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Global Marketing, 10e (Green/Keegan)

Chapter 15 Global Marketing and the Digital Revolution

1) The new user interface that has the potential to replace our phones, TVs, and desktop
computers is described by all of the following terms except:
A) virtual reality.
B) interface reality.
C) mixed reality.
D) personal reality.
E) preferred reality.
Answer: B
Difficulty: 2: Moderate
Chapter LO: 15.1: List the major innovations and trends that contributed to the digital
revolution.
AACSB: Information technology

2) Facebook, Google, Pinterest, Twitter, and Wikipedia represent which element of the
marketing mix?
A) price
B) product
C) place
D) promotion
E) people
Answer: B
Difficulty: 1: Easy
Chapter LO: 15.1: List the major innovations and trends that contributed to the digital
revolution.
AACSB: Information technology

3) The integrated circuit and the concept of binary code permitted the development of the:
A) transistor.
B) radio.
C) personal computer.
D) smartphone.
E) SMS.
Answer: C
Difficulty: 1: Easy
Chapter LO: 15.1: List the major innovations and trends that contributed to the digital
revolution.
AACSB: Information technology

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4) In the 1950s, which company used transistor technology licensed from Bell Labs to develop
the transistor radio?
A) Nokia
B) Sony
C) Panasonic
D) RCA
E) Sanyo
Answer: B
Difficulty: 1: Easy
Chapter LO: 15.1: List the major innovations and trends that contributed to the digital
revolution.
AACSB: Information technology

5) Claude Shannon's technical report led to his pioneer work for which he is regarded as the
inventor of the:
A) transistor.
B) spreadsheet.
C) information theory.
D) silicon chip.
E) Internet.
Answer: C
Difficulty: 2: Moderate
Chapter LO: 15.1: List the major innovations and trends that contributed to the digital
revolution.
AACSB: Information technology

6) Robert Noyce and Jack Kilby are pioneers in the digital revolution. What contribution did they
make?
A) They invented the transistor.
B) They invented the spreadsheet.
C) They invented the first digital computer.
D) They invented the silicon chip.
E) They invented the Internet.
Answer: D
Difficulty: 2: Moderate
Chapter LO: 15.1: List the major innovations and trends that contributed to the digital
revolution.
AACSB: Information technology

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7) Which of the following digital revolution pioneers were instrumental in created the "network
of networks" that is now known as the Internet?
A) Robert Noyce and Jack Kilby
B) Vincent Atanasoff and Clifford Berry
C) Vint Serf and Bob Kahn
D) Steve Jobs and Steve Wozniak
E) Tim Berners-Lee
Answer: C
Difficulty: 3: Challenging
Chapter LO: 15.1: List the major innovations and trends that contributed to the digital
revolution.
AACSB: Information technology

8) Which of the following pioneers of the digital revolution developed the URL, HTTP, and
HTML, thus paving the way for the World Wide Web?
A) Robert Noyce and Jack Kilby
B) Vincent Atanasoff and Clifford Berry
C) Vint Serf and Bob Kahn
D) Steve Jobs and Steve Wozniak
E) Tim Berners-Lee
Answer: E
Difficulty: 3: Challenging
Chapter LO: 15.1: List the major innovations and trends that contributed to the digital
revolution.
AACSB: Information technology

9) An Internet site's address on the World Wide Web is a(n):

A) HTML.
B) HTTP.
C) URL.
D) WWW.
E) HTTPS.
Answer: B
Difficulty: 1: Easy
Chapter LO: 15.1: List the major innovations and trends that contributed to the digital
revolution.
AACSB: Information technology

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10) A key player in the cell phone business who could have been first to market a cell phone
camera is:
A) Ericsson.
B) Samsung.
C) Motorola.
D) Sprint.
E) AT&T.
Answer: C
Difficulty: 2: Moderate
Chapter LO: 15.1: List the major innovations and trends that contributed to the digital
revolution.
AACSB: Information technology

11) In 1948, a Bell Labs researcher named Claude Shannon wrote a technical report in which he
proposed that all information media could be encoded in binary digits, or bits.
Answer: TRUE
Difficulty: 1: Easy
Chapter LO: 15.1: List the major innovations and trends that contributed to the digital
revolution.
AACSB: Information technology

12) E-mail within a computer network was made possible by the creation of a file-transfer
program in 1972, which enabled an e-mail created by one network to be delivered to a computer
on a different network.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 15.1: List the major innovations and trends that contributed to the digital
revolution.
AACSB: Application of knowledge

13) There is a misperception that the market opportunity in Africa is limited because people are
too poor.
Answer: TRUE
Difficulty: 1: Easy
Chapter LO: 15.1: List the major innovations and trends that contributed to the digital
revolution.
AACSB: Application of knowledge

14) The digital revolution is a paradigm shift resulting from technological advances that allow
for the digitization of analog sources of information, sounds, and images.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 15.1: List the major innovations and trends that contributed to the digital
revolution.
AACSB: Application of knowledge

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15) Today, almost 3 billion people–nearly half of the world's population—are using the Internet.
Answer: TRUE
Difficulty: 1: Easy
Chapter LO: 15.1: List the major innovations and trends that contributed to the digital
revolution.
AACSB: Information technology

16) Because the Internet is global, no single country controls it.

Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 15.1: List the major innovations and trends that contributed to the digital
revolution.
AACSB: Application of knowledge

17) The marginal cost of storing and distributing digitized products—music files, for example—
is practically nothing.
Answer: TRUE
Difficulty: 1: Easy
Chapter LO: 15.1: List the major innovations and trends that contributed to the digital
revolution.
AACSB: Application of knowledge

18) The digital revolution is causing dramatic, desired changes in industry structures.
Answer: FALSE
Difficulty: 1: Easy
Chapter LO: 15.1: List the major innovations and trends that contributed to the digital
revolution.
AACSB: Application of knowledge

19) According to Steve Case, founder of AOL, the second wave of the Internet revolution lasting
from 2000 to 2014, shifted the focus from building the Internet to building on top of it.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 15.1: List the major innovations and trends that contributed to the digital
revolution.
AACSB: Information technology

20) The Chinese government, alarmed by the free flow of information across the Internet, closely
monitors the content on Web sites that its citizens access. Facebook, Twitter, and numerous other
social media sites are blocked in China.
Answer: TRUE
Difficulty: 1: Easy
Chapter LO: 15.1: List the major innovations and trends that contributed to the digital
revolution.
AACSB: Information technology

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21) Despite the "go-slow "market entry strategy in the United States, by 2016 Alibaba was
selling nearly 15 billion items per year—three times more than Amazon.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 15.1: List the major innovations and trends that contributed to the digital
revolution.
AACSB: Information technology

22) China, India, Brazil, and the European Union (EU) have taken the position that, because the
Internet is global, one single country should be in control of it.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 15.1: List the major innovations and trends that contributed to the digital
revolution.
AACSB: Information technology

23) Russia and China have new cyber-security laws requiring that all data about customers in
their respective countries be stored on in-country servers.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 15.1: List the major innovations and trends that contributed to the digital
revolution.
AACSB: Information technology

24) According to various statistics, South Korea leads the world in providing its citizens with
access to information and communications technologies. Discuss how South Korea could lead
the world in technology and why the United States has taken a relatively slow start, particularly
in spreading the broadband technology.
Answer: South Korea leads the world in broadband penetration with 68 connections per 100
households. According to one consultant, Koreans tend to be early adopters of technology and,
more significantly, are fast followers. They are always conscious of the need not to get left behind
by the Japanese, and the young have a great desire to conform to the gadget-carrying norm of
their peers. Several factors help explain broadband's relatively slow start in the United States.
First of all, one-quarter of the U.S. population lives in rural areas; which means that broadband is
more expensive to roll out than in densely populated nations, such as South Korea. Also, U.S.
telecom companies were reluctant to invest in broadband lines because of concerns that the U.S.
Federal Communications Commission would force them to lease the lines to rival service
providers. South Korea's digital future includes much more than simply broadband connection.
Policymakers are aggressively pursuing applications for radio frequency identification tags
(RFID). The South Korean government is spending nearly $300 million to build an RFID research
center which will be a part of an even more ambitious effort, i.e. the construction of a ubiquitous
city on a 1,500-acre manmade island near the Incheon Free Economic Zone. Korea being a
smaller country, such activities promoting technologies are possible rapidly.
Difficulty: 2: Moderate
Chapter LO: 15.1: List the major innovations and trends that contributed to the digital
revolution.
AACSB: Application of knowledge
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25) The Internet's powerful capabilities and increasing importance have resulted in a backlash
that manifests itself in various ways. Giving examples, explain how this statement is true.
Answer: The Internet has become a powerful tool whose capabilities are not yet fully explored.
Since it has multifaceted applications, there is a considerable backlash based on what it can and
cannot do. For example, the Chinese government, alarmed by the free flow of information across
the Internet, closely monitors the content on Web sites that its citizens access. In addition,
policymakers in some countries are concerned about U.S. control of the Internet. The nonprofit
Internet Corporation for Assigned Names and Numbers (Icann) is based in Marina del Ray,
California. Icann maintains a database of Web addresses, approves new suffixes for Web
addresses and performs other behind-the-scenes procedures that are critical for keeping the
Internet functioning properly. Icann's advisory body includes international members, but the U.S.
Department of Commerce (USDC) retains veto power over all decisions. For example, after
Icann tentatively approved the domain name.xxx for pornography sites, USDC blocked the
decision. Recently, China, India, Brazil, and the EU have taken the position that since the
Internet is global, no single country should be in control. Accordingly, these nations are seeking
to have the United Nations assume a role in Internet governance. Privacy is another issue. As
companies become more adept at using the Internet to gather, store, and access information about
customers, privacy issues are becoming a focal point of concern among policymakers and the
general public. In the EU, for example, a privacy protection directive was established.
Difficulty: 3: Challenging
Chapter LO: 15.1: List the major innovations and trends that contributed to the digital
revolution.
AACSB: Application of knowledge

26) ________ is the term that refers to the merging of different industries such as computers,
photography, and motion pictures.
A) Value networks
B) Convergence
C) Disruptive technology
D) Telematics
E) Agnostic marketing
Answer: B
Difficulty: 3: Challenging
Chapter LO: 15.2: Define "convergence" and give an example.
AACSB: Information technology

27) "Convergence" is a term that describes a world in which the telecommunications, consumer
electronics, computer, and entertainment industries are entering each other's markets.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 15.2: Define "convergence" and give an example.
AACSB: Information technology

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28) Kodak has easily made the transition from industry leadership in chemical-based
photography to industry leadership in digital photography.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 15.2: Define "convergence" and give an example.
AACSB: Information technology

29) Ironically, Motorola, a key player in the cell phone business, could have been first to market
with a cell phone camera.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 15.2: Define "convergence" and give an example.
AACSB: Information technology

30) Originally, Sony entered new businesses by acquiring CBS Records and Columbia Motion
Pictures. These acquisitions represent convergence because they occurred in the early days of the
digital revolution, when motion pictures, recorded music, and consumer electronics were still
separate industries.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 15.2: Define "convergence" and give an example.
AACSB: Information technology

31) Although IBM tried to regain its position by creating its first PC, it was slow to recognize the
growing demand for laptops.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 15.2: Define "convergence" and give an example.
AACSB: Information technology

32) Sustaining technologies enable something to be done that was previously deemed
impossible.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 15.2: Define "convergence" and give an example.
AACSB: Information technology

33) According to innovation expert Clayton Christensen, the creation of the Internet represented
a disruptive technology for Dell Computer.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 15.2: Define "convergence" and give an example.
AACSB: Information technology

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34) Some company executives become so committed to a current, profitable technology that they
fail to provide adequate levels of investment in new, apparently riskier technologies.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 15.2: Define "convergence" and give an example.
AACSB: Information technology

35) The value network for the personal computer industry is not different from the value network
for mainframe computers.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 15.2: Define "convergence" and give an example.
AACSB: Information technology

36) According to innovation expert Clayton Christensen, markets that don't exist can't be
analyzed since companies embrace agnostic marketing.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 15.2: Define "convergence" and give an example.
AACSB: Information technology

37) According to innovation expert Clayton Christensen, an organization's capabilities define its
disabilities.
Answer: TRUE
Difficulty: 3: Challenging
Chapter LO: 15.2: Define "convergence" and give an example.
AACSB: Information technology

38) An innovation that is disrupting to one firm can be sustaining to another firm.
Answer: TRUE
Difficulty: 1: Easy
Chapter LO: 15.2: Define "convergence" and give an example.
AACSB: Information technology

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39) What is convergence? What kind of challenges does it present?

Answer: The digital revolution is causing dramatic changes in industry structures. Convergence
is a term used to refer to the coming together of previously separate industries and product
categories. New technologies affect the business sector(s) in which a company competes. For
example, Sony was a consumer electronics company best known for innovative products such as
transistor radios, Trinitron televisions, VCRs and other stereo components, and the Walkman
line of personal music players. Then, Sony entered new businesses, acquiring a record company
and a motion picture studio. These acquisitions did not represent convergence because they
occurred in the early days of the digital revolution. Motion pictures, recorded music, and
consumer electronics were still separate industries. Today, however, Sony is in the "bits"
business: its core businesses incorporate digital technology and involve digitizing and
distributing sound, images, and data. Companies are faced with challenges of changing,
acquiring, and moving on with technologies. If not, companies like Kodak and Motorola did not
converge, and they are finding it hard to come up with a competitive model.
Difficulty: 2: Moderate
Chapter LO: 15.2: Define "convergence" and give an example.
AACSB: Information technology

40) According to the innovator's dilemma:

A) the computing power of a microprocessor doubles every 18 months.
B) markets that don't exist can't be analyzed.
C) well-managed companies that listen and respond to needs of established customers may miss
opportunities to innovate.
D) regulation of e-commerce activities will increase at a rate that is directly proportional to the
growth of e-commerce revenues.
E) innovations are copied soon after they are discovered.
Answer: C
Difficulty: 3: Challenging
Chapter LO: 15.3: Define value network and explain the differences between sustaining
technologies and disruptive technologies.
AACSB: Information technology

41) Which of the following is not one of Clayton Christensen's principles of disruptive
innovation?
A) Companies depend on customers for resources.
B) Small markets don't satisfy the growth needs of large companies.
C) Markets that don't exist can't be analyzed.
D) Technology supply may not equal market demand.
E) E-commerce activities can be divided into three categories.
Answer: E
Difficulty: 3: Challenging
Chapter LO: 15.3: Define value network and explain the differences between sustaining
technologies and disruptive technologies.
AACSB: Information technology

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42) Each value network has a ________ associated with it that dictates the margins needed to
achieve profitability.
A) dilemma
B) transaction
C) technology
D) cost structure
E) digital network
Answer: D
Difficulty: 2: Moderate
Chapter LO: 15.3: Define value network and explain the differences between sustaining
technologies and disruptive technologies.
AACSB: Information technology

43) Which of the following principles of disruptive innovation pertains to the notion of agnostic
marketing?
A) Companies depend on customers for resources.
B) Small markets don't satisfy the growth needs of large companies.
C) Markets that don't exist can't be analyzed.
D) Technology supply may not equal market demand.
E) A company's capabilities define its weaknesses.
Answer: C
Difficulty: 3: Challenging
Chapter LO: 15.3: Define value network and explain the differences between sustaining
technologies and disruptive technologies.
AACSB: Information technology

44) Today Microsoft lags behind new industry entrants in high-growth, consumer-oriented areas
such as search and social networking. Which of the principles of disruptive innovation does this
fact pertain to?
A) Companies depend on customers for resources.
B) Small markets don't satisfy the growth needs of large companies.
C) Markets that don't exist can't be analyzed.
D) Technology supply may not equal market demand.
E) A company's capabilities define its disabilities.
Answer: E
Difficulty: 3: Challenging
Chapter LO: 15.3: Define value network and explain the differences between sustaining
technologies and disruptive technologies.
AACSB: Information technology

11
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45) Each network has its own "metrics of value." For laptop computers this value would include
all of the following except:
A) small size.
B) low weight.
C) power consumption.
D) memory capacity.
E) rugged design.
Answer: D
Difficulty: 2: Moderate
Chapter LO: 15.3: Define value network and explain the differences between sustaining
technologies and disruptive technologies.
AACSB: Information technology

46) According to Christensen's five principles of disruptive innovations, the following statement
is not true:
A) companies depend on customers and investors for resources.
B) small markets solve the growth needs of large companies.
C) markets that don't exist can't be analyzed.
D) an organization's capabilities define its disabilities.
E) technology supply may not equal market demand.
Answer: B
Difficulty: 2: Moderate
Chapter LO: 15.3: Define value network and explain the differences between sustaining
technologies and disruptive technologies.
AACSB: Information technology

47) In South Korea, the Netherlands, Greenland, the UAE, Bahrain, and Qatar, more than 90
percent of the population is online.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 15.3: Define value network and explain the differences between sustaining
technologies and disruptive technologies.
AACSB: Information technology

48) As Pandora CEO Joe Kennedy recently remarked, "The good news is that the Internet is
global, and that the copyright law is country by country."
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 15.3: Define value network and explain the differences between sustaining
technologies and disruptive technologies.
AACSB: Information technology

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51) What is meant by e-commerce? How can e-commerce activities be classified?

Answer: The term "e-commerce" refers to the general exchange of goods and services using the
Internet as a marketing channel. E-commerce activities can be divided into three broad
categories: business-to-consumer (B2C or b-to-c), business-to-business (B2B or b-to-b), and
consumer to consumer (or peer-to-peer or P2P). Many people associate e-commerce with well-
known commerce service providers (CSPs) such as Amazon.com and Yahoo! Overall, B2B
commerce constitutes the biggest share of the Internet economy and will likely continue to do so
for the foreseeable future. About three-fourths of the B-to-C revenue for the year 2001 was
generated in North America. Problems can arise when a transaction site that is not designed to
serve foreign customers nevertheless attracts them. Customer service can be a problem when
customers are located in different time zones.
Difficulty: 2: Moderate
Chapter LO: 15.3: Define value network and explain the differences between sustaining
technologies and disruptive technologies.
AACSB: Information technology

52) ________ are online retail operations that allow customers to purchase goods and services.
A) Promotion sites
B) Matrix sites
C) Transfer sites
D) Transaction sites
E) Content sites
Answer: D
Difficulty: 2: Moderate
Chapter LO: 15.4: Identify current trends in global e-commerce and explain how global
companies are expanding their presence on the Web.
AACSB: Information technology

53) Internet penetration is less than 10 percent in:

A) Qatar.
B) Bahrain.
C) Greenland.
D) Burundi.
E) the Netherlands.
Answer: D
Difficulty: 2: Moderate
Chapter LO: 15.4: Identify current trends in global e-commerce and explain how global
companies are expanding their presence on the Web.
AACSB: Information technology

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54) Web sites can be classified by purpose as represented by the term:

A) matrix sites.
B) international sites.
C) geographic sites.
D) promotion sites.
E) regional sites.
Answer: D
Difficulty: 2: Moderate
Chapter LO: 15.4: Identify current trends in global e-commerce and explain how global
companies are expanding their presence on the Web.
AACSB: Information technology

55) Web sites that provide news and entertainment and support a company's PR efforts are
known as:
A) company sites.
B) transaction sites.
C) promotion sites.
D) content sites.
E) cyber sites.
Answer: D
Difficulty: 2: Moderate
Chapter LO: 15.4: Identify current trends in global e-commerce and explain how global
companies are expanding their presence on the Web.
AACSB: Information technology

56) Amazon.com, the leading Internet bookseller, allows users to purchase books, CDs, and
other products online. Amazon.com is primarily a(n) ________ site.
A) promotion
B) content
C) transaction
D) execution
E) cyber
Answer: C
Difficulty: 2: Moderate
Chapter LO: 15.4: Identify current trends in global e-commerce and explain how global
companies are expanding their presence on the Web.
AACSB: Information technology

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57) The top Digital Agency Network by 2016 Interactive Marketing Revenues is:
A) IBM iX.
B) Deloitte Digital.
C) Accenture Interactive.
D) PwC Digital Services.
E) Publicis Sapient
Answer: C
Difficulty: 1: Easy
Chapter LO: 15.4: Identify current trends in global e-commerce and explain how global
companies are expanding their presence on the Web.
AACSB: Information technology

58) Some global marketers make the strategic decision to establish a presence on the Web
without offering transaction opportunities even though the product could be sold that way. Such
sites are known as:
A) company sites.
B) transaction sites.
C) promotion sites.
D) content sites.
E) cyber sites.
Answer: C
Difficulty: 2: Moderate
Chapter LO: 15.4: Identify current trends in global e-commerce and explain how global
companies are expanding their presence on the Web.
AACSB: Information technology

59) The domain name for Amazon.com in Germany is:

A) amazon.com.gm.
B) amazon.gr.
C) amazon.ge.
D) amazon.de.
E) amazon.gm.
Answer: D
Difficulty: 1: Easy
Chapter LO: 15.4: Identify current trends in global e-commerce and explain how global
companies are expanding their presence on the Web.
AACSB: Information technology

60) Research suggests that visitors spend more time at sites that are in English than in their own
language.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 15.4: Identify current trends in global e-commerce and explain how global
companies are expanding their presence on the Web.
AACSB: Information technology

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61) Cybersquatting is the practice of registering a particular domain name for the express
purpose of reselling it to the company that should rightfully use it.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 15.4: Identify current trends in global e-commerce and explain how global
companies are expanding their presence on the Web.
AACSB: Information technology

62) What are some of the issues that need to be addressed when setting up for global e-
commerce?
Answer: To fully exploit the Internet's potential, company executives must be willing to
integrate interactive media into their marketing mixes. Web sites can be developed in-house, or
an outside firm can be contracted. During the past few years, several interactive advertising
sources have become available in different parts of the world. No matter which agency or source
is selected, there are several issues that must be addressed and taken into consideration when
setting up for global e-commerce. This involves choosing the domain names, arranging payment,
localizing sites, addressing privacy issues, and setting up a distribution system. A critical first
step is registering a country-specific domain name. The Web site of choice will be the one which
uses the language of the country and lists prices in the currency of the country. While registering
a domain name is a relatively straightforward procedure in the United States, requirements vary
in different countries. Also cybersquatting, the practice of registering a particular domain name
for the express purpose of reselling it to the company that should rightfully use it, is a problem.
Payment can be another problem; in many countries credit card use is low or not very much
prevalent. In such situations, e-commerce operators must arrange payment by bank check or
other means. Another issue is credit card fraud which will also become a problem for e-
commerce. Also, it is preferable to double check the translations used for the Web site. Direct
translation from the home-country Web site may not work in many countries. Words also have
different meanings, and that should be taken into account. Another critical global e-commerce
issue is privacy. There are some countries where the rules are strict, and in some countries they
are very much relaxed.
Difficulty: 2: Moderate
Chapter LO: 15.4: Identify current trends in global e-commerce and explain how global
companies are expanding their presence on the Web.
AACSB: Information technology

63) Which of the following is not a critical issue for a company whose management intends to
engage in e-commerce?
A) privacy
B) credit card fraud in developing countries
C) ensuring that logos and other brand identity elements are consistent with local preferences
D) ensuring a company's computer system supports only a particular language
E) the availability of hot spots for Wi-Fi
Answer: E
Difficulty: 2: Moderate
Chapter LO: 15.5: Explain the key issues facing a global company when designing and
implementing a Web site.
AACSB: Information technology
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64) Although it is certainly possible for European consumers to browse Amazon.com's U.S. site,
they prefer a direct link to a site with a local domain name. All of the following are possible
reasons for such behavior except:
A) the Web site of choice will be one that quotes prices in euros.
B) the Web site of choice will be that which offers a product selection tailored to local tastes.
C) the preference will be for the Web site which ships from local distribution points.
D) due to price fluctuations the preference will be for the Web site that quotes prices in U.S.
dollars.
E) the preference will be for sites that are in their own language.
Answer: D
Difficulty: 2: Moderate
Chapter LO: 15.5: Explain the key issues facing a global company when designing and
implementing a Web site.
AACSB: Information technology

65) Konbini is a convenience store in ________, where consumers can pay for online purchases.
A) Indonesia
B) Russia
C) Croatia
D) Japan
E) Bosnia
Answer: D
Difficulty: 2: Moderate
Chapter LO: 15.5: Explain the key issues facing a global company when designing and
implementing a Web site.
AACSB: Information technology

66) Ideally, each country-specific site should reflect all of the following except ________, which
may not be familiar to shoppers in some countries.
A) logos and symbols
B) the local language
C) local customs
D) the shopping cart icon
E) local colors
Answer: D
Difficulty: 2: Moderate
Chapter LO: 15.5: Explain the key issues facing a global company when designing and
implementing a Web site.
AACSB: Information technology

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67) The practice of registering a particular domain name for the express purpose of reselling it to
the company that should rightfully use it is referred to as:
A) gray market.
B) piracy.
C) copyright violation.
D) cybersquatting.
E) patent violation.
Answer: D
Difficulty: 2: Moderate
Chapter LO: 15.5: Explain the key issues facing a global company when designing and
implementing a Web site.
AACSB: Information technology

68) It is advisable to start a double-ACSII platform when designing a Web site's architecture
since:
A) the English language can store only a maximum of 256 characters.
B) French and German languages use the Latin alphabet.
C) German-language Web sites require double the English Web site's capacity.
D) French and German languages cannot be used in a Web site's architecture.
E) Japanese and Chinese languages require a database which supports such a platform.
Answer: E
Difficulty: 2: Moderate
Chapter LO: 15.5: Explain the key issues facing a global company when designing and
implementing a Web site.
AACSB: Information technology

69) The Web site's architecture should be flexible enough to allow all of the following except:
A) different dates.
B) currency.
C) money formatting.
D) local culture.
E) privacy.
Answer: D
Difficulty: 1: Easy
Chapter LO: 15.5: Explain the key issues facing a global company when designing and
implementing a Web site.
AACSB: Information technology

70) Localizing a Web site in native language can be done by translating a Web site from the
home-country language.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 15.5: Explain the key issues facing a global company when designing and
implementing a Web site.
AACSB: Information technology

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73) The country which boasts the world's fastest average Internet speed is:
A) Russia.
B) China.
C) South Korea.
D) India.
E) Japan.
Answer: C
Difficulty: 2: Moderate
Chapter LO: 15.6: Identify the most important new products and services that have been
introduced in the past decade.
AACSB: Information technology

74) Broadband offers companies the telecommunication capability to do all of the following
except:
A) streaming audio.
B) streaming video.
C) streaming media.
D) streaming sales.
E) compressed video.
Answer: D
Difficulty: 2: Moderate
Chapter LO: 15.6: Identify the most important new products and services that have been
introduced in the past decade.
AACSB: Information technology

75) Streaming media represents a huge market opportunity for all of the following except:
A) video game industry.
B) online gaming.
C) game publishers.
D) Internet portals.
E) telematics.
Answer: E
Difficulty: 2: Moderate
Chapter LO: 15.6: Identify the most important new products and services that have been
introduced in the past decade.
AACSB: Information technology

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76) "Cloud computing" is different from currently available technologies in all of the following
aspects except:
A) it is performed "in the cloud."
B) applications are delivered through a Web browser.
C) it is installed in the computer's hard drive.
D) computer files can be accessed remotely.
E) archives are stored on massive remote servers.
Answer: C
Difficulty: 2: Moderate
Chapter LO: 15.6: Identify the most important new products and services that have been
introduced in the past decade.
AACSB: Information technology

77) While South Korea is considered as "ready for tomorrow" in terms of Internet speed,
countries which are "below today's applications threshold" include all of the following except:
A) the United States.
B) Germany.
C) India.
D) Hong Kong.
E) China.
Answer: C
Difficulty: 2: Moderate
Chapter LO: 15.6: Identify the most important new products and services that have been
introduced in the past decade.
AACSB: Information technology

78) The term "m-commerce" is used to describe the use of:

A) Internet in commerce.
B) web.com in commerce.
C) credit cards in commerce.
D) money in commerce.
E) cell phones in commerce.
Answer: E
Difficulty: 2: Moderate
Chapter LO: 15.6: Identify the most important new products and services that have been
introduced in the past decade.
AACSB: Information technology

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79) ________-commerce is one of the significant marketing opportunities made possible by the
digital revolution.
A) Multinational
B) Mobile
C) Multisegment
D) Marginal-cost
E) Multilingual
Answer: B
Difficulty: 2: Moderate
Chapter LO: 15.6: Identify the most important new products and services that have been
introduced in the past decade.
AACSB: Information technology

80) Wi-Fi, or wireless fidelity, permits laptop and PDA users to establish high-speed wireless
connections to the Internet via:
A) infrared rays.
B) magnetic rays.
C) hot spots.
D) laptop warriors.
E) modem.
Answer: C
Difficulty: 2: Moderate
Chapter LO: 15.6: Identify the most important new products and services that have been
introduced in the past decade.
AACSB: Information technology

81) Smartphones that are equipped with a global positioning system can determine the users'
exact geographic position. This capability has created new opportunity for marketers by using all
of the following innovative means except:
A) text messages can be sent to smartphone users who are in the vicinity.
B) offering special deals to smartphone users who happen to be in the vicinity.
C) promoting mobile campaigns which will reach smartphone users.
D) obtaining demographic information about the smartphone users.
E) locate smartphone users for delivering products or services.
Answer: D
Difficulty: 2: Moderate
Chapter LO: 15.6: Identify the most important new products and services that have been
introduced in the past decade.
AACSB: Information technology

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82) Alcatel-Lucent, the French telecommunications equipment manufacturer, has launched a

service that sends tailored text messages when smartphone users are near a specific location,
such as a store, hotel, or restaurant. This capability can help in all of the following ways except:
A) text messages can be sent to smartphone users who are in the vicinity.
B) offering special deals to smartphone users who happen to be in the vicinity.
C) promoting mobile campaigns which will reach smartphone users.
D) obtaining demographic information about the smartphone users.
E) locating smartphone users for delivering products or services.
Answer: D
Difficulty: 2: Moderate
Chapter LO: 15.6: Identify the most important new products and services that have been
introduced in the past decade.
AACSB: Information technology

83) One factor driving mobile ads in ________ is the low rates that subscribers pay.
A) India
B) South Korea
C) Sudan
D) Japan
E) Indonesia
Answer: A
Difficulty: 2: Moderate
Chapter LO: 15.6: Identify the most important new products and services that have been
introduced in the past decade.
AACSB: Information technology

84) Bluetooth mobile communication technology has all of the following advantages over Wi-Fi
except one:
A) Bluetooth is well suited for use with cell phones.
B) Bluetooth works over shorter distances than Wi-Fi.
C) Bluetooth consumes less power than Wi-Fi.
D) Bluetooth can handle data as well as voice.
E) Bluetooth technology has been incorporated into automobiles.
Answer: B
Difficulty: 2: Moderate
Chapter LO: 15.6: Identify the most important new products and services that have been
introduced in the past decade.
AACSB: Information technology

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85) BMW and Porsche have developed Apple Watch apps that enable drivers to remotely check
many items within their cars which includes all of the following except:
A) information about services.
B) information about pricing.
C) help in booking hotel rooms.
D) help in restaurant reservation.
E) help recharging the car's batteries.
Answer: E
Difficulty: 2: Moderate
Chapter LO: 15.6: Identify the most important new products and services that have been
introduced in the past decade.
AACSB: Information technology

86) Cloud-based music services are expected to have a major impact on the mobile music
business. The reason for their popularity includes all of the following except:
A) they are a hybrid between subscription and online store business.
B) this new approach addresses some of the shortcomings of the existing methods.
C) they offer users a music locker "in the cloud."
D) music services can be purchased from a variety of mobile devices.
E) the pricing schemes for various services are simple.
Answer: E
Difficulty: 2: Moderate
Chapter LO: 15.6: Identify the most important new products and services that have been
introduced in the past decade.
AACSB: Information technology

87) Bandwidth determines the range of frequencies that can pass over a given transmission
channel.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 15.6: Identify the most important new products and services that have been
introduced in the past decade.
AACSB: Information technology

88) Cloud computing means that archives—-including music and movie files, photos, and
documents—are stored on massive remote servers and data centers rather than on individual
users' computers.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 15.6: Identify the most important new products and services that have been
introduced in the past decade.
AACSB: Information technology

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89) Google's Chrome operating system, which has been described as "a new computing
paradigm," is designed to exploit the opportunities of cloud computing.
Answer: TRUE
Difficulty: 3: Challenging
Chapter LO: 15.6: Identify the most important new products and services that have been
introduced in the past decade.
AACSB: Information technology

90) Industry experts expect marketers to integrate SMS with communication via other digital
channels, such as the Internet and e-mail.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 15.6: Identify the most important new products and services that have been
introduced in the past decade.
AACSB: Information technology

91) Several automakers have developed Apple Watch apps that enable drivers to remotely check,
say, whether the doors are locked and the windows are up.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 15.6: Identify the most important new products and services that have been
introduced in the past decade.
AACSB: Information technology

92) Apple's wildly successful iPhone comes equipped with a full-blown version of the company's
iOS and Web browser.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 15.6: Identify the most important new products and services that have been
introduced in the past decade.
AACSB: Information technology

93) When people attending the Metropolitan Museum of Art's Gala in 2016 tweeted, supermodel
Karolina Kurkova's dress changed colors! This is an example of wearable technology.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 15.6: Identify the most important new products and services that have been
introduced in the past decade.
AACSB: Information technology

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