Question 1

Developing and using a customer database allowed Harrah's to:
A)locate the data they needed to execute pre-existing strategies.
B)find good locations for new casinos.
C)develop a model of how much a customer might be expected to spend.

Accepted Answer

Developing and using a customer database allowed Harrah's to develop a model of how much a customer might be expected to spend. This enabled them to tailor their marketing efforts and promotions towards individual customers, ultimately leading to increased customer loyalty and revenue. The other options (locating data for pre-existing strategies and finding good locations for new casinos) are not specifically mentioned as outcomes of using the customer database.

Question 2

Important characteristics of a direct-response offer include:
A)incentive to encourage action.
B)a call to action.
C)both of the above.

Accepted Answer

A direct-response offer must have an incentive to encourage action, which can be in the form of a discount, free item or service, or limited time offer, and a call to action, which prompts the recipient to take action and make a purchase or respond to the offer. Both characteristics are necessary for an effective direct-response offer.

Question 3

________ is a simple type of test frequently used in various marketing media.
A)Control group
B)Factorial design
C)A/B split

Accepted Answer

A/B split testing, also known as A/B testing or split testing, is a popular marketing technique used to compare two different versions of a marketing asset (such as an email or website page) and determine which one performs better. This is done by randomly dividing a sample audience into two groups and showing each group a different version of the asset. The results are then compared to see which version led to more conversions or achieved the desired outcome. This helps marketers optimize their campaigns and improve their overall results.

Question 4

Among the uses of CLV data to Harrah's is:
A)to drive programs that increase customer value.
B)to provide a powerful way to segment markets.
C)both the above.

Accepted Answer

Harrah's uses CLV data to both drive programs that increase customer value and provide a powerful way to segment markets. The CLV data allows Harrah's to identify their most valuable customers and tailor their marketing and loyalty programs to retain and increase their business. It also helps them segment their customer base and develop targeted marketing strategies for different groups of customers with different levels of value.

Question 5

Which of the following is not a true statement about CLV?
A)It is the net present value of the net margin minus the cost of serving a specific customer.
B)It can be used only by traditional direct marketers.
C)It requires an extensive customer database.

Accepted Answer

CLV is not limited to traditional direct marketers and can be applied to any business that has a customer base. A is a true statement about CLV as it represents the formula for calculating CLV, and C is also true as a customer database is necessary to track customer behavior and predict future purchases.

Question 6

The set of tools used to extract useful marketing information quickly from their database is called:
A)statistical program analysis.
B)automated profiling.
C)data mining.

Accepted Answer

Data mining involves using software tools to extract useful insights from large, complex datasets. It allows marketers to quickly identify patterns, trends, and other insights that can inform their marketing strategies. Automated profiling and statistical program analysis could also be useful tools in marketing, but they do not specifically refer to the process of extracting insights from a database.

Question 7

________ is the concept that helps the marketer understand how much it costs to acquire, maintain, and service a customer.
A)Market segmentation
B)Customer lifetime value
C)Lead generation

Accepted Answer

Customer lifetime value (CLV) is the concept that helps the marketer understand the total value a particular customer adds to the business over their lifetime. It takes into account the costs of acquiring, maintaining, and servicing the customer and helps the business make decisions about marketing investments and customer retention strategies. Market segmentation is the process of dividing a larger market into smaller groups based on similar needs or characteristics. Lead generation is the process of identifying potential customers and gathering their contact information for marketing purposes. While both market segmentation and lead generation are important concepts in marketing, neither directly relates to the cost of acquiring, maintaining, and servicing a customer.

Question 8

The "best customer model: called RFM:
A)helps marketers determine what kinds of new customers to acquire.
B)is a multiplicative model composed of recency, frequency and monetary value.
C)both of the above.

Accepted Answer

The RFM model is a multiplicative model based on three key factors: recency, frequency, and monetary value. This model helps marketers determine which types of new customers to acquire and is therefore represented by choice (A). Therefore, both choice (A) and (B) are correct, making the correct answer choice (C).

Question 9

Benefits of having and utilizing a marketing database include:
A)not having to perform statistical analysis on the data.
B)being able to construct customer profiles.
C)having a single customer database that includes information from other functional areas of the business.

Accepted Answer

A marketing database allows businesses to create customer profiles by collecting and storing customer data.

Question 10

An important use of customer lifetime value data is:
A)as a replacement for market segmentation.
B)to determine the allocation of marketing resources to marketing programs.
C)to decrease the need for targeting specific customer groups.

Accepted Answer

Customer lifetime value data helps companies determine which customers are most valuable and which marketing programs are most effective in retaining and acquiring customers. This information becomes crucial for companies to allocate their marketing resources effectively and efficiently, therefore, Choice B is the correct answer. Customer lifetime value data is not a replacement for market segmentation, nor does it decrease the need for targeting specific customer groups.

Question 11

Which of the following is a true statement about data mining?
A)Data mining can uncover previously unsuspected patterns in the data.
B)Marketers require the assistance of statisticians to get information from data mining routines.
C)Data mining routines were developed specifically to deal with the massive amounts of data available from the Internet.

Accepted Answer

Data mining is a process of discovering patterns, relationships and insights from large data sets. One of the main benefits of data mining is that it can uncover previously unknown patterns or relationships in the data that were not previously visible. This can lead to better decision-making and improved business outcomes.

Option B is incorrect because marketers, as well as other professionals, can perform data mining without the assistance of statisticians. However, having a basic understanding of statistics can be helpful in interpreting and using the results of data mining algorithms.

Option C is also incorrect as data mining routines were not specifically developed for the internet but rather for analyzing large data sets in general.

Question 12

Which of the following is a true statement about the front end of marketing?
A)It includes the activities that are most likely to produce satisfied customers.
B)It describes marketing activities that take place prior to the product being introduced to the market.
C)Front-end activities are the most visible aspects of marketing.

Accepted Answer

The answer of Which of the following is a true...

Question 13

Among the interactive strategies marketers can pursue are:
A)information, transaction, and personalization.
B)transaction, personalization, and collaboration.
C)interaction, profiling, and customization.

Accepted Answer

Information, transaction, and personalization are all interactive strategies that marketers can pursue.

Question 14

Which of the following is a true statement about the front end of marketing?
A)It describes marketing activities that take place prior to the product being introduced to the market.
B)It includes all the activities most likely to produce satisfied customers.
C)The front end involves customer acquisition activities.

Accepted Answer

The front end of marketing involves customer acquisition activities, which are essential for attracting and engaging potential customers before they make a purchase.

Question 15

True statements about testing in the Internet environment are:
A)testing requires a substantial amount of marketing research.
B)testing provides information that is not ordinarily available to marketers in the mass media environment.
C)both of the above.

Accepted Answer

The answer of True statements about testing in the Internet...

Question 16

________ is the term used to describe the marketing activities that involve fulfillment and customer service:
A)Back end
B)Inventory management
C)Front end

Accepted Answer

Back end refers to the activities that involve fulfillment and customer service after the customer has made a purchase, including inventory management, order processing, shipping, and handling returns or customer inquiries. This is in contrast to front end activities, which involve marketing, advertising, and customer acquisition.

Question 17

Important characteristics of a direct-response offer include:
A)always having a purchase as the objective.
B)deferred action on the part of the prospective customer.
C)a clear call to action.

Accepted Answer

A direct-response offer must contain a clear call to action that prompts the prospective customer to take immediate action, such as making a purchase or responding to the offer in some way. Option A is not always the objective, as some direct-response offers may have other goals such as generating leads or building brand awareness. Option B is also incorrect, as deferred action would not be effective in a direct-response offer where the objective is to prompt an immediate response.

Question 18

Objectives of a direct-response marketing program can include:
A)generating sales leads.
B)creating awareness of a product or service.
C)developing brand image.

Accepted Answer

The objective of direct-response marketing is to elicit an immediate response or action from the customer, which can be in the form of generating a lead or making a sale. Creating awareness or developing brand image are usually the objectives of an advertising or branding campaign, which may not necessarily result in an immediate response or action from the customer.

Question 19

The Four I's of Internet marketing include:
A)information-driven, intuitive.
B)integrated, immediate.
C)involving, interactive.

Accepted Answer

The Four I's of Internet marketing are involving, interactive, individualized, and interconnected. Only option C includes two of these I's: involving and interactive. Option A includes information-driven, which is not one of the Four I's, and intuitive, which is not included in the Four I's. Option B includes integrated, which is not one of the Four I's, and immediate, which is not included in the Four I's.

Question 20

The basic direct-response strategies are:
A)attraction, commitment, and loyalty.
B)acquisition, conversion, and retention.
C)attraction, conversion, and retention.

Accepted Answer

The strategies of acquisition (attracting new customers), conversion (turning prospects into customers), and retention (keeping existing customers loyal) are the core principles of direct-response marketing. Therefore, option B is the correct answer. Option A includes commitment, which is more applicable to relationship marketing, while option C combines attraction and conversion but leaves out retention.

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

Developing and using a customer database allowed Harrah's to:

Important characteristics of a direct-response offer include:

________ is a simple type of test frequently used in various marketing media.

Among the uses of CLV data to Harrah's is:

Which of the following is not a true statement about CLV?

The set of tools used to extract useful marketing information quickly from their database is called:

________ is the concept that helps the marketer understand how much it costs to acquire, maintain, and service a customer.

The "best customer model: called RFM:

Benefits of having and utilizing a marketing database include:

An important use of customer lifetime value data is:

Which of the following is a true statement about data mining?

Which of the following is a true statement about the front end of marketing?

Among the interactive strategies marketers can pursue are:

Which of the following is a true statement about the front end of marketing?

True statements about testing in the Internet environment are:

________ is the term used to describe the marketing activities that involve fulfillment and customer service:

Important characteristics of a direct-response offer include:

Objectives of a direct-response marketing program can include:

The Four I's of Internet marketing include:

The basic direct-response strategies are: