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Alicia Has Seen News Stories About All the Private Data

Question 130

Multiple Choice

Alicia has seen news stories about all the private data companies are collecting about consumers, especially from their Web searching behavior. She has visited some health-related sites because her mother just learned that she has Type 2 diabetes, and Alicia wanted to be more informed about her mother's disease and the medication she was prescribed. One website she visited was the company that manufactures her mother's medicine. However, Alicia is planning to purchase life insurance within the next year, and she is afraid that the fact that she was researching this disease and medications might negatively affect her premium rates if insurers have access to consumers' Web searching activity. What is the primary reason companies collect consumer information?


A) It lets them compile a database that they can sell to other marketers.
B) It lets them more precisely determine the price to charge to certain consumers.
C) It helps them develop new products based on consumers' information needs.
D) It lets them better target their advertising.
E) It lets them evaluate the effectiveness of their Web sites.

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