A+ Answers of the following Questions

Question 1
According to the EC consumer behavior model, personal characteristics and environmental characteristics are classified as: 
A. independent variables. 
B. dependent variables. 
C. intervening variables. 
D. decision variables. 

Question 2
The major environmental variables influencing EC purchasing are: 
A. price, brand, frequency of purchase, and tangibility. 
B. social, cultural, community, regulatory, political, and legal. 
C. age, gender, ethnicity, education, and lifestyle. 
D. price, social, cultural, ethnicity, and lifestyle. 

Question 3
Banner advertising on Web sites helps trigger a realization that there is a gap between reality and a desired state, which occurs in the __________ stage of the EC purchase decision-making process. 
A. need identification 
B. information search 
C. evaluation, negotiation, and selection 
D. purchase, payment, and delivery 

1. (TCO 6) The unearned premium reserve: (Points : 3)
usually increases when premium volume of an insurer is decreasing.
is a special group of assets reserved for catastrophe losses.
consists primarily of cash and liquid near-cash investments.
is a deferred income account carried on the balance sheet as a liability.
none of the above.

2. (TCO 6) Basically, a retrospectively rated insurance program is a: (Points : 3)
form of class rating.
variation of schedule rating.
cost-plus arrangement in which actual losses determine the final premium.
a variation of experience rating, since past losses determine the current premium.
none of the above.

3. (TCO 6) Major differences between statutory accounting and Generally Accepted Accounting Principles (GAAP) include: (Points : 3)
the concept of non admitted assets.
the way that the insurer’s invested assets are valued.
the matching of expenses and revenues.
the degree of conservatism.
all of the above.

1. What are the half-year and mid-quarter conventions?

2. What if a salary is deemed unreasonable by the IRS what happens then?

1. (TCO 7) If an agent tells an insured that a breach of a policy condition will not affect the coverage, and a loss occurs, the insurer may: (Points : 3)
deny coverage if the breach contributed to the loss.
be liable for the loss because the agent's acts are considered acts of the insurer.
deny liability if the agent was not authorized to make such statements.
deny liability because a waiver must be in writing before it is valid.
none of the above.

2. (TCO 7) Because of the fact that the terms of an insurance contract are fixed by the insurer instead of being determined by a bargaining process, the insurance policy is said to be: (Points : 3)
a contract of utmost good faith.
an aleatory contract.
a contract of indemnity.
a unilateral contract.
a contract of adhesion.

3. (TCO 6) Major differences between statutory accounting and Generally Accepted Accounting Principles (GAAP) include: (Points : 3)
the concept of nonadmitted assets.
the way that the insurer’s invested assets are valued.
the matching of expenses and revenues.
the degree of conservatism.
all of the above.

Question 1
In general, what has been the impact of the introduction of EC on customer loyalty? 
A. Loyalty has increased because of targeted relationship marketing. 
B. Loyalty has decreased because of customers’ ability to shop, compare, and shift vendors. 
C. There has been little change in loyalty because the impacts have cancelled each other out. 
D. It is not known whether loyalty has increased or decreased. 

Question 2
By increasing customer loyalty, EC companies can achieve each of the following benefits

EXCEPT: 
A. lower marketing and advertising costs. 
B. lower warranty claims costs. 
C. lower resistance to competitors. 
D. lower transaction costs. 

Question 3
Procter & Gamble (P&G) used the Internet in the new product development of Whitestrips, a teeth-brightening product. Based on this experience, P&G: 
A. decided to add Internet research to its traditional marketing test model. 
B. learned that the cost of online surveys were about the same as similarly sized telephone surveys, but online surveys expedited research considerably. 
C. could not determine the target market segments for the Whitestrips. 
D. reduced the time-to-market from concept to market launch by approximately two years.