Answer:  The first step is to create a brand page and pin photos of your products, ensuring that you change your selections regularly and use high quality photos. Next, use URL links and keywords so that followers can easily find and buy the projects you have pinned. Use of hashtags helps organize your photos.

Creating a Pinterest Product pin helps businesses in certain industries that are cost competitive like food, retail, or movie distribution. Adding Pin It buttons also encourages followers to pin your photos to their own boards and share them with friends. Developing theme-based boards also enhances the entertainment and branding aspects of Pinterest.

Incorporating Facebook and Twitter into the campaign draws users from those networks onto Pinterest, and integrating with those services allows users to navigate seamlessly from Facebook and Twitter to Pinterest. Being active on social media is also important to get the most out of it.
Difficulty:  Moderate
AACSB:  Application of knowledge; Written and oral communication
LO:  7.2: Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.

55) Which of the following is not true about mobile marketing?

1. A) Mobile marketing is the fastest growing form of online marketing.
2. B) Mobile marketing is growing at around 30% a year.
3. C) A substantial part of mobile marketing should be counted as social marketing.
4. D) People use most of their mobile minutes while they are on the go.

Answer:  D
Difficulty:  Difficult
AACSB:  Application of knowledge
LO:  7.3: Identify the key elements of a mobile marketing campaign.
56) Which of the following is the top app in terms of both audience size and share of time spent?

1. A) YouTube
2. B) iTunes
3. C) Twitter
4. D) Facebook

Answer:  D
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.3: Identify the key elements of a mobile marketing campaign.


57) How many retail-oriented apps are there in the top 25 apps?

1. A) 0
2. B) 1
3. C) 2
4. D) 5

Answer:  C
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.3: Identify the key elements of a mobile marketing campaign.

58) Which of the following statements is not true?

1. A) Google is the leading display ad site on mobile devices.
2. B) Google is the largest distributor of video ads on the mobile platform.
3. C) Mobile advertising is dominated by Google.
4. D) Google generates almost two-thirds of all mobile search ad spending.

Answer:  A
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.3: Identify the key elements of a mobile marketing campaign.

59) Which of the following is the most popular use for mobile devices?

1. A) shopping
2. B) socializing
3. C) entertainment
4. D) performing tasks, such as finances

Answer:  C
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.3: Identify the key elements of a mobile marketing campaign.

60) According to a recent National Federation of Retailers survey, what percentage of tablet users plan to purchase anything with their tablets?

1. A) Around 75%
2. B) Around 50%
3. C) Around 33%
4. D) Around 35%

Answer:  C
Difficulty:  Difficult
AACSB:  Application of knowledge
LO:  7.3: Identify the key elements of a mobile marketing campaign.

61) Which of the following accounts for the most time people spend using a mobile device?

1. A) watching video
2. B) social networks
3. C) listening to music
4. D) reading news and magazines

Answer:  C
Difficulty:  Moderate
AACSB:  Information technology
LO:  7.3: Identify the key elements of a mobile marketing campaign.

62) Around how many apps do users regularly use a month?

1. A) 10
2. B) 26
3. C) 30
4. D) 50

Answer:  B
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.3: Identify the key elements of a mobile marketing campaign.

63) In 2015, mobile marketing was about ________% of all online marketing.

1. A) 15%
2. B) 25%
3. C) 40%
4. D) 50%

Answer:  C
Difficulty:  Difficult
AACSB:  Application of knowledge
LO:  7.3: Identify the key elements of a mobile marketing campaign.

64) Which of the following accounts for the most mobile ad spending?

1. A) display ads
2. B) search engine advertising
3. C) video ads
4. D) SMS text messages

Answer:  B
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.3: Identify the key elements of a mobile marketing campaign.


65) Which of the following is not a major provider of mobile display advertising?

1. A) MoPub
2. B) iAd
3. C) AdMob
4. D) Webtrends

Answer:  D
Difficulty:  Difficult
AACSB:  Application of knowledge
LO:  7.3: Identify the key elements of a mobile marketing campaign.
66) Which of the following is the leading mobile retailer in the United States?

1. A) Walmart
2. B) Amazon
3. C) Google
4. D) QVC

Answer:  B
Difficulty:  Easy
AACSB:  Application of knowledge
LO:  7.3: Identify the key elements of a mobile marketing campaign.

67) Which of the following technologies has Apple adopted in its hardware for Apple Pay?

1. A) GPS
2. B) NFC
3. C) BLE
4. D) QR codes

Answer:  B
Difficulty:  Moderate
AACSB:  Information technology
LO:  7.3: Identify the key elements of a mobile marketing campaign.

68) Which of the following statements about BLE is not true?

1. A) Only Apple iPhones can use BLE.
2. B) BLE uses less power than traditional Bluetooth or GPS.
3. C) BLE has a two-way, push-pull communication capability.
4. D) BLE is more accurate than targeting through Wi-Fi triangulation.

Answer:  A
Difficulty:  Moderate
AACSB:  Information technology
LO:  7.3: Identify the key elements of a mobile marketing campaign.


69) According to a recent National Federation of Retailers survey, consumers are more likely to use tablets rather than smartphones for all of the following except:

1. A) research products.
2. B) purchase products.
3. C) redeem coupons.
4. D) check for in-store availability.

Answer:  C
Difficulty:  Difficult
AACSB:  Application of knowledge
LO:  7.3: Identify the key elements of a mobile marketing campaign.

70) It is expected that by 2019, mobile commerce will account for about one-third of all e-commerce in the retail and travel industries.
Answer:  TRUE
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.3: Identify the key elements of a mobile marketing campaign.

71) Smartphones are the fastest growing and largest source of mobile commerce revenues.
Answer:  FALSE
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.3: Identify the key elements of a mobile marketing campaign.
72) SMS text messaging generates the majority of mobile marketing spending.
Answer:  FALSE
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.3: Identify the key elements of a mobile marketing campaign.


73) What are the implications for marketers given that mobile users spend over 70% of their smartphone time using apps and that on average, users only use about 26 apps a month?
Answer:  The implications for marketers are quite clear: if consumers are primarily using apps rather than browsing the Web on their mobile devices, marketers need to place ads in apps where most of the action is for attracting consumers, and that means social, entertainment, and game sites. Second, if mobile consumers only use, on average, 26 apps, then marketers need to concentrate their marketing in these popular apps, let's say, the top 100. Niche marketers, on the other hand, can concentrate their ads in apps that support that niche. A distributor of diving equipment, for instance, could place ads in apps devoted to the diving community. There may not be many users of the app, but those who do use it are highly motivated on the topic. Another implication for marketers is that rather than focus on mobile display ads that are difficult to read, the best ad may be an app that directly serves customer interest or an ad in an app that is precisely targeted to the consumer's current activities and interests. For instance, ads in newsfeeds, or pre-roll ads prior to music or video, will do much better than display ads placed elsewhere.
Difficulty:  Moderate
AACSB:  Application of knowledge; Written and oral communication
LO:  7.3: Identify the key elements of a mobile marketing campaign.
74) How does the multi-screen environment change the marketing funnel?
Answer:  Consumer purchasing behavior changes in a multi-screen world. Consumers will often be using two or more screens at once, tweeting when watching a TV show, or moving seamlessly from a TV ad, to a mobile search for more information, to a later tablet purchase screen. Also, the more screens people use, the more shopping and purchasing they do. One conclusion is that the more screens consumers have, the more consumer touchpoints or marketing opportunities exist. The implications of the multi-device platform, or screen diversity environment, are that marketing needs to be designed for whatever device the consumer is using, and consistent branding across platforms will be important. Screen diversity means that one ad size, for instance, will not fit all situations, and that branding images will need to be adjusted automatically based on the device the consumer is using. From a design perspective, graphics and creative elements will appear differently depending on the screen. The requirement to find customers on multiple screens can add considerably to the cost of marketing online. Companies may find that they need to develop a presence and market not only on Web sites, but on mobile Web sites, and/or smartphone apps as well. Perhaps they may not be able to afford all three, and may want to choose only one. In that case, which is the best? Much depends on what the point of the marketing is. To drive sales, a Web site might be more effective, but to drive brand awareness, and engagement, social and entertainment apps might be better. But even beyond screen adaptability, a multi-screen world means merchants need to be on all platforms, and to be integrated across platforms, in order to send a coherent message and to create a convenient consumer platform. The marketing environment today is much more complex than placing banner ads on pages or on search engine results pages on the Web.
Difficulty:  Difficult
AACSB:  Application of knowledge; Written and oral communication
LO:  7.3: Identify the key elements of a mobile marketing campaign.


75) How do people actually use their mobile devices today?
Answer:  Most people believe that people use their mobile devices on the go, but in fact, according to one of the very few studies of actual mobile behavior, almost 70% of all mobile minutes actually occur in the home. People spend 5.5 hours with digital media on average daily, and nearly three of these hours is spent using mobile devices–smartphones and tablets. Recent data show that entertainment, not shopping or buying, is the primary focus (at least in terms of time) for mobile device users. Of the three hours (180 minutes) a day that people are spending using their mobile devices, 27 minutes (15%) is spent on social networks. Smartphones are more popular for this social activity (18 minutes) versus tablets (9 minutes). Watching video accounts for 26 minutes (14%), of which 14 minutes is spent on tablets versus 12 minutes on smartphones. Listening to music, primarily via streaming music services, accounts for 44 minutes (24%), presumably mostly on smartphones. Hence, nearly 40% of mobile device use is for entertainment (music and video), with social networks consuming another 15%. Another recent survey by Pew Research Center described the broad range of activities that mobile users accomplish on their mobile devices when they are not entertaining themselves or socializing. People use the mobile devices for pretty much the same activities as they do their desktop computers, from getting information, to banking, and looking for places to live. However, this survey did not include data on shopping and purchasing behavior, and did not include information on time spent with the activity.
Difficulty:  Moderate
AACSB:  Application of knowledge; Written and oral communication
LO:  7.3: Identify the key elements of a mobile marketing campaign.
76) Which of the following is currently a small part of the online marketing universe, but is expected to triple over the next five years?

1. A) local marketing
2. B) location-based mobile marketing
3. C) mobile marketing
4. D) social marketing on Facebook

Answer:  B
Difficulty:  Easy
AACSB:  Application of knowledge
LO:  7.4: Understand the capabilities of location-based local marketing.

77) Macy's deployed which of the following technologies in many of its retail stores in 2014?

1. A) QR codes
2. B) iBeacon
3. C) E9-1-1
4. D) Geo-search

Answer:  B
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.4: Understand the capabilities of location-based local marketing.


78) Which of the following earns the most location-based marketing revenue?

1. A) Twitter
2. B) Apple
3. C) Facebook
4. D) Google

Answer:  D
Difficulty:  Easy
AACSB:  Application of knowledge
LO:  7.4: Understand the capabilities of location-based local marketing.

79) Apple's iBeacon uses which of the following technologies?

1. A) BLE
2. B) NFC
3. C) E9-1-1
4. D) QR codes

Answer:  A
Difficulty:  Moderate
AACSB:  Information technology
LO:  7.4: Understand the capabilities of location-based local marketing.

80) A recent Google survey found that ________ % of smartphone users visit a store within a day of conducting a local search.

1. A) 15
2. B) 25
3. C) 50
4. D) 75

Answer:  C
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.4: Understand the capabilities of location-based local marketing.
81) Google uses which of the following to build a global database of wireless access points and their geographic locations?

1. A) E9-1-1
2. B) Street View cars
3. C) iBeacons
4. D) BLE

Answer:  B
Difficulty:  Moderate
AACSB:  Information technology
LO:  7.4: Understand the capabilities of location-based local marketing.

82) Google provides the leading location-based marketing platform.
Answer:  TRUE
Difficulty:  Moderate
AACSB:  Application of knowledge
LO:  7.4: Understand the capabilities of location-based local marketing.

83) A cell phone's GPS is accurate to within five feet of the actual location of the phone.
Answer:  FALSE
Difficulty:  Moderate
AACSB:  Information technology
LO:  7.4: Understand the capabilities of location-based local marketing.

84) What technologies and techniques are employed in location-based mobile marketing?
Answer:  There are two general types of location-based marketing techniques: geo-aware and proximity marketing. Geo-aware techniques identify the location of a user's device and then target marketing to the device, recommending actions within. Proximity marketing techniques identify a perimeter around a physical location, and then target ads to users within that perimeter, recommending actions possible within the fenced-in area. The perimeter can be from hundreds of feet (in urban areas) to several miles (in suburban locations). For instance, if users walk into the geo-fenced perimeter of a store, restaurant, or retail shop, they will receive ads from these businesses. Both of these techniques utilize the same locating technologies. GPS is the most accurate positioning method in theory, but in practice, the signal can be weak in urban areas, nonexistent inside buildings, signals can be deflected, and it can take a long time (30-60 seconds) for the device to acquire the signal and calculate a position. Wi-Fi location is used in conjunction with GPS signals to more accurately locate a user based on the known location of Wi-Fi transmitters, which are fairly ubiquitous in urban and suburban locations. Apple's iBeacon technology uses Bluetooth low energy (BLE), which uses less battery power than traditional Bluetooth or GPS and is more accurate than targeting through Wi-Fi triangulation.
Difficulty:  Moderate
AACSB:  Application of knowledge; Written and oral communication
LO:  7.4: Understand the capabilities of location-based local marketing.
85) Why is local mobile marketing so attractive to marketers?
Answer:  Consumers who seek information about local businesses using mobile devices are much more active and ready to purchase than desktop users. In part this is because desktop searchers for local information are not in as close proximity to merchants as are mobile searchers. A recent Google survey found over 80% of U.S. consumers use smartphones or tablet computers to conduct local searches on search engines for a variety of local information such as business hours, local store addresses and directions, and availability of local information through the purchase process, and 50% of smartphone users visited a store within a day of their local search, and 18% made a purchase within a day. The survey also found that over 60% of smartphone users wanted ads customized both to their city/zip code and to their immediate surroundings.
Difficulty:  Moderate
AACSB:  Application of knowledge; Written and oral communication
LO:  7.4: Understand the capabilities of location-based local marketing.