The Practice of Using Databases to Promote One-To-One Relationships with Customers

question 29

Multiple Choice

The practice of using databases to promote one-to-one relationships with customers and create precisely targeted promotions is called:

• A)zoned marketing
• B)target marketing
• C)database marketing
• D)electronic marketing

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Definitions:

Income Effect

The alteration in consumption habits of a person or the economy caused by a variation in real income.

Substitution Effect

A shift in buying habits resulting from changes in the comparative prices of items, making consumers switch from higher-priced goods to those that are more affordable.

Price Change

A variation in the cost of goods or services over time in the marketplace.

Substitution Effect

The substitution effect occurs when consumers replace pricier items with less expensive alternatives as prices rise, thereby altering their consumption patterns.