Deck 4: The Direct Response and Database Foundations of Internet Marketing

Question 1

Developing and using a customer database allowed Harrah's to:

A)locate the data they needed to execute pre-existing strategies.
B)find good locations for new casinos.
C)develop a model of how much a customer might be expected to spend.

Answer 1

C

Question 2

Important characteristics of a direct-response offer include:

A)incentive to encourage action.
B)a call to action.
C)both of the above.

Answer 2

C

Question 3

________ is a simple type of test frequently used in various marketing media.

A)Control group
B)Factorial design
C)A/B split

Answer 3

C

Question 4

Among the uses of CLV data to Harrah's is:

A)to drive programs that increase customer value.
B)to provide a powerful way to segment markets.
C)both the above.

Question 5

Which of the following is not a true statement about CLV?

A)It is the net present value of the net margin minus the cost of serving a specific customer.
B)It can be used only by traditional direct marketers.
C)It requires an extensive customer database.

Question 6

The set of tools used to extract useful marketing information quickly from their database is called:

A)statistical program analysis.
B)automated profiling.
C)data mining.

Question 7

________ is the concept that helps the marketer understand how much it costs to acquire, maintain, and service a customer.

A)Market segmentation
B)Customer lifetime value
C)Lead generation

Question 8

The "best customer model: called RFM:

A)helps marketers determine what kinds of new customers to acquire.
B)is a multiplicative model composed of recency, frequency and monetary value.
C)both of the above.

Question 9

Benefits of having and utilizing a marketing database include:

A)not having to perform statistical analysis on the data.
B)being able to construct customer profiles.
C)having a single customer database that includes information from other functional areas of the business.

Question 10

An important use of customer lifetime value data is:

A)as a replacement for market segmentation.
B)to determine the allocation of marketing resources to marketing programs.
C)to decrease the need for targeting specific customer groups.

Question 11

Which of the following is a true statement about data mining?

A)Data mining can uncover previously unsuspected patterns in the data.
B)Marketers require the assistance of statisticians to get information from data mining routines.
C)Data mining routines were developed specifically to deal with the massive amounts of data available from the Internet.

Question 12

Which of the following is a true statement about the front end of marketing?

A)It includes the activities that are most likely to produce satisfied customers.
B)It describes marketing activities that take place prior to the product being introduced to the market.
C)Front-end activities are the most visible aspects of marketing.

Question 13

Among the interactive strategies marketers can pursue are:

A)information, transaction, and personalization.
B)transaction, personalization, and collaboration.
C)interaction, profiling, and customization.

Question 14

Which of the following is a true statement about the front end of marketing?

A)It describes marketing activities that take place prior to the product being introduced to the market.
B)It includes all the activities most likely to produce satisfied customers.
C)The front end involves customer acquisition activities.

Question 15

True statements about testing in the Internet environment are:

A)testing requires a substantial amount of marketing research.
B)testing provides information that is not ordinarily available to marketers in the mass media environment.
C)both of the above.

Question 16

________ is the term used to describe the marketing activities that involve fulfillment and customer service:

A)Back end
B)Inventory management
C)Front end

Question 17

Important characteristics of a direct-response offer include:

A)always having a purchase as the objective.
B)deferred action on the part of the prospective customer.
C)a clear call to action.

Question 18

Objectives of a direct-response marketing program can include:

A)generating sales leads.
B)creating awareness of a product or service.
C)developing brand image.

Question 19

The Four I's of Internet marketing include:

A)information-driven, intuitive.
B)integrated, immediate.
C)involving, interactive.

Question 20

The basic direct-response strategies are:

A)attraction, commitment, and loyalty.
B)acquisition, conversion, and retention.
C)attraction, conversion, and retention.

Question 21

All offers are a form of sales promotion.

Question 22

A "sticky" website is one that can last for a considerable period of time without major changes and updates.

Question 23

Customer Lifetime Value is one of the most-discussed topics in marketing today.Explain what CLV means, the basic structure of a CLV calculation, and give one or more examples of how it can be used to improve marketing programs.

Question 24

The interactivity of the Internet is important to its usefulness as a direct-response medium.

Question 25

CLV is essentially the NPV of all sales to a given customer.

Question 26

The type of firm that typically has established capabilities in fulfillment and customer service:

A)manufacturers.
B)direct marketers.
C)internet marketers.

Question 27

Data mining tools are designed to sift through large quantities of data looking for patterns of customer behavior.

Question 28

A hierarchy of interactive activities suggests that ________ is a customer-focused activity that can be pursued after a foundation of less information-intensive activities is built.

A)personalization
B)market segmentation
C)building a customer database

Question 29

Marketers should be attempting to acquire more new customers like their best current customers.

Question 30

The "back end" refers to business functions like warehousing and distribution that are not a concern of the marketer.

Question 31

It is impossible to calculate the value of a fan on social media.

Question 32

It is not important whether the Internet is recognized as a direct-response medium or not.

Question 33

A direct-response offer must include a call to action.

Question 34

Information-driven marketing can be thought of as a process that permits interactions, transactions, personalization and customization.

Question 35

NIKEiD is an example of:

A)an interactive website.
B)use of a customer database.
C)product customization.

Question 36

Response modeling is a form of predictive modeling.

Question 37

In CLV calculations the discount rate is based solely on the current interest rate.

Question 38

The most effective Internet marketing programs make use of the Four I's.Identify each of them, carefully explain what it means and why it is important, and give an example of each in action in an Internet marketing program.

Question 39

A data warehouse is a repository where data that is no longer current is stored.

Question 40

The immediacy of the Internet can be employed to satisfy the consumer's desire for instant gratification.

Question 41

The text suggests that, as marketers learn more about their customers, they can engage in programs of increasing complexity and effectiveness.Discuss this concept in detail.