Exam 15: Consumer Behavior Online

What are the three main categories that e-tailers need to focus on when designing a web site?

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.

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.

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

Ranking and ordering ads in terms of relevance to a consumer's search rather than in terms of dollars is an example of how online marketing differs from brick and mortar marketing.

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

A new clothing line is being developed called "Red Hawk" enterprises. If Red Hawk sold clothes via a brick and mortar shop, it will most likely improve sales of Red Hawk's e-tailing efforts.

When a web site is organized by customized options, this encourages what type of choice strategy?

In comparing two online e-tailers, Target.com vs. DavesDeepDiscounts.com, Target.com should be considered the better online business based primarily on:

A picture frame would most likely be considered a:

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

Consumers behave as limited information processors and are only able to consider about _____, plus or minus two, pieces of information at a time.

Define search goods, experience goods, and credence goods, and provide an example for each.

Involvement and risk tend to be related in that they tend to be:

Consumers generally trust large corporations.

In addition to making shopping easy, the Internet makes shopping fun, at least for some consumers. People have the most fun when they are in a state of _____, which is experienced when people perform an activity skillfully with little thought or effort.

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

Which of the following is not a type of customer information that interactivity makes it easy for e-tailers to obtain?

According to Glen Urban, a former Dean of the MIT Sloan School of Management, the best way for firms to respond to consumer power brought about by the Internet is to find new ways to persuade consumers.

Relationship marketing programs involve building stronger relationships with consumers by using consumer reports advice and improved advertising efforts.