Question 1

The cost of information search is based on how difficult it is to acquire information in terms of time.

Accepted Answer

False

Question 2

When giving consumers options among product attributes while shopping online, it is good to make options negatively correlated to force consumers to make trade-offs.

Accepted Answer

Making options negatively correlated is a common strategy in decision-making research to force consumers to make trade-offs and make a more thoughtful and intentional choice.

Question 3

A picture frame would likely be an example of a search good.

Accepted Answer

A picture frame is a tangible product that consumers can easily evaluate based on its physical characteristics, such as size, shape, and design. As such, it is a good that consumers can search for and assess before making a purchase decision.

Question 4

Consumers often make better decisions if they use a compensatory strategy rather than a non-compensatory strategy.

Accepted Answer

Compensatory strategies allow consumers to consider multiple attributes or factors when making a decision, weighing the importance of each one against the others. This often results in a more informed and rational decision. Non-compensatory strategies, on the other hand, may only consider one or two factors and may lead to less thorough or limited decision-making.

Question 5

When consumers use a non-compensatory strategy, they don't make tradeoffs across attributes, and a bad attribute usually leads to the rejection of an alternative.

Accepted Answer

Non-compensatory strategies involve making decisions based on one or a few key criteria, without taking into account other attributes. This means that a negative attribute can be a deal-breaker, leading to the rejection of an alternative without consideration of its other positive attributes.

Question 6

An e-tailer is a retailer that operates on the Internet.

Accepted Answer

An e-tailer is a retailer that operates exclusively or primarily online, via a website or other digital platform, and may or may not have a physical storefront or presence.

Question 7

In comparing two online e-tailers, Wahnart.com vs.DeepDiscounts.com, Wahnart.com should be considered the better online business based on brand name reputation and the fact that Walmart has a brick and mortar store.

Accepted Answer

Wahnart.com is a subsidiary of Walmart, which is a well-known and reputable brand. Additionally, Walmart has a large number of brick-and-mortar stores, which gives Wahnart.com a physical presence that DeepDiscounts.com does not have.

Question 8

Consumers are less likely to use a compensatory strategy if a web site is organized by options rather than by attributes.

Accepted Answer

The answer of Consumers are less likely to use a...

Question 9

Use of a risk-free return policy to build tmst and to assure consumers that its products are of high quality would be an effective way to sell an experience good for an e-tailer.

Accepted Answer

Offering a risk-free return policy can assure consumers of an e-tailer's commitment to quality and provide a sense of security when purchasing an experience good, ultimately leading to increased sales.

Question 10

E-tailers are usually better at selling search and credence goods than experience goods.

Accepted Answer

E-tailers are generally better at selling search goods, which can be evaluated before purchase, and experience goods, which can be evaluated after use, rather than credence goods, which require trust and expertise to evaluate.

Question 11

According to your readings, in a recent study of online retailers by BizRate.com, it was found that online business success depends on the brand being sold, the number of products sold by thee-tailer, and the quickness with which consumers could navigate the web site.

Accepted Answer

The answer of According to your readings, in a recent...

Question 12

Internet marketing uses one-way communications between marketers and consumers with fast response times between communications and low levels of response contingency.

Accepted Answer

Internet marketing uses two-way communication between marketers and consumers, with higher levels of response contingency, allowing for real-time feedback and interaction.

Question 13

Information search is greater and information search costs are higher in online (vs.off-line) envirornnents.

Accepted Answer

Online environments typically offer easier access to a vast amount of information at lower search costs compared to offline environments, due to the efficiency of search engines and the availability of digital resources.

Question 14

A bottle of wine would be considered an experience good.

Accepted Answer

A bottle of wine would be considered an experience good because its quality and taste can only be fully appreciated after consumption, and cannot be completely assessed solely based on its external characteristics or label.

Question 15

Online stores usually offer greater customization to consumers than brick and mortal stores.

Accepted Answer

Online stores often have more options for customization because they can offer a wider range of products and allow customers to personalize them through online tools and features. Brick and mortar stores may offer some customization options, but they are usually more limited and may be harder to access or implement.

Question 16

The quality of search goods can be examined by simply examining the product.

Accepted Answer

Search goods are those goods whose quality can be easily determined by examining the product. Examples of search goods include clothes, furniture, appliances, etc.

Question 17

Online stores have virtually unlimited inventory because suppliers are always willing to fulfill orders regardless of the customization requirements.

Accepted Answer

Suppliers may have limitations on their inventory or capabilities to customize products, which can affect the inventory available to online stores.

Question 18

Flow is experienced when people perform an activity skillfully with in-depth thought and effort.

Accepted Answer

Flow is experienced when people are fully immersed and focused in an activity, often losing track of time, and it typically involves a balance between skill level and challenge, not necessarily in-depth thought and effort.

Question 19

Interactivity makes it easy for consumers to provide e-tailers with the information that they want-including credit card numbers, e-mail addresses, shipping addresses, personal preferences, and purchase histories.

Accepted Answer

Interactivity allows consumers to easily provide e-tailers with their personal and payment information as well as their preferences and past purchase history.

Question 20

The quality of experience goods can only be determined by long term use of the product.

Accepted Answer

Experience goods are characterized by the fact that their quality and value can often be assessed only after they have been used, but this does not necessarily require long-term use; in some cases, the quality can be determined after a single use or a short period of use.

Quiz 17: Engaging Consumers Through Online Marketing