Question 1

Database marketing is Internet based.

Accepted Answer

Database marketing can be done through various channels including email, direct mail, telephone, and social media. It does not necessarily have to be limited to the internet.

Question 2

Which of the following is NOT one of the principal benefits of direct marketing (DM)?

Accepted Answer

Cost-effective reach of mass markets is actually one of the principal benefits of direct marketing, making option C incorrect. Therefore, the answer is C. Option A, B, D, and E are all valid benefits of direct marketing.

Question 3

Direct- response ads typically provide__________ to make it easier for customers to place an order.

Accepted Answer

Direct-response ads aim to get customers to take immediate action and make a purchase. Providing a toll-free phone number or a web address makes it easier and more convenient for customers to place an order.

Question 4

Direct marketers view order- processing and delivery as a fulfilment response.

Accepted Answer

Direct marketers consider order- processing and delivery as a fulfilment response because it is the final step in the customer's journey and plays a significant role in their overall satisfaction with the brand.

Question 5

Mail order giants in the US have discovered that there are three criteria to use: speed of making a purchase, frequency of purchase and monetary value of purchase.

Accepted Answer

The answer of Mail order giants in the US have...

Question 6

Direct marketers and database developers in Australia are required to publish privacy guidelines that disclose the purposes for which they are gathering customer information, and they must be prepared to show individuals the information they hold on them.

Accepted Answer

This is in accordance with the Australian Privacy Act 1988, which mandates that organizations must have a privacy policy that outlines the type of personal information they collect, how it is used, and how individuals can access and correct their information. Failure to comply with these guidelines can result in penalties and legal action.

Question 7

Kiosks are essentially mini offices.

Accepted Answer

Kiosks are small booths or stands that typically provide a specific service or sell goods. They can function like mini offices for tasks such as purchasing tickets, paying bills, or ordering food.

Question 8

Direct and online marketing has witnessed major growth due to:

Accepted Answer

The advent of database technologies has greatly improved the effectiveness of direct and online marketing by allowing for targeted and personalized messaging to consumers based on their behavior and preferences. Improvements in postal services may have had some impact, but are not as significant as the advancements in database technologies. An improving economy and willingness of consumers to spend more may contribute to increased marketing spending, but do not directly relate to the growth in direct and online marketing. Therefore, option B is the best choice.

Question 9

The advent of the Internet has changed buyer behaviour. Which of the following statements about consumer use of the Internet is FALSE?

Accepted Answer

A) is false because consumers use the internet to search for a wide range of goods, not just high ticket items. The internet provides access to information on virtually any product or service, allowing consumers to research extensively before making a purchase.

Question 10

Telesales involves the use of telephone operators:

Accepted Answer

Telesales involves the proactive approach of calling potential customers to take their orders. This means that option A and C, which suggest sending faxes or randomly calling numbers, are not accurate. Option B only involves handling inbound calls, which is not an accurate representation of telesales. Therefore, option D is the best choice as it accurately describes the main function of telesales operators.

Question 11

There are at least four perceptions that must be held by consumers for catalogues to be a successful direct marketing tool-a speedy production system, an air of authority by the seller, value for money offerings, and a guarantee of satisfaction.

Accepted Answer

The statement is subjective and not universally applicable. Success in direct marketing can depend on various factors, and not all consumers may prioritize these specific perceptions.

Question 12

A measure of web performance that evaluates whether referring site payments provide a return on investment is known as a log file.

Accepted Answer

A measure of web performance that evaluates whether referring site payments provide a return on investment is actually called referral analytics or referral tracking, and is not related to log files.

Question 13

In spite of its obvious benefits, interactive TV has been slow to penetrate the Australian market.

Accepted Answer

Interactive TV has been slow to penetrate the Australian market, as stated in the sentence.

Question 14

The sending of unwanted or unsolicited email messages is known as:

Accepted Answer

The sending of unwanted or unsolicited email messages is known as spamming.

Question 15

Which of the following statements about telemarketing is true?

Accepted Answer

Telemarketing is used in both consumer marketing and business marketing. The other options are not true. Consumer privacy is an important consideration for telemarketers and telemarketing cannot replace field sales calls completely. Effective telemarketing depends not just on the script but also on the individual reading it.

Question 16

Which of the following statements BEST defines direct marketing?

Accepted Answer

Direct marketing is an interactive system of marketing that uses one or more advertising media and results in a measurable response. It includes various methods such as direct mail, email, telemarketing, and online advertising, among others. Its objective is to get a response from the target audience that can be measured, tracked, and analyzed to improve the effectiveness of the marketing campaign. Therefore, the statement that best defines direct marketing is C.

Question 17

Telemarketing may:

Accepted Answer

The answer of Telemarketing may:
...

Question 18

Sarah Fortner sells insurance. She has installed a software programme on her company's customer database that will remind her to mail birthday and anniversary cards to her clients. Sarah is using the customer base to:

Accepted Answer

Sarah is using the birthday and anniversary cards as a way to deepen customer loyalty and strengthen the relationship with her clients. This will make them more likely to stay with her company and refer new clients, but it is not necessarily a direct method of reactivating interests, identifying prospects for sales calls, qualifying potential customers, or creating sales leads.

Question 19

Maximarketing calls for the complete development of distribution through the use of single- vehicle, multiple stage campaigns.

Accepted Answer

Maximarketing involves a comprehensive marketing strategy that integrates various channels and methods, rather than relying on a single-vehicle, multiple-stage approach. It focuses on maximizing the reach and effectiveness of marketing efforts through a combination of tactics.

Question 20

A major public policy and ethical issue related to direct marketing is:

Accepted Answer

Direct marketing often involves collecting personal information from individuals, which can be seen as an invasion of privacy. There are concerns about the security and potential misuse of this information, and many consumers may feel uncomfortable with the targeted advertising that results from this data collection. As a result, privacy is a major public policy and ethical issue related to direct marketing.

Quiz 17: Direct and Online Marketing