Laudon traver ec11-tif_ch07

E-commerce 2015, 11e (Laudon/Traver)
Chapter 7 Social, Mobile, and Local Marketing
1) By 2014, spending on social marketing will be more than double the amount spent on mobile
marketing.
Answer: FALSE
Page Ref: 420
Difficulty: Easy
AACSB: Application of knowledge
2) In 2013, local online marketing was almost three times the amount of mobile marketing.
Answer: TRUE
Page Ref: 421
Difficulty: Moderate
3) Traditional desktop marketing remains the largest part of all online marketing.
Answer: TRUE
Page Ref: 422
4) Visitors spend significantly more time on Facebook than any other social network site.
Answer: TRUE
Page Ref: 424
5) It is possible to opt-out of Facebook's Graph Search.
Answer: FALSE
Page Ref: 427
AACSB: Information technology
6) Facebook does not sell display ads.
Answer: FALSE
Page Ref: 429
Difficulty: Easy
7) Brand pages on Facebook typically attract more visitors than a brand's Web site.
Answer: TRUE
Page Ref: 428
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Copyright © 2015 Pearson Education, Inc.

8) Promoted Tweets are Twitter's version of Google's Ad Words.
Answer: TRUE
Page Ref: 437
9) Pinterest's visitors are predominantly men.
Answer: FALSE
Page Ref: 442
Difficulty: Easy
10) It is expected that by 2018, mobile commerce will account for almost 30% of all B2C e-
commerce.
Answer: TRUE
Page Ref: 451
11) Over 60% of Facebook's ad revenue is generated by its mobile audience.
Answer: TRUE
Page Ref: 422
12) Tablets are the fastest growing and largest source of mobile commerce revenues.
Answer: TRUE
Page Ref: 453
13) Google provides the leading location-based marketing platform.
Answer: TRUE
Page Ref: 467
14) A cell phone's GPS is accurate to within 5 feet of the actual location of the phone.
Answer: FALSE
Page Ref: 468
2

15) SMS text messaging generates the majority of mobile marketing spending.
Answer: FALSE
Page Ref: 458
16) All of the following were popular types of online marketing before 2007 except:
A) e-mail.
B) corporate Web sites.
C) mobile marketing.
D) display ads.
Answer: C
Page Ref: 420
17) Which of the following is not true about social marketing?
A) More than 50% of Twitter's ad revenues are generated by desktop users.
B) Social marketing is growing at around 30% a year.
C) Social marketing differs markedly from traditional online marketing.
D) In social marketing, business cannot tightly control their brand messaging.
Answer: A
Page Ref: 422
Difficulty: Difficult
18) Which of the following is not true about mobile marketing?
A) Mobile marketing is the fastest growing form of online marketing.
B) Mobile marketing is growing at around 60% a year.
C) A substantial part of mobile marketing should be counted as social marketing.
D) People use most of their mobile minutes while they are on the go.
Answer: D
Page Ref: 452
19) The second most popular social network in terms of average minutes per visitor is:
A) Google+.
B) Pinterest.
C) LinkedIn.
D) Tumblr.
Answer: D
Page Ref: 423
3

20) Which of the following purchased Tumblr in May 2013?
A) Facebook
B) Yahoo
C) Google
D) Twitter
Answer: B
Page Ref: 423
Difficulty: Easy
21) Which of the following is the first step in the social marketing process?
A) community
B) amplification
C) fan acquisition
D) engagement
Answer: C
Page Ref: 424
Difficulty: Easy
22) Encouraging users to click a Like button is an example of which step in the social marketing
process?
A) fan acquisition
B) brand strength
C) community
D) amplification
Answer: D
Page Ref: 425
23) Your Facebook News Feed includes all of the following except:
A) status updates.
B) app activity.
C) Likes.
D) tweets.
Answer: D
Page Ref: 427
Difficulty: Easy
4

24) Which of the following statements about Graph Search is not true?
A) It relies on Google to supplement its search results.
B) It is a semantic search engine.
C) It is a social search engine.
D) It includes photos.
Answer: A
Page Ref: 427
25) Ads that appear in a Facebook user's News Feed are called:
A) Marketplace Ads.
B) Promoted Ads.
C) Page Post Ads.
D) Brand Ads.
Answer: C
Page Ref: 429
Difficulty: Easy
26) Which of the following do Facebook users spend the most time on?
A) News Feed
B) Photos
C) Profiles
D) Graph Search
Answer: A
Page Ref: 429
27) Which of the following is a history of your actions on Facebook?
A) News Feed
B) Timeline
C) Ticker
D) Social Graph
Answer: B
Page Ref: 427
5

28) Which of the following statements is not true?
A) About 50% of Facebook's ad revenue in 2014 is expected to come from its mobile ad
platform.
B) The only way to access Facebook from a mobile device is to use a mobile app.
C) Mobile ads are displayed in users' News Feeds.
D) Facebook's mobile ad revenues are its fastest growing revenue stream.
Answer: B
Page Ref: 429
29) All of the following marketing tools on Facebook require payment except:
A) Brand Pages.
B) Right-Hand Sidebar Ads.
C) News Feed Page Post Ads.
D) Mobile Ads.
Answer: A
Page Ref: 430
30) The ratio of impressions to fans is a measure of:
A) engagement.
B) amplification.
C) community.
D) fan acquisition.
Answer: D
Page Ref: 432
31) 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?
A) Enhanced Profile Pages
B) Amplify
C) Lead Generation Cards
D) Promoted Accounts
Answer: B
Page Ref: 439
6

32) Which of the following involves a coupon or other promotional offer that appears in users'
Twitter timeline?
A) Promoted Tweet
B) Promoted Trend
C) Promoted Account
D) Lead Generation Card
Answer: D
Page Ref: 439
33) Which of the following statements about Pinterest is not true?
A) Pinned photos and photo boards are available to all Pinterest users.
B) Pinterest users are overwhelmingly female.
C) Pinterest enables users to integrate their pins into their Facebook News Feeds and Twitter
streams.
D) Pinterest is the only one of the major social networks that does not accept paid advertising.
Answer: D
Page Ref: 443
34) Which of the following are features of both Pinterest and Twitter?
A) tweets
B) hashtags
C) pins
D) Image Hover widget
Answer: B
Page Ref: 437, 443
35) All of the following are Pinterest marketing tools except:
A) Brand pages.
B) Product Pins.
C) Promoted Pins.
D) Promoted Accounts.
Answer: D
Page Ref: 444
7

36) The number of people exposed to pins is a measure of which of the following?
A) engagement
B) community
C) brand strength
D) fan acquisition
Answer: D
Page Ref: 447
37) Which of the following is an online service specifically aimed at measuring the impact of
Pinterest and other visual social media?
A) TweetDeck
B) Curalate
C) Amplify
D) Webtrends
Answer: B
Page Ref: 448
38) Which of the following is the top app in terms of both audience size and share of time spent?
A) YouTube
B) iTunes
C) Twitter
D) Facebook
Answer: D
Page Ref: 454
39) How many retail-oriented apps are there in the top 25 apps?
A) 0
B) 1
C) 2
D) 5
Answer: C
Page Ref: 454
8

40) Which of the following statements is not true?
A) Google is the leading display ad site on mobile devices.
B) Google is the largest distributor of video ads on the mobile platform.
C) Mobile advertising is dominated by Google.
D) Google charges more for desktop ads than it charges for mobile ads.
Answer: A
Page Ref: 456
41) Which of the following is the most popular use for mobile devices?
A) shopping
B) socializing
C) entertainment
D) performing tasks, such as finances
Answer: C
Page Ref: 452
42) Physical retail goods accounted for around what percentage of m-commerce sales in 2014?
A) 55%
B) 65%
C) 75%
D) 85%
Answer: D
Page Ref: 451
43) Which of the following categories do people most use their mobile devices for?
A) entertainment
B) socializing
C) shopping
D) reading news and magazines
Answer: A
Page Ref: 452
9

44) How many apps do users regularly use a month?
A) 10
B) 25
C) 30
D) 50
Answer: B
Page Ref: 453
45) In 2014, mobile marketing was about ________% of all online marketing.
A) 15%
B) 25%
C) 35%
D) 50%
Answer: C
Page Ref: 455
46) Which of the following accounts for the most mobile ad spending?
A) display ads
B) search engine advertising
C) video ads
D) SMS text messages
Answer: B
Page Ref: 458
47) Which of the following is not a major provider of mobile display advertising?
A) MoPub
B) iAd
C) AdMob
D) Webtrends
Answer: D
Page Ref: 459
10

48) Which of the following is another term for amplification?
A) impressions
B) reach
C) conversation rate
D) conversion ratio
Answer: B
Page Ref: 432
49) Which of the following is currently a small part of the online marketing universe, but is
expected to triple over the next 5 years?
A) local marketing
B) location-based mobile marketing
C) mobile marketing
D) social marketing on Facebook
Answer: B
Page Ref: 465
Difficulty: Easy
50) Macy's deployed which of the following technologies in all its retail stores in 2014?
A) QR codes
B) iBeacon
C) E9-1-1
D) Geo-search
Answer: B
Page Ref: 471
51) Which of the following earns the most location-based marketing revenue?
A) Twitter
B) Apple
C) Facebook
D) Google
Answer: D
Page Ref: 466
Difficulty: Easy
11

52) Apple's iBeacon uses which of the following technologies?
A) BLE
B) NFC
C) E9-1-1
D) QR codes
Answer: A
Page Ref: 470
53) A recent Google survey found that ________ % of smartphone users visit a store within a
day of conducting a local search.
A) 15
B) 25
C) 50
D) 75
Answer: C
Page Ref: 469
54) All of the following are examples of dark social except:
A) e-mail
B) tweets
C) SMS texts
D) Snapchat
Answer: B
Page Ref: 424
55) Google uses which of the following to build a global database of wireless access points and
their geographic locations?
A) E9-1-1
B) Street View cars
C) iBeacons
D) BLE
Answer: B
Page Ref: 469
12

56) Facebook's share price fell dramatically after its IPO because investors feared that:
A) Facebook's new marketing solutions would be difficult to monetize.
B) new social networks such as Instagram were cannibalizing Facebook's audience.
C) privacy concerns were driving users away.
D) Facebook would be unable to increase advertising revenues fast enough to justify its price.
Answer: D
Page Ref: 417
57) Which of the following allows Facebook to track user behavior on other sites and then sell
the information to marketers?
A) Open Graph
B) Like button
C) hashtags
D) Whatsapp
Answer: B
Page Ref: 428
58) Which of the following is not true about Facebook News Feed Page Post Ads?
A) They have a tiny tag indicating that they are sponsored.
B) They can be liked, shared, and commented on, just like any News Feed post.
C) They cannot contain links.
D) They have social context
Answer: C
Page Ref: 429
59) How does Google Analytics track user behavior at a participating Web site?
A) cookies
B) beacons
C) server logs
D) super cookies
Answer: B
Page Ref: 436
13

60) Which analytics tool did Fairmont Hotel use to measure the effectiveness of its online
marketing and advertising?
A) Webtrends
B) IBM Digital Analytics
C) Google Analytics
D) A custom Hadoop solution
Answer: C
Page Ref: 435-436
61) Companies are not permitted to collect personal information from children under the age of
________ without parental consent.
A) 8
B) 10
C) 13
D) 16
Answer: C
Page Ref: 449
62) Which of the following was the object of the FTC's first-ever COPPA enforcement action
involving mobile apps?
A) Disney's Playdom
B) W3 Innovation
C) Snapchat
D) Yelp
Answer: B
Page Ref: 449-450
63) How can a smartphone's gyroscope and accelerometer be used in product marketing?
A) to speed up delivery of large multimedia files
B) to locate the user's geographical position
C) to enhance user interaction with mobile multimedia
D) to provide accurate data on the user's destination and speed
Answer: C
Page Ref: 460-461
14

64) Which social marketing proved the most effective for ExchangeHunterJumper.com?
A) Facebook
B) YouTube
C) Pinterest
D) Instagram
Answer: A
Page Ref: 476
65) 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?
A) integrating online and offline marketing techniques to establish a consistent brand
B) adapting marketing techniques to keep up with new Internet technologies
C) valuing quality over quantity at each stage in the Web site development process
D) establishing customer needs and habits as the top priority in all marketing decisions
Answer: D
Page Ref: 473-478
AACSB: Analytical thinking
66) ________ 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.
Answer: Social density
Page Ref: 426
67) ________ refers to those forms of social sharing that occur off the major social networks,
through alternative communication tools.
Answer: Dark social
Page Ref: 424
68) ________ is a real-time bidding system that allows advertisers to target their ads to specific
users based on personal information provided by Facebook.
Answer: Facebook Exchange, FBX
Page Ref: 430
69) ________ targets marketing messages to users based on their location.
Answer: Location-based marketing
Page Ref: 464
15

70) ________ techniques identify the location of a user's device and then target marketing to the
device, recommending actions within the area.
Answer: Geo-aware
Page Ref: 467
71) ________ techniques identify a perimeter around a physical location and then target ads to
users within that perimeter.
Answer: Proximity marketing
Page Ref: 467
72) ________ involves using any of a variety of means to attract people to your Web site and
other social marketing platforms, such as Facebook and Twitter.
Answer: Fan acquisition
Page Ref: 424
73) ________ involves using a variety of tools to encourage users to interact with content and
brand.
Answer: Engagement
Page Ref: 425
74) ________ involves using the inherent strength of social networks to encourage visitors and
fans to share their Likes and comments with friends.
Answer: Amplification
Page Ref: 425
75) ________ is a Facebook feature that allows app developers to integrate their apps into the
Facebook pages of users who sign up for the app.
Answer: Open Graph
Page Ref: 427
16

76) Facebook's search engine, introduced in July 2013, is called ________.
Answer: Graph Search
Page Ref: 427
Difficulty: Easy
77) ________ is a micro-blogging social network site that allows users to send and receive 140-
character messages.
Answer: Twitter
Page Ref: 434
Difficulty: Easy
78) A(n) ________ organizes the conversations on Twitter around a specific topic, and enables
users to search for tweets related to a particular topic.
Answer: hashtag, #
Page Ref: 437
79) ________ uses less battery power than GPS and is more accurate than targeting through Wi-
Fi triangulation.
Answer: Bluetooth low energy, BLE
Page Ref: 468
80) ________ is the leading mobile retailer.
Answer: Amazon
Page Ref: 451
Difficulty: Easy
17

81) 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.
Page Ref: 420-421
AACSB: Analytical thinking; Written and oral communication
82) 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.
Page Ref: 424-426
18

83) 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.
Page Ref: 426-430
19

84) 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.
Page Ref: 445-447
85) How do people actually use their mobile devices today?
Answer: On average, U.S. mobile users spend an estimated 1660 minutes per month using their
devices (excluding phone calls, text messages, and e-mail). Entertainment is the largest single
use, at 52% of user time (860 minutes). This includes viewing movies, television shows, shorter
videos, or reading a gossip column, as well as just browsing. Users spend 25% of their mobile
time (410 minutes) socializing with others on social network sites or blogs. Shopping (looking
for specific goods to buy) accounts for only 7% of users' time (126 minutes). Actual purchasing
of goods and services using mobile devices involves an estimated 3% of user time. Other uses
include performing tasks such as online banking and investing (8%), planning trips (4%), reading
news and magazines (3%), and hobbies (1%). The mobile platform itself is changing rapidly
from one dominated by smartphones to one dominated by tablets. The number of tablet users,
once the newcomer to the mobile platform, is growing faster than the number of smartphone
users in the United States: 147 million Americans use tablets, about 60% of the Internet
population. Tablets, with their larger screens, are the fastest growing and largest source of
mobile commerce revenues.
Page Ref: 452-453
20

86) What technologies and techniques are employed by location-based mobile marketing and
why is local mobile attractive to marketers?
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.
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. Three-
quarters of mobile users are more likely to take action after seeing a relevant local ad.
Page Ref: 467-469
21

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