By Obtaining Information About Customer Preferences and Past Purchase Behavior

question 47

Multiple Choice

By obtaining information about customer preferences and past purchase behavior, retailers operating an electronic channel are able to: 

• A) design more secure sites for credit card users.
• B) develop faster download times.
• C) promote showrooming.
• D) respond immediately to consumer inquiries.
• E) tailor merchandise and recommendations.

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Definitions:

Commitment Fee

A banking fee charged by lenders to secure a line of credit or a loan, often paid by borrowers to guarantee access to credit.

Prime Rate

The interest rate that commercial banks charge their most creditworthy customers, often used as a benchmark for other interest rates.

Effective Interest Rate

The real rate of interest earned or paid on a loan or investment, accounting for the effect of compounding over the period.

Compensating Balance

A minimum account balance that a borrower must maintain as a condition for borrowing from a lender or for obtaining favorable loan terms.