Deck 2: Database Marketing and Customer Relationship Marketing

Question 1

According to the text, which of the following is the primary way a company can retain its customers?

A)Providing the customer information about the company
B)By keeping the customer satisfied and happy
C)Asking the customer to suggest ideas to make them happy
D)Extensive communication with the customer

Answer 1

B

Question 2

The information contained in a customer database is called _____.

A)Source data
B)Valuable data
C)Informative data
D)Market data

Answer 2

A

Question 3

Marketers develop _____ to avoid the problem of duplicating the same individual or organization within a list.

A)Identification Numbers
B)Character IDs
C)Match Codes
D)Key Codes

Answer 3

C

Question 4

An advantage of the mergepurge process used within a house list is ________.

A)Eliminating duplicate names/addresses
B)Saving costs and minimizing irritation
C)Identifying multibuyers
D)All of the above

Question 5

If the same name/address is found on two or more response lists simultaneously, that individual is characterized as a _____.

A)Frequent buyer
B)Multibuyer
C)Continuous buyer
D)Product Lover

Question 6

Whenever possible, direct marketers request address corrections through the _____.

A)Department of Motor Vehicles (DMV)
B)Social Security Services
C)United States Postal Service
D)National Securities Association

Question 7

A technique developed by direct marketers to ensure that their customer lists are not misappropriated or misused especially when rented to outside parties is called _____.

A)Seeding
B)Targeting
C)Red Flagging
D)Spying

Question 8

According to your text, which of the following is/are not one of the eight common ways a direct marketer can use a customer database?

A)Retain the best customers.
B)Thank customers for their patronage.
C)Develop a customer communication program.
D)Receive a profit for selling information of customer database to competitors.

Question 9

The kinds of information that enhance a database through database enhancement include all of the following except _____.

A)Geographic
B)Demographic
C)Economic
D)Social

Question 10

An analysis performed by a corporation found that a direct relationship exists between the purchase of beer and diapers in the evening hours. This is an example of _____.

A)Conservative Marketing
B)Customer Profiling
C)Data Mining
D)Communication Program

Question 11

Which of the following is not a reason to enhance a customer database?

A)To learn more about the customer.
B)To increase the effectiveness of future promotional activities targeted to current customers.
C)To better prospect for new customers who are similar to current customers.
D)All of the above are reasons to enhance a customer database.

Question 12

___________ is the acronym for the discounted stream of revenue a customer will generate over the period of his or her lifetime of patronage with a company.

A)PAR
B)LTV
C)MVP
D)ROI

Question 13

The concept of investing in new customers means that

A)A loss on every subsequent sale can be made up through volume over time.
B)New customer acquisition cost will be recovered over time.
C)Customers age rapidly.
D)Customers have no ongoing loyalty to a firm.

Question 14

When compared with new customers, loyal customers do which of the following?

A)Spend less over time, cost less to serve and spend more on single purchases.
B)Are less profitable to the company than new customers.
C)Spend more over time, cost less to serve, are less price sensitive, and generate referrals through wordofmouth communication.
D)Account for more of the customer service complaints.

Question 15

According to the text, it costs approximately ________ times more to acquire a new customer than it does to keep a current one.

A)56
B)68
C)810
D)1012

Question 16

Database analytics rely on ____________ to analyze customer information.

A)Data mining
B)Profiling
C)Modeling
D)All of the above

Question 17

In direct marketing, "stealth" marketing communications is primarily made possible due to which of the following?

A)Market research
B)Source data
C)Mass media
D)Hightech media

Question 18

In the customer value hierarchy, qualified "handraisers" who have identified themselves as having an interest in your company are referred to as ______________.

A)Prospects
B)Advocates
C)Clients
D)Suspects

Question 19

Which of the following concepts or terms is not associated with micro targeting?

A)Personalization
B)Lifestyle data
C)Big idea
D)Customization

Question 20

The goal of ________ is to allow the entire organization to be cohesive in how it communicates with each customer and manage that customer experience.

A)CRM
B)Marketing Strategy
C)CLTV
D)Database enhancement

Question 21

A customer database is the key to developing strong customer relationships and retaining current customers.

Question 22

At the top of the customer hierarchy are the company's clients, or most valuable customers that generate the most revenue.

Question 23

Customer loyalty programs are programs sponsored by an organization or firm to encourage customer repeat purchases through program enrollment processes and the distribution of awards and/or benefits.

Question 24

Three components of transaction data that help analyze each customer through some variation include: recency, frequency, and efficiency.

Question 25

In addition to being able to delete duplicate names and addresses, the mergepurge process has the ability to effectively remove names of individuals who have expressed a desire not to receive solicitation.

Question 26

The term "nixie" refers to mail that has been returned by the United States Postal Service because it is undeliverable as addressed.

Question 27

Database analytics is where the direct marketer analyzes customer information within the customer database to draw inferences about an individual customer's needs.

Question 28

Database enhancement is the adding and overlaying of information to customer records to better describe and understand the customer.

Question 29

The key to successful microtargeting is targeting the right mass audience.

Question 30

Often marketers use PRM to support a cause.

Question 31

All customers are of equal value to a company or organization.