Question 1

In purchasing a direct mailing list,a "hot" list consists of individuals who have:
A) met a specific demographic profile
B) responded to previous direct mail offers made by the company purchasing the list
C) made purchases or responded to direct mail offers in the past
D) responded to a direct mail offer within the last 30 days

Accepted Answer

The answer of In purchasing a direct mailing list,a "hot"...

Question 2

The reasons many CRM programs failed include all of the following,except:
A) programs were implemented before a solid customer strategy was created
B) companies failed to conduct lifetime value and RFM analysis prior to implementing the CRM program
C) they were technology driven instead of customer driven
D) customers felt "stalked" rather than "wooed"

Accepted Answer

Lifetime value and RFM analysis are important for understanding customer value, but their absence is not a primary reason for CRM program failure. The other options relate directly to strategic and customer-centric issues that can lead to failure.

Question 3

In terms of online sales,in many cases receiving which of the following is the first step in the buying process?
A) package inset or ride-along card
B) e-mail
C) catalog
D) telemarketing call

Accepted Answer

The answer of In terms of online sales,in many cases...

Question 4

The key reason many CRM programs failed was:
A) failure to differentiate customer profiles
B) firms did not understand customers
C) a focus on technology rather than people
D) a focus on sales rather than enhancing relationships with customers

Accepted Answer

The answer of The key reason many CRM programs failed...

Question 5

The program designed to build long-term loyalty and bonds with customers,facilitated by technology,is known as:
A) permission marketing
B) direct marketing
C) customer relationship management
D) frequency marketing

Accepted Answer

Customer relationship management (CRM) is a program designed to build long-term loyalty and bonds with customers facilitated by technology. It involves collecting customer data, analyzing it to gain insights, and using that information to tailor marketing and customer service efforts to individual customers, with the goal of increasing customer satisfaction and improving customer retention. Permission marketing, direct marketing, and frequency marketing may be part of a CRM program, but they are not the program itself.

Question 6

In developing a CRM program,the "share" of the customer refers to:
A) the value of the customer over his or her lifetime
B) the share of the firm's revenue the customer generates
C) the share of expenditure the customer spends compared to his or her total income
D) the percentage of expenditures a customer makes with one particular firm compared to total expenditures in the product category

Accepted Answer

The "share" of the customer in CRM refers to the percentage of expenditures a customer makes with one particular firm compared to total expenditures in the product category. This metric is useful for understanding how much of the customer's purchasing power is being spent on the company's products or services, as well as how loyal the customer is to the brand. It can help businesses identify opportunities for growth by targeting customers who have a lower share of wallet and incentivizing them to increase their spending with the company.

Question 7

The two primary metrics of CRM are:
A) data-driven communications and data-driven marketing programs
B) lifetime value and RFM analysis
C) data mining and data coding
D) lifetime value of customers and share of customer

Accepted Answer

The two primary metrics of CRM are lifetime value of customers, which refers to the estimated revenue a customer will bring over the duration of their relationship with a company, and share of customer, which refers to the percentage of a customer's spending that a company captures in a given product or service category. These metrics are key to understanding the profitability of each customer and developing strategies to maximize their value to the business.

Question 8

In developing a CRM program,the "share" of customer term refers to:
A) the potential value that could be added to a given customer's lifetime value
B) the lifelong earning of a customer
C) the share of a customer's income that is spent on a particular product
D) the percentage of time spent on acquiring the customer's loyalty

Accepted Answer

The "share of customer" term in CRM refers to the potential value that could be added to a given customer's lifetime value. This involves identifying opportunities to increase revenue and profits from existing customers by cross-selling, up-selling, or encouraging repeat purchases.

Question 9

The most likely individuals to be enticed to join a frequency or loyalty program are:
A) light users
B) moderate users
C) heavy users
D) new users

Accepted Answer

The answer of The most likely individuals to be enticed...

Question 10

Participants in a frequency program at a hardware store are the most likely to participate if the reward is:
A) a 10 percent coupon for any item in the store
B) a 10 percent coupon for a specific item in the store
C) a $25 gift certificate for a meal at a restaurant
D) a $30 voucher for hardware in the store

Accepted Answer

The answer of Participants in a frequency program at a...

Question 11

If Amelia spends $300 a year at The Gap and spends an average of $1500 a year on clothes,then the share of customer for The Gap:
A) is 20 percent
B) is 50 percent
C) is $300
D) cannot be determined with the information provided

Accepted Answer

To calculate the share of customer for The Gap, we need to divide the amount Amelia spends at The Gap by the total amount she spends on clothes:
$300 / $1500 = 0.2 or 20%
Therefore, the share of customer for The Gap is 20 percent.

Question 12

The direct marketing technology that allows for customized printing of material is called:
A) data mining
B) digital direct-to-press
C) digital computerization
D) direct press

Accepted Answer

Digital direct-to-press technology allows for customized printing of material by using digital data to directly print onto paper. This eliminates the need for traditional printing plates and allows for more efficient and customized printing. Data mining is the process of analyzing large sets of data to discover patterns and relationships. Digital computerization and direct press are not specific technologies related to customized printing.

Question 13

In purchasing a direct mailing list,a compiled list consists of individuals who have:
A) met a specific demographic profile
B) responded to previous direct mail offers made by the company purchasing the list
C) made purchases or responded to direct mail offers in the past
D) responded to a direct mail offer within the last 30 days

Accepted Answer

The answer of In purchasing a direct mailing list,a compiled...

Question 14

The following are principles for building a successful frequency or loyalty program,except:
A) exclude less valuable customers through data mining
B) design the program to enhance the value of the product
C) calculate the full cost of the program
D) design a program that maximizes the customer's motivation to make the next purchase

Accepted Answer

Excluding less valuable customers through data mining is not a principle for building a successful frequency or loyalty program. In fact, a successful program should aim to retain and engage all customers, regardless of their spending habits or value. Excluding customers may lead to negative repercussions, such as decreased customer satisfaction or brand loyalty.

Question 15

The most common method of direct-marketing is:
A) direct mail
B) telemarketing
C) direct response mass media
D) e-mails

Accepted Answer

Direct mail is the most common form of direct marketing where businesses send advertising materials such as flyers, postcards, and catalogs through postal mail to a targeted audience. This method allows for personalized communication with potential customers and can be tracked for effectiveness through response rates. Telemarketing and direct response mass media can also be effective, but have higher costs and can be more intrusive to consumers. E-mails can be effective, but with the rise of spam filters and the ease of unsubscribing, their effectiveness has decreased in recent years.

Question 16

A useful metric for evaluating members in a frequency program is:
A) data mining
B) geocoding
C) lifetime value analysis
D) RFM analysis

Accepted Answer

The answer of A useful metric for evaluating members in...

Question 17

The primary disadvantage of direct mail is:
A) quality of mailing lists
B) inability to target mailings
C) low response rates
D) clutter

Accepted Answer

The answer of The primary disadvantage of direct mail is:
A)...

Question 18

The most common approach to direct mail is to:
A) use the firm's database list
B) purchase a mailing list
C) mass mail to everyone within specific geocodes
D) use RFM analysis to parse the mailing list

Accepted Answer

The answer of The most common approach to direct mail...

Question 19

Vending products to customers without the use of other channel members is:
A) database marketing
B) direct marketing or direct response marketing
C) indirect marketing
D) by-pass marketing

Accepted Answer

Direct marketing or direct response marketing involves vending products directly to customers without the involvement of intermediary channel members. This can be done through mail, email, telemarketing, or even vending machines.

Question 20

In purchasing a direct mailing list,a response list consists of individuals who have:
A) met a specific demographic profile
B) responded to previous direct mail offers made by the company purchasing the list
C) made purchases or responded to direct mail offers in the past
D) responded to a direct mail offer within the last 30 days

Accepted Answer

A response list is specifically compiled from individuals who have previously made purchases or responded to direct mail offers, indicating a higher likelihood of future engagement.

Quiz 11: Database and Direct Response Marketing

In purchasing a direct mailing list,a "hot" list consists of individuals who have:

The reasons many CRM programs failed include all of the following,except:

In terms of online sales,in many cases receiving which of the following is the first step in the buying process?

The key reason many CRM programs failed was:

The program designed to build long-term loyalty and bonds with customers,facilitated by technology,is known as:

In developing a CRM program,the "share" of the customer refers to:

The two primary metrics of CRM are:

In developing a CRM program,the "share" of customer term refers to:

The most likely individuals to be enticed to join a frequency or loyalty program are:

Participants in a frequency program at a hardware store are the most likely to participate if the reward is:

If Amelia spends $300 a year at The Gap and spends an average of $1500 a year on clothes,then the share of customer for The Gap:

The direct marketing technology that allows for customized printing of material is called:

In purchasing a direct mailing list,a compiled list consists of individuals who have:

The following are principles for building a successful frequency or loyalty program,except:

The most common method of direct-marketing is:

A useful metric for evaluating members in a frequency program is:

The primary disadvantage of direct mail is:

The most common approach to direct mail is to:

Vending products to customers without the use of other channel members is:

In purchasing a direct mailing list,a response list consists of individuals who have: