When Companies Store Information on Customers' Purchase Histories in Large

question 117

True/False

When companies store information on customers' purchase histories in large computer files, this is known as data warehousing.

---

Definitions:

Monopolistic Competition

A market structure in which many firms sell a differentiated product, entry is relatively easy, each firm has some control over its product price, and there is considerable nonprice competition.

Product Differentiation

A marketing strategy that involves distinguishing a product or service from others in the market to make it more attractive to a particular target market.

Collusion

A situation in which firms act together and in agreement (collude) to fix prices, divide a market, or otherwise restrict competition.

Entry Barriers

Obstacles that make it difficult for new competitors to enter an industry, including high initial investment, stringent regulations, and strong brand loyalty.