Question 1

Cross-selling is the practice of identifying past purchasers of one product and suggesting that they purchase other products.

Accepted Answer

Cross-selling is indeed the practice of suggesting other products to past purchasers of one product.

Question 2

One disadvantage of direct marketing is that it has no way to identify and target specific segments of the population.

Accepted Answer

This statement is false. Direct marketing allows for the use of various techniques to identify and target specific segments of the population, such as analyzing consumer data, creating customer profiles, and using geographic and demographic targeting.

Question 3

One great benefit of a database is that it allows a firm to measure how much business it is actually doing with its best customers.This can be found with an analysis of recency, frequency, and monetary factors.

Accepted Answer

A database can track the purchase history of individual customers, allowing a firm to measure their recency (how recently they made a purchase), frequency (how often they make purchases) and monetary factors (how much they spend). This information can be used to identify the firm's best customers and develop targeted marketing strategies to retain them.

Question 4

Privacy continues to be a hot topic in the world of direct marketing, and today many consumers are uneasy about the ways in which their personal information is being gathered and used.

Accepted Answer

Privacy concerns are a legitimate issue in the realm of direct marketing and many consumers are increasingly worried about the collection and use of their personal information.

Question 5

Ben & Jerry's uses its database to not only get customers' reactions to flavors and product ideas, but also to involve them in social causes.

Accepted Answer

The statement is true. Ben & Jerry's uses its database to gather feedback from customers regarding flavors and product ideas, as well as to involve them in social causes.

Question 6

Though emerging technologies have created exciting new options for direct marketers, businesses have had direct contact with consumers since the early days of Richard Sears, Alvah Roebuck, Les Wunderman, and L.L.Bean.

Accepted Answer

The statement is true as direct marketing has been around for over a century and has evolved with the advent of newer technologies. Richard Sears, Alvah Roebuck, Les Wunderman, and L.L.Bean were some of the pioneers of direct marketing.

Question 7

The most common use of direct marketing is as a tool to close the sale with a customer.

Accepted Answer

Direct marketing is often used to make a personalized and targeted offer to a customer in order to persuade them to make a purchase or take a desired action. Therefore, it is commonly used as a tool to close the sale.

Question 8

With the power that comes from every new computer chip, today's marketers can gather and manage a massive amount of information.They might think of their overall goal as cultivating a kind of cybernetic intimacy with customers.

Accepted Answer

The statement accurately reflects how the use of computer chips and data analytics has enabled marketers to collect and analyze a vast amount of customer data in order to build deeper relationships with them.

Question 9

A direct marketing campaign can serve many purposes.One of them, though not the most common, is to engage customers and foster brand loyalty.

Accepted Answer

A direct marketing campaign can be used to not only generate sales, but also to build relationships with customers and enhance brand loyalty.

Question 10

One simple element in a customer database-a date of birth-allows companies to do something a little special and contact customers on their birthdays.

Accepted Answer

A date of birth in a customer database can indeed allow companies to contact their customers on their birthdays, which can be a nice way to build customer relationships and loyalty.

Question 11

A home decor catalog is trying to use its marketing database to identify and isolate its best customers to determine their decision making and purchasing behavior.A CPO analysis is an excellent tool to help accomplish this.

Accepted Answer

The answer of A home decor catalog is trying to...

Question 12

Direct marketing can provide consumers access to a range of products and services right in their own homes, which many customers consider to be a valuable trait nowadays.

Accepted Answer

Direct marketing allows customers to receive information and offers about products and services in the comfort of their own homes through various channels such as mail, email, and social media. This convenience is often seen as a benefit by consumers.

Question 13

One characteristic of a direct marketing program is that it almost always tries to strengthen brand recognition.

Accepted Answer

Direct marketing focuses on targeting specific individuals or groups with the intention of eliciting an immediate response, such as making a purchase, signing up for a service, or attending an event. While reinforcing brand recognition can be a secondary goal, the primary objective of direct marketing is to drive a specific action or behavior.

Question 14

Direct marketing is an interactive system that uses one or more forms of advertising media to effect a measurable response and/or transaction at any location.

Accepted Answer

Direct marketing is designed to elicit a response or transaction from the audience, often through personalized messages, calls to action, and targeted offers. This response can take many forms, such as purchasing a product, filling out a survey, or calling for more information. Direct marketing can be conducted through a variety of channels, such as direct mail, email, social media, telemarketing, or in-person sales. The effectiveness of direct marketing can be measured through various metrics, such as response rates, conversion rates, and customer lifetime value.

Question 15

Internal mailing lists are created by accessing the organization's own records of its customers, donors, subscribers, or inquirers.

Accepted Answer

Internal mailing lists are typically created using an organization's own records of its customers, donors, subscribers, or inquirers. These lists can be used for a variety of purposes, including marketing campaigns, fundraising efforts, or general communication with stakeholders.

Question 16

The difference between a database and a mailing list is that the mailing list also includes information collected directly from a marketer's own customers.

Accepted Answer

A mailing list is a subset of a database, specifically focused on contact information for sending communications. Both databases and mailing lists can include information collected directly from customers.

Question 17

Direct marketers employ mailing lists because they are easy to use and inexpensive.

Accepted Answer

Mailing lists are a common tool used by direct marketers because they allow for targeted outreach to potential customers and are relatively low-cost compared to other forms of advertising.

Question 18

The one word that could be used to summarize the popularity of direct marketing among today's consumers is convenience.

Accepted Answer

Direct marketing offers convenience to consumers by allowing them to shop from the comfort of their own homes, receive personalized offers and promotions, and easily compare prices and products online. This has led to an increase in the popularity of direct marketing among consumers in recent years.

Question 19

External lists are the starting point for developing better relations with customers.

Accepted Answer

External lists are used for acquiring new customers, not for developing better relations with existing ones.

Question 20

The appeal of direct marketing is the ease with which marketers can measure results, most often by calculating cost per inquiry (CPI) or cost per order (CPO).

Accepted Answer

Direct marketing allows for easy measurement of results through calculating CPI or CPO, making this statement true.

Quiz 17: Integrating Direct Marketing and Personal Selling