Multiple Choice Questions

Chapter 1: Processes and applications of direct marketing

• 1. ________ is a database-driven interactive process of directly communicating with targeted customers or prospects using any medium to obtain a measurable response or transaction via one or multiple channels.

1. database marketing
2. direct marketing
3. mass marketing
4. affiliate marketing
   1. Direct marketing as a term is synonymous with _____.
5. mail order selling
6. Internet advertising
7. telemarketing
8. none of the above

• 1. Direct marketing objectives do not include _____.

1. selling merchandise for a company
2. enhancing a company’s image
3. getting people to visit a store
4. getting people to inquire about a specific product or service

• 1. Brand marketing and direct marketing are converging because of:

1. cost
2. the regulatory environment
3. the digital revolution
4. the cost of paper
   1. Direct marketing is known for having its historical roots in _____ and _____.
5. measurability and accountability
6. direct mail and mail order selling
7. Internet mail and on-line catalogs
8. offers and promotions
   1. Direct marketing is characterized by _____.
9. ongoing relationships and affinity with customers
10. measurement of results and accountability for costs
11. multichannel fulfillment and distribution
12. all of the above
    1. Which of the following are not factors that have affected the growth of direct marketing?
13. more banking options
14. improved printing techniques
15. dissatisfaction with retail outlets
16. increasing use of credit cards
    1. Which of the following is not a basic characteristic of direct marketing?
17. Measurement of results
18. Accountability for costs
19. discounts
20. customer/prospect database
    1. _____ allows customers to select the media or channels they prefer when shopping for products and services.
21. Multichannel distribution
22. Internet marketing
23. Electronic media
24. Response marketing
25. using more than one direct mail campaign to reach customers
26. using more than one television or cable station to reach customers
27. using a variety of media to reach customers
28. none of the above
    1. The seamless approach to delivering a consistent brand experience across all available channels and devices a customer uses to interact with a company or organization and its brands is called:
29. Customer Lifetime Value
30. Market Segmentation
31. Omni-Channel Marketing
32. Multi-Channel Fulfillment

1-17. The goal of the direct marketer is to:

1. eliminate brand marketing
2. interact with the customer on a one-to-one basis
3. do everything inexpensively
4. use as few channels as possible to get the message out
   1. Which of the following transactions is not an example of direct marketing?
5. Going to a retail store to purchase an item seen in their Christmas catalog that you received by mail.
6. Purchasing clothing from a Land’s End catalog, given to you by a friend.
7. Selecting a new set of tires at a Firestone neighborhood store.
8. Ordering a Kenmore vacuum cleaner by mail from a Sears sales catalog.

1-19. Organizations that can benefit from the use of a database and direct marketing include which of the following?

1. product and service enterprises
2. non-profit organizations
3. political action groups
4. all of the above
   1. Marketers are able to target relevant communications to customers based on geographic location, utilizing ________.
5. placement analysis
6. navi-tags
7. geo-tags
8. none of the above
   1. The single most notable differentiating feature of direct marketing is that it always seeks to generate ____________.
9. an immediate purchase
10. a measurable response
11. awareness
12. none of the above

1-22. The “historical foundations” of direct marketing are centered on __________.

A. customer relationship management

B. high-tech media

C. list rental activities

D. multi-channels

1-23. Non-profit organizations use direct marketing primarily in order to:

A. keep costs down

B. let people know about their cause and gain support

C. sell their own products

D. avoid legal challenges to mass advertising practices

1-24. According to the text, Victoria’s Secret is an excellent example of a company that uses _____________.

A. team-based buying

B. high-tech media formats

C. multichannel distribution

D. database marketing

1-25. Sports organizations use direct marketing to:

A. fill seats

B. get corporate supports

C. promote special events to season ticket holders

D. all of the above

TRUE-FALSE

• 1. The Internet has not yet proved to be a valuable tool in political fundraising.

• 1. The goal of direct marketers is to interact with customers on a one-to-one basis, based on information obtained and stored about each customer in the customer database.
  2. The goal of direct marketing is to make a sale.
  3. Mass media expenditures and practices have not yet been significantly impacted by direct marketing.
  4. Inherent to the effectiveness of the direct marketing process is the constant focus on offer creation.
  5. Direct marketing is measurable, with results always being related to costs.
  6. Sears Roebuck & Company was the first to create the concept of mail-order catalogs.
  7. The Internet has placed a new perspective on how organizations transact as well as on how businesses are valued.
  8. Micro-targeting has proved to be a valuable technique for political parties.
  9. Lack of budget, marketing skills, and senior level buy-in are reasons why all direct marketers don’t embrace omni-channel marketing.
  10. An uncontrollable variable in sports marketing is the reputation of the visiting team.
  11. New marketing channels continue to emerge while traditional channels grow irrelevant.

Chapter 2: Database marketing and customer relationship marketing

• 1. According to the text, which of the following is the primary way a company can retain its customers?

1. Providing the customer information about the company
2. By keeping the customer satisfied and happy
3. Asking the customer to suggest ideas to make them happy
4. Extensive communication with the customer
   1. The information contained in a customer database is called _____.
5. Source data
6. Valuable data
7. Informative data
8. Market data
   1. Marketers develop _____ to avoid the problem of duplicating the same individual or organization within a list.
9. Identification Numbers
10. Character IDs
11. Match Codes
12. Key Codes
    1. An advantage of the merge-purge process used within a house list is ________.
13. Eliminating duplicate names/addresses
14. Saving costs and minimizing irritation
15. Identifying multibuyers
16. All of the above
    1. If the same name/address is found on two or more response lists simultaneously, that individual is characterized as a _____.
17. Frequent buyer
18. Multi-buyer
19. Continuous buyer
20. Product Lover
    1. Whenever possible, direct marketers request address corrections through the _____.
21. Department of Motor Vehicles (DMV)
22. Social Security Services
23. United States Postal Service
24. National Securities Association
    1. A technique developed by direct marketers to ensure that their customer lists are not misappropriated or misused especially when rented to outside parties is called _____.
25. Seeding
26. Targeting
27. Red Flagging
28. Spying
    1. According to your text, which of the following is/are not one of the eight common ways a direct marketer can use a customer database?
29. Retain the best customers.
30. Thank customers for their patronage.
31. Develop a customer communication program.
32. Receive a profit for selling information of customer database to competitors.
    1. The kinds of information that enhance a database through database enhancement include all of the following except _____.
33. Geographic
34. Demographic
35. Economic
36. Social
    1. An analysis performed by a corporation found that a direct relationship exists between the purchase of beer and diapers in the evening hours. This is an example of _____.
37. Conservative Marketing
38. Customer Profiling
39. Data Mining
40. Communication Program
    1. Which of the following is not a reason to enhance a customer database?
41. To learn more about the customer.
42. To increase the effectiveness of future promotional activities targeted to current customers.
43. To better prospect for new customers who are similar to current customers.
44. All of the above are reasons to enhance a customer database.
    1. ___________ is the acronym for the discounted stream of revenue a customer will generate over the period of his or her lifetime of patronage with a company.
45. PAR
46. LTV
47. MVP
48. ROI
    1. The concept of investing in new customers means that
49. A loss on every subsequent sale can be made up through volume over time.
50. New customer acquisition cost will be recovered over time.
51. Customers age rapidly.
52. Customers have no ongoing loyalty to a firm.
    1. When compared with new customers, loyal customers do which of the following?
53. Spend less over time, cost less to serve and spend more on single purchases.
54. Are less profitable to the company than new customers.
55. Spend more over time, cost less to serve, are less price sensitive, and generate referrals through word-of-mouth communication.
56. Account for more of the customer service complaints.

2-21. According to the text, it costs approximately ________ times more to acquire a new customer than it does to keep a current one.

A. 5-6

B. 6-8

C. 8-10

D. 10-12

2-22. Database analytics rely on ____________ to analyze customer information.

A. Data mining

B. Profiling

C. Modeling

D. All of the above

2-23. In direct marketing, “stealth” marketing communications is primarily made possible due to which of the following?

A. Market research

B. Source data

C. Mass media

D. High-tech media

2-24. In the customer value hierarchy, qualified “hand-raisers” who have identified themselves as having an interest in your company are referred to as ______________.

A. Prospects

B. Advocates

C. Clients

D. Suspects

2-25. Which of the following concepts or terms is not associated with micro- targeting?

A. Personalization

B. Lifestyle data

C. Big idea

D. Customization

2-26. The goal of ________ is to allow the entire organization to be cohesive in how it communicates with each customer and manage that customer experience.

1. CRM
2. Marketing Strategy
3. CLTV
4. Database enhancement

TRUE-FALSE

• 1. A customer database is the key to developing strong customer relationships and retaining current customers.
  2. At the top of the customer hierarchy are the company’s clients, or most valuable customers that generate the most revenue.
  3. Customer loyalty programs are programs sponsored by an organization or firm to encourage customer repeat purchases through program enrollment processes and the distribution of awards and/or benefits.
  4. Three components of transaction data that help analyze each customer through some variation include: recency, frequency, and efficiency.
  5. In addition to being able to delete duplicate names and addresses, the merge-purge process has the ability to effectively remove names of individuals who have expressed a desire not to receive solicitation.
  6. The term “nixie” refers to mail that has been returned by the United States Postal Service because it is undeliverable as addressed.
  7. Database analytics is where the direct marketer analyzes customer information within the customer database to draw inferences about an individual customer’s needs.
  8. Database enhancement is the adding and overlaying of information to customer records to better describe and understand the customer.
  9. The key to successful micro-targeting is targeting the right mass audience.
  10. Often marketers use PRM to support a cause.
  11. All customers are of equal value to a company or organization.

Chapter 3: Lists and market segments

• 1. _____ is a marketing strategy devised to attract and meet the needs of a specific sub-market.

1. Product Differentiation
2. Direct Marketing
3. Multi-Channel Marketing
4. Market Segmentation
   1. Marketers can position products based on which of the following ways?
5. time of day the product is used
6. distribution method
7. quality
8. all of the above
   1. A segmentation tool used by direct marketers to associate latitude and longitude coordinates with street addresses is _____.
9. Global Positioning System
10. ZIP codes

C. Census Data

D. Tracking Numbers

• 1. Which if the following is not a strategy used when pursing product differentiation?

1. innovative design
2. specialized packaging
3. price competition
4. creative positioning
   1. Which of the following is not an example pertaining to behavioral market segmentation?
5. types of products and services consumers have purchased
6. method of payment
7. time the transaction took place
8. consumer’s occupation
   1. _____ are the people a consumer turns to for reinforcement of a decision.
9. Decision groups
10. Response groups
11. Loyalty groups
12. Reference groups
    1. _____ provide marketers with the ability to segment consumers according to their on-line activity.
13. Tags
14. Cookies
15. Clicks
16. Surveys
    1. The act of serving previously tagged website visitors display ads when they are recognized in designated online ad networks refers to ______________.
17. Cookie Tracking
18. Retargeting

C. Geo-Tagging

D. Psychographic Segmenting

• 1. _____ are lists of an organization’s own customers, active as well as inactive.

1. Response List
2. Compiled List

C. House List

D. Company List

• 1. Which one of the following would fall into the category of response lists?

1. school lists
2. convention registration lists
3. mail-order buyers
4. neighborhood directories
   1. A unique identifier placed on the response device or order form prior to sending a promotional piece to prospective customers is called a _________.
5. Hotline Code
6. Key Code
7. Unique Input Code
8. Source Code
   1. _____ represent the interests of list owners and assume the responsibility of keeping in contact with list brokers and list users?
9. List Associates
10. List Representatives
11. List Managers
12. List Administrators
    1. _____ usually develop their lists from public records, newspaper clippings, directories, warranty cards, and trade show registrations.
13. List Owners
14. List Brokers
15. List Distributors
16. List Compilers
    1. The names most recently acquired by a company are known as _____.
17. Hotline Names
18. Primary Names
19. Key Code Names
20. Service Names

3-21. An organization’s house list is normally __________ as productive as an outside list that it rents.

A. two times

B. three times

C. four-ten times

D. ten-twenty times

3-22. The house list of an organization does not typically include names of _______________.

A. inactive customers

B. those who have inquired, but not purchased

C. those who have been referred by current customers

D. those who match the profile of best customers

3-23. List brokers perform many functions. Which of the following is not one of those functions?

A. maintain the lists

B. ensure delivery date

C. verify information

D. find new lists

3-24. _____________ is essential to properly evaluate the profitability of rented lists.

A. proper record keeping

B. selecting a key code

C. applying the merge-purge process

D. tabulating the response rate

3-25. A computer system capable of capturing, storing, analyzing, and displaying geographically referenced information identified according to location is called a ________________ System.

A. Global Positioning

B. Geographic Positioning

C. PRIZM

D. Geographic Information

TRUE-FALSE

• 1. Product positioning is the way the product is defined by the marketer, based on the important attributes.
  2. The most productive list for direct marketers is a response list.
  3. A response list is a list of individuals who have expressed a high likelihood of responding to an offer.
  4. A list denotes a market segment.
  5. Demographics is the study of lifestyles, habits, attitudes, beliefs, and value systems of individuals.
  6. Service bureaus provide data processing, data mining, outsourcing, on-line analytical processing (OLAP), and other services to support the interchange of lists and database information within the direct marketing industry.
  7. List brokers act as intermediaries who bring list users and list owners together.
  8. The last step of effectively evaluating a list is to select a key code.
  9. Cohort analysis reveals consumer groups that have unique bonds which show unified market segments.

3-35. A list is a perishable commodity.

3-36. The old saying “birds of a feather flock together,” explains why ZIP code areas constitute market segments.

Chapter 4: Marketing analytics: Testing and measurement

• 1. An experiment or test is used by direct marketers to measure the effect of change. Which of the following questions would a direct marketer use in designing an experiment?

1. how many current customers are likely to buy a new product in development?
2. what do current customers think about the company’s current product offerings?
3. what happens to customer demand when a company raises or lowers a price level?
4. all of the above

4-7. A _________ is a group on which the experiment is not conducted but that is otherwise identical to the test group.

1. dependent group
2. control group
3. focus group
4. independent group
   1. The two types of errors that can occur in hypothesis testing are known as:
5. ho and ha
6. type A and type B
7. type I and type II
8. implicit and explicit
   1. In the event it is decided to reject the null hypothesis, it is rejected in favor of the __________:
9. previous null hypothesis
10. alternative hypothesis
11. observed hypothesis
12. none of the above
    1. Which of the following represent ways in which a key code could be placed on an order form for direct mail purposes?
13. a departmental number
14. a unique telephone number
15. an individual’s name
16. all of the above
    1. If you are creating a direct mail campaign, a lift can ______ the mailing quantity needed (via selectivity) and ______ the overall response rate.
17. increase/increase
18. decrease/impair
19. decrease/increase
20. help/help
    1. In attempting to measure the impact of a lift, marketers will utilize_________
21. a control group
22. an experimental
23. panel group
24. all of the above
    1. In the conversion rate calculation, if you have 1000 inquiries and 300 of them subsequently become buyers, you have a ________ conversion rate:
25. 30 percent
26. 300 percent
27. 33 percent
28. .03 percent
    1. In direct marketing, the budget is a function of:
29. net order contribution of the items sold
30. media and sales costs
31. response rates
32. all of the above
    1. The process by which an order response is tracked back to the original source from which it was generated is known as:
33. identifier key
34. coding
35. matchback
36. split test
    1. The term “unit margin” is defined as:
37. target price for an item in a campaign
38. amount left after subtracting costs of goods sold/variable costs from price
39. the approximate amount of marketing costs allocated to each item sold
40. amount left when subtracting variable costs from fixed costs
    1. Which of the following is not a variable cost in a direct marketing campaign?
41. cost of goods sold
42. advertising costs
43. shipping
44. allowance for bad debt
    1. Net profit is defined as:
45. amount of money left after subtracting fixed costs from gross revenues
46. amount of money left after subtracting variable costs from gross revenue
47. amount of money after dividing fixed costs by margin unit in dollars
48. break-even amount plus profit incentive in dollars added in
    1. What calculation do you perform to find the target (in units of goods sold) once you know your target profit margin and your break-even amount?
49. add all fixed costs to all variable costs and divide by production units
50. subtract variable costs from selling price and divide by fixed costs
51. add desired profit margin to other fixed costs and divide by margin per unit
52. multiply break-even units by target profit margin
    1. A two-step direct marketing campaign can best be defined as:
53. a campaign where two different segments are addressed sequentially
54. a campaign where a smaller amount is spent initially, then a higher amount
55. a campaign where two different media are used in sequence
56. a campaign where the first step is to get inquiries only; the second to produce a sale
    1. A “cost per inquiry” (CPI) differs from a “cost per response” (CPR) because:
57. the CPI is not indicative of the true cost of a campaign
58. the CPI tells us how much it costs to get a customer to inquire, but not to get him to buy
59. the CPR is always more expensive
60. they are essentially the same, just different terms
    1. The rate by which a company converts _______ into _______ is called the conversion rate.
61. buyers/sellers
62. advocates/ distributers
63. buying customers/prospects
64. leads/sales
    1. Return on investment (ROI) or Return on Advertising Investment (ROAI) is calculated by:
65. dividing net profit by the average amount invested (in a company or campaign)
66. dividing fixed costs by all revenues before taxes
67. dividing all revenues by fixed and variable costs
68. dividing all marketing costs by revenues
    1. A good reason to conduct a marketing test before rolling out a full campaign would be:
69. to test two different versions of an offer
70. to test whether the campaign can be successful at a specific allowable margin
71. to see if assumptions about the response rate from a given list are reasonable
72. all of the above
    1. To calculate whether a marketing test met the allowable margin in terms of cost per order, you would:
73. multiply the variable costs by the number of orders received
74. divide the costs of the test by the number of orders received
75. divide the total revenues by the marketing costs
76. divide the total revenues by the number of names on the list used

TRUE-FALSE

• 1. Calculating customer value can be done on a segment or cluster basis, or on an individual basis.
  2. When a customer is retained, it is only the revenue that is generated over a one-year period that constitutes the value of that customer.
  3. Market penetration is calculated by dividing the number of customers in a specific category by the total number of customers the company has in general.
  4. There is an average or typical “response rate” that a marketing campaign should expect to generate.
  5. Breaking even on a campaign at least ensures a minimum profit.
  6. A “lift” should provide an increase in the average response rate due to making a special offer to all market segments or clusters.
  7. The concept of a lift can be applied to the measurement of almost any medium.
  8. In creating a direct marketing campaign budget, the best means of estimating the budget needed is to take a percentage of the previous year’s profits.
  9. The “allowable margin” is basically the amount of money you have left over to cover advertising/promotion and profit after all other expenses have been deducted.
  10. A good way to increase ROI is to reduce the cost of the marketing campaign.
  11. A more effective market penetration strategy is to concentrate marketing efforts on market segments that contain larger customer penetrations.

Chapter 5: The offer

• 1. Which one of the following companies does not employ a subscription model in their marketing activities?

1. Amazon
2. Uber
3. Ring
4. Netflix
   1. In order to create an effective offer, the direct marketer must research and really know the target audience and the customers’ likes, dislikes, “hot buttons,” and, most of all, __________ and __________.
5. needs, wants
6. taste, preferences
7. affordability, desire
8. environment, culture
   1. According to Lois Geller, effective offers have three characteristics: believability, involvement, and _________.
9. Promotional material
10. Appeal
11. Creativity
12. Usability
    1. _____ is the promotion of more expensive products or services over the product or service originally discussed or purchased.
13. Cross-selling
14. Expense-selling
15. Offer-selling
16. Up-selling
    1. Continuity selling provides two options where the customer must specifically request shipment for each offer in a series or where the shipment is sent automatically unless the customer specifically requests that it not be sent. These two options are known as _____ and _____.
17. interested, disinterested
18. involvement, noninvolvement
19. appealing, not appealing
20. positive, negative
    1. Which of the following is incorporated during the offer creation process.
21. perform market research
22. determine the terms of the offer
23. target the offer
24. all of the above
    1. The emotional appeal of an offer focuses on a consumer’s _____ and _____.
25. needs, wants
26. likes, dislikes
27. desires, feelings
28. concern, trust
    1. A strategy that establishes the price at the highest possible level and targets only a select number of consumers who can afford the product/service, is _____.
29. Creaming the market
30. Price Skimming
31. Price Penetration
32. Price elasticity
    1. The relative change in demand for a product given a change in its price is _____.
33. Price Penetration
34. Price Reduction
35. Price Skimming
36. Price Elasticity
    1. Pamela Smith did not have the opportunity to see or feel the product before buying she made her purchase decision. In this case, she may have liked to take advantage of what type of offer?
37. Free examination
38. Money-back guarantee
39. Risk Free Offer
40. All of the above
    1. An ordering stimulus that is commonly used by direct marketers is _____.
41. Sweepstakes or Contest
42. Lottery
43. Raffle
44. Drawing
    1. Direct marketers must consider five specific details when determining the terms of an offer. These include all of the following except _____.
45. a choice of sizes
46. a choice of colors
47. price
48. personalization
    1. The Land’s End catalog always details the weight, height, length, etc. of its products. By doing this the company is disclosing _____.
49. Product accessories
50. Product options
51. Product specifications
52. Product personalization
    1. Four essential questions that a direct marketer or copywriter must ask themselves include all of the following except:
53. what am I selling?
54. what would I want to buy?
55. why am I selling this now?
56. what do I want my prospect to do?
    1. When testing an offer, a direct marketer should test ________.
57. only one feature at a time.
58. all the features of an offer at once.
59. two features at a time for comparison.
60. the three most important features.

5-21. The type of offer that tends to be held at certain times of the year and usually provides explanatory terms for its existence is the ______________ offer.

A. sale

B. discount

C. time-limit

D. sweepstakes

5-22. The ___________offer is usually offered in conjunction with continuity selling.

A. discount

B. sale

C. sample

D. time-limit

5-23. Which of the following is an optional component of an offer that may be included depending on strategy and costs?

1. payment terms
2. incentives
3. length of commitment
4. price

5-24. With a ______________ the consumer must pay an up-front price in order to receive regular delivery of the service or access to the products and/or services for a specified period of time.

A. til-forbid offer

B. platform business model

C. subscription model

D. cross-selling offer

5-25. Price is an important component of the offer. Which of the following is equally important to price?

A. payment terms

B. the manner by which price is stated

C. shipping costs

D. credit card options

TRUE-FALSE

• 1. Creating need-satisfying offers is a part of on-going customer relationship (CRM) that drives the direct marketing process.
  2. The last step in creating an offer is to reduce the risk of the offer.
  3. Continuity selling describes offers that are continued on a regular basis, whether weekly, monthly, quarterly, or annual.
  4. Price penetration is a strategy that sets the price of a product high so that marketers can distinguish between different offers.
  5. A bill me later (BML) payment offer that includes credit card options, either the direct marketer’s own, a bank card, or a travel and entertainment car, not only provides convenience but also spurs the customer not to procrastinate when placing an order.
  6. Dollar Shave Club, Amazon, Netflix, Spotify, and Ring are popular forms of a time-limit offer.
  7. Platform business models create value by enabling direct interactions between two or more customer or participant groups
  8. A til-forbid offer is an example of a positive option offer.
  9. Testing is used to determine the effectiveness of the offer and helps to provide an answer to the critical question – does the offer work?
  10. Time limit offers do not generally work because consumers do not like to be pressured to make a decision by a certain time.
  11. Contests and sweepstakes require a prior purchase, whereas lotteries only require an entry form to be submitted.

Chapter 6: Creative message strategies

• 1. Which of the following phrases does not typify compelling copy?

1. “Are you tired of the back-breaking work caring for your lawn?”
2. “At last…a simple, effective way to rid your house of bugs.”
3. “Do you need more room in your house…or a new roof?”
4. “Vote for Joe Smith for Mayor.”
   1. In direct marketing, good copy conveys _____.
5. advantages
6. customer needs
7. benefits
8. features
   1. In writing copy for direct marketing, it is necessary to translate features into benefits. Which statement below best typifies this?
9. “Our lawn seed is 100% guaranteed or your money will be refunded.”
10. “Our lawn seed is guaranteed to germinate.”
11. “Our lawn seed will make you the envy of your neighborhood.”
12. “Our lawn seed is 100% weed free.”
    1. Which of the following are not involvement devices?
13. links
14. puzzles
15. tokens
16. post script
    1. The creative process to develop compelling messages for any direct response promotion begins with:
17. the “big idea”
18. research
19. copywriting
20. creating graphics
    1. Jay Conrad Levinson describes a meme as:
21. short opening paragraph
22. the offer itself
23. self-explanatory symbol
24. animated graphic
    1. Which of the following colors are not considered as portraying “warm” psychological feelings?
25. red
26. yellow
27. orange
28. violet
    1. Which of the following is something you do not do in creating a digital video:
29. create a storyboard
30. select background colors
31. import images
32. create transitions
    1. Banner ads are created primarily to:
33. state the “big idea” quickly
34. highlight the advertiser’s logo
35. engage the viewer and drive action
36. save money by being brief
    1. Which of the following would be considered a basic design principle:
37. alignment
38. repetition
39. contrast
40. all of the above
    1. Which of the following likely motivates someone to buy something:
41. the need to gain acceptance
42. the need to avoid criticism
43. the need to become good citizens
44. all of the above
    1. The visual portion of a television commercial is shown through a series of illustrations called ________.
45. storyboards
46. comics
47. graphics
48. concepts
    1. Which of the following is not a proven successful copywriting formula?
49. Bob Stone’s Seven-Step Formula
50. A-I-D-A
51. KISS Principle
52. Star-Lock-Push
    1. According to the text, direct response copywriting is ______.
53. an art
54. a science
55. both art and science
56. luck
    1. ____________ is a strategic marketing approach focused on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly-defined audience with the goal of driving customer action.
57. Modern Marketing
58. Content Marketing
59. KISS Principle
60. Involvement device

6-21. The key objective of creative copy for direct marketers is to generate _________.

A. brand awareness

B. trial purchase

C. return on investment

D. positive image

6-22. Which of the following statements is false with regard to the “big idea” in direct response copywriting?

A. The big idea should become the company’s tagline.

B. The big idea should be used throughout the promotional campaign.

C. The big idea should be detailed to convey product specifications.

D. The big idea is the unique selling point.

6-23. Which of the following is a potential method for creating a “big idea” for a direct response campaign?

A. individual brainstorming sessions

B. group brainstorming sessions

C. polishing an off-the-wall idea

D. All of the above are correct

6-25. According to the text, the first step in creating an Internet promotion is to ______.

A. conduct research about the target customer

B. determine the appropriate links to feature on the home page

C. disseminate incentives for the prospect to visit a company’s Web site

D. determine the sequencing of each visit with clicks and links

TRUE-FALSE

• 1. The creative process for any direct response promotion begins with idea generation.
  2. Direct marketers feel “it’s not creative unless it sells something.”
  3. Direct marketers always relate the costs of promotion to the results achieved from it.
  4. A formula used a great deal by direct response copywriters is known as A-I-D-A, which stands for Attract Attention, Arouse Interest, Stimulate Desire, and Call for Action.
  5. The use of ink through color, gloss, intensity, and placement has no effect on the impression of the copy
  6. The KISS principle deals with keeping the message stimulating and highlighting product features.
  7. Effective radio advertisements contain easy to remember tag-lines and contain repetition.
  8. Online videos are relatively easy to produce and are gaining in popularity with advertisers.
  9. The subject line is of little importance for out-bound e-mail messages.
  10. Time is not considered to be a major limitation in creating direct response television commercials.

Chapter 7: Print media

• 1. A _____ is a promotional medium that includes an incentive to purchase a product or service in the form of a specialized price reduction.

1. Syndication mailing
2. Coupons
3. Peel-off cards
4. Bingo Cards
   1. _____ are related to stuffers but offer the additional advantage of arriving when the recipient has just made a purchase.
5. Reply Cards
6. Quality Stuffers
7. Statements
8. Package Inserts
   1. Of all the media used by direct marketers, ________ remains an important one, relying on databases to most effectively reach market segments
9. Internet
10. Catalogs
11. Direct Mail
12. Coupons
    1. Key advantages of newspapers for direct response advertisers include ________ and relatively fast response.
13. short closing dates
14. longevity
15. selectivity
16. personalization
    1. The characteristics of Sunday supplements include large circulation, flexibility and relatively _____ costs.
17. high
18. average
19. low
20. predetermined
    1. Which of the following is not one of the five major categories of magazines?
21. Women’s Service
22. Shelter
23. General Mass
24. Health
    1. _____ mailings provide participants with opportunities to reduce mailing cost in reaching common prospects.
25. Commercial
26. Response
27. Direct
28. Cooperative
    1. Fishing Today, The Plate Collector and Modern Bride Magazine are all examples of _____magazines.
29. general mass
30. women’s service
31. shelter
32. special interest
    1. Which of the following factors do not have an influence on the cost of magazine advertising?
33. Whether the ad is in color or black-and-white.
34. Whether the ink bleeds off the edges of the page.
35. The use of test market selections.
36. All of the above have an influence on magazine cost.
    1. A _____ is an insert or page of a magazine that is created by the publisher to provide a numeric listing of advertisers.
37. info-page
38. bingo card
39. bind-in
40. tear-out
    1. An advertisement that is normally positioned at the will of the newspaper is a _____ ad.
41. preprinted
42. Sunday
43. weekly
44. run-of-paper
    1. Marketers are able to select specific types of readers by choosing the placement of direct response advertisements within the newspaper in all of the following sections except:
45. sports
46. business section
47. classified
48. All of the above offer placement selection
    1. The placement of a funeral service inquiry ad adjacent to the obituaries is an example of _____.
49. timing
50. positioning
51. emotional appeal
52. segmentation
    1. Star Supermarkets want to place direct response ads containing coupons in the local newspaper. According to your text, which days would you recommend for ad placement?
53. Mondays and Tuesdays
54. Tuesdays and Wednesdays
55. Wednesdays and Thursdays
56. Thursdays and Fridays
    1. Since newspapers do not have the degree of selectivity most newspaper advertising messages are kept_____.
57. segmented
58. targeted
59. generic
60. boring
    1. The ________ is the most important element of a direct response print advertisement.
61. headline
62. body copy
63. response device
64. insert

7-22. Direct mail costs usually include _______.

1. postage fees
2. computer processing
3. creative
4. all of the above

7-23. According to your text, ______________ are not one of the frequent users of coupons as a promotional medium.

A. health products

B. grocery stores

C. pharmaceuticals

D. beauty care products

7-24. The typical response from take-one rack inserts is relatively _____, and the distribution within a single rack is _______.

1. low/high
2. high/low
3. low/low
4. high/high

7-25. ______________ is not among the disadvantages of magazines for direct

marketers.

A. Space allocation

B. Closing dates

C. Cost per thousand

D. Staggered Distribution

TRUE-FALSE

• 1. Magazine direct response copy starts with a request for action and ends with benefits.
  2. Of all the media available for direct response advertising, direct mail can be the most selective and offers the most potential for personalization.
  3. Catalogs have become less vital and are not a useful productive format for direct response advertising.
  4. Direct mail is relatively inexpensive compared to other forms of direct marketing.

7-30. Postcards are the most read type of direct mail.

• 1. ROP advertisements commonly have higher rates in newspaper advertising.
  2. An Ad Note is a small sticker that is placed on the front page of the newspaper that can be peeled off without damaging the newspaper
  3. Because magazines usually come out periodically – weekly, monthly, quarterly – they enjoy a relatively short life.
  4. Newspapers, unlike magazines, do not present a major medium for distribution of printed direct response advertising.
  5. Preprinted inserts run typically in Sunday editions or on Wednesday or Thursday mornings.

Chapter 8: Television, radio and digital video

• 1. Of the options below, cable and _____ are the two transmission media that now provide an almost endless variety of programming and special-interest channels, defining the potential for market segmentation.

1. satellite
2. telephone
3. Internet
4. broadcast
   1. Direct response advertisers utilize television for which of the following:
5. to sell products, services, or political campaigns
6. to get inquiries
7. to support other media
8. all of the above
   1. Direct response marketers need to be mindful that television viewers have one of two objectives. Information and ________.
9. emotional appeal
10. communication
11. entertainment
12. direct response

(Answer c., p. 328)

• 1. The “reach” of a local TV station can describe geographic markets differentiated by _____________.

1. zip code
2. culture
3. station
4. advertising
   1. As noted in the text, like empty seats on a departing airplane, television time is

________________.

1. responsive
2. perishable
3. segmented
4. marketable
   1. Gross rating points are a combination of _________ and __________ measures.
5. prospects; customers
6. inquiry; response
7. reach; frequency
8. listeners; viewers
   1. The number of people exposed to vehicles carrying a specific ad is referred to as which of the following __________.
9. frequency
10. outbound
11. scope
12. reach
    1. Which of the following most accurately explains how direct marketers calculate cost per response?
13. The total cost of an audience ticket divided by the total number of tickets
14. The total cost of the product/service divided by the number of inquiries
15. The total cost of a direct marketing campaign divided by the number of responses that campaign generates
16. The total number of inquires divided by the total number sold
    1. Infomercials can best be characterized as:
17. always paid for by a non-profit or religious organization
18. long-form television advertisements
19. illegal in some parts of the day
20. featuring multiple products
    1. The average radio listener “tunes in regularly to less than _________ stations.”
21. five
22. three
23. four
24. six
    1. An arrangement under which the radio station runs commercial messages, at its own discretion, in return for remuneration from a direct response advertiser for each sale or inquiry produced is referred to as __________.
25. response rating
26. per inquiry
27. station commercialization
28. discretion advertising

(Answer b., p. 334)

• 1. Radio is considered to be the most __________ of all response media in that it requires relatively little in the way of preparation.

1. expensive
2. ineffective
3. flexible
4. complex
   1. It is easy to segment television audiences because:
5. people only watch one channel
6. most people don’t pay for all the cable and satellite channels
7. with many channels, programming and ads can be targeted to interest groups
8. people generally write or call in to say what they like to watch
   1. Which of the following is not a characteristic of infomercials:
9. usually on cable channels lasting for 30 minutes
10. appear often during early morning time slots
11. appear often during late night time slots
12. appear often during prime time slots
    1. Radio can achieve audience segmentation through
13. program loyalty
14. station loyalty
15. time of day
16. all of the above
    1. Internet Radio provides all of the following except:
17. increased competition for traditional radio
18. personalization opportunities
19. limited advertising
20. high testing costs
    1. In the creation process of digital videos, it is important for video content to stem from ________.
21. assessing costs
22. picking the products to advertise
23. consumer research
24. gaining permissions to use video clips
    1. The following is a good measure of the success of digital video advertisements:
25. views
26. active sharing
27. comments
28. all of the above
    1. You Tube Studio is:
29. a special library of video clips free to advertisers
30. a tool to let advertisers know numbers and characteristics of viewers
31. the name given to YouTube’s billing format
32. a history of successful videos on a given subject
33. a video is so popular that viewers pass it on to others
34. a video in which a computer virus has been injected
35. other advertisers immediately copy the successful format of your video
36. many people immediately buy the product after seeing advertised once

TRUE-FALSE

• 1. Broadcast media account for the largest percentage of expenditures for direct response advertising.
  2. Interactive modes of television provide the immediate response that is both measurable and accountable that direct marketers thrive upon.
  3. Television programming such as sports, news, comedies, etc. play an important role in defining specific audience segments.
  4. It is the penetration of the potential market, i.e., the number of viewers, which determines the price of commercial television time.
  5. The most valid response mechanism for direct marketers to use in figuring television cost is cost per viewer (CPV).
  6. The least effective direct marketing broadcast method is infomercials.
  7. It’s difficult to target consumer markets in radio advertising because listeners are not loyal to a specific station.
  8. Digital videos that go viral most often evoke emotion.
  9. Because of its unproven success, digital video is not yet a significant tool for most advertisers.
  10. Loud audio is the key to success in digital video.
  11. Even considering the price peak, prime time is always the best time for direct response advertising.

Chapter 9: Mobile, text and telephone for marketing

• 1. According to David Wachs’s five step mobile coupon redemption program, which of the following is not one of the steps to he addressed?

1. offer creation
2. validation
3. creative
4. unique coupon codes
   1. Which of the following metrics can be used to measure the success of a QR Code campaign?
5. scans
6. landing pages
7. opt-ins
8. all of the above
   1. Which of the following is a not a benefit associated with location-based mobile (LBM)?
9. Increased exposure via social media
10. Market research
11. Sales
12. Loyalty/frequency programs
    1. The location-based mobile application that features the concept of a “mayor” is _____________.
13. WeReward
14. Yelp
15. Foursquare
16. Facebook Places

• 1. A mobile application that allows users to send and receive photos or videos with various filter opportunities __________.

1. Snapchat
2. MealSnap
3. VIPER
4. Red Laser
   1. Which of the following is not a suggested way direct marketers utilize Snapchat to engage consumers.
5. Teasers
6. Story telling
7. Competitions
8. Free gifts

• 1. Which of the following is NOT a way that marketers use SMS Texting?
  2. Promoting special events
  3. Reminding customers about events
  4. Offering coupons
  5. All of the above are uses.

• 1. _________ is one of the biggest differences between email marketing and text messaging.

1. Voice messaging
2. Open rates
3. Content
4. Audiotex
   1. The average “open” rate for a SMS Text message is ______ percent.

A. 20-28

B. 70-78

C. 80-88

D. 90-98

• 1. Multlmedia Message Services (MMS) are primarily used with:

1. Blackberries
2. Droids
3. SmartPhones
4. All of the above
   1. Recently, ____________ has begun to replace some of the person-to-person contact of the phone.
5. SMS Texting
6. QR Codes
7. Click-to-Chat
8. All of the above
   1. Components that make up the cost of a telephone marketing call include equipment and overhead, telecommunications service and _____.
9. personnel
10. computers
11. telephones
12. lists
    1. A call in which the initiator of the marketing communications is the customer is referred to as __________.
13. proactive telemarketing
14. reactive telemarketing
15. aggressive telemarketing
16. responsive telemarketing
    1. For which of the following uses are Outbound calls NOT commonly employed?
17. Market research
18. Fund raising
19. Placing orders
20. Lead generation
    1. Which of the following is NOT correct with respect to Outbound calls? Outbound calls _______________.
21. require more experienced personnel
22. are longer in duration
23. are shorter in duration
24. Require higher-paid personnel
    1. All of the following are examples of inbound telemarketing except:
25. ordering or inquiring
26. serving present accounts
27. obtaining warranty information
28. making pledges or contributions
    1. Telephone promotions are most effective when the following takes place:
29. scripts are well prepared in advance
30. offers are clear and well structured
31. calls are directed to people who have been pre-qualified
32. all of the above
    1. __________ calls are must be carefully structured in content as they can create a negative response.
33. Inbound
34. Outbound
35. Cold
36. Telemarketing
    1. Advantages of using the telephone as a marketing medium include
37. two-way communication
38. very flexible medium
39. cost-effective medium
40. unregulated
    1. When hiring a telephone operator, companies normally look for certain characteristics. Which is not one of those characteristics?
41. Call center experience
42. Sales experience
43. Reliability
44. Interpersonal skills

TRUE-FALSE

• 1. Mobile payment systems eliminate the need for the consumer to use his or her credit card.
  2. The largest age segment that uses mobile wallets are 18-34-year-old consumers.
  3. Mobile coupon redemption rates are equal to those of paper coupons.
  4. Click-to-call programs work as a liaison between the consumer and a business.
  5. Telephone is a marketing medium and a response mechanism.
  6. E-mail messages have higher “open” rates that SMS text messages.
  7. The objective of telephone marketing is to reach customers in a personalized interaction that meets customer needs and improves cost-effectiveness for the organization.
  8. Telephone marketing has been woven into the planning of most direct marketers.
  9. Inbound calls are also referred to as proactive telephone marketing because the company is the initiator of the marketing communication.
  10. Outbound calls are generally longer in duration than inbound calls.

Chapter 10: Digital and social media

• 1. Which one of the following is not a type of email that is of interest to marketers?

1. E-mail from companies targeting promotions to specific customers.
2. E-mail from the consumer to the company.</title><para> 
3. Email from company to company
4. Email from consumer to another consumer</title><para> 
   1. Which of the following is not one of the online market research tools discussed in the text?
5. Online Surveys
6. E-Commerce
7. Online Panels
8. Google Ad tools (Keywords, Google Trends)
   1. For Google there are two platforms that you can bid on: the Search Platform and the _______.
9. Quality Score
10. Content Network
11. Keyword
12. None of the above

• 1. Strategies to maximize click-through rates include all of the following except:

1. Involving the audience
2. Frequently changing creative messages
3. Asking for the click through action
4. All of the above are strategies to maximize click through rates

• 1. ___________________is a form of content-driven marketing where the content shared is akin to an endorsement or testimonial by a third party or potential consumer.

1. Crowdsourcing
2. Influencer marketing
3. Database marketing
4. Psychographic marketing

• 1. Companies use blogs in marketing strategies for all of the following reasons except:

1. Providing information to customers
2. Obtaining feedback from customers
3. Communicating with company employees
4. All of the above are ways that companies use blogs in marketing strategies.

• 1. Which of the following are ways that Facebook users can share information?

1. Providing personal information on their user profiles
2. Uploading pictures
3. Utilizing the “like” button to share preferences or show support
4. All of the above are ways that Facebook users can share information

• 1. Which data below can marketers utilize in order to target Facebook users?

1. Behavioral
2. Psychographic
3. Demographic
4. All of the above

• 1. Which of the following most accurately defines a “Tweet”?

1. A microblog in which users can post real time information to followers.
2. A mobile upload
3. A blog on Facebook
4. All of the above are accurate definitions of a “Tweet”
   1. _________ is the world’s largest professional network and is growing rapidly.

A. Pinterest

B. Instagram

C. LinkedIn

D. Facebook

• 1. Which of the following is not an example of a product connecting site?

1. Ebay.com
2. Craigslist.com
3. Match.com
4. All of the above are examples of product connecting sites.
   1. Which of the following is a type of search engine marketing (SEM) that can be used by companies in order to improve their Web site traffic?
5. Paid placement
6. Paid inclusion
7. Organic search engine optimization
8. All of the above are types of SEM that can be used by companies to improve website traffic.
   1. Which of the following is not one of the three components discussed in the text to getting a site ranked in most search engines, and specifically, in Google?
9. Content
10. Advertisements
11. Links
12. Activity
    1. According to your textbook, to be considered “interactive” a new medium must allow consumers to______________.
13. control when and which types of products they are viewing
14. control the pace at which they review the products
15. place an order or request information directly via the medium
16. all of the above
    1. Which of the following is not a type of page used by marketers as a way for converting traffic into a prospect or customer?
17. People connecting sites
18. Squeeze Pages/ Landing Pages
19. Long Form Sales Letter
20. Video Sales Letter
    1. Which of the following refers to a Personalized web page or micro-site that incorporates the prospect’s name and is tailored to his interests based on information known about him?
21. People connecting site
22. Search platform
23. Personalized URL (PURL)
24. Blog

TRUE-FALSE

• 1. The active number of individuals on LinkedIn is expected to drop in the coming years.
  2. Email costs less than traditional mail.
  3. When utilizing Google Ads, marketers should try to sell the product, not the “click”.
  4. The two goals of banner ads are to increase brand awareness by exposing consumers to the banner ad, and to maximize the “<emphasis>click-through”</emphasis> rates or “ad clicks.”
  5. Regarding Influencer Marketing, all influencers have one thing in common: They are influential because of their digital expertise.
  6. Influencer marketing is not limited to any social media platform, but may only be executed by final consumers.
  7. Click-to-talk is a form of Web-based communication in which a person clicks an object to request an immediate connection with another person in real-time.
  8. Good content should draw a target audience back to engage with an organization’s website repeatedly.
  9. Crowdsourcing is an efficient, effective and inexpensive method to mobilize a group.
  10. Web sites used to be classified as informational, but now they are strictly transactional.
  11. The main objective of a squeeze page or landing page is to get the visitor on the page to opt-in.

Chapter 11: Business-to-Business (B2B)

11-6. In essence, a business consumer in business-to-business (B2B) marketing is any formal entity that purchases a product or service __________.

A. for further production

B. to use in its operations

C. for resale

D. all of the above

11-7. Which of the following is not an example of an industrial good?

A. wheat sold for the production of flour

B. flour sold for the baking of bread

C. bread sold to a restaurant

D. bread sold to a household

11-8. According to the text, which of the following is a primary difference between B2B and B2C marketing?

A. price sensitivity

B. channel structure

C. increased taxation

D. segmentation failure

11-9. Business-to-business marketing communications are:

A. indirect

B. heavily rely on personal selling

C. dominated by mass communications

D. all of the above

11-10. ___________ is a direct marketing technique that is an integral part of relationship marketing where customer engagement is pursued with the communication of relevant information to all leads all the time.

A. lead generation

B. marketing communications

C. lead nurturing

D. customer nurturing

11-11. A main driver leading the shift to B2B selling via e-commerce transactions is the:

A. increasing popularity of e-marketplaces

B. growing interest of companies in placing orders through mobile commerce devices

C. shift to conducting procurement transactions through Internet versus the EDI

D. all of the above

11-12. Spotting, qualifying, nurturing, and following leads occur now with the help of _____________, allowing prospects to be monitored based on their daily actions/ interactions with the brand.

A. e-commerce

B. marketing automation

C. nurture tracking

D. nurture automation

11-13. Business-to-business markets are _________ in number than consumer markets, and ________ in sales volume.

A. smaller/smaller

B. smaller/larger

C. larger/larger

D. larger/smaller

11-14. ___________________ are effectively used for generating leads and enable B2B marketers to leverage one-to-one relationships when selling.

A. Click-to-Chat

B. Webinars

C. Electronic data interchange (EDI)

D. Firmographics

11-15. According to Marketo.com, ___________ is the number one challenge for business-to-business marketers.

A. generating high-quality leads

B. maintaining accurate databases

C. retaining customers

D. segmenting business markets

11-16. ___________ refers to conveying and communicating valuable information to attract, engage, and retain a target audience to stimulate profitable action or behavior.

A. lead nurturing

B. marketing automation

C. content marketing

D. in-person contacts

11-17. Which of the following is not included in customer advocacy?

A. referrals

B. product reviews

C. repeat purchases

D. blog posts

11-18. A B2B tired-and-true best practice of increasing the sales and profitability of existing customers through offering additional quantities of product or service and tailoring the process to the specific needs of each customer is called _______.

1. cross selling
2. upselling
3. customer loyalty
4. customer advocacy

11-19. _________ are the best type of lead to new customers.

1. telemarketing
2. content marketing
3. referrals
4. in-person contacts

11-20. All of the following are true regarding webinars except:

1. They consume less time than face-to-face sales.
2. They have a higher close rate than face-to-face sales.
3. They are less expensive than face-to-face sales.
4. They allow marketers to leverage time one-to-many.

11-21. Content marketing benefits include all of the following except:

1. keeps reader’s attention
2. does not require constant updating
3. improves brand loyalty
4. increases direct sales

11-22. The Standard Industrial Classification (SIC) coding system is a means of industrial market segmentation, which provides all of the following benefits except:

1. identifies entities’ form of ownership
2. groups establishments engaged in common economic activity
3. serves as a basis for statistical data about industries
4. constantly updates with the growth of information technology

11-23. The North American Industrial Classification System will be reviewed every ____, so classifications and information keep up with the changing economy.

1. 6 months
2. year
3. 5 years
4. 10 years

11-24. Marketers use lead generation to _________.

1. build brand awareness
2. qualify leads
3. generate profitable results
4. all of he above

11-25. Which of the following is a characteristic of industrial demand?

1. derived demand
2. elastic demand
3. stable demand
4. concentrated demand

TRUE-FALSE

11-26. The key distinguishing factor between business consumers and final consumers is the ultimate or end use of the product or service that is being purchased.

11-27. In the case of selling industrial goods, the buyer usually comes to the seller.

11-28. All governmental agencies have similar public procurement procedures or processes by which they buy products and services.

11-29. Maintaining accurate customer /prospect databases is a real challenge for B2B direct marketers.

11-30. Direct marketing has played a major role in the evolution of B2C distribution, but a relatively small role in the evolution of B2B marketing.

11-31. The Standard Industrial Classification (SIC) system was basically designed to replace the North American Industrial Classification System (NAICS), although both systems are still in use today.

11-32. Direct marketers must appeal not only to organizations, but to the individuals within the organizations.

11-33. The marketing funnel does not end when a sale is made.

11-34. For B2B marketers, the customer or client journey through the marketing funnel often takes much longer than for B2C marketers.

11-35. Cross selling is a great opportunity for B2B marketers to raise awareness and promote their company’s offerings while further serving loyal customers and enhancing relationships.

Chapter 12: Fulfillment and customer service

12-6. Businesses tend to be most concerned with fulfillment because:

1. it is the final impression left with the customer.
2. it is the chance to communicate with the customer by enclosing additional promotional materials.
3. it helps to generate satisfied customers and future business for the organization.
4. all of the above

12-7. Which of the following have encouraged customers to wait longer before placing an order?

1. fax machines
2. toll-free numbers
3. the Internet
4. all of the above

12-8. On order processing turnaround time, what goal do good marketers try to meet?

1. 90% in 24 hours
2. 100% in 24 hours
3. 100% in 48 hours
4. it depends on the type of merchandise

12-9. Which of the following steps listed below is not included in the fulfillment process?

1. processing
2. response
3. thank-you letter
4. billing

12-10. Which agency maintains strict rules about what companies must do when an ordered item is “out of stock?”

1. Consumer Bureau
2. Federal Trade Commission
3. Federal Communications Commission
4. General Accountability Office

12-11. The ______ provides routing information regarding the most efficient way to physically move through the warehouse and assemble the items ordered by the customer.

1. receipt
2. picking list
3. order form
4. packing slip

• 1. Order received, order processed, items picked in warehouse, order is moved to packing area and packed, and package travel destination points are an accurate account of which of the following processes?

1. fulfillment process
2. outsourcing process
3. in-house warehouse process
4. packaging process

• 1. What enables most manufacturers to track items and move them through a distribution center?

1. five-digit numbers
2. alphabetical stocking
3. bar codes
4. computer chips

• 1. ______ is an emerging business concept based on the idea that the process of building and delivering products should not begin until after the firm receives an order.

1. Warehousing
2. Outside Fulfillment
3. On-line Fulfillment
4. Integrated Order Fulfillment
   1. Which term below describes how a company operates when it is only the marketing and customer service entity with manufacturing and distribution done elsewhere?
5. virtual enterprise
6. subsidiary marketing
7. seller only
8. e-marketing company
   1. Another fulfillment option that refers to the integration of people, processes, and technology to ensure customer satisfaction before, during, and after the on-line buying experience is referred to as which of the following?
9. E-fulfillment
10. Out-house fulfillment
11. Technological fulfillment
12. Multi-Channel fulfillment

12-17. The major problem with many e-commerce organizations is that they lack:

1. funding for marketing and fulfillment
2. focus and emphasis on e-fulfillment
3. regulations to specify how they should operate
4. technical capabilities
   1. The Private Express Statutes grant ______ a form of monopoly over first-class mail delivery.
5. the USPS
6. major airlines
7. private delivery services
8. FedEx
   1. Which mail category is mainly used for the distribution of direct response advertising?
9. First-Class Mail
10. Priority Mail
11. Mailgram
12. Standard Mail
    1. Organizations using call center measure the level of customer dissatisfaction by calculating the rate of ________.
13. call abandonment
14. call shocks
15. frustrated calls
16. returned calls
    1. Which of the following is the biggest advantage of establishing an in-house call center?
17. the time it takes to properly train representatives
18. the degree of control the company has
19. ease of developing measurement systems
20. the financial savings
    1. Which of the following is not one of the five main advantages to using an outside call center?
21. low initial investment
22. time flexibility
23. high employee loyalty
24. quick start-up
    1. Which of the following defines a customer-centric business philosophy and culture to support effective marketing service?
25. customer satisfaction
26. customer relationship management
27. customer retention program
28. customer culture
    1. Placing an inquiry, order, or complaint with the organization under a fictitious name is primarily an example of
29. evaluating customer satisfaction
30. evaluating employees’ responses
31. meeting fulfillment standards
32. obtaining information
    1. Tips for keeping customers happy may include which of the following?
33. Don’t promise something you cannot deliver
34. Inform your customers about how to return products
35. Test your own service
36. All of the above

TRUE-FALSE

• 1. The main purpose of back-end marketing is to build and maintain a better relationship with the customer.
  2. Strictly defined, fulfillment means sending the product to the customer or delivering the service agreed upon.
  3. The ideal target for order accuracy is not quite 90%.
  4. The “offer” should always leave some things to customer’ imagination.
  5. Direct marketers must examine inventory for quality checks prior to packaging and, if possible, after packaging.
  6. If applied correctly, integrated order fulfillment will work for every organization.
  7. Delivery drones are revolutionizing delivery systems by eliminating delivery complications such as late delivery arrivals.
  8. Many of the most common fulfillment problems originate in the warehouse.
  9. A telemarketing house is a dedicated team supported by various telephone technological resources to provide responses to customer inquiries.
  10. Customer satisfaction has been defined as the extent to which a firm fulfills a consumer’s needs, desires, and expectations.
  11. A disadvantage of contracting outside fulfillment services is an increase in financial risk.

Chapter 13: Environmental, ethical and legal issues

13-6. ______ are the moral principles of conduct governing the behavior of an individual or group.

1. Morals
2. Rights
3. Ethics
4. Principles

13-7. In an effort to seek environmental improvement, the DMA has enacted a resolution containing a set of 15 business practices known as “The Green 15”. Which of the following business practices are designed to improve paper procurement and use?

1. Businesses should review direct mail and printed marketing pieces and test downsized pieces when and where appropriate.
2. Businesses are encouraged to participate in DMA’s “Recycle Please” campaign and/or in another recycling campaign.
3. Businesses should apply predictive models and/or Recency-Frequency-Monetary (RFM) segmentation where appropriate.
4. Businesses should ask paper suppliers where their paper comes from before buying it with the intent of not sourcing paper from unsustainable or illegally managed forests.

13-8. The main areas of the DMA’s Environmental Resolution and “Green 15” program initiative include all of the following except:

1. Resource Procurement
2. Design and Production
3. Packaging
4. Media Consumption

13-9. Which of the following “Green 15” business practices are designed to improve list hygiene and data management?

1. Businesses should review direct mail and printed marketing pieces and test downsized pieces when and where appropriate.
2. Businesses are encouraged to participate in DMA’s “Recycle Please” campaign and/or in another recycling campaign.
3. Businesses should apply predictive models and/or Recency-Frequency-Monetary (RFM) segmentation where appropriate.
4. Businesses should ask paper suppliers where their paper comes from before buying it with the intent of not sourcing paper from unsustainable or illegally managed forests.

13-10. The FTC is constantly updating its consumer privacy protection. Which of the following is not an area the FTC offers advice for businesses to ensure the privacy and security of consumers.

1. Children’s Privacy
2. Credit Reporting
3. Pharmaceuticals
4. Tech

13-11. According to the text, which of the following is not a basic human right possessed by consumers?

1. The right to safety
2. The right to be informed
3. The right to collection
4. The right to confidentiality

13-12. The consumer right to information implies that:

1. consumers are safe from both physical and psychological harm.
2. consumers have a right to receive any and all pertinent or requested information.
3. consumer have a right to choose or make decisions about his or her buying behavior.
4. consumers have a right to specify to a given company that information they freely provided should not be shared.

13-13. The consumer right that is probably the most noteworthy affecting direct marketers is

1. right to confidentiality
2. right to information
3. right to privacy
4. right to safety

13-14. The three legislative areas designed to safeguard consumer rights are intellectual property, security, and _______.

1. selection
2. information
3. confidentiality
4. privacy

13-15. The concerns of consumers and Congress over the broad issue of privacy, including the subject of mailing lists and databases, culminated in the _____.

1. Privacy Act of 1974
2. Consumer Rights Act of 1989
3. Privacy Act of 2000
4. Consumer Selection Act

13-16. The main provisions of The CAN-SPAM Act of 2003 are that it:

1. Requires that your email give recipients an opt-in method
2. Bans false or misleading header information
3. Requires that for and not-for-profit e-mail be identified as a promotion
4. Businesses must provide a working telephone number

13-17. For marketers to really get at the heart of privacy concerns, they need to understand two basic consumer perceptions: ______ and ______.

1. anger, destruction
2. annoyance, violation
3. wants, needs
4. budget, willingness to buy

13-18. Personal information can be divided into four different categories. Which of the following is not one of the four categories?

1. General descriptive information
2. Sensitive/Confidential information
3. Consumer perception information
4. Product purchase information

13-19. Which of the following is the easiest type of information to obtain?

1. Sensitive/confidential Information
2. Product purchase information
3. General descriptive information
4. Ownership information

13-20. Information such as medical history, Social Security number and driving record belong in which of the following information categories?

1. Sensitive/confidential information
2. Product purchase information
3. General descriptive information
4. Ownership information insert

13-21. The _______ consumers look at the contract, the offer, and the methods of data collection and mentally apply a cost/benefit analysis to determine the marketer’s use of information.

1. privacy unconcerned
2. privacy fundamentalists
3. privacy seekers
4. privacy pragmatists

13-22. The _________ consumers are least receptive to direct marketing activities and should be purged from direct marketers’ lists.

1. privacy seekers
2. privacy pragmatists
3. privacy unconcerned
4. privacy fundamentalists

13-23. Which of the following tasks is not considered part of the DMA interest-based advertising (IBA) guidelines for online marketing activities?

1. Publish a privacy policy and abide by it.
2. Ensure reasonable security and limited data retention.
3. Offer notice and choice for material changes to your policy.
4. The marketer must disclose their email address but not postal address

13-24. The abbreviation TCPA stands for_____.

1. Technological Consumer Privacy Act
2. Telephone Consumer Protection Act
3. Tested Consumer Privacy Act
4. Targeted Consumer Privacy Act

13-25. The four elements in the FTC’s “Privacy Policy” for on-line direct marketing include all of the following except:

1. notice.
2. access.
3. choice.
4. opt-out.

13-26. _______ marketing requires the consent of a customer before a company sends out a marketing communication to that customer via the Internet.

1. Permission
2. Authorization
3. Request
4. Inquiring

13-27. Which of the following is not a legal restriction placed on marketers when promoting pharmaceuticals?

1. Substantiation
2. Fair Balance
3. Overstatement of Efficacy
4. Opt-in

TRUE-FALSE

13-28. To be ethical in marketing means to conform to the accepted professional standards of conduct.

13-29. The right to selection is a consumer’s right to specify to a given company that information that they freely provide should not be shared.”

13-30. Intellectual property is defined in the text as products of the mind or ideas.

13-31. The General Data Protection Regulation (GDPR) only affects companies located within the EU.

13-32. The General Data Protection Regulation (GDPR) primarily focuses on regulating digital marketing information, such as social media posts.

13-33. Most Internet surfers are not bothered by unwanted, unsolicited bulk commercial e-mail massages known as Spam.

13-34. People feel violated because they receive too much unsolicited marketing communications, and they feel annoyed because they believe too much information about their personal lives is being exchanged between marketers without their knowledge and/or consent.

13-35. The chief privacy officer (CPO) is responsible for protecting the sensitive information the corporation collects, ranging from credit card accounts to health records.

13-36. The Federal Trade Commission is charged with regulating interstate and international communications by radio, television, wire, satellite, and cable.

13-37. Cookie stuffing is the process of creating fake online traffic, clicks, and impressions to generate revenue through ads.

Chapter 14: International direct and interactive marketing

14-6 In the opening vignette the Bank of New Zealand constructed a popular direct marketing campaign called “Body Parts” to appeal to students’ desire to get something. What did they ultimately decide would really appeal to students?

A. MP3 players

B. “Sign-on” bonuses

C. Cash

D. Discounts and free stuff year round

14-7 Based on 2017 statistics, which of the following countries was not a top trading partner with the US in that year?

A. China

B. France

C. Canada

D. Mexico

14-8 Which of the following is not one of the four reasons for direct marketers to decide to go international in their marketing efforts?

A. Limited growth opportunities in the domestic market

B. Shared global values

C. High cost of new product development

D. Non-Competitive forces

14-9 What makes international direct marketing different from domestic direct marketing?

A. Cost of entering new markets

B. Lack of market research

C. Market uncertainty

D. Communication barriers

14-10 Which of the following statements is true regarding a collectivist culture?

A. Group focus is more likely to take priority over independence and a strong sense-of-self

B. The value of this culture lies on the achievements and successes of the group as a whole

C. Typical examples of this type of culture include the Asia and Latin America

D. All of the above

14-11 Which of the following is not part of the five-step approach for making the

decision to go international?

A. Assess your international potential

B. Select your trading partners

C. Develop an international direct marketing plan

D. Acquire expert advice and counseling

14-12 What does a country’s infrastructure represent?

A. Capital goods and services that serve the activities of many industries

B. The currency of a foreign market

C. How widely computers are used within the country

D. The postal system used by the country

14-13 Market research for each country under investigation can be narrowed down to the following primary international market indicators. Which of the following is not one of these indicators?

A. Political stability

B. Distribution of wealth

C. Television ownership

D. Computer ownership

14-14 When assessing a country’s GDP and inflation rates, most direct marketers look for annual trends going back as far as _____ year/years.

A. one

B. five

C. seven

D. ten

14-15 Areas to address in the postal/delivery services include which of the following?

A. Adequacy of the change-of-address system available

B. The existence of a track-and-trace system for parcels

C. The level of sophistication and format of the postcode system

D. All of the above

14-16 A ______ is created when two or more investors join forces to conduct a business by sharing ownership and control, whereas in _____ a company acquires an existing foreign company or forms a completely new company in the foreign country.

A. joint venture; contract manufacturing

B. joint venture; direct investment

C. management contracting; direct investment

D. management contracting; contract manufacturing

14-17 In ______ local business people or their government sign a contract to manage the foreign business in their country’s market.

A. joint venture

B. licensing

C. management contracting

D. contract manufacturing

14-18 Direct marketers using their home location have several basic options for distributing products, which of the following best describe these options?

A. The United States Postal Service international mail

B. Non-UPS postal delivery via a foreign postal administration

C. Consolidators within the United States

D. All of the above

14-19 Which of the following is not one of the four words of wisdom for developing the creative materials for any international direct marking campaign?

A. Research

B. Test

C. Measure

D. Adapt

14-20 Which of the following is not considered to be one of the up and coming BRIC economies?

A. Canada

B. Brazil

C. India

D. Russia

14-21 When a U.S. company ships products to Ontario, Canada which of the following taxes will it incur?

A. The goods and services tax (GST)

B. The harmonized sales tax (HST)

C. The provincial sales tax (PST)

D. A & C

14-22 Which of the following are factors affecting direct marketing in Europe?

A. Postal requirements

B. Data

C. Strong list industry

D. All of the above protection

14-23 ______ may be important in direct marketing, but it is especially so in Latin America.

A. Building relationships

B. Strong campaigns

C. Securities

D. Direct mail

14-24 Two of the main lessons that direct marketers have learned from dealing with Asia include understanding local laws and _____.

A. treating each country separately

B. negotiating terms of security and trust

C. researching the country’s infrastructure

D. avoid high-technological activities

14-25 Which of the following are primary challenges facing direct marketers considering Africa as a trading partner?

A. The majority of the population is part of the Baby Boom Generation

B. The limited growth of the country’s mobile phone market

C. The limited computer access and low Internet penetration

D. All of the above

TRUE-FALSE

14-26 Different country laws can be a big player in dictating marketing strategies.

14-27 Conducting market research is critical to understanding the cultural differences and country market nuances that may exist

14-28 E-mail newsletters are a recommended first step into international e-mail marketing.

14-29 At a minimum, the infrastructure analysis should include the following essential services: transportation, computer ownership, utilities, and banking.

14-30 The international business environment is extremely predictable and is an apathetic environment that doesn’t need to be constantly monitored.

14-31 Africa has the fastest growing mobile market in the world.

14-32 An exporting company sells its products from locations throughout sites operated by personnel overseas.

14-33 Lists of both consumer and business customers are normally available for most countries, although different kinds of lists are available in different countries.

14-34 Most direct marketing activities in the Middle East are based on e-mail campaigns.

14-35 Careful market research, including an assessment of consumer needs, direct marketing infrastructure, and political, economic, and business environments, is necessary prior to commencing international direct marketing activities.

14-36 Revenue generated by international direct marketing activities has decreased over the years.

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