Question 1

The first step in the buying decision process is product evaluation and comparison.

Accepted Answer

The first step in the buying decision process is recognizing a need or problem, not product evaluation and comparison.

Question 2

A user profile defines a customer's preferences,behaviors,and demographics and can be generated by observing what the user does online.

Accepted Answer

A user profile is generated by observing the customer's preferences, behaviors, and demographics. These observations can be made by monitoring the user's online activities. Therefore, the statement is true.

Question 3

The world's largest online movie rental subscription company,Netflix,implemented intelligent agents in its movie recommendation service called CineMatch to help customers select movies they would like to watch and to better manage its inventory.

Accepted Answer

Netflix indeed implemented intelligent agents in its movie recommendation service called CineMatch to assist customers in selecting films to watch and to optimize its inventory management.

Question 4

One of the keys to building effective customer relationships is to understand intelligent agents.

Accepted Answer

Understanding intelligent agents is not a key factor in building customer relationships. Effective customer relationships are built on communication, trust, and understanding customer needs and preferences.

Question 5

Personal characteristics of customers,such as age and income,are independent variables,which are uncontrollable variables for EC companies.

Accepted Answer

Personal characteristics of customers, such as age and income, are external factors that are beyond the control of EC companies. As such, they are independent variables that can affect customer behavior but cannot be directly influenced or changed by the company.

Question 6

Mass marketing is an approach to marketing that treats each customer in a unique way such as fitting advertising to the customer's profile and needs.

Accepted Answer

Mass marketing is the opposite of personalized marketing, as it assumes that all customers are the same and creates standardized messages and products for them. It does not take into account individual customer profiles and needs.

Question 7

When Chaplin's auto lease is about to expire,he decides it is time to buy a new car.This imbalance between a desired state and an actual state is called need identification.

Accepted Answer

Need identification refers to the recognition of a discrepancy between a desired state and an actual state. In this case, Chaplin desires a new car and recognizes that his current leased car is about to expire, leading to the need for a new car.

Question 8

Customer loyalty is important because it is a customer's deep commitment to rebuy a product or service consistently in the future,thereby causing repetitive same-brand or same brand-set purchasing.

Accepted Answer

Customer loyalty is a customer's tendency to continue buying a particular product or service repeatedly in the future, leading to the regular purchase of the same brand or brand set. It benefits the company by increasing revenue, reducing marketing expenses, and establishing a positive brand image.

Question 9

In the consumer purchasing-decision process,virtual catalogs and links to external sources support the evaluation and selection phase of that process.

Accepted Answer

The answer of In the consumer purchasing-decision process,virtual catalogs and...

Question 10

Finding and retaining customers is a major critical success factor for offline and online businesses operating in an increasingly competitive environment.

Accepted Answer

Finding and retaining customers is crucial for businesses to stay competitive and profitable, hence it is a critical success factor for both offline and online businesses.

Question 11

Personalization is the matching of services or products with large groups of customer segments.

Accepted Answer

Personalization is the matching of services or products with individual customers, not large groups of customer segments.

Question 12

One of the major objectives of universal services is to increase customer loyalty through individual personalization.

Accepted Answer

The answer of One of the major objectives of universal...

Question 13

Segmentation refers to the matching of services,products,and advertising content to individuals and their preferences.

Accepted Answer

The answer of Segmentation refers to the matching of services,products,and...

Question 14

Satisfaction is one of the most important consumer reactions in the B2C online environment.

Accepted Answer

Satisfaction is a key factor in determining the success of a B2C e-commerce website. Happy customers are more likely to make repeat purchases and recommend the website to others, while dissatisfied customers can quickly spread negative reviews and harm the reputation of the site. Additionally, monitoring customer satisfaction metrics can help businesses identify areas where they can improve their products, services, or website functionality to better meet the needs and expectations of their customers.

Question 15

In the consumer decision-making process,the buyer is the person who ultimately makes the buying decision.

Accepted Answer

The answer of In the consumer decision-making process,the buyer is...

Question 16

The purpose of an EC customer behavior model is to help firms understand how a consumer makes a purchasing decision to be able to influence that decision through advertising or other marketing method.

Accepted Answer

An EC customer behavior model is designed to provide insights into how consumers make purchasing decisions in an online or electronic commerce (EC) environment. This information can be used by firms to develop more effective advertising and marketing strategies that target specific consumer behaviors and preferences, and ultimately influence their purchasing decisions. Therefore, the statement is true.

Question 17

Consumer processing of an advertising message includes four stages: interest,desire,attention,and action.

Accepted Answer

The correct order of the stages is attention, interest, desire, and action.

Question 18

Customer loyalty can lead to enhanced resistance to competitors,a decrease in price sensitivity,and an increase in favorable word-of-mouth.

Accepted Answer

Customer loyalty can result in several benefits, including increased resistance to competitors, decreased price sensitivity, and positive word-of-mouth recommendations. Customers who are loyal to a particular brand or business are less likely to switch to a competitor, even if they offer lower prices or better deals. Additionally, loyal customers are often willing to pay more for products or services because they trust and value the brand. Finally, satisfied customers are more likely to recommend the business to friends and family, which can lead to new customers and increased sales.

Question 19

Behavioral targeting helps marketers by providing information about an individual's actual Internet purchases to select the most effective advertisements to display to that individual.

Accepted Answer

The answer of Behavioral targeting helps marketers by providing information...

Question 20

Attracting and retaining loyal customers is the most important issue for e-tailers because customer loyalty can lower marketing and advertising costs,transaction costs,customer turnover expenses,and failure costs such as warranty claims.

Accepted Answer

Customer loyalty can lead to lower marketing and advertising costs since loyal customers are more likely to spread positive word-of-mouth about a company, leading to new customers through referrals. Additionally, loyal customers are generally more likely to make repeat purchases, leading to lower transaction costs and customer turnover expenses. Finally, loyal customers are less likely to return products, leading to lower failure costs such as warranty claims.

Quiz 4: Consumer Behavior,internet Marketing,and Advertising