Q&A Hero

Q: Customer service representatives can use an individual's lifetime value to determine how to interact with a customer.

Q: Key figures in calculating the lifetime value of a consumer or set of consumers are revenues, costs, and purchase history.

Q: In calculating lifetime value, the cost of acquiring a customer is typically determined by dividing the total marketing and advertising costs by the firm's total number of customers.

Q: Most marketing experts believe the most accurate method to calculate lifetime value is to calculate the lifetime value of a single customer rather than a market segment.

Q: Lifetime value is a figure that represents revenues and profits received from a customer throughout the lifetime of a relationship.

Q: Geocoding allows for combining demographic information, geographic information, and purchase history data.

Q: Geocoding is adding geographic codes to customer records.

Q: Purchase and website visit histories are sufficient to build a quality database.

Q: While it is important for a database to record every transaction with a customer, recording of interactions that are unrelated to a purchase are not necessary.

Q: The internet and email provide excellent, cost-effective channels of communication to build long-term relationships with customers.

Q: Mailing addresses of individuals in a database should be updated at least once every two years and more often if they are used for frequent contacts.

Q: A data warehouse contains customer information such as customer email addresses, purchase and communication histories, and personal preference profiles.

Q: Information about current customers, former customers, and prospects is contained within a firm's operational database.

Q: A marketing database follows accounting rules.

Q: The data warehouse holds all customer data.

Q: Successful database marketing requires a quality data warehouse.

Q: While database marketing can be used for selling products, the primary benefit is the enhancement of customer loyalty.

Q: Successful database marketing emphasizes two things: identifying customers and producing sales.

Q: Repeat customers purchase more frequently and spend more money than do new customers.

Q: Retaining current customers is more expensive than gaining new customers.

Q: An online database is a key element for Paula Ramirez as a sales representative for Strativa Pharmaceuticals.

Q: Data mining can be used for each of the following purposes except: A) develop profiles of a firm's best customers. B) develop profiles of customers who tend to purchase competing brands. C) identify current customers who fit the profile of a firm's best customers. D) identify current customers who would be good prospects for cross-selling other products.

Q: All of the following are examples of data mining except: A) American Eagle studying how consumers respond to price markdowns. B) Goody's analyzing baskets of merchandise purchased by individual consumers. C) Target identifying the other retail stores customers use for particular products. D) First Horizon Bank expanding its wealth management business by studying profiles of its best customers.

Q: Data mining is: A) collecting addresses and zip codes of customers. B) reviewing past purchases of a product by customers. C) building profiles of customer segments and preparing models that predict their future purchase behavior. D) selecting cities for data analysis.

Q: The process of building profiles of customers from a firm's database is: A) data warehousing. B) direct marketing. C) location-data tracking. D) data mining.

Q: A digital marketing firm tracked the movement of individuals in downtown Chicago just prior and just after a Chicago Cub's baseball game to determine movement, restaurants visited, and stores visited. This illustrates the data analytics of: A) data mining. B) customer clustering. C) location-data tracking. D) geocoding.

Q: Brand communities are not unique to the United States. They are developing in other countries, such as China.

Q: Alternative media is used almost exclusively in the United States with little presence in other countries.

Q: What is a branded community and how can a company enhance a community spirit among its owners?

Q: If brand communities are to thrive, it is important that the brand community be driven by brand owners and for the company not to get involved.

Q: A company can enhance the development of brand communities by sponsoring events that bring brand owners together, such as Camp Jeep.

Q: Although it is virtually impossible for companies to create brand communities, marketers can facilitate and enhance the communities in which owners interact.

Q: One reason brand communities form is that the owners of a brand all tend to have common characteristics and common lifestyles.

Q: Two reasons brand communities form are for social identity and bonding among the owners of the brand.

Q: Through interactive marketing techniques and social media, a company's marketing team can create a brand community around each of its brands.

Q: In most cases there is a symbolic meaning behind a brand that links individuals to a brand community and to other owners of the brand.

Q: Branded entertainment is the ultimate demonstration of brand loyalty and brand devotion.

Q: Companies can enhance a brand community spirit in all of the following ways except: A) sponsor special events and regular meetings. B) promote communications among members of the group. C) build a strong brand reputation. D) offer memberships to individuals who have not purchased the particular brand.

Q: Companies can enhance a brand community spirit in all of the following ways except: A) create member benefits to encourage new customers to join the group. B) offer group members discounts on company merchandise. C) provide materials to the group that are not available anywhere else. D) involve firm employees in the group.

Q: All of the following are reasons brand communities exist except: A) strong brand support. B) affirmation of the buying decision. C) social identity and bonding. D) swap stories.

Q: A company or brand with a strong brand community displays all of the following characteristics except a: A) rich and long tradition. B) unique position in the marketplace. C) positive image. D) high market share.

Q: The ultimate demonstration of brand loyalty and brand devotion is: A) branded entertainment. B) guerilla marketing. C) a branded community. D) brand equity.

Q: Discuss the factors that are necessary for effective point-of-purchase displays.

Q: Retailers prefer digital interactive point-of-purchase displays that consumers will notice and that have the capability of changing the message.

Q: Using point-of-sale data to evaluate point-of-purchase displays can help manufacturers strengthen partnerships with retailers on the use of POP displays.

Q: One method companies are using to measure the impact of point-of-purchase displays is to utilize cash register data comparing before and after sales.

Q: A Saatchi & Saatchi study suggests that point-of-purchase displays have a very short period of time to influence customer purchasing decisions.

Q: The best point-of-purchase (POP) displays are those that use LED technology and offer consumers a specific discount on the product being promoted.

Q: A point-of-purchase display usually has only a short time to capture a customer's attention.

Q: To be effective, a point-of-purchase display must clearly communicate the price of the product.

Q: Retailers prefer point-of-purchase materials that entertain consumers and provide digital interactive capabilities.

Q: Retailers believe point-of-purchase materials should either boost sales for a particular brand or draw customers to the store to purchase the brand.

Q: Manufacturers view point-of-purchase displays as a method to get a brand more prominently displayed before customers in retail stores.

Q: The store shelf and point-of-purchase display represent an initial opportunity for the manufacturer to reach the consumer before a purchase is made.

Q: A point-of-purchase display is any form of special retail store display that advertises merchandise.

Q: POP is short for "Place on Page," an internet advertising term to designate an ad placement.

Q: Social media can be used by marketers to drive traffic to retail stores.

Q: The number of potential viewers for an advertisement placed on Walmart's in-store television system is almost twice as large as an ad on one of the national television newscasts.

Q: Digital media within a retail store now offers retailers the opportunity to customize messages to fit particular retail stores and even the aisle within the store.

Q: According to consumers, ceiling banners and overhead mobiles are the most engaging forms of in-store advertising.

Q: In a survey of about 600 consumers, the biggest impact on clothing purchases was in-store advertising.

Q: The majority of purchase decisions are made in retail stores.

Q: The benefits to manufacturers for measuring the impact of point-of-purchase displays with point-of-sale data obtained from retailers include all of the following except: A) helps manufacturers to know where to locate a POP display within a retail store. B) allows manufacturers to measure the sales impact of different POP displays. C) can be used to strengthen relationships with retailers. D) provides information so manufacturers can improve POP displays.

Q: The benefits to retailers of measuring the impact of POP displays with POS data include all of the following except: A) helps retailers decide when to withdraw a particular POP display. B) allows retailers to identify the POP displays with the largest impact on sales. C) allows retailers to compare different POP displays in different stores. D) allows retailers to know which POP displays are effective in attracting customers into the store.

Q: An effective way of measuring the impact of point-of-purchase displays is to use: A) redemption rates. B) internet focus groups. C) point-of-sale cash register data. D) behavioral observation studies.

Q: The best, most effective point-of-purchase displays utilize all of the following techniques except: A) integrating the brand's image with the retailer's branding theme. B) integrating the display with current advertising and promotions. C) customizing the display to fit the retailer's store. D) making the display easy to stock.

Q: The best, most effective point-of-purchase displays utilize all of the following techniques except: A) keeping the color of the display down so the product and signage stand out. B) making the display versatile so it can be easily adapted by retailers. C) making the display reusable and easy to assemble. D) using interactive digital displays.

Q: The best, most effective point-of-purchase displays utilize all of the following techniques except: A) integrating the brand's image into the display. B) integrating the display with current advertising and promotions. C) offering some type of price discount or promotional incentive. D) making the display dramatic to get attention.

Q: In most cases, a point-of-purchase display has ________ seconds to capture a customer's attention. A) 1 to 3 B) 3 to 7 C) 5 to 9 D) 7 to 10

Q: To be effective, point-of-purchase displays need to: A) clearly communicate the product's attributes. B) offer a reduced price. C) match the store's advertising theme. D) utilize digital or LED displays.

Q: Retailers want point-of-purchase displays that will: A) boost sales for the store or draw customers into the store. B) boost sales for a particular brand. C) generate additional prospects. D) increase profit for the manufacturer.

Q: Point-of-purchase displays are highly effective for: A) pull-demand strategies. B) brand parity situations. C) increasing sales. D) reciprocation tactics.

Q: POP stands for: A) print-offer proposal. B) publicity over protocol. C) point-of-purchase. D) place of publication.

Q: Digital media within a retail store offers retailers the opportunity to: A) target specific consumers with specific products. B) sell advertising to manufacturers. C) increase the size of the shopping basket. D) customize messages to fit the particular retail store and even the aisle where the display is located.

Q: The newest and most expensive in-store marketing tactic is: A) end-of-aisle caps that are tied into the brand's marketing effort. B) electronic, automated shopping carts. C) carefully placing and using video screens and television monitors. D) digital point-of-purchase displays.

Q: In a survey of 600 consumers regarding clothing purchases, the type of advertising that had the most influence was: A) print ads. B) in-store advertising. C) word-of-mouth communications. D) television ads.

Q: Funds devoted to in-store marketing is: A) a very small percentage of the total advertising and marketing budget. B) a significant percentage of the total advertising and marketing budget. C) based on the expected increase in sales. D) determined by how much retailers use the point-of-purchase displays furnished by the manufacturer.

Q: The majority of purchase decisions are made: A) in the retail store. B) after seeing an advertisement. C) at lifestyle marketing events. D) online.

Q: Identify the different forms of video game advertising.

Q: The initial reaction to advertising in alternative media was strong, but in recent years it has lost its appeal due to clutter.