In Which of the Following Cases Is Building a Database

question 41

Multiple Choice

In which of the following cases is building a database worthwhile for the company?

• A) where the product is a once-in-a-lifetime purchase
• B) where customers show little loyalty to a brand
• C) where the company has a long relationship with its customers
• D) where the unit sale is very small
• E) where the cost of gathering the information is high

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Definitions:

Price Weighted Index

A stock market index in which each company's stock influences the index in proportion to its price per share.

Adjustable Rate Mortgage

A type of mortgage in which the interest rate applied on the outstanding balance varies throughout the life of the loan according to market conditions.

Fixed Rate Mortgage

A mortgage in which the interest rate remains constant throughout the term of the loan.

Interest Rate

is the cost of borrowing money or the return on investment in a savings account, usually expressed as a percentage of the principal over a period of one year.