Consumers Regard Dell Computers and Apple Computers as Substitutes

question 15

Multiple Choice

Consumers regard Dell computers and Apple computers as substitutes. If the price of a Dell computer decreases, the

• A) demand for Apple computers decreases.
• B) demand for Dell computers increases.
• C) supply of Dell computers increases.
• D) demand for Apple computers increases.
• E) demand for Dell computers decreases.

Identify the principles and benefits of interactive marketing for enhancing customer relationships in digital markets.

Differentiate among various digital marketing tools such as choiceboards, personalization, and permission marketing.

Recognize the role of customer experience in interactive marketing and its impact on purchasing decisions.

Explain the concept of form utility in digital markets and how it creates customer value.

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Definitions:

Behavioral Economics

A field of study that analyzes the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions, and the consequences for market prices, returns, and resource allocation.

Time Inconsistency

The tendency of individuals to change their plans about future actions due to a preference for immediate gratification over future benefit, often leading to inconsistency over time.

Precommitment

A strategy or decision made in advance to lock oneself into a set of actions or behaviors, often to avoid temptation or to ensure future goals are met.

Precommitment Device

A strategy or mechanism used by individuals or firms to constrain their future actions in order to achieve a desired outcome.