What aspect of the value chain is enhanced by Blockbuster’s online movie rental service?

Study for the Information Technology Applications 203C (ITA203C) FE Test. Utilize flashcards and multiple-choice questions, each with hints and explanations. Prepare effectively for your exam!

The value chain analysis, developed by Michael Porter, breaks down activities that create value for a company into primary and support activities. The aspect highlighted in this question relates to how Blockbuster's online movie rental service contributes to its competitive position.

The online movie rental service enhances sales and marketing because it allows Blockbuster to reach a broader audience beyond the physical store locations. By offering a convenient platform for customers to rent movies online, Blockbuster can engage with customers in a way that aligns with modern consumer habits, enhancing brand visibility and attracting new customers. This service not only helps retain existing customers by providing added convenience but also enables the company to market its offerings more effectively, leveraging the internet's reach.

Additionally, the online service supports targeted marketing efforts where personalized recommendations can be made to users based on their viewing history, further influencing purchasing decisions. The ability to capitalize on digital marketing initiatives is crucial for driving customer acquisition and retention, positioning Blockbuster favorably in a competitive market.

The other aspects listed, such as inbound logistics, operations, and procurement, do not align directly with how Blockbuster's online service aims to enhance customer interaction and promotion of its products. Inbound logistics relates more to the receiving and warehousing of inventory, while operations focus on the

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