ADPR 151 Chapter 4
80) Which of the following is a promotion designed specifically to increase customer retention? A) event marketing B) loyalty program C) sampling D) rebate E) sweepstakes
B
89) Kinder Clothes, an online children's clothing marketer, uses data mining to identify and segment customers who have purchased infant clothing, toddler clothing, and children's clothing. The company has also used data mining to further identify and segment these groups based on whether they purchased clothing for boys or girls. In this example, Kinder Clothes is using ________. A) skimming B) behavioral targeting C) prospecting D) converting E) opt-in marketing
B
9) Which term refers to a direct marketer's potential customer? A) offer B) prospect C) partner D) contact E) convert
B
47) An activity and communications program designed to build excitement in a market for a limited period of time in order to stimulate trial, increase consumer demand, or improve product availability is categorized as ________. A) advertising B) public relations C) sales promotion D) personal selling E) event sponsorship
C
52) Sales manuals, training programs, and supportive materials are all examples of ________ promotions. A) retailer B) partner C) salesforce D) trade E) channel
C
Refer to the passage below to answer the questions that follow. Everyone knows McDonald's, the worldwide fast-food chain. McDonald's has used consumer promotions for years. Restaurants offer a kids' Happy Meal that always includes a toy, and oftentimes the package itself is a promotion, such as pumpkin buckets at Halloween. McDonald's has also used a promotion patterned after the popular Monopoly game, in which everyone wins something small, like a soft drink or French fries, but one participant could win $1 million dollars. The Monopoly promotion usually lasts several months. McDonald's also participates in promotions with movies, such as Star Wars and several Disney movies. Another promotion McDonald's is considering is a program that will give consumers one free Happy Meal for every 10 they purchase. 74) What type of consumer promotion is the toy in the Happy Meal? A) direct premium B) self-liquidator premium C) sample D) price deal E) game
A
53) Which of the following is NOT a type of consumer promotion? A) price deals B) sampling C) trade deals D) sweepstakes E) premiums
C
1) ________ marketing occurs when a seller and customers deal with each other directly rather than through an intermediary, such as a wholesaler or retailer. A) Integrated B) Simplified C) Leveled D) Direct-response E) Tiered
D
11) Getting the product to those who order it is called ________. A) optimization B) generation C) prospecting D) conversion E) fulfillment
E
19) Which of the following is communication for a product, service, or nonprofit organization that is addressable? A) personal sales B) sales promotion C) telemarketing D) print direct-response advertising E) direct mail
E
21) Which of the following is NOT an advantage of direct mail? A) reaching a highly targeted audience B) building in feedback C) personalizing the message D) simplifying the calculation of return on investment E) providing a low cost per impression
E
10) What is the first step in the direct-response process? A) market research to guide strategy B) the offer C) customer ordering D) fulfillment E) relationship building
A
17) Measuring and evaluating consumer behavior is part of the ________ step in the direct- response process. A) post-testing B) offer C) response D) fulfillment E) proposition
A
18) Which of the following is the original and most effective form of direct marketing? A) personal sales B) sales promotion C) catalog marketing D) print direct-response advertising E) direct mail
A
26) Rooms with large banks of phones and computers where workers send and receive calls are known as ________. A) call centers B) telephone pits C) call lists D) call floors E) call pits
A
33) ________ is a type of marketing communication that has characteristics of advertising but also includes an element that allows the audience to make a direct response to the advertiser. A) Direct-response advertising B) Direct-focus advertising C) Integrated marketing communications D) Direct-marketing advertising E) Direct-to-consumer advertising
A
34) A direct-response ad on television is known as a(n) ________. A) infomercial B) sponsored program C) promotional program D) telemarketing program E) home shopping network
A
38) Neal Murphy sells his company's unique gift items on television programs and entire channels dedicated to selling goods and services. Neal is using ________. A) direct-response television advertising B) internet-based infomercials C) online marketing D) telemarketing E) data mining
A
46) Gianna is a skeptical consumer whose motto is "I'll believe it works when I see that it works." Which of the following would be the most effective form of direct marketing for a marketer to use to reach Gianna and customers like her? A) infomercials B) catalogs C) direct mail D) telemarketing E) data mining
A
5) There are four main players in direct-response marketing communication. Which of the following is NOT one of these four main players? A) state and federal governments that regulate marketing communication B) marketers who use direct response to sell products or services C) agencies that specialize in direct response D) media that deliver messages E) consumers
A
54) Which of the following is a common consumer price deal? A) banded packs B) refund C) rebate D) premium E) contest
A
57) Which of the following provide the consumer with something extra through the package itself? A) prize-pack deals B) cents-off deals C) samples D) self-liquidator premiums E) coupons
A
60) Which consumer sales promotion is a marketer's offer to return a certain amount of money to the consumer who purchases the product? A) rebate B) sample C) coupon D) premium E) self-liquidating
A
69) Which type of trade promotion rewards a reseller financially for purchase of a certain level of a product or support of a promotion? A) trade incentives and deals B) contest C) point-of-purchase display D) self-liquidator E) retailer kit
A
7) Service firms in direct marketing specialize in ________. A) printing, mailing, list brokering, and data management B) media buying C) evaluating the results of direct marketing campaigns D) creating direct-marketing messages E) delivering ordered products to customers
A
71) Trade promotions are most important in which type of strategy? A) push B) pull C) end-user D) direct marketing E) one-to-one
A
79) ________ means building a product's marketing program around a sponsored activity, such as the Olympics or a golf tournament. A) Event marketing B) Sports marketing C) Co-marketing D) Co-branding E) Tie-in marketing
A
82) When two companies come together to offer a product, the effort is called ________. A) cobranding B) sponsorship C) cross-promotion D) tie-in marketing E) continuity marketing
A
83) Which of the following is a type of partnership program used by manufacturers of two or more brands, such as Doritos corn chips and Pace salsa, to leverage similar strengths to achieve a bigger impact in the marketplace? A) cross-promotion B) licensing C) sponsorship D) comarketing E) cobranding
A
85) What do direct marketers use to keep track of customers, identify prospective customers, and segment groups of customers and prospects? A) databases B) permission marketing C) integrated marketing communication D) opt-out strategies E) opt-in strategies
A
14) During the ________ step of the direct-response process, the DRC campaign must communicate benefits to buyers by answering the enduring question: "What's in it for me?" A) strategy B) offer C) response D) fulfillment E) relationship building
B
24) Which of the following is a TRUE statement about catalogs? A) Catalogs, for the most part, have been replaced by online publications. B) Catalogs are often part of a multichannel strategy for large retailers. C) The growth in catalogs in the 21st century is in general-interest catalogs. D) Few paper catalogs are associated with online catalogs. E) Catalog retailers do not have physical retail outlets.
B
41) Which type of direct-marketing list consists of the marketer's own customers or members? A) data list B) house list C) converted list D) response list E) compiled list
B
42) Which type of direct-marketing list is the most valuable list to a marketer? A) data list B) house list C) compiled list D) response list E) prospect list
B
49) Through the process of ________, results derived from a promotion can be estimated and compared with the projected cost of the effort. A) investment planning B) payout planning C) added value planning D) allowance analysis E) continuity analysis
B
56) The consumer promotion that provides a reduction in the normal price charged for a good or service announced at the point of sale or through mass or direct advertising is known as a ________. A) prize-pack deal B) cents-off deal C) bonus pack D) banded pack E) coupon
B
61) A consumer is able to try a product or service through ________. A) a warranty B) sampling C) a premium D) a specialty E) swag
B
70) Consumer promotions are most important in which type of strategy? A) push B) pull C) channel D) wholesale E) intermediate
B
78) ________ occurs when companies support an event either financially or by donating supplies and services. A) Ambush marketing B) Sponsorship C) Co-marketing D) Co-branding E) Tie-in marketing
B
15) During the ________ step in the direct-response process, the DRC message must make it as easy as possible for customers to respond. A) objectives B) offer C) response D) fulfillment E) relationship building
C
22) Which of the following is most likely TRUE of infomercials? A) They are the most popular method of direct marketing. B) They typically air during prime time on network television. C) They are used if the product needs to be demonstrated. D) They are typically used for products with low-profit margins. E) They are usually used for products that are widely available in retail outlets.
C
3) Direct-response marketing is typically designed to accomplish which of the following? A) increase awareness B) enhance attitudes C) produce an immediate sale or response D) gain acceptance among several stakeholders E) encourage switching from a competitor's product or service
C
30) Using ________, telemarketers call random numbers rather than numbers of qualified prospects. A) opt-in telemarketing B) inbound telemarketing C) cold calling D) variable data marketing E) conversion calling
C
37) Knight-Abbey Commercial Printers and Direct Mailers is a large commercial printer in the southeastern United States. The company develops, prints, and mails direct mail pieces for several businesses. One of the company's largest customers is Beau Rivage Casino in Gulfport, Mississippi. Knight-Abbey personalizes and prints eight variations of a direct mail offer to customers. In terms of the types of firms in direct-response advertising, which type is Knight- Abbey? A) advertising agency B) direct-marketing agency C) service firm D) fulfillment house E) print brokerage
C
40) Laurie is a college professor who teaches a course in direct marketing. She is a member of the Direct Marketing Association (DMA), a trade association for businesses in the direct- marketing industry, because it is a useful source of current information for her course. She receives direct mail offers, emails, and telemarketing calls from a variety of businesses that are also sent to other members of the DMA. What type of list is Laurie's name most likely on? A) house list B) response list C) compiled list D) professional list E) converted list
C
44) Which type of direct-marketing list is a list of some specific category, such as sports car owners, new homebuyers, graduating seniors, or subscribers to a magazine? A) data list B) house list C) compiled list D) response list E) prospect list
C
45) Organic Designs is a small, successful chain of stores offering stylish clothes made of all- organic materials for infants, toddlers, and young children. Most of the Organic Designs stores are located in urban areas. Now, Organic Designs is considering using direct marketing to reach potential customers who live outside of the company's existing markets, with the goal of engaging attention and creating long-term relationships with a new group of customers. Which of the following methods of direct marketing would most likely be effective in accomplishing this goal? A) telemarketing B) print direct-response advertising C) catalogs D) opt-out marketing E) bulk emailing
C
55) A temporary price reduction, sale price, or freebie is known as a ________. A) refund B) rebate C) price deal D) trade deal E) price-off
C
63) Which type of consumer sales promotion creates excitement by offering impressive prizes that consumers can win by chance? A) price deals B) specialty advertising C) sweepstakes D) sampling E) premiums
C
64) ________ require participants to compete for a prize or prizes based on some sort of skill or ability. A) Sweepstakes B) Swag offers C) Contests D) Premiums E) Specialties
C
67) In a practice that is sometimes referred to as ________, trade promotions are directed at distribution channel members. A) value-added marketing B) payout planning C) channel marketing D) partner relationship management E) customer relationship management
C
68) Which of the following is a type of trade promotion? A) refund B) premium C) point-of-purchase display D) sampling E) rebate
C
72) Which of the following is an example of a sales promotion? A) a news release encouraging voters to support a new bond issue for a local elementary school B) a staged dance routine promoting a new product in a busy public place C) a coupon for $5 off a visit to an amusement park D) a listing of all the television programs to be shown by Charter Cable the week of March 16 E) a plan to increase ice cream sales by adding two new flavors
C
86) Through ________, marketers can target individuals based on what they have purchased, what shows they have watched, or what websites they have visited. A) variable data marketing B) permission-based marketing C) behavioral targeting D) predictive targeting E) conversion marketing
C
39) After selecting a sweater on the Lands' End website, Kelly Oldham filled out the required customer and credit card information. A box with a checkmark inside was next to the following statement: "Yes, I would like to receive promotional information via email from Lands' End." The statement suggests that Lands' End is using which of the following marketing tools? A) spam B) telemarketing C) predictive dialing D) data mining E) permission marketing
E
13) In direct marketing, the ________ is made up of all variables intended to satisfy the needs of the consumer. A) message B) media C) fulfillment D) offer E) response
D
16) During the ________ step in the direct-response process, the goal is to respond quickly and get the product to those who respond. A) post-testing B) offer C) response D) fulfillment E) pretesting
D
2) Which of the following are the two fundamental components of the direct-marketing business? A) communication sent directly to the consumer and promotion of brand awareness B) promotion of brand awareness and consumer response sent directly back to the source C) IMC and database marketing D) communication sent directly to the consumer and consumer response sent directly back to the source E) consumer response sent directly back to the source and comparative marketing
D
20) How is the most direct mail sent? A) first-class mail B) second-class mail C) second-class bulk mail D) third-class bulk mail E) certified mail
D
25) Which of the following is a form of personal sales? A) direct-mail marketing B) direct-response advertising C) catalog marketing D) telemarketing E) Internet advertising
D
28) In which type of telemarketing is the call initiated by the customer? A) opt-in B) opt-out C) external D) inbound E) outbound
D
32) What is the purpose of the national Do Not Call Registry? A) to make businesses that use telemarketing to register all the numbers that they call B) to allow consumers to receive telemarketing calls only from marketers that they want to call them C) to stop telemarketers from calling cell phone numbers because consumers must pay for those calls D) to allow consumers to "opt-out" of telemarketing calls from for-profit businesses E) to stop telemarketers from calling people at work
D
35) The ________ regulates email marketing. A) Do Not Mail List B) Mail Preference Service C) McAfee Internet Security Suite D) CAN-SPAM Act E) Do Not Call Registry
D
36) Many marketers now use permission marketing to address the problem of ________. A) social selling B) predictive dialing C) cold calling D) spamming E) variable data marketing
D
43) Which type of list is derived from people who have answered some type of direct-response offer? A) data list B) house list C) compiled list D) response list E) prospect list
D
48) Which of the following is LEAST likely a typical target audience of sales promotion? A) consumers B) distributors C) sales representatives D) media E) retailers
D
50) Promotions are typically LEAST effective at which of the following? A) creating immediate sales B) reinforcing brand image C) building brand awareness D) changing negative brand attitudes E) generating product trial
D
58) Which of the following provide the consumer with more units of a product sold at a lower price than if they were bought at the single-unit price? A) prize-pack deals B) cents-off deals C) bonus packs D) banded packs E) rebates
D
59) Which of the following are the two types of coupons? A) refund and rebate B) immediate and delayed C) percentage and cents-off D) retailer and manufacturer E) price cut and added value
D
65) ________ presents the brand's name on something that is given away as a reminder. Examples include calendars, pens, T-shirts, mouse pads, and so forth. A) A premium B) A rebate C) A bonus pack D) Specialty advertising E) Specialty sampling
D
73) When Kodak wanted to create excitement for its line of digital cameras, the company encouraged consumers to submit pictures electronically in the "Kodak Moments" promotion. Judges selected a grand prize winner to receive a vacation for four to Disney World, with several other lower-level winners receiving Kodak products. What type of consumer promotion was this? A) coupon B) sweepstakes C) game D) contest E) premium
D
77) What type of partnership program does McDonald's enter into when its promotions are related to movies? A) co-marketing B) co-branding C) specialty D) cross-promotion E) loyalty program
D
8) Which type of agency is responsible for making sure consumers receive whatever they request in a timely manner, be it a catalog, additional information, or the product itself? A) advertising agency B) independent agency C) service firm D) fulfillment house E) direct-marketing agency
D
81) ________ involves manufacturers developing marketing communication programs with their main retail accounts, instead of for them. A) Event marketing B) Sponsorship C) Cross-promotion D) Comarketing E) Licensing
D
88) Sorting information in a company's database in order to maintain customer relationships is called ________. A) behavioral targeting B) merging C) variable data marketing D) data mining E) opt-in marketing
D
90) Adams Cutlery has always relied upon advertising to market its products to final customers. However, the marketing team at Adams Cutlery now wants to begin a direct-marketing campaign consisting of a company website, emails to current customers, and an online catalog. Which of the following would the marketing team expect to gain as a result of implementing this direct marketing plan? A) the ability to increase the range of products the company offers B) a wealth of information about competitors and their products C) more control over customers' interactions with the company D) the ability to learn more about their customers and tailor offerings to fit their needs E) a higher cost-per-contact that could prove to be more cost-effective than advertising in mass media
D
12) Which of the following is NOT typically part of the offer in direct marketing? A) product description B) terms of sale C) payment information D) delivery information E) rebate
E
23) A ________ is a multipage direct-mail publication that shows a variety of merchandise. A) letter B) brochure C) broadsheet D) self-mailer E) catalog
E
27) Which of the following are the two types of telemarketing? A) opt-in and opt-out B) toll and toll-free C) internal and external D) business and organizational E) inbound and outbound
E
29) In which type of telemarketing does the call originate with the marketer? A) opt-in B) opt-out C) external D) inbound E) outbound
E
31) Which of the following refers to the use of special computerized programs that use random dialing, making it possible for telemarketing companies to call anyone, even those with unlisted numbers? A) opt-in telemarketing B) opt-out telemarketing C) cold calling D) conversion calling E) predictive dialing
E
4) What is the rationale for the higher cost of direct marketing? A) The effectiveness of direct-response marketing is not easy to evaluate. B) Consumers are more accepting of it than of other forms of brand communication. C) Response rates have increased dramatically in the past 10 years. D) Consumers feel more confident in marketers' concerns for their privacy. E) The messages are tightly targeted to reach prime prospects.
E
51) Which of the following is NOT a reason for the growth of sales promotion? A) decreasing brand loyalty B) need for accountability C) power of dominant retailers D) growth of digital and other new media E) pressure for long-term profits
E
6) Which of the following is NOT a type of company that has traditionally made extensive use of direct marketing? A) insurance companies B) book and record clubs C) gardening firms D) publishers E) oil companies
E
62) The consumer promotion that is a tangible reward for a particular act, usually purchasing a product or visiting the point-of-purchase, is known as a ________. A) sample B) price deal C) contest D) sweepstakes E) premium
E
66) Which of the following is NOT an objective of consumer promotions such as coupons? A) generating awareness B) generating trial C) maintaining or increasing market share D) reminding consumers about the brand E) increasing profit margins
E
75) Maria won $1 million playing Monopoly at McDonald's. She won by collecting Monopoly tokens with each McDonald's purchase she made during the promotion, and eventually getting the winning combination of tokens. What type of consumer promotion is this? A) direct premium B) self-liquidator premium C) contest D) price deal E) game
E
76) The promotion in which customers receive one Happy Meal for every 10 they purchase is best described as a ________. A) price deal B) premium C) tie-in D) refund E) loyalty program
E
84) Promotions should be designed to do which of the following? A) appeal to consumers only B) appeal to channel members only C) replace costly advertising D) work independently of other brand communications E) work within a mix of brand communications
E
87) Which of the following is NOT one of the four categories of data collected in organizations' customer databases? A) individual identity data B) behavioral data C) compiled information D) self-identified data E) social-identified data
E