Question 1

Cloning is a technique of mining the information in databases to uncover prospective buyers whose characteristics match those of current buyers.

Accepted Answer

Cloning refers to creating identical copies of an organism or cell, not a data mining technique. The described process is more akin to customer profiling or market segmentation.

Question 2

More direct-marketing dollars are spent on telemarketing than on any other medium.

Accepted Answer

Telemarketing has historically been a significant channel for direct marketing due to its ability to reach consumers directly and generate immediate responses, often leading to higher spending compared to other direct marketing mediums.

Question 3

Direct marketing is the model for e-commerce.

Accepted Answer

Direct marketing involves targeting and communicating with customers or prospects through various channels, including email, social media, and targeted advertising. This approach is similar to the methods used in e-commerce, where businesses rely on digital channels to reach and sell to customers directly. Therefore, direct marketing can be considered a model for e-commerce.

Question 4

Cold call dialing techniques make it possible for telemarketing companies to call anyoneeven those with unlisted numbers.

Accepted Answer

The answer of Cold call dialing techniques make it possible...

Question 5

The average response rate for a direct mail offer is 10 percent.

Accepted Answer

While the response rate for a direct mail offer can vary depending on various factors, the average response rate is typically around 1-3 percent. A 10 percent response rate would be considered exceptionally high.

Question 6

Combining direct-mail lists is called merging, and deleting the repeat names is called purging.

Accepted Answer

The statement is true.

Question 7

E-mail as a marketing tool is typically only used by e-commerce companies, such as Amazon.com.

Accepted Answer

E-mail can be used as a marketing tool by any type of company, not just e-commerce companies.

Question 8

Permission marketing gives customers an opportunity to opt-out of receiving further e-mails from a company.

Accepted Answer

Permission marketing is all about giving customers the power to choose whether or not they want to receive promotional messages from a company. By providing an opt-out option, companies show respect for their customers' privacy and preferences. This approach helps build trust and loyalty over time.

Question 9

A broadsheet is a multipage direct-mail publication that shows a variety of merchandise.

Accepted Answer

A broadsheet is actually a large-format newspaper, typically measuring around 18 inches by 24 inches, and containing serious news and analysis pieces.

Question 10

Unwanted e-mail is known as spam.

Accepted Answer

This is true, unwanted e-mail is commonly referred to as spam.

Question 11

One limitation of infomercials is that they cannot easily be introduced into foreign markets.

Accepted Answer

The answer of One limitation of infomercials is that they...

Question 12

Lifetime customer value is an estimate of how much purchase volume companies can expect to get over time from various target markets.

Accepted Answer

Lifetime customer value is indeed an estimate of how much purchase volume companies can expect to get over time from various target markets.

Question 13

Using outbound telemarketing, the call center staff calls unqualified numbers that are sometimes just randomly selected.

Accepted Answer

The answer of Using outbound telemarketing, the call center staff...

Question 14

The three types of direct marketing lists are house lists, response lists, and directory lists.

Accepted Answer

The answer of The three types of direct marketing lists...

Question 15

A direct-mail piece is a print advertising message for a product or service that is delivered by mail.

Accepted Answer

A direct-mail piece is specifically designed and produced to be delivered to people's mailboxes.

Question 16

In some foreign countries, government regulations of the postal service place limitations on the use of direct mail.

Accepted Answer

Some foreign countries have regulations in place that limit the use of direct mail by the postal service.

Question 17

The database marketing process begins with a sale.

Accepted Answer

The database marketing process typically begins with identifying a target audience or customer segment, collecting and analyzing customer data, and using insights gained from the data to develop marketing strategies and tactics. It does not necessarily have to begin with a sale, although sales data can be used as part of the analysis process.

Question 18

One advantage of direct marketing is that it affords flexibility in both form and timing.

Accepted Answer

Direct marketing allows for a variety of forms such as email, mail, telephone, and social media, and also allows for targeted timing based on the demographics and behaviors of the intended audience.

Question 19

One disadvantage of direct marketing is consumer frustration with too many catalogs and junk mail.

Accepted Answer

This is a commonly cited disadvantage of direct marketing, as consumers often feel overwhelmed and annoyed by the amount of unsolicited mail they receive.

Question 20

One of the primary advantages of direct mail is the low cost per thousand compared to mass media.

Accepted Answer

Direct mail often has a higher cost per thousand compared to many forms of mass media advertising due to the costs associated with printing and postage.

Quiz 16: Direct-Response