Deck 16: Customer Communication

Question 1

The new social model of customer communication is unidirectional and intrusive.

Answer 1

False
Explanation:The new social model of customer communication is multidirectional and less intrusive.

Question 2

Sales promotion consists of two basic categories: consumer promotion and trade promotion.

Answer 2

True
Explanation:Sales promotion consists of two basic categories:consumer promotion and trade promotion.

Question 3

The measurability of direct marketing is one of its greatest appeals.

Answer 3

True
Explanation:The impact of direct marketing is measured easily. This feature appeals to many marketers.

Question 4

According to the FTC,you can support claims for your product by offering a money-back guarantee or providing letters from satisfied customers.

Question 5

National Do Not Call Registry gives individuals the opportunity to have their numbers removed from telemarketers' lists.

Question 6

When you go to a website for textbooks,a pop-up ad appears for another company.This is an example of direct marketing.

Question 7

Business-to-business advertising relies heavily on emotional appeals.

Question 8

The blend of communication vehicles a company uses to reach its current and potential customers is its marketing mix.

Question 9

Targeted display advertising allows customers or website visitors to opt-in to mailing lists.

Question 10

Institutional advertising refers to advertising that presents a company's opinions on public issues such as education or health care.

Question 11

The first step in the personal-selling process is uncovering needs and presenting solutions.

Question 12

Comparative advertising is useful whenever a company believes it has some specific product strengths that are important to customers.

Question 13

One of the biggest disadvantages to advertising in newspapers is declining readership in many cities.

Question 14

Six months after you bought a new car,you receive a letter from the manufacturer telling you about a special price being offered by the dealer for an oil change.This is an example of "reminder advertising."

Question 15

With a push strategy,the producer appeals directly to end customers.

Question 16

Reminder advertising tells past customers that a product is still available or a company is ready to serve their needs.

Question 17

In a canned sales pitch,the salesperson focuses on questioning and listening before offering a solution that meets each prospect's unique needs.

Question 18

The paid display or use of products in television shows,movies,and video games is referred to as media mix.

Question 19

The thinking behind celebrity involvement in advertising is that people will be more inclined to use products endorsed by a celebrity because they will identify with and want to be like this person.

Question 20

One of the most significant changes that the social communication model has brought to marketing is that companies now have far less control of their messages.

Question 21

Push strategy differs from pull strategy because in push strategy a producer ________.

A) appeals directly to end customers
B) uses integrated marketing communications
C) focuses on wholesalers or retailers
D) uses reminder advertising
E) uses "bait and switch" advertising

Question 22

In ________,behaviorally targeted ads follow users even as they move on to other Web sites.

A) attack ads
B) advocacy advertising
C) cooperative advertising
D) remarketing
E) search engine marketing

Question 23

A promotional strategy that directly stimulates consumer demand via advertising and other communication efforts is known as ________.

A) pricing strategy
B) push strategy
C) digital strategy
D) pull strategy
E) operations strategy

Question 24

The social communication model is limited to the consumer sector.

Question 25

A promotional strategy that focuses on intermediaries is termed as ________.

A) push strategy
B) digital strategy
C) pull strategy
D) operations strategy
E) pricing strategy

Question 26

E-Shopper is an online retailer of books,movies,music,games,electronics,toys,apparel and general home items.The firm tracks the online activities of website visitors such as the links that their website visitors click on,the searches they make,and the things that they interact with.Based on this information,they serve up ads based on what the website visitor appears to be interested in.In this example,E-Shopper uses which of the following promotional strategies?

A) behavioral targeting
B) bait and switch advertising
C) remarketing
D) comparative advertising
E) reminder advertising

Question 27

In the commercial for their new asthma drug,CHL Pharmaceuticals suggests that viewers should consult with their doctors for more information about the medication.In this example,CHL Pharmaceuticals uses which of the following strategies?

A) push strategy
B) bait and switch
C) behavioral targeting
D) pull strategy
E) remarketing

Question 28

Brand communities refer to formal or informal groups of people united by their interest in and ownership of particular products.

Question 29

The chief downside of trade allowances is that they can create the controversial practice of forward buying,in which customers load up on merchandise while the price is low.

Question 30

The conventional promotion model differs from the new social model of customer communication in that the conventional promotion model ________.

A) tends to be interactive and conversational
B) tends to be bidirectional or multidirectional
C) tends to have a higher message frequency
D) focuses on collaboration with customers
E) tends to be intrusive and unidirectional

Question 31

The single most important idea the company hopes to convey to its target audience about a product is the ________.

A) promotional mix
B) marketing mix
C) core message
D) call to action
E) media mix

Question 32

The defining characteristic of which of the following types of advertisements is that it tells past customers that a product is still available or a company is ready to serve their needs?

A) reminder advertising
B) cooperative advertising
C) bait and switch advertising
D) comparative advertising
E) advocacy advertising

Question 33

Trying to attract buyers by advertising a product that you don't intend to sell,and then trying to sell them another,usually more expensive,product is known as ________.

A) stealth advertising
B) bait and switch advertising
C) implied claims
D) reminder advertising
E) a push strategy

Question 34

Pull strategy differs from push strategy because in pull strategy a producer ________.

A) supports advertising claims with real evidence
B) appeals directly to end customers
C) focuses on intermediaries
D) motivates wholesalers to promote its products
E) uses integrated marketing communications

Question 35

With rebates,companies offer partial reimbursement of the price as a purchase incentive.

Question 36

Paper couponing is an efficient technique.

Question 37

The government agency that has the authority to impose penalties against advertisers who violate federal standards for truthful advertising is the ________.

A) Federal Communications Commission
B) Consumer Product Safety Commission
C) Federal Trade Commission
D) Federal Advertising Administration
E) Federal Regulatory Commission

Question 38

The new social model of customer communication differs from the conventional promotion model in that the social communication model ________.

A) is unidirectional and intrusive
B) is hierarchical and static
C) views audiences as passive recipients of messages
D) is interactive and conversational
E) broadcasts carefully scripted messages to a mass audience

Question 39

Roseberry Inc.,an American grocery manufacturing firm,introduces a new brand of cookies and snacks called TasteyBites.The firm negotiates with several retailers and wholesalers to stock TasteyBites range of cookies and snacks,as well as promote them thorough in-store marketing activities.However,the firm does not directly market its products to end consumers.In this example,Roseberry Inc.uses which of the following promotional strategies?

A) digital strategy
B) pull strategy
C) operations strategy
D) pricing strategy
E) push strategy

Question 40

FunLearning Inc.is an American manufacturer of science kits and build-it toys for children between 3 and 12 years of age.The firm uses organic and eco-friendly policies.It invests a lot of money in advertisements aimed at increasing its brand awareness.The advertisements encourage customers to ask local retailers for FunLearning toys.In this example,FunLearning Inc.uses which of the following promotional strategies?

A) operations strategy
B) digital strategy
C) pull strategy
D) push strategy
E) pricing strategy

Question 41

Advertising that seeks to create goodwill and to build a desired image for a company,rather than to promote specific products is termed as ________.

A) product advertising
B) institutional advertising
C) comparative advertising
D) bait and switch advertising
E) reminder advertising

Question 42

Premium Hardware is an American manufacturer of hardware products that sells its products across the country.The firm runs a full-page ad in the local newspapers in Chicago,advertising specials that are available at Venture Hardware Store,a chain of retail outlets in Chicago.Since both Venture Hardware Store and Premium Hardware have shared the cost of this ad,this would be ________ advertising.

A) comparative
B) bait and switch
C) reminder
D) specialty
E) cooperative

Question 43

________ involves a financial arrangement in which companies with products sold nationally share the costs of local advertising with local marketing intermediaries.

A) Cooperative advertising
B) Prospecting
C) Canned sales pitch
D) Specialty advertising
E) Trade allowances

Question 44

Orville Manufacturers produce a popular line of cola drinks called Pep-Up.In order to promote the drink,the firm pays the producers of a popular television show to depict some of the characters drinking Pep-Up drinks.In this example,Orville Manufacturers uses ________.

A) integrated advertising
B) product placement
C) advocacy advertising
D) stealth marketing
E) push strategy

Question 45

Which of the following is an advantage of product placement?

A) It is predictable.
B) Its effectiveness is independent of the popularity of the programming.
C) It provides extensive choice of vehicles.
D) It offers a way to get around viewers' advertising filters.
E) It has low visibility.

Question 46

Which of the following is a disadvantage of using fixed web (from stationary computers)as an advertising media?

A) reduced clutter
B) limited media options
C) cannot be measured
D) changes and additions cannot be made easily
E) extreme degree of audience fragmentation

Question 47

Some interactive purchasing systems combine product placement with direct-response retailing so that consumers can use their TV remotes to buy products shown in a program.This is an example of ________.

A) behavioral targeting
B) push strategy
C) hybrid media
D) implied claims
E) remarketing

Question 48

________ refers to a creative tactic designed to capture the audience's attention and promote preference for the product or company being advertised.

A) Media mix
B) Advertising appeal
C) Advertising media
D) Specialty advertising
E) Communication mix

Question 49

A television commercial promoting a new range of naturally-flavoured ice creams,manufactured by Ice Fountain,an ice cream and candy manufacturing firm,is an example of which of the following elements in the communication mix?

A) institutional advertising
B) sales promotion
C) social media
D) product advertising
E) personal selling

Question 50

TechSmart Inc.,a software solutions firm,runs full-page advertisements in the newspaper and commercials emphasizing the firm's commitment to employment generation,affirmative action,and multiculturalism.The aim of the promotional strategy is to create goodwill and build a positive image for the firm.In this example,TechSmart Inc.uses ________ advertising.

A) product advertising
B) institutional advertising
C) comparative advertising
D) bait and switch advertising
E) reminder advertising

Question 51

Institutional advertisements that present a company's point of view on public issues such as education or health care are known as ________ advertising.

A) product
B) comparative
C) cooperative
D) advocacy
E) consultative

Question 52

KM Group,a home products manufacturer,owns a brand of paper towels called EasyWipes.The firm creates a commercial showing how an EasyWipes paper towel absorbs a spill faster than the competitor's paper towel.In this example,the commercial used by KM Group can be classified as a(n)________ advertising.

A) institutional
B) guerrilla
C) comparative
D) stealth
E) cooperative

Question 53

Which of the following is a disadvantage of product placement?

A) It cannot get around viewers' advertising filters.
B) It is predictable.
C) It provides extensive choice of vehicles.
D) It has less scope for visibility in the right program.
E) Its effectiveness is linked to the popularity of the programming.

Question 54

Myers and Co.,a firm that manufactures fire alarm systems for organizational customers,uses statistics,product testing reports,and other quality assurance certificates to convince corporate clients of the effectiveness of their products.In this example,Myers and Co.uses advertising appeal based on ________.

A) logic
B) emotion
C) humor
D) scarcity
E) sentiment

Question 55

The ad that tells you to "call within the next ten minutes because supplies are limited" is using advertising appeal based on ________.

A) logic
B) emotion
C) humor
D) scarcity
E) sentiment

Question 56

Using personalized letters and email messages to deliver targeted messages to individual consumers or organizational purchasers would be classified as ________.

A) institutional advertising
B) direct marketing
C) product placement
D) guerrilla advertising
E) personal selling

Question 57

One significant advantage to using television for advertising is the ________.

A) entertainment carryover
B) high audience selectivity
C) long life for the message
D) short preparation time
E) low cost for production

Question 58

Amgen Laboratories Ltd.,a pharmaceutical company,runs advertisements and commercials promoting child health and stressing healthy eating habits in children.These advertisements also provide health tips to parents.In this example,Amgen Laboratories Ltd.uses ________ advertising.

A) product
B) comparative
C) advocacy
D) cooperative
E) consultative

Question 59

Direct marketing differs from advertising in that direct marketing ________.

A) is carried by someone else's medium
B) promotes the features and benefits of specific products
C) refers to personal sales contacts
D) involves the purchase of time or space in other media
E) often uses personally addressable media

Question 60

Which of the following is an advantage of using newspapers as an advertising media?

A) long lead time for placing ads
B) low visual competition from other ads
C) extensive market coverage
D) long life span
E) printed papers have rapidly increasing readership in most cities

Question 61

________ refer(s)to printed or electronic certificates that offer discounts on particular items and are redeemed at the time of purchase.

A) Coupons
B) Rebates
C) Premiums
D) Trade allowances
E) Trade promotions

Question 62

Luminescent Inc.manufactures and sells products related to surfing,skateboarding,and snowboarding.During Christmas,the firm gave free sports bottles with a Luminescent logo to all its customers,with the aim of keeping the firm's name in front of customers for a long period of time.This is an example of ________ advertising.

A) institutional
B) comparative
C) cooperative
D) consultative
E) specialty

Question 63

Fashion Tree,an online retailer of fashion apparel,asks its website visitors if they want to opt-in to its mailing list,via a pop-up screen.This enables the firm to avoid annoying its customers.Every month Fashion Tree sends an e-mail highlighting current fashion trends to individuals who opt-in to its mailing list.In this example,Fashion Tree uses ________.

A) remarketing
B) stealth marketing
C) search engine marketing
D) targeted display advertising
E) permission-based marketing

Question 64

In ________,a salesperson acts as a consultant and advisor who helps current and potential customers find the best solutions to their personal or business needs.

A) direct marketing
B) prospecting
C) consultative selling
D) specialty advertising
E) sales promotion

Question 65

The process of finding and qualifying potential customers is known as ________.

A) consultative selling
B) behavioral targeting
C) consumer promotion
D) prospecting
E) trade promotion

Question 66

Discounts or other financial considerations offered by producers to wholesalers and retailers are termed as ________.

A) trade allowances
B) point-of-purchase displays
C) product placement
D) conversation marketing
E) premiums

Question 67

Free or bargain-priced items offered to encourage consumers to buy a product are termed as ________.

A) premiums
B) point-of-purchase displays
C) coupons
D) rebates
E) trade allowances

Question 68

Bell Laboratories,a pharmaceutical company,launches a new,over-the-counter drug for pain relief.The firm supplies the new drug to pharmacies and physicians at a discounted rate to encourage the retailers to carry the new product.In this example,Bell Laboratories uses which of the following promotional strategies?

A) point-of-purchase displays
B) product placement
C) conversation marketing
D) trade allowances
E) premiums

Question 69

________ involves ads with graphical content served up on web pages based on some knowledge of an individual's interests or behaviors.

A) Targeted display advertising
B) Infomercials
C) Institutional advertising
D) Guerrilla advertising
E) Product placement

Question 70

The manufacturers of Zap Deodorant,a newly launched brand of men's deodorants,decide to provide coupons for 50-cents off on all their products in the Sunday newspaper.This is an example of what element in the communication mix?

A) conversation advertising
B) social media
C) public relations
D) personal selling
E) sales promotion

Question 71

Jones' Treats,a food manufacturing company located in Massachusetts,produces a range of candy products.The firm negotiates with its retailers to set up jars with Jones' Treats candies at the billing counters.Jones' Treat also puts up wall posters and window clings advertising its candies in the retail stores that stock its products.In this example,Jones' Treats uses which of the following promotional strategies?

A) rebates
B) trade allowances
C) point-of-purchase displays
D) specialty advertising
E) coupons

Question 72

The chief downside of trade allowances is that they can lead to ________,in which the retailer buys a large quantity of a product when the price is low,thus reducing the producer's profit in the long run.

A) push marketing
B) forward buying
C) slotting allowances
D) viral marketing
E) pull strategies

Question 73

Advertising or display materials set up at retail locations to promote products to potential customers as they are making their purchase decisions are called ________.

A) rebates
B) trade allowances
C) point-of-purchase displays
D) specialty advertising
E) coupons

Question 74

Advertising differs from direct marketing in that advertising ________.

A) often uses personally addressable media
B) doesn't involve the purchase of time or space in other media
C) often excludes a direct response aspect
D) works to build lasting relationships with customers
E) involves personal sales contacts

Question 75

If a company asks its customers or website visitors to opt-in to its mailing lists,it is using ________.

A) stealth marketing
B) search engine marketing
C) targeted display advertising
D) permission-based marketing
E) remarketing

Question 76

In ________,the salesperson recites or even reads a stock message,with no regard for the customer's unique circumstances.

A) canned sales pitch
B) prospecting
C) direct marketing
D) behavioral targeting
E) consultative selling

Question 77

Which of the following statements is true about direct marketing?

A) Direct marketing refers to one-on-one interaction between a salesperson and a prospective buyer.
B) In direct marketing, the salesperson acts as an advisor who helps customers find the best solutions to their needs.
C) It is difficult to measure the results of direct marketing efforts.
D) Direct marketing is a static approach, with little scope for experimentation and improvement.
E) The heart of any direct marketing effort is a customer database.

Question 78

________ involve(s)short-term incentives to build the reputation of a brand and stimulate interest in a product.

A) Direct selling
B) Sales promotion
C) Institutional advertising
D) Public relations
E) Brand communities

Question 79

One-on-one interaction between a salesperson and a prospective buyer is called ________.

A) personal selling
B) direct marketing
C) prospecting
D) sales promotion
E) specialty advertising

Question 80

Joseph is a new sales agent at Clevenger & Co.,a firm that sells life and health insurance plans.Joseph is asked to generate a list of individuals in a specific neighborhood who might need insurance services,and then shortlist those individuals who are likely to have the available money to purchase the firm's insurance plans.In this example,the task given to Joseph is termed as ________.

A) consumer promotion
B) consultative selling
C) prospecting
D) behavioral targeting
E) trade promotion