AP®︎ Business with Personal Finance: Topic 2.1 Flashcards

All activities a business undertakes to identify customers’ problems, needs, and wants and to promote, sell, and deliver products that address them

The person or organization that buys a product, who may differ from the product’s user

Measurable qualities describing a population, such as age, sex, race, ethnicity, income, and location

Cognitive and behavioral factors such as interests, activities, values, and lifestyles

A record of people who expressed interest by subscribing, often including contact information, interests, and responses to messages

Customer records that can connect contact information, preferences, purchases, saved products, and service interactions over time

Software that records digital actions such as page views, link selections, ad responses, cart additions, and checkout abandonment

Applications that record data such as app use, purchases, device information, and permitted geographic location

Observing posts, comments, reviews, mentions, and reactions to learn about customer opinions, interests, complaints, and preferences

Surveys gather responses from many people, while interviews obtain more detailed explanations from individuals

Customer lists or datasets bought from another business, often categorized by characteristics, interests, purchases, or online behavior

Aggregating potential customers into market segments based on shared demographic and psychographic characteristics

Define potential customers and their problem, collect data, identify shared characteristics, form meaningful segments, compare them, and select segments to target

The buyers most likely to purchase a particular product because of their wants, needs, and preferences

A fictional, evidence-based description of a sample target customer incorporating demographic and psychographic data plus wants, needs, and preferences

Adapting the customer experience to a customer’s known needs, preferences, history, or prior interactions

A program that gives frequent buyers benefits such as points, discounts, free products, or special access for continued purchasing

Ways to invite customer responses, such as satisfaction surveys, reviews, interviews, service contacts, and social media

Average cost to gain a new customer: marketing, advertising, and sales acquisition costs ÷ number of new customers acquired

The estimated amount a unique customer will spend on the business’s products over time, often estimated as purchase amount × frequency × relationship duration

A plan connecting target customers’ needs to specific relationship-building tactics, evaluation measures, and responsible customer-data use

Collecting, combining, sharing, or using personal information in ways customers do not know about or would not reasonably expect

Unauthorized access to or disclosure of stored data

Using another person’s identifying information to impersonate that person, access accounts, open accounts, or conduct unauthorized transactions

Intentional deception for financial or other gain, such as using stolen information for purchases or account takeovers