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Q:
The least popular form of direct marketing is:
A) email.
B) direct mail.
C) inbound telemarketing.
D) outbound telemarketing.
Q:
When Carrie hosts a party for Mark cosmetics and invites her friends and relatives in an effort to encourage them to purchase some Mark products, it is which method of direct response marketing?
A) Trawling
B) Direct sales
C) Permission marketing
D) A frequency program
Q:
Successful cataloging requires:
A) a companion website to facilitate purchasing.
B) an enhanced database for better targeting to specific customers.
C) data mining to determine profiles of high catalog purchasers.
D) digital direct-to-press technology.
Q:
Online sales are often spurred through offline direct response marketing approaches. The most likely direct response marketing source is a(n):
A) direct mail flyer.
B) email.
C) catalog.
D) telemarketing call.
Q:
Morgan is the marketing manager for a small auto parts retailer. She wants to purchase a list that has the highest probability of producing sales. The best list for her to purchase would be a(n) ________ list.
A) response
B) internal customer
C) hot
D) compiled
Q:
In purchasing a direct mailing list, a compiled list consists of individuals who have:
A) met a specific demographic profile.
B) responded to previous direct mail offers made by the company purchasing the list.
C) made purchases or responded to direct mail offers in the past.
D) responded to a direct mail offer within the last 30 days.
Q:
In purchasing a direct mailing list, a hot list consists of individuals who have:
A) met a specific demographic profile.
B) responded to previous direct mail offers made by the company purchasing the list.
C) made purchases or responded to direct mail offers in the past.
D) responded to a direct mail offer within the last 30 days.
Q:
In purchasing a direct mailing list, a response list consists of individuals who have:
A) met a specific demographic profile.
B) responded to previous direct mail offers made by the company purchasing the list.
C) made purchases or responded to direct mail offers in the past.
D) responded to a direct mail offer within the last 30 days.
Q:
According to the Direct Marketing Association, about 60 percent of a typical direct marketing budget targets:
A) former customers who have not purchased recently.
B) prospecting for new customers.
C) retaining current customers.
D) individuals from an internal customer list.
Q:
The most common method of direct marketing is:
A) direct mail.
B) telemarketing.
C) direct response mass media.
D) emails.
Q:
Selling products to customers without the use of other channel members is:
A) database marketing.
B) direct marketing or direct-response marketing.
C) indirect marketing.
D) by-pass marketing.
Q:
Identify and describe the three primary types of data-driven marketing programs.
Q:
In general, customer relationship management programs should be designed to enhance customer loyalty.
Q:
In CRM the share of a customer refers to a customer's potential value.
Q:
The lifetime value of a customer is based on the idea that the amount of money customers spend with a firm increases over time.
Q:
The basic idea behind customer relationship management is that companies can use databases to customize products and communications to customers that would result in higher sales and profits.
Q:
Customer relationship management programs are built on two primary metrics: lifetime value of customers and data mining.
Q:
A program designed to build long-term loyalty and bonds with customers through the use of a personal touch facilitated by technology is a customer relationship management program.
Q:
In providing rewards for a frequency program, a variable ratio reward schedule is superior to regularly scheduled rewards.
Q:
Heavy users of a good or service are the best segment to target with a frequency program.
Q:
With a frequency program, consumers are more likely to put forth greater effort to obtain luxury goods as opposed to necessity items.
Q:
The value of the reward in a frequency program has no relationship on the effort individuals will expend to obtain the reward.
Q:
A key principle in developing a loyalty or frequency program is to design the program to enhance the value of what the product offers to customers.
Q:
Companies develop frequency programs to encourage customer loyalty and to generate sales.
Q:
A frequency program provides incentives that are designed to encourage customers to make repeat purchases.
Q:
When customers in a permission marketing program receive rewards during the program in addition to at the beginning, it creates a feeling of empowerment.
Q:
For customers to maintain a positive attitude toward permission marketing programs, rewards must be offered continually and not just at the beginning of the program.
Q:
For long-term success in permission marketing programs, customers should feel empowered, which means they are able to choose their incentive when they join the permission program.
Q:
Empowerment and reciprocity are important elements in a permission marketing program.
Q:
The number one reason that individuals remain loyal to a permission marketing program after they have joined is a chance to win prizes in a contest or sweepstakes.
Q:
An important key to success in permission marketing programs is to make sure participants have actually agreed to participate and not been tricked into participating or signed up without their knowledge.
Q:
Permission is normally obtained from individuals in exchange for an incentive in permission marketing programs.
Q:
A permission marketing program means promotions are only sent to customers who grant permission to receive them.
Q:
The most common database-driven marketing programs are permission marketing, frequency programs, and digital marketing.
Q:
Typically, customer relationship management (CRM) programs should be designed to:
A) provide two-way communications.
B) increase sales and profits.
C) create customer value.
D) enhance customer loyalty.
Q:
In developing a customer relationship management (CRM) program, the "share" of customer term refers to the:
A) potential value that could be added to a given customer's lifetime value.
B) lifelong earnings of a customer.
C) share of a customer's income that is spent on a particular product.
D) percentage of time spent on acquiring the customer's loyalty.
Q:
If Amelia spends $300 per year at Gap and spends an average of $1500 per year on clothes, then the "share of customer" value for the Gap:
A) is 20 percent.
B) is 50 percent.
C) is $300.
D) cannot be determined with the information provided.
Q:
The two primary metrics in customer relationship management (CRM) programs are:
A) data-driven communications and data-driven marketing programs.
B) lifetime value and customer cluster analysis.
C) data mining and data coding.
D) lifetime value of customers and share of customer.
Q:
The program designed to build long-term loyalty and bonds with customers through the use of a database is:
A) permission marketing.
B) direct marketing.
C) customer relationship management.
D) frequency marketing.
Q:
In a frequency program, research indicates the best method is to provide rewards:
A) only when requested.
B) with every person.
C) using a fixed ratio schedule.
D) using a variable ratio schedule.
Q:
For a company developing a loyalty program, the most attractive group of individuals is ________ users.
A) light
B) moderate
C) heavy
D) new
Q:
Successful loyalty programs include the two principles of:
A) added value and reciprocity.
B) low costs and data mining.
C) data analysis and targeted messages.
D) utilizing digital marketing techniques and social media.
Q:
Customers cite all of the following benefits to being a member of frequency or loyalty programs except:
A) better deals and offers.
B) entertaining content.
C) discounts and savings.
D) recognition and appreciation.
Q:
Typical goals for frequency or loyalty programs include all of the following except:
A) build brand parity.
B) induce cross-selling to existing customers.
C) differentiate a parity brand.
D) preempt the entry of a new brand.
Q:
Frequent flier miles in airline travel are a form of:
A) direct marketing.
B) permission marketing.
C) frequency program.
D) ride-along program.
Q:
To maintain positive attitudes in a permission marketing program, consumers must be given rewards along the way, not just at the beginning. Doing so creates the feeling of:
A) empowerment.
B) reciprocity.
C) loyalty.
D) satisfaction.
Q:
To optimize permission marketing, firms must grant customers empowerment, which means customers have:
A) power over when marketing material is sent to them.
B) control over what marketing material is sent to them.
C) control over when they can opt-out of the permission marketing program.
D) power throughout the entire relationship, not just at the beginning.
Q:
To optimize permission marketing programs, firms feature:
A) prizes and price discounts.
B) regular newsletters.
C) entertaining content and account information.
D) empowerment and reciprocity.
Q:
According to Direct Marketing, the number one reason consumers remain in permission marketing programs is:
A) they receive account status updates.
B) contests and sweepstakes being offered.
C) price bargains offered.
D) the content is interesting.
Q:
Consumers often ignore marketing information sent to them after joining a permission marketing program because:
A) the products are too costly.
B) the marketing pieces are not relevant any more.
C) they can no longer win prizes or receive free gifts.
D) the person has moved and did not leave a forwarding address or email.
Q:
With a permission marketing program, customer permission is normally obtained:
A) through third-party marketing research firms.
B) when customers make an online purchase.
C) by providing an incentive, such as a free gift, a coupon, or entry into a sweepstakes.
D) by using cookies obtained from the individual's visit to the website.
Q:
Response rates are often higher for permission marketing programs because consumers:
A) receive marketing materials for which they gave permission.
B) individuals who participate are high-frequency purchasers.
C) are not contacted by competing firms.
D) are contacted only by mail.
Q:
When promotional materials are only sent to customers who have given their approval, the program is called:
A) direct mail.
B) internet marketing.
C) permission marketing.
D) a frequency program.
Q:
Discuss the concept of data-driven communication.
Q:
Faith received an email from Volkswagen exactly one year after she purchased her Volkswagen. The company thanked her for her purchase and encouraged her to access the company's website. This is an example of trawling.
Q:
Ariana moved to a new apartment. She soon received a letter from Bed, Bath, and Beyond containing a coupon for merchandise she may need in her new apartment. This is an example of data mining.
Q:
Trawling is the process of coding data files with lifetime values and customer cluster codes.
Q:
Customer contact personnel should not allow the lifetime value of individual customers affect the way they deal with customers because every customer should be treated equally.
Q:
When customers make contact with a company, the customer's profile, history, and other information contained in the database should be available to the company contact person at the time that he or she deals with the customer.
Q:
Maintaining customer profile information is important because the information helps the marketing team create personalized communications.
Q:
When a customer makes a purchase over the internet, the only communication that is important is sending them a thank you and acknowledgment of the order.
Q:
Identification codes allow a visitor to a website to register with the site through an ID name or number and a password.
Q:
A database marketing program provides the tools to personalize messages and track the effectiveness of personalized marketing communications.
Q:
Personalized communications with customers through database information builds relationships and leads to both repeat purchases and customer loyalty.
Q:
The primary reason for building a database, coding the information, and mining data is to use the output to build programs that will boost sales revenues.
Q:
Haley often purchases clothes from the VF Corporation online. On her birthday, the company sends her an email birthday card with a voucher for $20 off on her next online purchase. This is an example of:
A) data mining.
B) customer cluster analysis.
C) data coding.
D) trawling.
Q:
The process of searching a database for a specific piece of information, such as a birthday, for marketing purposes is:
A) data mining.
B) customer cluster analysis.
C) data coding.
D) trawling.
Q:
Many companies that sell clothes over the internet will email messages or an email newsletter to customers who are interested in keeping up with the latest fashion news. This strategy is most successful if it is based on:
A) lifetime value and customer cluster analysis.
B) data mining.
C) customer profile information the customer has provided to the company.
D) customer profile information obtained through cookies.
Q:
Using identification IDs and passwords on a website for customers allows for each of the following customer benefits except:
A) the customer can be greeted personally, by name.
B) provides data for a customer cluster analysis.
C) the content of the web pages can be customized to fit the customer's past browsing behavior.
D) when an order is placed, the customer doesn't have to type in his/her address and credit card information.
Q:
A database-driven marketing program starts with assigning IDs and passwords to individual internet customers that:
A) allow them to access components of the company's website that are not available to those who are simply browsing the website.
B) engage cookies to record personal information from the customer's computer.
C) allow a firm to customize the products it sells to fit the profile of each customer.
D) permit a company to engage in an email marketing campaign.
Q:
The primary reason for building a database, coding the information, and mining the data is to use the output to:
A) develop marketing programs customized for each customer.
B) place customers into segments for the purpose of data-driven marketing programs.
C) customize marketing programs to fit each market segment's profile.
D) establish one-on-one communications with each customer.
Q:
What are the two types of data mining?
Q:
Identify and describe the three primary types of data coding processes.
Q:
What is a data warehouse and what type of data should it contain?
Q:
Data mining and data coding of a firm's database can help develop more personalized marketing communications and marketing programs.
Q:
Retail stores can use data mining to determine when to mark merchandise down and how much to mark it down.
Q:
Through lifetime value analysis, a company can build a profile of its best customers, which can then be used to identify prospective new customers or upgrade current customers to a higher level of purchasing.
Q:
Customer clustering involves building profiles of consumer groups and preparing models that predict future purchase behaviors.
Q:
A sporting goods store could use customer clustering to group customers based on the type of sporting goods they purchased, such as fishing supplies, hunting supplies, etc.
Q:
Coding of customer data can produce information that can be used to group customers into clusters based on a wide variety of criteria.