Question 1

The primary advantage of segmenting customers by lifetime value is:

Accepted Answer

The answer of The primary advantage of segmenting customers by...

Question 2

With a permission marketing program,customer permission is normally obtained:

Accepted Answer

Permission marketing often involves providing an incentive to encourage customers to willingly give their consent to receive marketing communications.

Question 3

An incentive program designed to encourage repeat purchases is called:

Accepted Answer

A frequency program is designed to reward customers for making repeat purchases by offering incentives such as points, discounts, or rewards for reaching certain levels of purchases. Direct marketing refers to any form of marketing that directly communicates with the customer, such as email or direct mail. Permission marketing is a form of marketing where the customer gives explicit permission for a company to send them marketing messages. A ride-along program is a promotion where a company adds a sample or promo item to another product as a way to introduce it to customers.

Question 4

Frequent flier miles in airline travel are a form of:

Accepted Answer

Frequent flier miles are a type of loyalty or frequency program, where passengers earn miles for every flight taken with a particular airline, and can then redeem those miles for rewards such as free flights, upgrades, or other perks. They are not a form of direct marketing, permission marketing, or ride-along program.

Question 5

Haley often purchases clothes from the VF Corporation online.On her birthday,the VF Corporation sends her an e-mail birthday card with a free voucher for $20 for her next online purchase.This is an example of:

Accepted Answer

Trawling refers to the process of searching through data to identify patterns or specific information, such as identifying customers with upcoming birthdays to send them targeted offers or promotions.

Question 6

A company uses lifetime value to segment their customers into five different segments.The marketing approach that should be used for the top segment,which has the highest lifetime value,is:

Accepted Answer

The answer of A company uses lifetime value to segment...

Question 7

To maintain positive attitudes in a permission marketing program,consumers must be given rewards along the way,not just at the beginning.Doing so creates the feeling of:

Accepted Answer

Reciprocity is the principle that when someone gives us something, we feel obligated to give something back. By giving rewards throughout the permission marketing program, the consumers feel appreciated and valued, which in turn creates a sense of reciprocity. This can lead to increased loyalty and satisfaction. Empowerment and satisfaction are also important, but they are not directly related to the rewards given throughout the program.

Question 8

To optimize permission marketing programs,firms must feature:

Accepted Answer

The answer of To optimize permission marketing programs,firms must feature:
...

Question 9

When promotional materials are only sent to customers who have given their approval,the program is called:

Accepted Answer

The program described is called permission marketing, where promotional materials are only sent to customers who have given consent or approval to receive them. Direct mail and internet marketing may or may not involve customers giving their permission beforehand. A frequency program is a loyalty program that rewards customers for frequent purchases but doesn't necessarily involve obtaining permission from customers.

Question 10

To optimize permission marketing,firms must grant customers empowerment,which means customers:

Accepted Answer

The answer of To optimize permission marketing,firms must grant customers...

Question 11

The Book of the Month Club is an example of:

Accepted Answer

The answer of The Book of the Month Club is...

Question 12

Consumers often ignore marketing information sent to them after joining a permissions marketing program because:

Accepted Answer

Consumers may initially be interested in receiving marketing information when they sign up for a permissions marketing program, but over time their interests and needs may change. If the marketing pieces are not relevant to them anymore, they are likely to ignore them. Cost, winning prizes, and not leaving a forwarding address may all be factors, but they are not as likely to be the primary reason for ignoring marketing information.

Question 13

A company uses lifetime value to segment their customers into five different segments.The marketing approach that should be used for the lowest segments is:

Accepted Answer

The answer of A company uses lifetime value to segment...

Question 14

Many companies that sell clothes over the Internet will send e-mail messages or an e-mail newsletter to customers who are interested in keeping up with the latest fashion news.This strategy is most successful if it is based on:

Accepted Answer

The most successful strategy for sending e-mail messages or newsletters to customers interested in fashion news is based on customer profile information that the customer has provided to the company. This allows companies to personalize communication and message content based on the specific interests and preferences of each customer. Using lifetime value and RFM analysis, customer profile information obtained from web behavior, or customer profile information obtained through cookies may not be as effective in creating personalized and targeted communication.

Question 15

The process of searching a database for a specific piece of information,such as a birthday,for marketing purposes is:

Accepted Answer

Trawling refers to searching through a database for specific information, such as birthdays, for targeted marketing purposes.

Question 16

Typical objectives for frequency programs include all of the following,except:

Accepted Answer

Frequency programs are typically designed to increase loyalty among existing customers, maintain sales, margins, or profits, and respond to competitors' programs, rather than primarily focusing on attracting new customers.

Question 17

Response rates are often higher for permissions marketing programs because:

Accepted Answer

Consumers who have given permission for marketing material are more likely to engage with it since they have already expressed an interest in the product or service being offered. This can lead to higher response rates compared to unsolicited marketing messages. The other options (B, C, D) do not necessarily contribute to higher response rates for permission marketing programs.

Question 18

Frequency programs target all of the following goals,except:

Accepted Answer

The answer of Frequency programs target all of the following...

Question 19

Typical objectives for frequency programs include all of the following,except:

Accepted Answer

Frequency programs aim to differentiate a brand, induce cross-selling, and preempt new entries, but not to build brand parity, which means making a brand similar to others.

Question 20

A company uses lifetime value to segment their customers into five different segments.The marketing approach that should be used for the second segment,which has the second highest lifetime value,is:

Accepted Answer

Since the second segment has the second-highest lifetime value, it means that they are loyal customers who have already made significant purchases. Therefore, it would be wise to reward their patronage and encourage them to spend even more with the firm. This will not only increase their lifetime value but also help maintain their loyalty to the brand. Offering price incentives or encouraging them to move up to the next highest group may not be as effective in maintaining their loyalty as opposed to rewarding their patronage.

Quiz 11: Database and Direct Response Marketing

The primary advantage of segmenting customers by lifetime value is:

With a permission marketing program,customer permission is normally obtained:

An incentive program designed to encourage repeat purchases is called:

Frequent flier miles in airline travel are a form of:

Haley often purchases clothes from the VF Corporation online.On her birthday,the VF Corporation sends her an e-mail birthday card with a free voucher for $20 for her next online purchase.This is an example of:

A company uses lifetime value to segment their customers into five different segments.The marketing approach that should be used for the top segment,which has the highest lifetime value,is:

To maintain positive attitudes in a permission marketing program,consumers must be given rewards along the way,not just at the beginning.Doing so creates the feeling of:

To optimize permission marketing programs,firms must feature:

When promotional materials are only sent to customers who have given their approval,the program is called:

To optimize permission marketing,firms must grant customers empowerment,which means customers:

The Book of the Month Club is an example of:

Consumers often ignore marketing information sent to them after joining a permissions marketing program because:

A company uses lifetime value to segment their customers into five different segments.The marketing approach that should be used for the lowest segments is:

Many companies that sell clothes over the Internet will send e-mail messages or an e-mail newsletter to customers who are interested in keeping up with the latest fashion news.This strategy is most successful if it is based on:

The process of searching a database for a specific piece of information,such as a birthday,for marketing purposes is:

Typical objectives for frequency programs include all of the following,except:

Response rates are often higher for permissions marketing programs because:

Frequency programs target all of the following goals,except:

Typical objectives for frequency programs include all of the following,except:

A company uses lifetime value to segment their customers into five different segments.The marketing approach that should be used for the second segment,which has the second highest lifetime value,is: