TEST BANK for Direct, Digital & Data-Driven Marketing 5th Edition by Lisa Spiller. All 15 Chapaters

Multiple Choice Questions Chapter 1: Processes and applications of direct marketing 1-1.

________ is a database-driven interactive process of directly communicating with targeted customers or prospects using any medium to obtain a measurable response or transaction via one or multiple channels.

A. database marketing B. direct marketing C. mass marketing D. affiliate marketing

(Answer: b., p. 9)

1-2.

Direct marketing as a term is synonymous with _____.

A. mail order selling B. Internet advertising C. telemarketing D. none of the above

(Answer: d., p. 9)

1-3.

Direct marketing objectives do not include _____.

A. selling merchandise for a company B. enhancing a company’s image C. getting people to visit a store D. getting people to inquire about a specific product or service

(Answer: b., p. 10-11)

1-4.

Brand marketing and direct marketing are converging because of: A. cost B. the regulatory environment C. the digital revolution D. the cost of paper

(Answer: c., p. 11)

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SAGE Publishing, 2020 1-5.

Direct marketing is known for having its historical roots in _____ and _____.

A. measurability and accountability B. direct mail and mail order selling C. Internet mail and on-line catalogs D. offers and promotions

(Answer: b., p. 11)

1-6.

Direct marketing is characterized by _____.

A. ongoing relationships and affinity with customers B. measurement of results and accountability for costs C. multichannel fulfillment and distribution D. all of the above

(Answer: d., p. 10)

1-7.

Which of the following are not factors that have affected the growth of direct marketing?

A. more banking options B. improved printing techniques C. dissatisfaction with retail outlets D. increasing use of credit cards

(Answer: a., p. 12-14) 1-8.

Which of the following is not a basic characteristic of direct marketing?

A. Measurement of results B. Accountability for costs C. discounts D. customer/prospect database

(Answer: c., p. 10)

1-9.

_____ allows customers to select the media or channels they prefer when shopping for products and services.

A. Multichannel distribution B. Internet marketing C. Electronic media D. Response marketing

(Answer: a., p. 19)

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SAGE Publishing, 2020 1-10.

Multichannel distribution means: A. using more than one direct mail campaign to reach customers B. using more than one television or cable station to reach customers C. using a variety of media to reach customers D. none of the above

(Answer: c., p. 19)

1-11.

The seamless approach to delivering a consistent brand experience across all available channels and devices a customer uses to interact with a company or organization and its brands is called: A. B. C. D.

Customer Lifetime Value Market Segmentation Omni-Channel Marketing Multi-Channel Fulfillment

(Answer: c., p. 20) 1-17. The goal of the direct marketer is to: A. eliminate brand marketing B. interact with the customer on a one-to-one basis C. do everything inexpensively D. use as few channels as possible to get the message out (Answer: b., p. 17) 1-18.

Which of the following transactions is not an example of direct marketing?

A. Going to a retail store to purchase an item seen in their Christmas catalog that you received by mail.

B. Purchasing clothing from a Land’s End catalog, given to you by a friend.

C. Selecting a new set of tires at a Firestone neighborhood store.

D. Ordering a Kenmore vacuum cleaner by mail from a Sears sales catalog.

(Answer: c., p. 19)

1-19.

Organizations that can benefit from the use of a database and direct marketing include which of the following?

A. product and service enterprises B. non-profit organizations C. political action groups D. all of the above

(Answer: d., p. 21)

1-20.

Marketers are able to target relevant communications to customers based on geographic location, utilizing ________.

A. placement analysis B. navi-tags C. geo-tags D. none of the above

(Answer: c., p. 17) 1-21.

The single most notable differentiating feature of direct marketing is that it always seeks to generate ____________.

A. an immediate purchase B. a measurable response C. awareness D. none of the above

(Answer: b., p. 18)

1-22.

The “historical foundations” of direct marketing are centered on __________.

A. customer relationship management B. high-tech media C. list rental activities D. multi-channels

(Answer: a., p. 14-15)

1-23.

Non-profit organizations use direct marketing primarily in order to: A. keep costs down B. let people know about their cause and gain support C. sell their own products D. avoid legal challenges to mass advertising practices

(Answer: b., p. 24)

1-24. According to the text, Victoria’s Secret is an excellent example of a company that uses _____________.

A. team-based buying

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 B. high-tech media formats C. multichannel distribution D. database marketing (Answer: c., p. 19)

1-25.

Sports organizations use direct marketing to: A. fill seats B. get corporate supports C. promote special events to season ticket holders D. all of the above

(Answer: d., p. 28)

TRUE-FALSE 1-26.

The Internet has not yet proved to be a valuable tool in political fundraising. (false, p. 24)

1-27.

The goal of direct marketers is to interact with customers on a one-to-one basis, based on information obtained and stored about each customer in the customer database. (true, p. 17)

1-28.

The goal of direct marketing is to make a sale. (false, p. 19)

1-29.

Mass media expenditures and practices have not yet been significantly impacted by direct marketing. (false, p. 15)

1-30.

Inherent to the effectiveness of the direct marketing process is the constant focus on offer creation. (false, p. 14)

1-31.

Direct marketing is measurable, with results always being related to costs. (true, p. 18)

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 1-32.

Sears Roebuck & Company was the first to create the concept of mail-order catalogs. (false, p. 11)

1-33.

The Internet has placed a new perspective on how organizations transact as well as on how businesses are valued. (true, p. 12)

1-34.

Micro-targeting has proved to be a valuable technique for political parties. (true, p. 25)

1-35.

Lack of budget, marketing skills, and senior level buy-in are reasons why all direct marketers don’t embrace omni-channel marketing. (true, p. 21)

1-36.

An uncontrollable variable in sports marketing is the reputation of the visiting team. (true, p. 30)

1-37.

New marketing channels continue to emerge while traditional channels grow (false, p. 20)

irrelevant.

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Chapter 2: Database marketing and customer relationship marketing 2-2.

According to the text, which of the following is the primary way a company can retain its customers?

A. Providing the customer information about the company B. By keeping the customer satisfied and happy C. Asking the customer to suggest ideas to make them happy D. Extensive communication with the customer

(Answer: b., p. 47) 2-3.

The information contained in a customer database is called _____.

A. Source data B. Valuable data C. Informative data D. Market data

(Answer: a., p. 52)

2-4.

Marketers develop _____ to avoid the problem of duplicating the same individual or organization within a list.

A. Identification Numbers B. Character IDs C. Match Codes D. Key Codes

(Answer: c., p. 53)

2-5.

An advantage of the merge-purge process used within a house list is ________.

A. Eliminating duplicate names/addresses B. Saving costs and minimizing irritation C. Identifying multibuyers D. All of the above

(Answer: d., p. 55)

2-6.

If the same name/address is found on two or more response lists simultaneously, that individual is characterized as a _____.

A. Frequent buyer B. Multi-buyer C. Continuous buyer

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SAGE Publishing, 2020 D. Product Lover

(Answer: b., p. 57)

2-7.

Whenever possible, direct marketers request address corrections through the _____.

A. Department of Motor Vehicles (DMV) B. Social Security Services C. United States Postal Service D. National Securities Association

(Answer: c., p. 58) 2-8.

A technique developed by direct marketers to ensure that their customer lists are not misappropriated or misused especially when rented to outside parties is called _____.

A. Seeding B. Targeting C. Red Flagging D. Spying

(Answer: a., p. 60) 2-9.

According to your text, which of the following is/are not one of the eight common ways a direct marketer can use a customer database?

A. Retain the best customers.

B. Thank customers for their patronage.

C. Develop a customer communication program.

D. Receive a profit for selling information of customer database to competitors.

(Answer: d., p. 61-66)

2-10.

The kinds of information that enhance a database through database enhancement include all of the following except _____.

A. Geographic B. Demographic C. Economic D. Social

(Answer: c., p. 69)

2-11.

An analysis performed by a corporation found that a direct relationship exists between the purchase of beer and diapers in the evening hours. This is an example of _____.

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SAGE Publishing, 2020 A. B. C. D.

Conservative Marketing Customer Profiling Data Mining Communication Program

(Answer: c., p. 67)

2-12.

Which of the following is not a reason to enhance a customer database?

A. To learn more about the customer.

B. To increase the effectiveness of future promotional activities targeted to current customers.

C. To better prospect for new customers who are similar to current customers.

D. All of the above are reasons to enhance a customer database.

(Answer: d., p. 69)

2-13.

___________ is the acronym for the discounted stream of revenue a customer will generate over the period of his or her lifetime of patronage with a company.

A. PAR B. LTV C. MVP D. ROI

(Answer: b., p. 76) 2-14.

The concept of investing in new customers means that A. A loss on every subsequent sale can be made up through volume over time.

B. New customer acquisition cost will be recovered over time.

C. Customers age rapidly.

D. Customers have no ongoing loyalty to a firm.

(Answer: b., p. 77)

2-15.

When compared with new customers, loyal customers do which of the following?

A. Spend less over time, cost less to serve and spend more on single purchases.

B. Are less profitable to the company than new customers.

C. Spend more over time, cost less to serve, are less price sensitive, and generate referrals through word-of-mouth communication.

D. Account for more of the customer service complaints.

(Answer: c., p. 47)

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SAGE Publishing, 2020 2-21. According to the text, it costs approximately ________ times more to acquire a new customer than it does to keep a current one.

A. B. C. D.

5-6 6-8 8-10 10-12

(Answer: c., p. 47)

2-22.

Database analytics rely on ____________ to analyze customer information.

A. Data mining B. Profiling C. Modeling D. All of the above

(Answer: d., p. 67)

2-23. In direct marketing, “stealth” marketing communications is primarily made possible due to which of the following?

A. Market research B. Source data C. Mass media D. High-tech media (Answer: b., p. 60)

2-24. In the customer value hierarchy, qualified “hand-raisers” who have identified as having an interest in your company are referred to as ______________.

themselves

A. Prospects B. Advocates C. Clients D. Suspects (Answer: a., p. 74-75)

2-25.

Which of the following concepts or terms is not associated with micro- targeting?

A. Personalization B. Lifestyle data

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SAGE Publishing, 2020 C. Big idea D. Customization (Answer: c., p. 77)

2-26. The goal of ________ is to allow the entire organization to be cohesive in how it communicates with each customer and manage that customer experience.

A. B. C. D.

CRM Marketing Strategy CLTV Database enhancement

(Answer: a., p. 71)

TRUE-FALSE

2-27

A customer database is the key to developing strong customer relationships and retaining current customers. (true, p. 47)

2-28.

At the top of the customer hierarchy are the company’s clients, or most valuable customers that generate the most revenue. (false, p. 75)

2-29.

Customer loyalty programs are programs sponsored by an organization or firm to encourage customer repeat purchases through program enrollment processes and the distribution of awards and/or benefits. (true, p. 49)

2-30.

Three components of transaction data that help analyze each customer through some variation include: recency, frequency, and efficiency. (false, p. 53)

2-31.

In addition to being able to delete duplicate names and addresses, the merge-purge process has the ability to effectively remove names of individuals who have expressed a desire not to receive solicitation. (true, p. 56)

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 2-32.

The term “nixie” refers to mail that has been returned by the United States Postal Service because it is undeliverable as addressed. (true, p. 58)

2-33.

Database analytics is where the direct marketer analyzes customer information within the customer database to draw inferences about an individual customer’s needs. (true, p. 67)

2-34.

Database enhancement is the adding and overlaying of information to customer records to better describe and understand the customer. (true, p. 69)

2-35.

The key to successful micro-targeting is targeting the right mass audience. (false, p. 78)

2-36.

Often marketers use PRM to support a cause. (true, p. 78)

2-37.

All customers are of equal value to a company or organization. (false, p. 74)

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Chapter 3: Lists and market segments 3-1.

_____ is a marketing strategy devised to attract and meet the needs of a specific submarket.

A. Product Differentiation B. Direct Marketing C. Multi-Channel Marketing D. Market Segmentation

(Answer: d., p. 108) 3-2.

Marketers can position products based on which of the following ways?

A. time of day the product is used B. distribution method C. quality D. all of the above

(Answer: d., p. 108)

3-3.

A segmentation tool used by direct marketers to associate latitude and longitude coordinates with street addresses is _____.

A. Global Positioning System B. ZIP codes C. Census Data D. Tracking Numbers

(Answer: a., p. 109)

3-4.

Which if the following is not a strategy used when pursing product differentiation?

A. innovative design B. specialized packaging C. price competition D. creative positioning

(Answer: c., p. 108) 3-5.

Which of the following is not an example pertaining to behavioral market segmentation?

A. types of products and services consumers have purchased B. method of payment C. time the transaction took place

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 D.

consumer’s occupation

(Answer: d., p. 103) 3-6.

_____ are the people a consumer turns to for reinforcement of a decision.

A. Decision groups B. Response groups C. Loyalty groups D. Reference groups

(Answer: d., p. 112) 3-7.

_____ provide marketers with the ability to segment consumers according to their on-line activity.

A. Tags B. Cookies C. Clicks D. Surveys

(Answer: b., p. 113)

3-8.

The act of serving previously tagged website visitors display ads when they are recognized in designated online ad networks refers to ______________.

A. Cookie Tracking B. Retargeting C. Geo-Tagging D.

Psychographic Segmenting

(Answer: b. p. 114)

3-9.

_____ are lists of an organization’s own customers, active as well as inactive.

A. Response List B. Compiled List C. House List D. Company List

(Answer: c., p. 95)

3-10.

Which one of the following would fall into the category of response lists?

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 A. B. C. D.

school lists convention registration lists mail-order buyers neighborhood directories

(Answer: c., p. 96)

3-11.

A unique identifier placed on the response device or order form prior to sending a promotional piece to prospective customers is called a _________.

A. Hotline Code B. Key Code C. Unique Input Code D. Source Code

(Answer: b., p. 106)

3-12.

A. B. C. D.

_____ represent the interests of list owners and assume the responsibility of keeping in contact with list brokers and list users?

List Associates List Representatives List Managers List Administrators

(Answer: c., p. 102-103)

3-13.

_____ usually develop their lists from public records, newspaper clippings, directories, warranty cards, and trade show registrations.

A. List Owners B. List Brokers C. List Distributors D. List Compilers

(Answer: d., p. 103) 3-14.

A. B. C. D.

The names most recently acquired by a company are known as _____.

Hotline Names Primary Names Key Code Names Service Names

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 (Answer: a., p. 107) 3-21. An organization’s house list is normally __________ as productive as an outside list that it rents.

A. two times B. three times C. four-ten times D. ten-twenty times

(Answer: c., p. 95)

3-22.

The house list of an organization does not typically include names of

_______________.

A. inactive customers B. those who have inquired, but not purchased C. those who have been referred by current customers D. those who match the profile of best customers

(Answer: d., p. 95)

3-23.

List brokers perform many functions. Which of the following is not one of those functions?

A. maintain the lists B. ensure delivery date C. verify information D. find new lists

(Answer: a., p. 102)

3-24.

_____________ is essential to properly evaluate the profitability of rented lists.

A. proper record keeping B. selecting a key code

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 C. applying the merge-purge process D. tabulating the response rate

(Answer: a., p. 106)

3-25.

A computer system capable of capturing, storing, analyzing, and displaying geographically referenced information identified according to location is called a ________________ System.

A. Global Positioning B. Geographic Positioning C. PRIZM D. Geographic Information

(Answer: d., p. 109)

TRUE-FALSE

3-26.

Product positioning is the way the product is defined by the marketer, based on the important attributes. (false, p. 108)

3-27.

The most productive list for direct marketers is a response list. (false, p. 95)

3-28.

A response list is a list of individuals who have expressed a high likelihood of responding to an offer. (false, p. 96)

3-29.

A list denotes a market segment. (true, p. 94)

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3-30.

Demographics is the study of lifestyles, habits, attitudes, beliefs, and value systems of individuals. (false, p. 110)

3-31.

Service bureaus provide data processing, data mining, outsourcing, on-line analytical processing (OLAP), and other services to support the interchange of lists and database information within the direct marketing industry. (true, p. 103)

3-32.

List brokers act as intermediaries who bring list users and list owners together. (true, p. 102)

3-33.

The last step of effectively evaluating a list is to select a key code. (false, p. 106)

3-34.

Cohort analysis reveals consumer groups that have unique bonds which show unified market segments. (true, p. 116)

3-35. A list is a perishable commodity. (true, p. 94)

3-36.

The old saying “birds of a feather flock together,” explains why ZIP code areas constitute market segments. (true, p. 120)

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Chapter 4: Marketing analytics: Testing and measurement 4-1.

A. B. C. D.

An experiment or test is used by direct marketers to measure the effect of change. Which of the following questions would a direct marketer use in designing an experiment? how many current customers are likely to buy a new product in development? what do current customers think about the company’s current product offerings? what happens to customer demand when a company raises or lowers a price level? all of the above

(Answer: d., p. 141)

4-7.

A _________ is a group on which the experiment is not conducted but that is otherwise identical to the test group.

A. dependent group B. control group C. focus group D. independent group (Answer: b., p. 144)

4-2.

The two types of errors that can occur in hypothesis testing are known as: A. ho and ha B. type A and type B C. type I and type II D. implicit and explicit (Answer: c., p. 150)

4-9.

In the event it is decided to reject the null hypothesis, it is rejected in favor of the __________: A. previous null hypothesis B. alternative hypothesis C. observed hypothesis D. none of the above (Answer: b., p. 149)

4-10.

A. B. C. D.

Which of the following represent ways in which a key code could be placed on an order form for direct mail purposes? a departmental number a unique telephone number an individual’s name all of the above

(Answer: d., p. 146)

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SAGE Publishing, 2020 4-11.

A. B. C. D.

If you are creating a direct mail campaign, a lift can ______ the mailing quantity needed (via selectivity) and ______ the overall response rate. increase/increase decrease/impair decrease/increase help/help

(Answer: c., p. 162) 4-12.

A. B. C. D.

In attempting to measure the impact of a lift, marketers will utilize_________ a control group an experimental panel group all of the above

(Answer: d., p. 162-164)

4-13.

A. B. C. D.

In the conversion rate calculation, if you have 1000 inquiries and 300 of them subsequently become buyers, you have a ________ conversion rate: 30 percent 300 percent 33 percent .03 percent

(Answer: a., p. 164)

4-14.

A. B. C. D.

In direct marketing, the budget is a function of: net order contribution of the items sold media and sales costs response rates all of the above

(Answer: d., p. 165) 4-15.

A. B. C. D.

The process by which an order response is tracked back to the original source from which it was generated is known as: identifier key coding matchback split test

(Answer: c., p. 147)

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SAGE Publishing, 2020 4-16.

A. B. C. D.

The term “unit margin” is defined as: target price for an item in a campaign amount left after subtracting costs of goods sold/variable costs from price the approximate amount of marketing costs allocated to each item sold amount left when subtracting variable costs from fixed costs

(Answer: b., p. 167) 4-17.

A. B. C. D.

Which of the following is not a variable cost in a direct marketing campaign? cost of goods sold advertising costs shipping allowance for bad debt

(Answer: b., p. 168) 4-18.

A. B. C. D.

Net profit is defined as: amount of money left after subtracting fixed costs from gross revenues amount of money left after subtracting variable costs from gross revenue amount of money after dividing fixed costs by margin unit in dollars break-even amount plus profit incentive in dollars added in

(Answer: a., p. 168) 4-19.

A. B. C. D.

What calculation do you perform to find the target (in units of goods sold) once you know your target profit margin and your break-even amount? add all fixed costs to all variable costs and divide by production units subtract variable costs from selling price and divide by fixed costs add desired profit margin to other fixed costs and divide by margin per unit multiply break-even units by target profit margin

(Answer: c., p. 169) 4-20.

A. B. C. D.

A two-step direct marketing campaign can best be defined as: a campaign where two different segments are addressed sequentially a campaign where a smaller amount is spent initially, then a higher amount a campaign where two different media are used in sequence a campaign where the first step is to get inquiries only; the second to produce a sale

(Answer: d., p. 170) 4-21. A “cost per inquiry” (CPI) differs from a “cost per response” (CPR) because: A. the CPI is not indicative of the true cost of a campaign

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SAGE Publishing, 2020 B. the CPI tells us how much it costs to get a customer to inquire, but not to get him to buy C. the CPR is always more expensive D. they are essentially the same, just different terms (Answer: b., p. 170) 4-22. The rate by which a company converts _______ into _______ is called the conversion rate.

A. buyers/sellers B. advocates/ distributers C. buying customers/prospects D. leads/sales (Answer: d., p. 164) 4-23.

A. B. C. D.

Return on investment (ROI) or Return on Advertising Investment (ROAI) is calculated by: dividing net profit by the average amount invested (in a company or campaign) dividing fixed costs by all revenues before taxes dividing all revenues by fixed and variable costs dividing all marketing costs by revenues (Answer: a., p. 172)

4-24. A good reason to conduct a marketing test before rolling out a full campaign would be: A. to test two different versions of an offer B. to test whether the campaign can be successful at a specific allowable margin C. to see if assumptions about the response rate from a given list are reasonable D. all of the above (Answer: d., p. 141) 4-25.

A. B. C. D.

To calculate whether a marketing test met the allowable margin in terms of cost per order, you would: multiply the variable costs by the number of orders received divide the costs of the test by the number of orders received divide the total revenues by the marketing costs divide the total revenues by the number of names on the list used

(Answer: b., p. 170)

TRUE-FALSE 4-26.

Calculating customer value can be done on a segment or cluster basis, or on an individual basis. (true, p. 155)

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4-27.

When a customer is retained, it is only the revenue that is generated over a one-year period that constitutes the value of that customer. (false, p. 156)

4-28.

Market penetration is calculated by dividing the number of customers in a specific category by the total number of customers the company has in general. (true, p. 159)

4-29.

There is an average or typical “response rate” that a marketing campaign should expect to generate. (false, p. 161)

4-30.

Breaking even on a campaign at least ensures a minimum profit. (false, p. 161)

4-31.

A “lift” should provide an increase in the average response rate due to making a special offer to all market segments or clusters. (false, p. 162)

4-32.

The concept of a lift can be applied to the measurement of almost any medium. (true, p. 162)

4-33.

In creating a direct marketing campaign budget, the best means of estimating the budget needed is to take a percentage of the previous year’s profits. (false, p. 165)

4-34.

The “allowable margin” is basically the amount of money you have left over to cover advertising/promotion and profit after all other expenses have been deducted. (true, p. 168)

4-35.

A good way to increase ROI is to reduce the cost of the marketing campaign. (true, p. 173)

4-36.

A more effective market penetration strategy is to concentrate marketing efforts on market segments that contain larger customer penetrations. (true, p. 160)

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Chapter 5: The offer 5-1.

Which one of the following companies does not employ a subscription model in their marketing activities?

E. Amazon F. Uber G. Ring H. Netflix

(Answer: b., p. 219) 5-2.

In order to create an effective offer, the direct marketer must research and really know the target audience and the customers’ likes, dislikes, “hot buttons,” and, most of all, __________ and __________.

A. needs, wants B. taste, preferences C. affordability, desire D. environment, culture

(Answer: a., p. 207) 5-3.

According to Lois Geller, effective offers have three characteristics: believability, involvement, and _________.

A. Promotional material B. Appeal C. Creativity D. Usability

(Answer: c., p. 199) 5-4.

_____ is the promotion of more expensive products or services over the product or service originally discussed or purchased.

A. Cross-selling B. Expense-selling C. Offer-selling D. Up-selling

(Answer: d., p. 212) 5-5.

Continuity selling provides two options where the customer must specifically request shipment for each offer in a series or where the shipment is sent automatically unless the customer specifically requests that it not be sent. These two options are known as _____ and _____.

A. interested, disinterested B. involvement, noninvolvement

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SAGE Publishing, 2020 C. appealing, not appealing D. positive, negative (Answer: d., p. 209) 5-6.

Which of the following is incorporated during the offer creation process.

A. perform market research B. determine the terms of the offer C. target the offer D. all of the above

(Answer: d., p. 207-217) 5-7.

The emotional appeal of an offer focuses on a consumer’s _____ and _____.

A. needs, wants B. likes, dislikes C. desires, feelings D. concern, trust

(Answer: a., p. 215) 5-8.

A strategy that establishes the price at the highest possible level and targets only a select number of consumers who can afford the product/service, is _____.

A. Creaming the market B. Price Skimming C. Price Penetration D. Price elasticity

(Answer: b., p. 201) 5-9.

The relative change in demand for a product given a change in its price is _____.

A. Price Penetration B. Price Reduction C. Price Skimming D. Price Elasticity

(Answer: d., p. 201) 5-10.

Pamela Smith did not have the opportunity to see or feel the product before buying she made her purchase decision. In this case, she may have liked to take advantage of what type of offer?

A. Free examination B. Money-back guarantee C. Risk Free Offer

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 D. All of the above (Answer: d., p. 202-203) 5-11.

An ordering stimulus that is commonly used by direct marketers is _____.

A. Sweepstakes or Contest B. Lottery C. Raffle D. Drawing

(Answer: a., p. 205)

5-12.

Direct marketers must consider five specific details when determining the terms of an offer.

These include all of the following except _____.

A. a choice of sizes B. a choice of colors C. price D. personalization

(Answer: c., p. 200) 5-13.

The Land’s End catalog always details the weight, height, length, etc. of its products. By doing this the company is disclosing _____.

A. Product accessories B. Product options C. Product specifications D. Product personalization

(Answer: c., p. 201) 5-14.

Four essential questions that a direct marketer or copywriter must ask themselves include all of the following except: A. what am I selling?

B. what would I want to buy?

C. why am I selling this now?

D. what do I want my prospect to do?

(Answer: b., p. 213) 5-15.

When testing an offer, a direct marketer should test ________.

A. only one feature at a time.

B. all the features of an offer at once.

C. two features at a time for comparison.

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 D. the three most important features.

(Answer: a., p. 217) 5-21. The type of offer that tends to be held at certain times of the year and usually explanatory terms for its existence is the ______________ offer.

provides

A. sale B. discount C. time-limit D. sweepstakes (Answer: a., p. 218)

5-22.

The ___________offer is usually offered in conjunction with continuity selling.

A. discount B. sale C. sample D. time-limit

(Answer: c., p. 218)

5-23.

Which of the following is an optional component of an offer that may be included depending on strategy and costs?

A. B. C. D.

payment terms incentives length of commitment price

(Answer: b., p. 200)

5-24. With a ______________ the consumer must pay an up-front price in order to receive regular delivery of the service or access to the products and/or services for a specified period of time.

A. til-forbid offer B. platform business model C. subscription model D. cross-selling offer (Answer: C., p. 219)

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020

5-25. Price is an important component of the offer. Which of the following is equally important to price?

A. payment terms B. the manner by which price is stated C. shipping costs D. credit card options (Answer: b., p. 201)

TRUE-FALSE 5-26.

Creating need-satisfying offers is a part of on-going customer relationship drives the direct marketing process. (true, p. 197)

(CRM) that

5-27.

The last step in creating an offer is to reduce the risk of the offer. (false, p. 216)

5-28.

Continuity selling describes offers that are continued on a regular basis, whether weekly, monthly, quarterly, or annual. (true, p. 209)

5-29.

Price penetration is a strategy that sets the price of a product high so that marketers can distinguish between different offers. (false, p. 201)

5-30.

A bill me later (BML) payment offer that includes credit card options, either the direct marketer’s own, a bank card, or a travel and entertainment car, not only provides convenience but also spurs the customer not to procrastinate when placing an order. (true, p. 202)

5-31.

Dollar Shave Club, Amazon, Netflix, Spotify, and Ring are popular forms of a time-limit offer. (true, p. 219)

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 5-32.

Platform business models create value by enabling direct interactions between two or more customer or participant groups (true, p. 220)

5-33.

A til-forbid offer is an example of a positive option offer. (false, p. 211)

5-34.

Testing is used to determine the effectiveness of the offer and helps to provide an answer to the critical question – does the offer work? (true, p. 216)

5-35.

Time limit offers do not generally work because consumers do not like to be pressured to make a decision by a certain time. (false, p. 204)

5-36.

Contests and sweepstakes require a prior purchase, whereas lotteries only require an entry form to be submitted. (false, p. 205)

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020

Chapter 6: Creative message strategies 6-1.

Which of the following phrases does not typify compelling copy?

A. “Are you tired of the back-breaking work caring for your lawn?”

B. “At last…a simple, effective way to rid your house of bugs.”

C. “Do you need more room in your house…or a new roof?”

D. “Vote for Joe Smith for Mayor.”

(Answer: d., p. 245) 6-2.

In direct marketing, good copy conveys _____.

A. advantages B. customer needs C. benefits D. features

(Answer: c., p. 239) 6-3.

In writing copy for direct marketing, it is necessary to translate features into benefits. Which statement below best typifies this?

A. “Our lawn seed is 100% guaranteed or your money will be refunded.”

B. “Our lawn seed is guaranteed to germinate.”

C. “Our lawn seed will make you the envy of your neighborhood.”

D. “Our lawn seed is 100% weed free.”

(Answer: c., p. 240-241)

6-4.

Which of the following are not involvement devices?

A. links B. puzzles C. tokens D. post script

(Answer: d., p. 252) 6-5.

The creative process to develop compelling messages for any direct response promotion begins with: A. the “big idea” B. research C. copywriting D. creating graphics

(Answer: b., p. 238)

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 6-6.

Jay Conrad Levinson describes a meme as: A. short opening paragraph B. the offer itself C. self-explanatory symbol D. animated graphic

(Answer: c., p. 242) 6-7.

Which of the following colors are not considered as portraying “warm” psychological feelings?

A. red B. yellow C. orange D. violet

(Answer: d., p. 253)

6-8.

Which of the following is something you do not do in creating a digital video: A. create a storyboard B. select background colors C. import images D. create transitions

(Answer: b., p. 261-262) 6-9.

Banner ads are created primarily to: A. state the “big idea” quickly B. highlight the advertiser’s logo C. engage the viewer and drive action D. save money by being brief

(Answer: c., p. 267) 6-10.

Which of the following would be considered a basic design principle: A. alignment B. repetition C. contrast D. all of the above

(Answer: d., p. 264) 6-11.

Which of the following likely motivates someone to buy something: A. the need to gain acceptance B. the need to avoid criticism

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 C. the need to become good citizens D. all of the above (Answer: d., p. 245)

6-12.

The visual portion of a television commercial is shown through a series of illustrations called ________.

A. storyboards B. comics C. graphics D. concepts

(Answer: a., p. 258)

6-13.

Which of the following is not a proven successful copywriting formula?

A. Bob Stone’s Seven-Step Formula B. A-I-D-A C. KISS Principle D. Star-Lock-Push

(Answer: d., p. 247)

6-14.

According to the text, direct response copywriting is ______.

A. an art B. a science C. both art and science D. luck

(Answer: c., p. 268) 6-15.

____________ is a strategic marketing approach focused on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly-defined audience with the goal of driving customer action.

A. Modern Marketing B. Content Marketing C. KISS Principle D. Involvement device

(Answer: b., p. 262)

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 6-21.

The key objective of creative copy for direct marketers is to generate _________.

A. brand awareness B. trial purchase C. return on investment D. positive image

(Answer: c., p. 239)

6-22. Which of the following statements is false with regard to the “big idea” in direct response copywriting?

A. The big idea should become the company’s tagline.

B. The big idea should be used throughout the promotional campaign.

C. The big idea should be detailed to convey product specifications.

D. The big idea is the unique selling point.

(Answer: c., p. 241)

6-23.

Which of the following is a potential method for creating a “big idea” for a direct response campaign?

A. individual brainstorming sessions B. group brainstorming sessions C. polishing an off-the-wall idea D. All of the above are correct

(Answer: d., p. 242-243)

6-25. According to the text, the first step in creating an Internet promotion is to ______.

A. conduct research about the target customer B. determine the appropriate links to feature on the home page C. disseminate incentives for the prospect to visit a company’s Web site D. determine the sequencing of each visit with clicks and links (Answer: c., p. 263)

TRUE-FALSE

6-26.

The creative process for any direct response promotion begins with idea generation. (false, p. 239)

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020

6-27.

Direct marketers feel “it’s not creative unless it sells something.” (true, p. 239)

6-28.

Direct marketers always relate the costs of promotion to the results achieved from it. (true, p. 239)

6-29.

A formula used a great deal by direct response copywriters is known as A-I-D-A, which stands for Attract Attention, Arouse Interest, Stimulate Desire, and Call for Action. (true, p. 247)

6-30.

The use of ink through color, gloss, intensity, and placement has no effect on the impression of the copy (false, p. 252)

6-31.

The KISS principle deals with keeping the message stimulating and highlighting product features. (false, p. 249)

6-32.

Effective radio advertisements contain easy to remember tag-lines and contain repetition. (true, p. 260)

6-33.

Online videos are relatively easy to produce and are gaining in popularity with advertisers. (true, p. 261)

6-34.

The subject line is of little importance for out-bound e-mail messages. (false, p. 266)

6-35.

Time is not considered to be a major limitation in creating direct response television commercials. (false, p. 258)

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020

Chapter 7: Print media 7-1.

A _____ is a promotional medium that includes an incentive to purchase a product or service in the form of a specialized price reduction.

A. Syndication mailing B. Coupons C. Peel-off cards D. Bingo Cards

(Answer: b., p. 297) 7-2.

_____ are related to stuffers but offer the additional advantage of arriving when the recipient has just made a purchase.

A. Reply Cards B. Quality Stuffers C. Statements D. Package Inserts

(Answer: d., p. 299) 7-3.

Of all the media used by direct marketers, ________ remains an important one, relying on databases to most effectively reach market segments A. Internet B. Catalogs C. Direct Mail D. Coupons

(Answer: c., p. 282)

7-4.

Key advantages of newspapers for direct response advertisers include ________ and relatively fast response.

A. short closing dates B. longevity C. selectivity D. personalization (Answer: a., p. 305)

7-5.

The characteristics of Sunday supplements include large circulation, flexibility and relatively _____ costs.

A. high B. average C. low

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 D. predetermined (Answer: c, p. 307)

7-6.

Which of the following is not one of the five major categories of magazines?

A. Women’s Service B. Shelter C. General Mass D. Health

(Answer: d, p. 303) 7-7.

_____ mailings provide participants with opportunities to reduce mailing cost in reaching common prospects.

A. Commercial B. Response C. Direct D. Cooperative

(Answer: d, p. 298) 7-8.

Fishing Today, The Plate Collector and Modern Bride Magazine are all examples of _____magazines.

A. general mass B. women’s service C. shelter D. special interest

(Answer: d, p. 303)

7-9.

Which of the following factors do not have an influence on the cost of magazine advertising?

A. Whether the ad is in color or black-and-white.

B. Whether the ink bleeds off the edges of the page.

C. The use of test market selections.

D. All of the above have an influence on magazine cost.

(Answer: d., p. 304)

7-10.

A _____ is an insert or page of a magazine that is created by the publisher to provide a numeric listing of advertisers.

A. info-page

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 B. C. D.

bingo card bind-in tear-out

(Answer: b, p. 304) 7-11.

An advertisement that is normally positioned at the will of the newspaper is a _____ ad.

A. preprinted B. Sunday C. weekly D. run-of-paper

(Answer: d., p. 305)

7-12.

Marketers are able to select specific types of readers by choosing the placement of direct response advertisements within the newspaper in all of the following sections except: A. sports B. business section C. classified D. All of the above offer placement selection

(Answer: d., p. 309-310)

7-13.

The placement of a funeral service inquiry ad adjacent to the obituaries is an example of _____.

A. timing B. positioning C. emotional appeal D. segmentation

(Answer: b., p. 309) 7-14.

Star Supermarkets want to place direct response ads containing coupons in the local newspaper. According to your text, which days would you recommend for ad placement?

A. Mondays and Tuesdays B. Tuesdays and Wednesdays C. Wednesdays and Thursdays D. Thursdays and Fridays

(Answer: c., p. 310)

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 7-15.

Since newspapers do not have the degree of selectivity most newspaper advertising messages are kept_____.

A. segmented B. targeted C. generic D. boring

(Answer: c., p. 309)

7-16.

The ________ is the most important element of a direct response print advertisement.

A. headline B. body copy C. response device D. insert

(Answer: a., p. 300)

7-22. Direct mail costs usually include _______.

A. B. C. D.

postage fees computer processing creative all of the above

(Answer: d., p. 282)

7-23. According to your text, ______________ are not one of the frequent users of a promotional medium.

coupons as

A. health products B. grocery stores C. pharmaceuticals D. beauty care products (Answer: c., p. 297)

7-24.

The typical response from take-one rack inserts is relatively _____, and the distribution within a single rack is _______.

A. low/high B. high/low C. low/low

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 D. high/high (Answer: b., p. 300)

7-25.

______________ is not among the disadvantages of magazines for direct marketers.

A. Space allocation B. Closing dates C. Cost per thousand D. Staggered Distribution

(Answer: c., p. 303)

TRUE-FALSE

7-26.

Magazine direct response copy starts with a request for action and ends with benefits. (false, p. 301)

7-27.

Of all the media available for direct response advertising, direct mail can be the most selective and offers the most potential for personalization. (true, p. 282)

7-28.

Catalogs have become less vital and are not a useful productive format for direct response advertising. (false, p. 289)

7-29.

Direct mail is relatively inexpensive compared to other forms of direct marketing.

(False, p. 282)

7-30. Postcards are the most read type of direct mail. (true, p. 282)

7-31.

ROP advertisements commonly have higher rates in newspaper advertising. (false, p. 306)

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 7-32.

An Ad Note is a small sticker that is placed on the front page of the newspaper that can be peeled off without damaging the newspaper (true, p. 308)

7-33.

Because magazines usually come out periodically – weekly, monthly, quarterly – they enjoy a relatively short life. (false, p. 303)

7-34.

Newspapers, unlike magazines, do not present a major medium for distribution of printed direct response advertising. (false, p. 305)

7-35.

Preprinted inserts run typically in Sunday editions or on Wednesday or Thursday mornings. (true, p. 307)

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020

Chapter 8: Television, radio and digital video 8-2.

A. B. C. D.

Of the options below, cable and _____ are the two transmission media that now provide an almost endless variety of programming and special-interest channels, defining the potential for market segmentation. satellite telephone Internet broadcast

(Answer: a., p. 327)

8-3. Direct response advertisers utilize television for which of the following: A. to sell products, services, or political campaigns B. to get inquiries C. to support other media D. all of the above (Answer: d., p. 327-328)

8-4.

A. B. C. D.

Direct response marketers need to be mindful that television viewers have one of two objectives. Information and ________. emotional appeal communication entertainment direct response

(Answer c., p. 328)

8-5.

A. B. C. D.

The “reach” of a local TV station can describe geographic markets differentiated by _____________. zip code culture station advertising

(Answer: a., p. 328)

8-6. As noted in the text, like empty seats on a departing airplane, television time is ________________.

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 A. B. C. D.

responsive perishable segmented marketable

(Answer: b., p. 330) 8-7. Gross rating points are a combination of _________ and __________ measures.

A. prospects; customers B. inquiry; response C. reach; frequency D. listeners; viewers (Answer: c., p. 330) 8-8.

A. B. C. D.

The number of people exposed to vehicles carrying a specific ad is referred to as which of the following __________. frequency outbound scope reach

(Answer: d., p. 330)

8-9. Which of the following most accurately explains how direct marketers calculate cost per response?

A. The total cost of an audience ticket divided by the total number of tickets B. The total cost of the product/service divided by the number of inquiries C. The total cost of a direct marketing campaign divided by the number of responses that campaign generates D. The total number of inquires divided by the total number sold (Answer: c., p. 331) 8-10.

A. B. C. D.

Infomercials can best be characterized as: always paid for by a non-profit or religious organization long-form television advertisements illegal in some parts of the day featuring multiple products

(Answer: b., p. 332)

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 8-11.

A. B. C. D.

The average radio listener “tunes in regularly to less than _________ stations.” five three four six

(Answer: b., p. 334)

8-12.

A. B. C. D.

An arrangement under which the radio station runs commercial messages, at its own discretion, in return for remuneration from a direct response advertiser for each sale or inquiry produced is referred to as __________. response rating per inquiry station commercialization discretion advertising

(Answer b., p. 334)

8-13.

A. B. C. D.

Radio is considered to be the most __________ of all response media in that it requires relatively little in the way of preparation. expensive ineffective flexible complex

(Answer: c., p. 334)

8-14.

A. B. C. D.

It is easy to segment television audiences because: people only watch one channel most people don’t pay for all the cable and satellite channels with many channels, programming and ads can be targeted to interest groups people generally write or call in to say what they like to watch

(Answer: c., p. 28)

8-15.

A. B. C. D.

Which of the following is not a characteristic of infomercials: usually on cable channels lasting for 30 minutes appear often during early morning time slots appear often during late night time slots appear often during prime time slots

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 (Answer: d., p. 332)

8-16.

A. B. C. D.

Radio can achieve audience segmentation through program loyalty station loyalty time of day all of the above

(Answer: d., p. 334)

8-17.

A. B. C. D.

Internet Radio provides all of the following except: increased competition for traditional radio personalization opportunities limited advertising high testing costs

(Answer: d., p. 335)

8-18.

A. B. C. D.

In the creation process of digital videos, it is important for video content to stem from ________. assessing costs picking the products to advertise consumer research gaining permissions to use video clips

(Answer: c., p. 336)

8-19.

A. B. C. D.

The following is a good measure of the success of digital video advertisements: views active sharing comments all of the above

(Answer: d., p. 336-337)

8-20.

A. B. C. D.

You Tube Studio is: a special library of video clips free to advertisers a tool to let advertisers know numbers and characteristics of viewers the name given to YouTube’s billing format a history of successful videos on a given subject

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020

(Answer: b., p. 339)

8-21.

A. B. C. D.

“Going viral” in relation to digital videos means: a video is so popular that viewers pass it on to others a video in which a computer virus has been injected other advertisers immediately copy the successful format of your video many people immediately buy the product after seeing advertised once

(Answer: a., p. 341)

TRUE-FALSE 8-22.

Broadcast media account for the largest percentage of expenditures for direct response advertising. (false, p. 326)

8-23.

Interactive modes of television provide the immediate response that is both measurable and accountable that direct marketers thrive upon. (true, p. 327)

8-24.

Television programming such as sports, news, comedies, etc. play an important role in defining specific audience segments. (true, p. 328)

8-25.

It is the penetration of the potential market, i.e., the number of viewers, which determines the price of commercial television time. (true, p. 330)

8-26.

The most valid response mechanism for direct marketers to use in figuring television cost is cost per viewer (CPV). (false, p. 331)

8-27.

The least effective direct marketing broadcast method is infomercials. (false, p. 332)

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 8-28.

It’s difficult to target consumer markets in radio advertising because listeners are not loyal to a specific station. (false, p. 334)

8-29.

Digital videos that go viral most often evoke emotion. (true, p. 343)

8-30.

Because of its unproven success, digital video is not yet a significant tool for most advertisers. (false, p. 343)

8-31.

Loud audio is the key to success in digital video. (false, p. 341)

8-32.

Even considering the price peak, prime time is always the best time for direct response advertising. (false, p. 330)

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020

Chapter 9: Mobile, text and telephone for marketing 9-1.

According to David Wachs’s five step mobile coupon redemption program, which of the following is not one of the steps to he addressed?

A. offer creation B. validation C. creative D. unique coupon codes

(Answer: c., p. 360) 9-2.

Which of the following metrics can be used to measure the success of a QR Code campaign?

A. scans B. landing pages C. opt-ins D. all of the above

(Answer: d., p. 362)

9-3.

Which of the following is a not a benefit associated with location-based mobile (LBM)?

A. Increased exposure via social media B. Market research C. Sales D. Loyalty/frequency programs

(Answer: c., p. 364)

9-4.

The location-based mobile application that features the concept of a “mayor” is _____________.

A. WeReward B. Yelp C. Foursquare D. Facebook Places

(Answer: c., p. 364)

9-5.

A mobile application that allows users to send and receive photos or videos with various filter opportunities __________.

A. Snapchat B. MealSnap C. VIPER

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 D. Red Laser (Answer: a., p. 365)

9-6.

Which of the following is not a suggested way direct marketers utilize Snapchat to engage consumers.

A. Teasers B. Story telling C. Competitions D. Free gifts

(Answer: d., p. 367)

9-7.

Which of the following is NOT a way that marketers use SMS Texting?

A. Promoting special events B. Reminding customers about events C. Offering coupons D. All of the above are uses.

(Answer: d., p. 369) 9-8.

_________ is one of the biggest differences between email marketing and text messaging.

A. Voice messaging B. Open rates C. Content D. Audiotex

(Answer: b., p. 368)

9-9.

The average “open” rate for a SMS Text message is ______ percent.

A. 20-28 B. 70-78 C. 80-88 D. 90-98

(Answer: d., p. 368)

9-10.

Multlmedia Message Services (MMS) are primarily used with: A. Blackberries B. Droids C. SmartPhones

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 D. All of the above (Answer: c., p. 371)

9-11.

Recently, ____________ has begun to replace some of the person-to-person contact of the phone.

A. SMS Texting B. QR Codes C. Click-to-Chat D. All of the above

(Answer: c., p. 373)

9-12.

Components that make up the cost of a telephone marketing call include equipment and overhead, telecommunications service and _____.

A. personnel B. computers C. telephones D. lists

(Answer: a., p. 373)

9-13.

A call in which the initiator of the marketing communications is the customer is referred to as __________.

A. proactive telemarketing B. reactive telemarketing C. aggressive telemarketing D. responsive telemarketing

(Answer: b., p. 373) 9-14.

For which of the following uses are Outbound calls NOT commonly employed?

A. Market research B. Fund raising C. Placing orders D. Lead generation

(Answer: c., pp. 374)

9-15.

Which of the following is NOT correct with respect to Outbound calls? Outbound calls _______________.

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 A. B. C. D.

require more experienced personnel are longer in duration are shorter in duration Require higher-paid personnel

(Answer: c., p. 374)

9-16.

All of the following are examples of inbound telemarketing except: A. ordering or inquiring B. serving present accounts C. obtaining warranty information D. making pledges or contributions

(Answer: b., p. 373)

9-17.

Telephone promotions are most effective when the following takes place: A. scripts are well prepared in advance B. offers are clear and well structured C. calls are directed to people who have been pre-qualified D. all of the above

(Answer: d., p. 374) 9-18.

__________ calls are must be carefully structured in content as they can create a negative response.

A. Inbound B. Outbound C. Cold D. Telemarketing

(Answer: c., p. 374)

9-19.

Advantages of using the telephone as a marketing medium include A. two-way communication B. very flexible medium C. cost-effective medium D. unregulated

(Answer: c., p. 375)

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 9-20.

When hiring a telephone operator, companies normally look for certain characteristics.

Which is not one of those characteristics?

A. Call center experience B. Sales experience C. Reliability D. Interpersonal skills

(Answer: b., p. 376)

TRUE-FALSE

9-21.

Mobile payment systems eliminate the need for the consumer to use his or her credit card. (true, p. 358)

9-22.

The largest age segment that uses mobile wallets are 18-34-year-old consumers. (true, p. 358)

9-23.

Mobile coupon redemption rates are equal to those of paper coupons. (false, p. 360)

9-24.

Click-to-call programs work as a liaison between the consumer and a business. (true, p. 361)

9-25.

Telephone is a marketing medium and a response mechanism. (true, p. 372)

9-26.

E-mail messages have higher “open” rates that SMS text messages. (false, p. 368)

9-27.

The objective of telephone marketing is to reach customers in a personalized interaction that meets customer needs and improves cost-effectiveness for the organization. (true, p. 372)

9-28.

Telephone marketing has been woven into the planning of most direct marketers. (true, p. 373)

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 9-29.

Inbound calls are also referred to as proactive telephone marketing because the company is the initiator of the marketing communication. (false, p. 373)

9-30.

Outbound calls are generally longer in duration than inbound calls. (true, p. 374)

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

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Chapter 10: Digital and social media 10-1.

Which one of the following is not a type of email that is of interest to marketers?

A. E-mail from companies targeting promotions to specific customers.

B. E-mail from the consumer to the company.

C. Email from company to company D. Email from consumer to another consumer

(Answer: c., p. 398-399) 10-2.

Which of the following is not one of the online market research tools discussed in the text?

A. Online Surveys B. E-Commerce C. Online Panels D. Google Ad tools (Keywords, Google Trends)

(Answer: b., p. 403) 10-3.

For Google there are two platforms that you can bid on: the Search Platform and the _______.

A. Quality Score B. Content Network C. Keyword D. None of the above

(Answer: b., p. 408) 10-4.

Strategies to maximize click-through rates include all of the following except: A. Involving the audience B. Frequently changing creative messages C. Asking for the click through action D. All of the above are strategies to maximize click through rates

(Answer: d., p. 408-409)

10-5.

___________________is a form of content-driven marketing where the content shared is akin to an endorsement or testimonial by a third party or potential consumer.

A. Crowdsourcing B. Influencer marketing C. Database marketing D. Psychographic marketing

(Answer: b., p. 395)

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10-6.

Companies use blogs in marketing strategies for all of the following reasons except: A. Providing information to customers B. Obtaining feedback from customers C. Communicating with company employees D. All of the above are ways that companies use blogs in marketing strategies.

(Answer: c., p. 416)

10-7.

Which of the following are ways that Facebook users can share information?

A. Providing personal information on their user profiles B. Uploading pictures C. Utilizing the “like” button to share preferences or show support D. All of the above are ways that Facebook users can share information

(Answer: d., p. 418)

10-8.

Which data below can marketers utilize in order to target Facebook users?

A. Behavioral B. Psychographic C. Demographic D. All of the above (Answer: d., p. 419) 10-9.

Which of the following most accurately defines a “Tweet”?

A. A microblog in which users can post real time information to followers.

B. A mobile upload C. A blog on Facebook D. All of the above are accurate definitions of a “Tweet”

(Answer: a., p. 421) 10-10. _________ is the world’s largest professional network and is growing rapidly.

A. Pinterest B. Instagram C. LinkedIn D. Facebook (Answer: c., p. 427)

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 10-11. Which of the following is not an example of a product connecting site?

A. Ebay.com B. Craigslist.com C. Match.com D. All of the above are examples of product connecting sites.

(Answer: c., p. 403) 10-12. Which of the following is a type of search engine marketing (SEM) that can be used by companies in order to improve their Web site traffic?

A. Paid placement B. Paid inclusion C. Organic search engine optimization D. All of the above are types of SEM that can be used by companies to improve website traffic.

(Answer: d, p. 405)

10-13. Which of the following is not one of the three components discussed in the text to getting a site ranked in most search engines, and specifically, in Google?

A. Content B. Advertisements C. Links D. Activity (Answer: b, p. 406-407)

10-14.

According to your textbook, to be considered “interactive” a new medium must allow consumers to______________.

A. control when and which types of products they are viewing B. control the pace at which they review the products C. place an order or request information directly via the medium D. all of the above

(Answer: d., p. 392)

10-15. Which of the following is not a type of page used by marketers as a way for converting traffic into a prospect or customer?

A. People connecting sites B. Squeeze Pages/ Landing Pages C. Long Form Sales Letter D. Video Sales Letter

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 (Answer: a, p. 411)

10-16. Which of the following refers to a Personalized web page or micro-site that incorporates the prospect’s name and is tailored to his interests based on information known about him?

A. People connecting site B. Search platform C. Personalized URL (PURL) D. Blog (Answer: c., p. 427)

TRUE-FALSE

10-17. The active number of individuals on LinkedIn is expected to drop in the coming years. (false, p. 427)

10-18. Email costs less than traditional mail. (true, p. 399) 10-19. When utilizing Google Ads, marketers should try to sell the product, not the “click”. (false, p. 409)

10-20. The two goals of banner ads are to increase brand awareness by exposing consumers to the banner ad, and to maximize the “click-through” rates or “ad clicks.” (true, p. 410)

10-21. Regarding Influencer Marketing, all influencers have one thing in common: They are influential because of their digital expertise. (false, p. 395)

10-22. Influencer marketing is not limited to any social media platform, but may only be executed by final consumers. (false, p. 395)

10-23. Click-to-talk is a form of Web-based communication in which a person clicks an object to request an immediate connection with another person in real-time. (false, p. 433)

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10-24. Good content should draw a target audience back to engage with an organization’s website repeatedly. (true, p. 393)

10-25. Crowdsourcing is an efficient, effective and inexpensive method to mobilize a group. (true, p. 395-396)

10-26. Web sites used to be classified as informational, but now they are strictly transactional. (false, p. 393)

10-27. The main objective of a squeeze page or landing page is to get the visitor on the page to optin. (true, p. 411)

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SAGE Publishing, 2020

Chapter 11: Business-to-Business (B2B) 11-6. In essence, a business consumer in business-to-business (B2B) marketing is any formal entity that purchases a product or service __________.

A. for further production B. to use in its operations C. for resale D. all of the above (Answer: d., p. 451)

11-7.

Which of the following is not an example of an industrial good?

A. wheat sold for the production of flour B. flour sold for the baking of bread C. bread sold to a restaurant D. bread sold to a household

(Answer: d., p. 452)

11-8. According to the text, which of the following is a primary difference between B2B and B2C marketing?

A. price sensitivity B. channel structure C. increased taxation D. segmentation failure (Answer: b., p. 55)

11-9.

Business-to-business marketing communications are:

A. indirect

B. heavily rely on personal selling C. dominated by mass communications D. all of the above (Answer: b., p. 455)

11-10. ___________ is a direct marketing technique that is an integral part of relationship marketing where customer engagement is pursued with the communication of relevant information to all leads all the time.

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 A. lead generation B. marketing communications C. lead nurturing D. customer nurturing (Answer: c., p. 457)

11-11. A main driver leading the shift to B2B selling via e-commerce transactions is the: A. increasing popularity of e-marketplaces B. growing interest of companies in placing orders through mobile commerce devices C. shift to conducting procurement transactions through Internet versus the EDI D. all of the above (Answer: d., p. 459)

11-12. Spotting, qualifying, nurturing, and following leads occur now with the help of _____________, allowing prospects to be monitored based on their daily actions/ interactions with the brand.

A. e-commerce B. marketing automation C. nurture tracking D. nurture automation (Answer: b., p. 460)

11-13. Business-to-business markets are _________ in number than consumer markets, and ________ in sales volume.

A. smaller/smaller B. smaller/larger C. larger/larger D. larger/smaller (Answer: b., p. 459)

11-14. ___________________ are effectively used for generating leads and enable B2B marketers to leverage one-to-one relationships when selling.

A. Click-to-Chat B. Webinars

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 C. Electronic data interchange (EDI) D. Firmographics (Answer: b., p. 336)

11-15. According to Marketo.com, ___________ is the number one challenge for business-tobusiness marketers.

A. generating high-quality leads B. maintaining accurate databases C. retaining customers D. segmenting business markets (Answer: a., p. 466)

11-16. ___________ refers to conveying and communicating valuable information to attract, engage, and retain a target audience to stimulate profitable action or behavior.

A. lead nurturing B. marketing automation C. content marketing D. in-person contacts (Answer: c., p. 467)

11-17. Which of the following is not included in customer advocacy?

A. referrals B. product reviews C. repeat purchases D. blog posts (Answer: c., p. 474) 11-18. A B2B tired-and-true best practice of increasing the sales and profitability of existing customers through offering additional quantities of product or service and tailoring the process to the specific needs of each customer is called _______.

A. B. C. D.

cross selling upselling customer loyalty customer advocacy

(Answer: b., p. 473)

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11-19. _________ are the best type of lead to new customers.

A. telemarketing B. content marketing C. referrals D. in-person contacts (Answer: c., p. 470) 11-20. All of the following are true regarding webinars except: E. They consume less time than face-to-face sales.

F. They have a higher close rate than face-to-face sales.

G. They are less expensive than face-to-face sales.

H. They allow marketers to leverage time one-to-many.

(Answer: b., p. 471)

11-21. Content marketing benefits include all of the following except: A. B. C. D.

keeps reader’s attention does not require constant updating improves brand loyalty increases direct sales

(Answer: b., p. 468)

11-22. The Standard Industrial Classification (SIC) coding system is a means of industrial market segmentation, which provides all of the following benefits except: A. B. C. D.

identifies entities’ form of ownership groups establishments engaged in common economic activity serves as a basis for statistical data about industries constantly updates with the growth of information technology

(Answer: d., p. 463) 11-23. The North American Industrial Classification System will be reviewed every ____, so classifications and information keep up with the changing economy.

A. B. C. D.

6 months year 5 years 10 years

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 (Answer: c., p. 464) 11-24. Marketers use lead generation to _________.

A. B. C. D.

build brand awareness qualify leads generate profitable results all of he above

(Answer: d., p. 466)

11-25. Which of the following is a characteristic of industrial demand?

A. B. C. D.

derived demand elastic demand stable demand concentrated demand

(Answer: a., p. 457)

TRUE-FALSE

11-26. The key distinguishing factor between business consumers and final consumers is the ultimate or end use of the product or service that is being purchased. (true, p. 451) 11-27. In the case of selling industrial goods, the buyer usually comes to the seller. (false, p. 452) 11-28. All governmental agencies have similar public procurement procedures or processes by which they buy products and services. (false, p. 454) 11-29. Maintaining accurate customer /prospect databases is a real challenge for B2B direct marketers. (true, p. 462) 11-30. Direct marketing has played a major role in the evolution of B2C distribution, but a relatively small role in the evolution of B2B marketing. (false, p. 460)

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 11-31. The Standard Industrial Classification (SIC) system was basically designed to replace the North American Industrial Classification System (NAICS), although both systems are still in use today. (false, p. 463) 11-32. Direct marketers must appeal not only to organizations, but to the individuals within the organizations. (true, p. 462) 11-33. The marketing funnel does not end when a sale is made. (true, p. 465) 11-34. For B2B marketers, the customer or client journey through the marketing funnel often takes much longer than for B2C marketers. (true, p. 466) 11-35. Cross selling is a great opportunity for B2B marketers to raise awareness and promote their company’s offerings while further serving loyal customers and enhancing relationships. (true, p. 473)

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SAGE Publishing, 2020

Chapter 12: Fulfillment and customer service 12-6.

Businesses tend to be most concerned with fulfillment because: A. it is the final impression left with the customer.

B. it is the chance to communicate with the customer by enclosing additional promotional materials.

C. it helps to generate satisfied customers and future business for the organization.

D. all of the above

(Answer: d., p. 490)

12-7.

Which of the following have encouraged customers to wait longer before placing an order?

A. B. C. D.

fax machines toll-free numbers the Internet all of the above

(Answer: d., p. 491) 12-8.

On order processing turnaround time, what goal do good marketers try to meet?

A. B. C. D.

90% in 24 hours 100% in 24 hours 100% in 48 hours it depends on the type of merchandise

(Answer: b., p. 491) 12-9. Which of the following steps listed below is not included in the fulfillment process?

A. B. C. D.

processing response thank-you letter billing

(Answer: c., p. 491)

12-10. Which agency maintains strict rules about what companies must do when an item is “out of stock?”

A. B. C. D.

Consumer Bureau Federal Trade Commission Federal Communications Commission General Accountability Office

ordered

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 (Answer: b. p. 493) 12-11. The ______ provides routing information regarding the most efficient way to move through the warehouse and assemble the items ordered by the customer.

A. B. C. D.

physically

receipt picking list order form packing slip

(Answer: b., p. 496) 12-12. Order received, order processed, items picked in warehouse, order is moved to packing area and packed, and package travel destination points are an accurate account of which of the following processes?

A. fulfillment process B. outsourcing process C. in-house warehouse process D. packaging process (Answer: c., p. 496)

12-13. What enables most manufacturers to track items and move them through a distribution center?

A. five-digit numbers B. alphabetical stocking C. bar codes D. computer chips (Answer: c., p. 500) 12-14. ______ is an emerging business concept based on the idea that the process of building and delivering products should not begin until after the firm receives an order.

A. Warehousing B. Outside Fulfillment C. On-line Fulfillment D. Integrated Order Fulfillment (Answer: d., pp. 502) 12-15. Which term below describes how a company operates when it is only the marketing and customer service entity with manufacturing and distribution done elsewhere?

A. virtual enterprise

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 B. subsidiary marketing C. seller only D. e-marketing company (Answer: a., p. 504) 12-16. Another fulfillment option that refers to the integration of people, processes, and technology to ensure customer satisfaction before, during, and after the on-line buying experience is referred to as which of the following?

A. E-fulfillment B. Out-house fulfillment C. Technological fulfillment D. Multi-Channel fulfillment (Answer: a., p. 505) 12-17. The major problem with many e-commerce organizations is that they lack: A. B. C. D.

funding for marketing and fulfillment focus and emphasis on e-fulfillment regulations to specify how they should operate technical capabilities

(Answer: b., p. 506)

12-18. The Private Express Statutes grant ______ a form of monopoly over first-class mail delivery.

A. the USPS B. major airlines C. private delivery services D. FedEx (Answer: a., p. 508) 12-19. Which mail category is mainly used for the distribution of direct response advertising?

A. First-Class Mail B. Priority Mail C. Mailgram D. Standard Mail (Answer: d., p. 508)

12-20. Organizations using call center measure the level of customer dissatisfaction by calculating the rate of ________.

A. call abandonment

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 B. call shocks C. frustrated calls D. returned calls (Answer: a., p. 511)

12-21. Which of the following is the biggest advantage of establishing an in-house call center?

A. the time it takes to properly train representatives B. the degree of control the company has C. ease of developing measurement systems D. the financial savings (Answer: b., p. 512)

12-22. Which of the following is not one of the five main advantages to using an outside call center?

A. low initial investment B. time flexibility C. high employee loyalty D. quick start-up (Answer: c., pp. 513) 12-23. Which of the following defines a customer-centric business philosophy and culture to support effective marketing service?

A. customer satisfaction B. customer relationship management C. customer retention program D. customer culture (Answer: b., p. 514) 12-24. Placing an inquiry, order, or complaint with the organization under a fictitious name is primarily an example of A. evaluating customer satisfaction B. evaluating employees’ responses C. meeting fulfillment standards D. obtaining information (Answer: a., p. 517)

12-25. Tips for keeping customers happy may include which of the following?

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SAGE Publishing, 2020 A. B. C. D.

Don’t promise something you cannot deliver Inform your customers about how to return products Test your own service All of the above

(Answer: d., p. 518)

TRUE-FALSE 12-26. The main purpose of back-end marketing is to build and maintain a better with the customer. (true, p. 490)

relationship

12-27. Strictly defined, fulfillment means sending the product to the customer or delivering the service agreed upon. (true, p. 490)

12-28. The ideal target for order accuracy is not quite 90%. (false, p. 491)

12-29. The “offer” should always leave some things to customer’ imagination. (false, p. 492)

12-30. Direct marketers must examine inventory for quality checks prior to packaging and, if possible, after packaging. (true, p. 493)

12-31. If applied correctly, integrated order fulfillment will work for every organization. (false, p. 503)

12-32. Delivery drones are revolutionizing delivery systems by eliminating delivery complications such as late delivery arrivals. (true, p. 509)

12-33. Many of the most common fulfillment problems originate in the warehouse. (true, p. 510)

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 12-34. A telemarketing house is a dedicated team supported by various telephone technological resources to provide responses to customer inquiries. (false, p. 511)

12-35. Customer satisfaction has been defined as the extent to which a firm fulfills a consumer’s needs, desires, and expectations. (true, p. 513)

12-36. A disadvantage of contracting outside fulfillment services is an increase in financial risk. (false, p. 513)

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Chapter 13: Environmental, ethical and legal issues 13-6.

______ are the moral principles of conduct governing the behavior of an individual or group.

A. B. C. D.

Morals Rights Ethics Principles

(Answer: c; p. 538) 13-7. In an effort to seek environmental improvement, the DMA has enacted a resolution containing a set of 15 business practices known as “The Green 15”. Which of the following business practices are designed to improve paper procurement and use?

A. B. C. D.

Businesses should review direct mail and printed marketing pieces and test downsized pieces when and where appropriate.

Businesses are encouraged to participate in DMA’s “Recycle Please” campaign and/or in another recycling campaign.

Businesses should apply predictive models and/or Recency-Frequency-Monetary (RFM) segmentation where appropriate.

Businesses should ask paper suppliers where their paper comes from before buying it with the intent of not sourcing paper from unsustainable or illegally managed forests.

(Answer: d; p. 538) 13-8. The main areas of the DMA’s Environmental Resolution and “Green 15” program initiative include all of the following except: A. B. C. D.

Resource Procurement Design and Production Packaging Media Consumption

(Answer: d; p. 538-539)

13-9.

Which of the following “Green 15” business practices are designed to improve list hygiene and data management?

A. Businesses should review direct mail and printed marketing pieces and test downsized pieces when and where appropriate.

B. Businesses are encouraged to participate in DMA’s “Recycle Please” campaign and/or in another recycling campaign.

C. Businesses should apply predictive models and/or Recency-Frequency-Monetary (RFM) segmentation where appropriate.

D. Businesses should ask paper suppliers where their paper comes from before buying it with the intent of not sourcing paper from unsustainable or illegally managed forests.

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 (Answer: c; p. 540) 13-10. The FTC is constantly updating its consumer privacy protection. Which of the following is not an area the FTC offers advice for businesses to ensure the privacy and security of consumers.

A. B. C. D.

Children’s Privacy Credit Reporting Pharmaceuticals Tech

(Answer: c; p. 559) 13-11. According to the text, which of the following is not a basic human right possessed by consumers?

A. The right to safety B. The right to be informed C. The right to collection D. The right to confidentiality (Answer: c; p. 543-544) 13-12. The consumer right to information implies that: A. B. C. D.

consumers are safe from both physical and psychological harm. consumers have a right to receive any and all pertinent or requested information. consumer have a right to choose or make decisions about his or her buying behavior. consumers have a right to specify to a given company that information they freely provided should not be shared.

(Answer: b; p. 544)

13-13. The consumer right that is probably the most noteworthy affecting direct marketers is A. B. C. D.

right to confidentiality right to information right to privacy right to safety

(Answer: c; p. 544)

13-14. The three legislative areas designed to safeguard consumer rights are intellectual property, security, and _______.

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 A. B. C. D.

selection information confidentiality privacy

(Answer: d; p. 545)

13-15. The concerns of consumers and Congress over the broad issue of privacy, including the subject of mailing lists and databases, culminated in the _____.

A. B. C. D.

Privacy Act of 1974 Consumer Rights Act of 1989 Privacy Act of 2000 Consumer Selection Act

(Answer: a; p. 547)

13-16. The main provisions of The CAN-SPAM Act of 2003 are that it: A. B. C. D.

Requires that your email give recipients an opt-in method Bans false or misleading header information Requires that for and not-for-profit e-mail be identified as a promotion Businesses must provide a working telephone number

(Answer: b; p. 549)

13-17. For marketers to really get at the heart of privacy concerns, they need to understand two basic consumer perceptions: ______ and ______.

A. B. C. D.

anger, destruction annoyance, violation wants, needs budget, willingness to buy

(Answer: b; p. 551)

13-18. Personal information can be divided into four different categories. Which of the following is not one of the four categories?

A. General descriptive information B. Sensitive/Confidential information C. Consumer perception information

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 D. Product purchase information (Answer: c; p. 551-552)

13-19. Which of the following is the easiest type of information to obtain?

A. B. C. D.

Sensitive/confidential Information Product purchase information General descriptive information Ownership information

(Answer: c; p. 551)

13-20. Information such as medical history, Social Security number and driving record belong in which of the following information categories?

A. B. C. D.

Sensitive/confidential information Product purchase information General descriptive information Ownership information insert

(Answer: a; p. 552)

13-21. The _______ consumers look at the contract, the offer, and the methods of data collection and mentally apply a cost/benefit analysis to determine the marketer’s use of information.

A. B. C. D.

privacy unconcerned privacy fundamentalists privacy seekers privacy pragmatists

(Answer: d; pp. 552-553) 13-22. The _________ consumers are least receptive to direct marketing activities and should be purged from direct marketers’ lists.

A. B. C. D.

privacy seekers privacy pragmatists privacy unconcerned privacy fundamentalists

(Answer: d; p. 552)

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13-23. Which of the following tasks is not considered part of the DMA interest-based advertising (IBA) guidelines for online marketing activities?

A. B. C. D.

Publish a privacy policy and abide by it.

Ensure reasonable security and limited data retention.

Offer notice and choice for material changes to your policy.

The marketer must disclose their email address but not postal address

(Answer: d; p. 556)

13-24. The abbreviation TCPA stands for_____.

A. B. C. D.

Technological Consumer Privacy Act Telephone Consumer Protection Act Tested Consumer Privacy Act Targeted Consumer Privacy Act

(Answer: b; p. 557)

13-25. The four elements in the FTC’s “Privacy Policy” for on-line direct marketing include all of the following except: A. B. C. D.

notice. access. choice. opt-out.

(Answer: d; p. 560) 13-26. _______ marketing requires the consent of a customer before a company sends out a marketing communication to that customer via the Internet.

A. B. C. D.

Permission Authorization Request Inquiring

(Answer: a; p. 565) 13-27. Which of the following is not a legal restriction placed on marketers when promoting pharmaceuticals?

A. Substantiation B. Fair Balance C. Overstatement of Efficacy D. Opt-in

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 (Answer: d; pp. 562-563) TRUE-FALSE

13-28. To be ethical in marketing means to conform to the accepted professional standards of conduct. (true, p. 538)

13-29. The right to selection is a consumer’s right to specify to a given company that information that they freely provide should not be shared.” (false, p. 544)

13-30. Intellectual property is defined in the text as products of the mind or ideas. (true, p. 545)

13-31. The General Data Protection Regulation (GDPR) only affects companies located within the EU. (false, p. 550)

13-32. The General Data Protection Regulation (GDPR) primarily focuses on regulating digital marketing information, such as social media posts. (false, p. 550)

13-33. Most Internet surfers are not bothered by unwanted, unsolicited bulk commercial e-mail massages known as Spam. (false, p. 548)

13-34. People feel violated because they receive too much unsolicited marketing communications, and they feel annoyed because they believe too much information about their personal lives is being exchanged between marketers without their knowledge and/or consent. (false, p. 551)

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 13-35. The chief privacy officer (CPO) is responsible for protecting the sensitive information the corporation collects, ranging from credit card accounts to health records. (true, p. 553)

13-36. The Federal Trade Commission is charged with regulating interstate and international communications by radio, television, wire, satellite, and cable. (false, p. 558)

13-37. Cookie stuffing is the process of creating fake online traffic, clicks, and impressions to generate revenue through ads. (true, p. 566)

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SAGE Publishing, 2020

Chapter 14: International direct and interactive marketing 14-6

In the opening vignette the Bank of New Zealand constructed a popular direct marketing campaign called “Body Parts” to appeal to students’ desire to get something. What did they ultimately decide would really appeal to students?

A. B. C. D.

MP3 players “Sign-on” bonuses Cash Discounts and free stuff year round

(Answer: d., p. 581-582)

14-7

Based on 2017 statistics, which of the following countries was not a top trading partner with the US in that year?

A. B. C. D.

China France Canada Mexico

(Answer: b., p. 583)

14-8

Which of the following is not one of the four reasons for direct marketers to decide to go international in their marketing efforts?

A. B. C. D.

Limited growth opportunities in the domestic market Shared global values High cost of new product development Non-Competitive forces

(Answer: d., p. 583)

14-9

What makes international direct marketing different from domestic direct marketing?

A. B. C. D.

Cost of entering new markets Lack of market research Market uncertainty Communication barriers

(Answer: c., p. 584)

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 14-10 Which of the following statements is true regarding a collectivist culture?

A. B. C. D.

Group focus is more likely to take priority over independence and a strong sense-of-self The value of this culture lies on the achievements and successes of the group as a whole Typical examples of this type of culture include the Asia and Latin America All of the above

(Answer: d., p. 584)

14-11 Which of the following is not part of the five-step approach for making the decision to go international?

A. B. C. D.

Assess your international potential Select your trading partners Develop an international direct marketing plan Acquire expert advice and counseling

(Answer: d., p. 585-591)

14-12 What does a country’s infrastructure represent?

A. B. C. D.

Capital goods and services that serve the activities of many industries The currency of a foreign market How widely computers are used within the country The postal system used by the country

(Answer: a., p. 587)

14-13 Market research for each country under investigation can be narrowed down to the following primary international market indicators. Which of the following is not one of these indicators?

A. B. C. D.

Political stability Distribution of wealth Television ownership Computer ownership

(Answer: c., p. 588)

14-14 When assessing a country’s GDP and inflation rates, most direct marketers look for annual trends going back as far as _____ year/years.

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 A. B. C. D.

one five seven ten

(Answer: b., p. 587)

14-15 Areas to address in the postal/delivery services include which of the following?

A. B. C. D.

Adequacy of the change-of-address system available The existence of a track-and-trace system for parcels The level of sophistication and format of the postcode system All of the above

(Answer: d., p. 589)

14-16 A ______ is created when two or more investors join forces to conduct a business by sharing ownership and control, whereas in _____ a company acquires an existing foreign company or forms a completely new company in the foreign country.

A. B. C. D.

joint venture; contract manufacturing joint venture; direct investment management contracting; direct investment management contracting; contract manufacturing

(Answer: b., p. 592)

14-17 In ______ local business people or their government sign a contract to manage the foreign business in their country’s market.

A. B. C. D.

joint venture licensing management contracting contract manufacturing

(Answer: c., p. 592)

14-18 Direct marketers using their home location have several basic options for distributing products, which of the following best describe these options?

A. B.

The United States Postal Service international mail Non-UPS postal delivery via a foreign postal administration

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 C. D.

Consolidators within the United States All of the above

(Answer: d., p. 595)

14-19 Which of the following is not one of the four words of wisdom for developing the creative materials for any international direct marking campaign?

A. B. C. D.

Research Test Measure Adapt

(Answer: c., p. 599)

14-20 Which of the following is not considered to be one of the up and coming BRIC economies?

A. B. C. D.

Canada Brazil India Russia

(Answer: a., p. 583)

14-21 When a U.S. company ships products to Ontario, Canada which of the following taxes will it incur?

A. B. C. D.

The goods and services tax (GST) The harmonized sales tax (HST) The provincial sales tax (PST) A&C

(Answer: d., p. 602-603)

14-22 Which of the following are factors affecting direct marketing in Europe?

A. B. C. D.

Postal requirements Data Strong list industry All of the above protection

(Answer: d., p. 606)

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020

14-23 ______ may be important in direct marketing, but it is especially so in Latin America.

A. B. C. D.

Building relationships Strong campaigns Securities Direct mail

(Answer: a., p. 607)

14-24 Two of the main lessons that direct marketers have learned from dealing with Asia include understanding local laws and _____.

A. B. C. D.

treating each country separately negotiating terms of security and trust researching the country’s infrastructure avoid high-technological activities

(Answer: a., p. 608)

14-25 Which of the following are primary challenges facing direct marketers considering Africa as a trading partner?

A. B. C. D.

The majority of the population is part of the Baby Boom Generation The limited growth of the country’s mobile phone market The limited computer access and low Internet penetration All of the above

(Answer: c., p. 611)

TRUE-FALSE 14-26 Different country laws can be a big player in dictating marketing strategies. (true, p. 584)

14-27 Conducting market research is critical to understanding the cultural differences and country market nuances that may exist (true, p. 586)

14-28 E-mail newsletters are a recommended first step into international e-mail marketing.

Instructor Resource Spiller, Direct, Digital & Data-Driven Marketing, 5e

SAGE Publishing, 2020 (true, p. 599)

14-29 At a minimum, the infrastructure analysis should include the following essential services: transportation, computer ownership, utilities, and banking. (false, p. 587)

14-30 The international business environment is extremely predictable and is an apathetic environment that doesn’t need to be constantly monitored. (false, p. 591)

14-31 Africa has the fastest growing mobile market in the world. (true, p. 611)

14-32 An exporting company sells its products from locations throughout sites operated by personnel overseas. (false, p. 591)

14-33 Lists of both consumer and business customers are normally available for most countries, although different kinds of lists are available in different countries. (true, p. 589)

14-34 Most direct marketing activities in the Middle East are based on e-mail campaigns. (false, p. 610)

14-35 Careful market research, including an assessment of consumer needs, direct marketing infrastructure, and political, economic, and business environments, is necessary prior to commencing international direct marketing activities. (true, p. 587)

14-36 Revenue generated by international direct marketing activities has decreased over the years. (false, p. 583)