Question 1

What action do consumers continue to perform even though a majority are concerned with identify theft?

Accepted Answer

Despite concerns about identity theft, consumers continue to shop online due to the convenience and accessibility it offers.

Question 2

Which of the following is a type of identity theft that uses deceptive e-mails and fraudulent Web sites to fool consumers into revealing their personal data?

Accepted Answer

Phishing is a type of identity theft that uses deceptive e-mails and fraudulent Web sites to fool consumers into revealing their personal data. Bait-and-switch is a type of fraud where a seller advertises a product or service they do not intend to sell, with the goal of selling a different product or service at a higher price. Cyber spying involves using computer technology to access confidential information without authorization. Viral marketing is a marketing technique that uses social media and other online platforms to spread information and generate interest in a product or service. Spam is unsolicited email, often sent in bulk, that is typically advertising or promotional in nature.

Question 3

Marbles Inc. has placed vending machines in most of its retail stores in Florida. Consumers can order a pack of marbles by just selecting their requirements on the touch screen. Which term best describes such machines?

Accepted Answer

The machines described have a touch screen and allow consumers to select and order products. This fits the definition of a kiosk, which is a self-service machine designed to serve a specific purpose such as vending or information retrieval.

Question 4

To enable customers to opt out of seeing particular ads, marketers use a(n) ________. This is added to behaviorally targeted online ads to tell consumers why they are seeing a particular ad.

Accepted Answer

The Advertising Option Icon (AdChoices icon) is a clickable icon placed on behaviorally targeted online ads that enables customers to opt out of seeing particular ads and to learn more about why they are being shown these ads.

Question 5

Consumers' names and additional information likely become part of ________ whenever they enter a sweepstakes, apply for a credit card, visit a Web site, or send a tweet.

Accepted Answer

When consumers enter a sweepstakes, apply for a credit card, visit a website, or send a tweet, they are typically asked to provide personal information such as their name, email address, phone number, and other details. Companies usually collect and store this information in their databases, which they may use for various purposes such as marketing, advertising, and customer service. Therefore, consumers' names and additional information become part of a company's database whenever they engage in these activities.

Question 6

TRUSTe, a nonprofit self-regulatory organization, works with other companies to audit online privacy and security measures. It lends its TRUSTe privacy seal to all the following communication channels that meet its privacy and security standards EXCEPT ________.

Accepted Answer

TRUSTe does not lend its privacy seal to telemarketing because it focuses on auditing online privacy and security measures.

Question 7

Josh received an e-mail stating that he had won a lottery of $500,000 from Lottors Corporation. The e-mail asked Josh to send his bank account details and social security number to transfer cash directly to his account. Josh did not remember buying any lottery tickets, and so was apprehensive about providing his bank details without verification. Which of the following is illustrated from this scenario?

Accepted Answer

The scenario illustrates a phishing attempt where the sender pretends to be a legitimate company to obtain sensitive information from the recipient, such as bank account details and social security number. Josh's suspicion is justified as he did not remember buying a lottery ticket and the e-mail is likely a hoax to gain unauthorized access to his account.

Question 8

Music Mogul has arrangements with several stores and retail chains to place their DVDs and digital music machines in prime spots such as near billing counters and at store entrances. Consumers can buy DVDs by depositing payment or they can buy music online via the touchscreen interface on the machine. Which form of marketing is illustrated in this scenario?

Accepted Answer

The scenario describes kiosk marketing, where Music Mogul has placed their DVDs and digital music machines in stores and retail chains in prime spots for consumers to buy. The kiosks offer touchscreen interfaces for online purchases, making it easier for customers to buy their products.

Question 9

Refer to the scenario below to answer the following question(s).
The Treble Clef sells music books, musical instruments, and novelty gifts of a musical nature. In recent years, owner Gary Zahn has served as the local representative of several musical instrument manufacturers, providing a contact person for three local schools. He sends a sample of a manufacturer's products to schools that request a demonstration or presentation. "If we don't have it, we can definitely get it for you," Gary tells all Treble Clef visitors and customers.
Most walk-ins are particularly interested in a specific piece of sheet music from a particular era or just browsing among the hundreds of music knick-knacks in the store. Gary spends most of his time making presentations to beginners at the local schools and making biweekly visits to the schools to deliver instruments, make minor repairs, or pick up instruments to ship to the manufacturer for more complicated repairs.
After establishing a loyal customer base, Gary was convinced that a Treble Clef Web site could benefit a variety of customers. He began with a simple Web site that provided information about the store and the types of gifts and services available. The site received so much response that Gary added a question-and-answer option. Questions poured in, ranging from "Where can I get sheet music for 'Hello, Dolly'?" to "Do you carry clarinet reeds?" to "My saxophone needs two new pads. When will you be at Elmhurst School to repair it?" The Web site is now able to accept credit card orders, and gifts can even be wrapped and shipped for no extra charge.
"This Web site idea was fantastic!" Gary admitted. "It allows us to be so responsive. And our novelties sales have doubled!"
-Gary sends samples of sheet music to schools for demonstration or presentation. Which of the following types of marketing is being illustrated from this statement?

Accepted Answer

This is an example of direct-mail marketing, as Gary is sending physical samples of a product to potential customers (the schools) in order to generate interest and sales.

Question 10

All of the following are Internet marketing concerns EXCEPT ________.

Accepted Answer

The other options listed are all specific concerns related to Internet marketing, while secure online and digital websites is a general requirement for effective and safe use of the Internet.

Question 11

Telemarketing is especially effective for business-to-business marketers.

Accepted Answer

Telemarketing allows for direct communication and personalized sales pitches, making it an effective tool for business-to-business marketers who are targeting specific decision-makers within a company.

Question 12

To decrease direct marketing abuses, government agencies are investigating do-not-call lists, do-not-mail lists, do-not-track-online lists, and ________.

Accepted Answer

The Can Spam legislation is specifically designed to reduce spam and unwanted email marketing, making it a relevant option for decreasing direct marketing abuses. The other options (A, C, D, E) are not directly related to decreasing direct marketing abuses, or are too specific to certain types of abuses.

Question 13

Digital catalogs eliminate printing and mailing costs.

Accepted Answer

Digital catalogs can be shared electronically, eliminating the need for printing and mailing physical copies, which reduces costs.

Question 14

According to the "Privacy Promise to American Consumers" program, DMA members need to comply with which of the following consumer privacy rules?

Accepted Answer

The "Privacy Promise to American Consumers" program requires DMA members to notify customers when any personal information is rented, sold, or exchanged with others, among other privacy rules. The other options listed are either unrelated or not specifically required by the program.

Question 15

Buyers with low sales resistance can often be tempted by all the following common features of infomercials EXCEPT ________.

Accepted Answer

Free shipping is not a common feature that is used to tempt buyers with low sales resistance in infomercials. All the other options - elaborately staged demonstrations, "while they last" time limitations, smooth-talking hosts, claims of drastic price reductions - are commonly used in infomercials to lure in customers.

Question 16

Refer to the scenario below to answer the following question(s).
The Treble Clef sells music books, musical instruments, and novelty gifts of a musical nature. In recent years, owner Gary Zahn has served as the local representative of several musical instrument manufacturers, providing a contact person for three local schools. He sends a sample of a manufacturer's products to schools that request a demonstration or presentation. "If we don't have it, we can definitely get it for you," Gary tells all Treble Clef visitors and customers.
Most walk-ins are particularly interested in a specific piece of sheet music from a particular era or just browsing among the hundreds of music knick-knacks in the store. Gary spends most of his time making presentations to beginners at the local schools and making biweekly visits to the schools to deliver instruments, make minor repairs, or pick up instruments to ship to the manufacturer for more complicated repairs.
After establishing a loyal customer base, Gary was convinced that a Treble Clef Web site could benefit a variety of customers. He began with a simple Web site that provided information about the store and the types of gifts and services available. The site received so much response that Gary added a question-and-answer option. Questions poured in, ranging from "Where can I get sheet music for 'Hello, Dolly'?" to "Do you carry clarinet reeds?" to "My saxophone needs two new pads. When will you be at Elmhurst School to repair it?" The Web site is now able to accept credit card orders, and gifts can even be wrapped and shipped for no extra charge.
"This Web site idea was fantastic!" Gary admitted. "It allows us to be so responsive. And our novelties sales have doubled!"
-Gary wants to expand the reach of his business. An effective approach to reaching the most likely potential customers would be ________ marketing. The message will include a link to Treble Clef's Web site.

Accepted Answer

E-mail marketing would allow Gary to reach a large number of potential customers through targeted and personalized messages. It would also be cost-effective compared to other forms of marketing such as print or television. The link to Treble Clef's Web site can easily be included in the e-mail, allowing potential customers to easily access the store's offerings.

Question 17

The ________ was established by the Direct Marketing Association.

Accepted Answer

The Privacy Promise to American Consumers was established by the Direct Marketing Association as a set of guidelines for companies to follow when collecting and using consumer data in their marketing efforts. It outlines the importance of respecting consumer privacy and giving them control over their personal information.

Question 18

Charlie Putnam received an e-mail promoting a new financial services institution that offers surprisingly low mortgage rates. The e-mail simply asked customers to provide their address, date of birth, social security number, and current mortgage information in order to receive a free loan quote. Suspicious of the offer, Charlie researched the company and discovered that the e-mail was a fraud. This is an example of ________.

Accepted Answer

This is an example of phishing, where a fraudulent email is sent to trick recipients into providing sensitive information like social security numbers or login credentials.

Question 19

Refer to the scenario below to answer the following question(s).
The Treble Clef sells music books, musical instruments, and novelty gifts of a musical nature. In recent years, owner Gary Zahn has served as the local representative of several musical instrument manufacturers, providing a contact person for three local schools. He sends a sample of a manufacturer's products to schools that request a demonstration or presentation. "If we don't have it, we can definitely get it for you," Gary tells all Treble Clef visitors and customers.
Most walk-ins are particularly interested in a specific piece of sheet music from a particular era or just browsing among the hundreds of music knick-knacks in the store. Gary spends most of his time making presentations to beginners at the local schools and making biweekly visits to the schools to deliver instruments, make minor repairs, or pick up instruments to ship to the manufacturer for more complicated repairs.
After establishing a loyal customer base, Gary was convinced that a Treble Clef Web site could benefit a variety of customers. He began with a simple Web site that provided information about the store and the types of gifts and services available. The site received so much response that Gary added a question-and-answer option. Questions poured in, ranging from "Where can I get sheet music for 'Hello, Dolly'?" to "Do you carry clarinet reeds?" to "My saxophone needs two new pads. When will you be at Elmhurst School to repair it?" The Web site is now able to accept credit card orders, and gifts can even be wrapped and shipped for no extra charge.
"This Web site idea was fantastic!" Gary admitted. "It allows us to be so responsive. And our novelties sales have doubled!"
-In addition to sending samples of sheet music to schools, Gary sends school music directors messages with links to sample digital clips of the compositions. What kind of marketing is this?

Accepted Answer

This is e-mail marketing because Gary is sending messages with links to digital clips of compositions to school music directors.

Question 20

Which of the following acts requires that Web site operators obtain parental consent before collecting personal information about children under the age of 13?

Accepted Answer

The Children's Online Privacy Protection Act (COPPA) requires that Web site operators obtain parental consent before collecting personal information about children under the age of 13. The Safe Children's Act of 2001 pertains to firearms safety, the Children's Online Protection Act pertains to obscenity and harmful material online, the Adam Walsh Child Protection and Safety Act pertains to sex offender registration and notification, and the Children's Act for Responsible Employment pertains to child labor laws.

Quiz 17: Direct, Online, Social Media, and Mobile Marketing