As Consumers Become More Demanding, the Internet Is a Good

question 24

Multiple Choice

As consumers become more demanding, the internet is a good way to deliver customer value because ________.

• A) most products on the internet are less expensive than on other marketing channels
• B) broadband allows marketers to put more cookies on computers
• C) marketers can send digital coupons to millions of customers instantly
• D) customers gain ability to create, share, and access information and entertainment at will

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Definitions:

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with elasticity greater than 1 indicating a high responsiveness.

Marginal Cost

The increase in cost resulting from the production of one additional unit of output.

Advertising Elasticity of Demand

Advertising elasticity of demand quantifies the change in demand for a product as a result of a change in the amount of advertising for that product.

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good.