Deck 5: The Offer

Question 1

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

A)Amazon
B)Uber
C)Ring
D)Netflix

Answer 1

B

Question 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 2

A

Question 3

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

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

Answer 3

C

Question 4

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

A)Crossselling
B)Expenseselling
C)Offerselling
D)Upselling

Question 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
C)appealing, not appealing
D)positive, negative

Question 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

Question 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

Question 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

Question 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

Question 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)Moneyback guarantee
C)Risk Free Offer
D)All of the above

Question 11

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

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

Question 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

Question 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

Question 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?

Question 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.
D)the three most important features.

Question 16

The type of offer that tends to be held at certain times of the year and usually provides explanatory terms for its existence is the ______________ offer.

A)sale
B)discount
C)timelimit
D)sweepstakes

Question 17

The ___________offer is usually offered in conjunction with continuity selling.

A)discount
B)sale
C)sample
D)timelimit

Question 18

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

A)payment terms
B)incentives
C)length of commitment
D)price

Question 19

With a ______________ the consumer must pay an upfront 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)tilforbid offer
B)platform business model
C)subscription model
D)crossselling offer

Question 20

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

Question 21

Creating needsatisfying offers is a part of ongoing customer relationship (CRM) that drives the direct marketing process.

Question 22

The last step in creating an offer is to reduce the risk of the offer.

Question 23

Continuity selling describes offers that are continued on a regular basis, whether weekly, monthly, quarterly, or annual.

Question 24

Price penetration is a strategy that sets the price of a product high so that marketers can distinguish between different offers.

Question 25

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.

Question 26

Dollar Shave Club, Amazon, Netflix, Spotify, and Ring are popular forms of a timelimit offer.

Question 27

Platform business models create value by enabling direct interactions between two or more customer or participant groups

Question 28

A tilforbid offer is an example of a positive option offer.

Question 29

Testing is used to determine the effectiveness of the offer and helps to provide an answer to the critical question - does the offer work?

Question 30

Time limit offers do not generally work because consumers do not like to be pressured to make a decision by a certain time.

Question 31

Contests and sweepstakes require a prior purchase, whereas lotteries only require an entry form to be submitted.