Question 1

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, which involves placing interactive machines in high-traffic areas to promote and sell products directly to consumers.

Question 2

The ________ was established by the Direct Marketing Association.

Accepted Answer

The Privacy Promise to American Consumers was established by the Direct Marketing Association. The other options were established through government legislation or industry standards organizations.

Question 3

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

Accepted Answer

The question asks for the exception, so the answer would be the feature that does not apply. In this case, the exception is free shipping – buyers with low sales resistance are likely to be enticed by elaborately staged demonstrations, time limitations, smooth-talking hosts, and claims of drastic price reductions.

Question 4

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

Accepted Answer

Telemarketing is an effective method for business-to-business marketers as they can directly communicate with potential clients and build relationships with them. However, it may not be as effective for business-to-consumer marketing as consumers may view telemarketing calls as intrusive and annoying.

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

Whenever a consumer enters a sweepstakes, applies for a credit card, visits a website or sends a tweet, their name and additional information become part of a company's database. This is often used for marketing and communication purposes.

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 as it only audits online privacy and security measures.

Question 7

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 as Gary is using email to send messages with links to his music compositions to school music directors.

Question 8

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, such as passwords and credit card numbers. Bait-and-switch refers to a tactic where an advertised product is not available, and the customer is pushed towards a different, more expensive product. Cyber spying is the act of gathering confidential information from computer and network systems. Viral marketing is a marketing strategy that uses social networks and other channels to spread information about a product or service. Spam refers to unsolicited commercial email or messages sent in bulk, often containing advertising or malicious content.

Question 9

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 description best fits the concept of a kiosk, which is a self-service machine that allows customers to interact with it and place orders. The other options do not fit the description as closely. POP refers to point of purchase displays, virtual catalogs typically refer to online shopping, interactive television is a different concept altogether and automated teller machines are used for banking transactions.

Question 10

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

Accepted Answer

The answer of What action do consumers continue to perform...

Question 11

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 and Children's Online Protection Act do not specifically address the collection of personal information from children online. The Adam Walsh Child Protection and Safety Act addresses issues such as sex offender registration and child exploitation, but not online privacy. The Children's Act for Responsible Employment pertains to child labor laws in the agriculture sector.

Question 12

Digital catalogs eliminate printing and mailing costs.

Accepted Answer

Digital catalogs are accessible online and can be easily viewed and distributed electronically without the need for printing and postage expenses.

Question 13

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 is a widely used tool that allows customers to opt out of seeing certain ads. It provides information regarding why the ad is being shown and the option to opt out.

Question 14

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

This scenario is an example of phishing, which is a type of cybercrime that involves sending fake messages, emails or text messages to steal confidential information from innocent victims. The e-mail Josh received is a classic example of a phishing email that deceives people into revealing personal information such as bank details, credit card numbers or social security numbers.

Question 15

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 was established to reduce abusive and intrusive email marketing practices. It requires that marketers provide recipients with a way to opt-out of receiving future emails, among other provisions.

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 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

The statement describes the act of sending samples of products directly to schools through mail, which is a form of direct-mail marketing.

Question 17

All of the following are Internet marketing concerns EXCEPT ________.

Accepted Answer

The other options (financial scams, access by vulnerable or unauthorized groups, phishing, and identity theft) are all Internet marketing concerns. However, secure online and digital websites are a necessary aspect of Internet marketing, but not a concern in and of itself.

Question 18

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 allows Gary to directly target potential customers who have shown interest in his business or music-related products. The message can be personalized and include a link to his website for easy access. This approach has the potential to be cost-effective and has a high return on investment.

Question 19

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 agree to notify customers when any personal information is rented, sold, or exchanged with others. While the other options are important consumer privacy rules, they are not explicitly stated as requirements under the program.

Question 20

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 the fraudster sends an email to lure and obtain personal information from individuals by posing as a trustworthy entity.

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