Question 1

All offers are a form of sales promotion.

Accepted Answer

All offers, including discounts, free samples, loyalty programs, contests, and giveaways, are intended to incentivize consumers to make a purchase or take a desired action, making them a form of sales promotion.

Question 2

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

Accepted Answer

A sticky website is one that keeps visitors engaged and coming back, often through frequent updates and changes to content, features, and design. A website that remains unchanged for a considerable period of time is likely to become stale and unappealing to visitors.

Question 3

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.

Accepted Answer

The answer of Customer Lifetime Value is one of the...

Question 4

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

Accepted Answer

The ability for individuals to interact with online content and respond in real time is crucial for the effectiveness of the Internet as a direct-response medium. Without interactivity, it would be difficult for users to engage with content and take action, which would limit the overall usefulness of the medium for direct-response marketing purposes.

Question 5

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

Accepted Answer

CLV (Customer Lifetime Value) is the net present value of all future profits from a customer, not just sales. It considers the revenue from a customer minus the costs associated with acquiring and serving them.

Question 6

The type of firm that typically has established capabilities in fulfillment and customer service:
A)manufacturers.
B)direct marketers.
C)internet marketers.

Accepted Answer

Direct marketers specialize in fulfillment and customer service as they focus on direct-to-consumer sales and rely heavily on a positive customer experience to maintain repeat business. Manufacturers may not have the infrastructure and expertise for fulfillment and customer service, while internet marketers may primarily focus on online advertising and traffic generation rather than order fulfillment and after-sales support.

Question 7

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

Accepted Answer

This statement is true. Data mining tools are specifically designed to analyze large sets of data in search of patterns and trends so that companies can better understand their customers and improve their business practices.

Question 8

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

Accepted Answer

Personalization is a customer-focused activity that requires a foundation of customer data and interactions to be built before it can be pursued. Market segmentation and building a customer database are important steps in building this foundation but do not necessarily lead directly to personalization.

Question 9

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

Accepted Answer

Acquiring new customers who share similar characteristics and behaviors to a company’s best current customers can lead to increased success and loyalty. These customers are more likely to have a positive experience with the company, make repeat purchases, and recommend the company to others, ultimately contributing to business growth.

Question 10

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

Accepted Answer

The "back end" refers to the technical and operational aspects of a website or software application, including databases, servers, and APIs, which are often important to marketers. Business functions like warehousing and distribution are more closely related to operations or logistics.

Question 11

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

Accepted Answer

The value of a fan on social media can be estimated using various metrics such as engagement rate, conversion rate, and potential reach, among others, although it may not be an exact science.

Question 12

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

Accepted Answer

The recognition of the Internet as a direct-response medium is important because it influences how businesses and marketers approach online advertising, customer engagement, and sales strategies, optimizing for immediate consumer action and feedback.

Question 13

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

Accepted Answer

A call to action is a key component of a direct-response offer. It tells the audience what they need to do to take advantage of the offer, whether it's clicking a button, making a call, or filling out a form. Without a clear call to action, the audience may not know how to respond to the offer.

Question 14

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

Accepted Answer

Information-driven marketing relies on data and analytics to inform interactions, transactions, and customization for individual consumers.

Question 15

NIKEiD is an example of:
A)an interactive website.
B)use of a customer database.
C)product customization.

Accepted Answer

NIKEiD allows customers to customize their products, offering a personalized shopping experience by selecting colors, materials, and designs according to their preferences.

Question 16

Response modeling is a form of predictive modeling.

Accepted Answer

Response modeling is a subset of predictive modeling that focuses on predicting the behavior or response of customers or individuals to a specific marketing or business action.

Question 17

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

Accepted Answer

The discount rate used in CLV calculations should reflect the company's cost of capital, which includes more than just the current interest rate. It should take into account factors such as the company's risk, inflation, and opportunity cost of investing in alternative projects.

Question 18

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.

Accepted Answer

The answer of The most effective Internet marketing programs make...

Question 19

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

Accepted Answer

A data warehouse is a centralized repository designed to store current and historical data from multiple sources for analysis and reporting, not just data that is no longer current.

Question 20

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

Accepted Answer

The Internet allows for immediate access to information, products, and services, which can satisfy the consumer's desire for instant gratification.

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