Chapter 11 - Online Marketing

Question 1

implications of reduced search costs

Answer 1

1. recommendation agent to filter information or set preferences from prior purchase
2. comparison matrix - brand by brand, easy comparison
   - high consumer involvement (not for novices and experts)

Question 2

consumer advocacy programme (PAP)

Answer 2

1. Product quality and customer service online
2. Accurate information provided
3. Privacy and security settings

Question 3

relationship marketing

Answer 3

build stronger relationships with consumers for TRUST and brand LOYALTY

Question 4

Benefits of online shopping

Answer 4

1. more information
2. wider option
3. saves time - easy to compare
4. value for money - best deals

Question 5

Concerns of online shopping

Answer 5

1. uncertain quality and reliability
2. unable to trace post purchase support
3. no expert available to advise

Question 6

perception of non-adopters

Answer 6

1. not dependable

2. online stores making empty promises and false claims

Question 7

Features of well-designed website

Answer 7

1. choice and customisation
2. reduce information search cost, and navigate with ease
3. organise for compensatory (alternatives) or non-compensatory (no alternatives)