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Introduction to Electronic Commerce, 3e (Turban)
Chapter 4 Online Consumer Behavior, Market Research, and Advertisement
4.1 True/False
1) Finding and retaining customers is a major critical success factor for most offline and online businesses.
Answer: TRUE
2) One of the keys to building effective customer relationships is an understanding of intelligent agents.
Answer: FALSE
3) 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.
Answer: TRUE
4) When making a purchasing decision, deciding what product to buy is referred to as product brokering.
Answer: TRUE
5) In the consumer decision-making process, the buyer is the person who ultimately makes the buying decision.
6) In the purchase decision-making process, blogs and search engines support the evaluation, negotiation, and selection step.
Answer: FALSE
7) The first step in the purchase decision-making process is product evaluation and comparison.
Answer: FALSE
8) Personalization matches services, products, and advertising content with large groups of customer segments.
Answer: FALSE
9) A user profile defines customer preferences, behaviors, and
demographics and can be generated by observing what the user does online.
Answer: TRUE
10) Customer loyalty is a deep commitment to rebuy or repatronize a preferred product or service consistently in the future, thereby causing repetitive same-brand purchasing.
Answer: TRUE
11) Customer loyalty leads to enhanced resistance to competitors, a
decrease in price sensitivity, and an increase in favorable word-of-mouth. 1
Answer: TRUE
12) 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 co
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