Complete Test Bank 13e Chapter.25 NEW AGE STRATEGIES

Test Bank

Chapter 25 NEW AGE STRATEGIES

True-False

1. Through database technology, an organization can at last identify

its loyal customers, its repeat purchases, and its one-time only " triers"

in well-defined market segments

2. With a database, marketers cannot profile prospective customers

3. Data mining is the process of analyzing data from different perspectives

and summarizing it into useful information—information that can be used to

increase revenue, cuts costs, or both.

4. Information on recency and monetary value of purchases is enough to identify

most profitable customers.

5. All customers are appropriate targets for relationship marketing.

6. One should only solicit only those segments whose expected responses rates are

below the break-even rate

7. IoT is a network of networks of uniquely identifiable objects that can communicate

with each other without human interaction using network connectivity.

8. Database enhancement can substantially increase the amount and quality of

information held on each customer

9. The entertainment component of e-commerce is more developed than many of

its functional aspects.

10. A machine learning algorithm continues to add to its teaching set, with every right or

wrong response to the task completion based on the given dataset, thus becoming better

and smarter at completing a task over time.

11. Brand asset is much more important than a customer database.

12. While the loyalty program thanks past behavior, rewards program encourages

future behavior.

13. AI has the power to organize the billions of data points that IoT generates, learn as it

goes, and drive automated changes based on insights derived from the analysis of data

14. Information pertaining to customer habits and preferences helps to

identify the most and the least profitable customers.

15. WOM marketing aids relationship marketing in generating a positive influence on

the product for consumers, and lending credibility to the message being communicated

16. Chatbots cannot respond to first-line questions and requests from customers, and cannot

recognize when customers need to be handed off seamlessly to customer service

representatives for more complex queries.

17. Experiential marketing is broadly defined and aimed at wider audiences, generating

a higher return on the investment

18. Customer equity of a firm is the total economic worth of a firm’s customer asset.

19. A rewards program gives points for buying goods and services and something

that can be accumulated over time and redeemed for a benefit in the future

20. Blocks in a blockchain hold batches of valid transactions that are encoded, and each

block includes a link of the prior block in the blockchain, thus creating a link all

the way to the original first block

21. CLV is a powerful tool for profile analysis

22. Blockchain can track whether the advertisements are being viewed by the target

audience or not, thus enabling companies to pay for the audiences they get

23. Social media provides a two‐way communication channel between

company and its customers

Multiple Choice

1. A database can be used

a. To profile customers

b. To maximize personalization of promotional plans for customers

c. To develop products that match the customer’s needs

d. a,b and

e. a and

2. The rule followed in soliciting members of a database is on the basis of

a. Majority of the members be concentrated in a given area

b. Most recent purchase

c. Least cost of marketing

d. Breakeven response rate

e. None of the above

3. The most important element to building a successful business is

a. Soliciting new customers

b. Maintaining exhaustive databases on purchase patterns

c. Targeting the right consumer segment

d. Managing and retaining existing customers

e. None of the above

4. Relationship marketing involves

a. Identifying and building a database of customers

b. Delivering differential messages to different segments of customers in the database

c. Tracking costs for each relationship

d. a and

e. a, b, and

5. The use of statistical models for analyzing customer databases serves the following

purpose(s)

a. Identifying typical customers

b. Can rank order the prospects from best to worst

c. Helps to score a prospect list

d. All of the above

e. and

6. One can eliminate duplication between and among the lists and identify “hotline names” by

1. overlaying multiple databases
2. negative screening
3. duplicate screening
4. None of the above

7. The process of analyzing data from different perspectives and summarizing it into

useful information is called ________.

1. negative screening
2. duplicate screening
3. data mining
4. Data Validation
5. None of the above

8. According to the text, AI-powered bots can be applied in which if the following ways in marketing?

1. Responding to first-line questions and requests
2. Using bots for real time, 24/7 communication
3. Guiding customers towards completing their transactions
4. Shopping online, on behalf of human owners
5. All of the above

9. All of the following are capabilities of IoT EXCEPT:

1. Simplifying routine day-to-day tasks
2. Using sensors and intelligent software to understand consumer preferences
3. Tracking connected packaging to gain better insight into supply chain processes
4. Conveying advice, guidance and information to consumers while also collecting real time feedback
5. Enable the transfer of valuable assets without a third-party trust broker

10. The increased popularity of online shopping can be attributed to:

• 1. Wider selection
  2. Convenience of shopping from any location
  3. Ability to shop at any time
  4. All of the above

11. Calculation of Customer Lifetime Value (CLV) provides a framework for

1. Purchase sequence analysis
2. Optimizing the timing of product offerings.
3. Profile analysis to target prospects
4. All of the above

12. The reasons for using mobile phones for marketing are:

1. Can be used in many places

2. Can elicit immediate response

3. Has personal attention

4. Ability to use various phone features for communication

1. 1 & 2 only
2. 3 & 4 only
3. All of the above
4. None of the above

13. Which of the following types of marketing is designed to turn customers into advocates?

1. Mobile Marketing
2. Social Marketing
3. Experiential marketing
4. Relationship marketing

14. Which of the following metrics indicate brand preference?

1. Recency-Frequency-Monetary value
2. Past Customer Value
3. Share of Wallet
4. Customer Lifetime Value

15. Which of the following metrics is a forward-looking metric?

1. Recency-Frequency-Monetary value
2. Past Customer Value
3. Share of Wallet
4. Customer Lifetime Value

16. Which of the following are advantages of block chains?

1. Elimination of the middleman
2. Increased transparency in supply chain operations
3. Ability to track data on advertising
4. All of the above

17. Which of the following is referred as a “double-edged sword” strategy in the text?

1. E-Commerce
2. Implementing Mobile Marketing strategies
3. Implementing Social Media Marketing strategies
4. None of the above