ISC301 101-125

The two key factors limiting the use of personalization to more precisely target marketing efforts to individual customers are:

• matching profiles with product offerings and delivering those offerings.
• communication costs and filtering costs.
• privacy and trust issues.
• lack of customer loyalty and service customization costs.

The term refers to the number of times users call up a page that has a banner on it during a specific period

• conversion rate
• add view
• click through
• unique visit

By increasing customer loyalty, EC companies can achieve each of the following benefits EXCEPT:

• lower marketing and advertising costs.
• lower warranty claims costs.
• lower transaction costs.
• lower resistance to competitors.

What has been the impact of the introduction of EC on customer loyalty in general?

• Loyalty has decreased because of customers' ability to shop, compare, and shift vendors.
• Loyalty has increased because of targeted relationship marketing.
• There has been little change in loyalty because the impacts have cancelled each other out.
• It is not known whether loyalty has increased or decreased.

According to research, customer satisfaction with an Internet store:

• cannot be predicted.
• depend on two types of factors: information quality and customer service quality.
• drops dramatically when certain Web site features fail to perform properly, such as the content's reliability, loading speed, or usefulness.
• is higher for new customers than former customers.

The Internet introduced the concept of , which has enabled marketers and advertisers to interact or communicate directly with customers and consumers can interact with marketers/advertisers

• direct marketing
• interactive marketing
• one-to-one marketing
• advertising channel

Issues related to trust in EC include all of the following EXCEPT:

• As a result of trust-transference programs through portal affiliation, seal of approval programs, online shopping communities, and customer endorsements, customers are fully confident in online purchasing transactions.
• When parties trust each other, they have confidence that transaction partners will keep their promises. However, both parties in the transaction assume some risk.
• Trust is particularly important in global EC transactions due to the difficulty of taking legal action in cases of a dispute or fraud.
• If people do not trust the security of the EC infrastructure, they will not feel comfortable about using credit cards to make EC purchases.

is an advertising strategy that uses word-of-mouth marketing in which customers promote a product or service by telling others about it

• viral marketing
• affiliate marketing
• ad customizing
• ads as a commodity

All of the following are correct about market research methods EXCEPT:

• It is important first to understand how groups of consumers are classified or segmented.
• Markets can be segmented to increase the percentage of responses and to formulate effective marketing strategies that appeal to specific consumer groups.
• Direct mail marketing methods are usually cost-effective.
• Market segmentation is done with the aid of tools such as data modeling and data warehousing.

Social class, lifestyle, personality, and activities are descriptors used in market segmentation.

• geographic
• demographic
• psychographic
• cognitive, affective, behavioral