AmazonCom Keeps Track of Goods Its Customers Have Ordered

question 93

Multiple Choice

Amazon.com keeps track of goods its customers have ordered. When a returning customer logs onto Amazon.com, the site creates a list of recommendations based on the customer's purchasing history. Amazon is segmenting the market by ______.

• A) psychographics
• B) product
• C) demographics
• D) end use

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Definitions:

Internal Rate of Return

The discount rate at which the net present value of all the cash flows from an investment or project equals zero, used as a gauge for its profitability.

Working Capital

The amount of current assets minus current liabilities, indicating the liquidity of a business.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period, used in capital budgeting to assess the profitability of an investment.

Working Capital

An indicator of a company's short-term financial health and operational efficiency, calculated as current assets minus current liabilities.