Chapter 4Consumer Behavior, Market Research, and AdvertisementTrue-False Questions1.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.Answer: TrueDifficulty:MediumPage Reference: 157 AACSB: Use of information technology2.Finding and retaining customers is a major critical success factor for most offline and online businesses.Answer: TrueDifficulty:EasyPage Reference: 157 AACSB: Use of information technology3.One of the keys to building effective customer relationships is an understanding of intelligent agents.Answer: FalseDifficulty:MediumPage Reference: 157 AACSB: Use of information technology4.The purpose of a consumer behavior model is to help firms understand how a consumer makes a purchasing decision to be able to influence that decision through advertising, special promotions, or other marketing method.Answer: TrueDifficulty:MediumPage Reference: 157 AACSB: Use of information technology5.Individual buyers do most of the actual shopping in cyberspace in terms of dollar volume of sales.Answer: FalseDifficulty:MediumPage Reference: 158 AACSB: Use of information technology6.Purchases by governments, private corporations, resellers, and other organizational buyers often are used to create other products or services by adding value to them.Answer: TrueDifficulty:EasyPage Reference: 158 AACSB: Use of information technology7.Personal characteristics of customers, such as age and income, are independent variables, which are uncontrollable variables for EC companies .Answer: TrueDifficulty:MediumPage Reference: 158 AACSB: Use of information technology8.Customers rarely browse online stores if they do not intend to buy.Answer: FalseDifficulty:EasyPage Reference: 159 AACSB: Use of information technology9.According to Internet statistics, 67 percent of consumers abandoned their shopping carts because of the lack of satisfactory product information. Answer: TrueDifficulty:MediumPage Reference: 159 AACSB: Use of information technology10.The two most cited reasons for abandoning a shopping cart and not making the purchase are shipping charges and security concerns.Answer: FalseDifficulty:HardPage Reference: 159 AACSB: Use of information technology11.Social factors such as customer endorsement strategies and word-of-mouth are independent variables that play an important role in EC shopping and purchases.Answer: TrueDifficulty:MediumPage Reference: 159 AACSB: Use of information technology12.Prices, advertising, promotions, and logistics are intervening variables that can be controlled by vendors. Answer: TrueDifficulty:MediumPage Reference: 159 AACSB: Use of information technology13.Buying decisions are the dependent variables because these decisions depend on the independent and intervening variables.Answer: TrueDifficulty:MediumPage Reference: 159 AACSB: Use of information technology14.An objective of conducting market research is to understand the relationships between dependent and intervening variables so that vendors can make informed decisions on the intervening variables. Answer: TrueDifficulty:MediumPage Reference: 159 AACSB: Use of information technology15.In the consumer decision-making process, the buyer is the person who ultimately makes the buying decision.Answer: FalseDifficulty:MediumPage Reference: 160 AACSB: Use of information technology16.When Chaplins 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: TrueDifficulty:MediumPage Reference: 160 AACSB: Use of information technology17.In the decision-making process, virtual catalogs and links to external sources support the evaluation and selection phase of that process. Answer: FalseDifficulty:MediumPage Reference: 161 AACSB: Use of information technology18.Mass marketing is an approach to marketing that treats each customer in a unique way such as fitting advertising to the customers profile and needs.Answer: FalseDifficulty:MediumPage Reference:163AACSB: Use of information technology19.Selling as many products as possible to one customer over a long period of time and across different product lines to maximize customer value is known as relationship marketing. Answer: TrueDifficulty:MediumPage Reference: 163 AACSB: Use of information technology20.Segmentation refers to the matching of services, products, and advertising content to individuals and their preferences.Answer: FalseDifficu