Question 1

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

Accepted Answer

A)  increase/increase
B)  decrease/impair
C)  decrease/increase
D)  help/help C

Question 2

To calculate whether a marketing test met the allowable margin in terms of cost per order, you would:

Accepted Answer

A)  multiply the variable costs by the number of orders received
B)  divide the costs of the test by the number of orders received
C)  divide the total revenues by the marketing costs
D)  divide the total revenues by the number of names on the list used B

Question 3

Calculating customer value can be done on a segment or cluster basis, or on an individual basis.

Accepted Answer

A) True 
 B)False  True

Question 4

A more effective market penetration strategy is to concentrate marketing efforts on market segments that contain larger customer penetrations.

Accepted Answer

A) True 
 B)False

Question 5

When a customer is retained, it is only the revenue that is generated over a oneyear period that constitutes the value of that customer.

Accepted Answer

A) True 
 B)False

Question 6

There is an average or typical "response rate" that a marketing campaign should expect to generate.

Accepted Answer

A) True 
 B)False

Question 7

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.

Accepted Answer

A) True 
 B)False

Question 8

In direct marketing, the budget is a function of:

Accepted Answer

A)  net order contribution of the items sold
B)  media and sales costs
C)  response rates
D)  all of the above

Question 9

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

Accepted Answer

A)  30 percent
B)  300 percent
C)  33 percent
D)  .03 percent

Question 10

In the event it is decided to reject the null hypothesis, it is rejected in favor of the __________:

Accepted Answer

A)  previous null hypothesis
B)  alternative hypothesis
C)  observed hypothesis
D)  none of the above

Question 11

A "lift" should provide an increase in the average response rate due to making a special offer to all market segments or clusters.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A)  dependent group
B)  control group
C)  focus group
D)  independent group

Question 13

The rate by which a company converts _______ into _______ is called the conversion rate.

Accepted Answer

A)  buyers/sellers
B)  advocates/ distributers
C)  buying customers/prospects
D)  leads/sales

Question 14

Net profit is defined as:

Accepted Answer

A)  amount of money left after subtracting fixed costs from gross revenues
B)  amount of money left after subtracting variable costs from gross revenue
C)  amount of money after dividing fixed costs by margin unit in dollars
D)  breakeven amount plus profit incentive in dollars added in

Question 15

A "cost per inquiry" (CPI) differs from a "cost per response" (CPR) because:

Accepted Answer

A)  the CPI is not indicative of the true cost of a campaign
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

Question 16

In attempting to measure the impact of a lift, marketers will utilize_________

Accepted Answer

A)  a control group
B)  an experimental
C)  panel group
D)  all of the above

Question 17

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.

Accepted Answer

A) True 
 B)False

Question 18

The term "unit margin" is defined as:

Accepted Answer

A)  target price for an item in a campaign
B)  amount left after subtracting costs of goods sold/variable costs from price
C)  the approximate amount of marketing costs allocated to each item sold
D)  amount left when subtracting variable costs from fixed costs

Question 19

Return on investment (ROI) or Return on Advertising Investment (ROAI) is calculated by:

Accepted Answer

A)  dividing net profit by the average amount invested (in a company or campaign) 
B)  dividing fixed costs by all revenues before taxes
C)  dividing all revenues by fixed and variable costs
D)  dividing all marketing costs by revenues

Question 20

Breaking even on a campaign at least ensures a minimum profit.

Accepted Answer

A) True 
 B)False

Exam 4: Marketing Analytics: Testing and Measurement

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

To calculate whether a marketing test met the allowable margin in terms of cost per order, you would:

Calculating customer value can be done on a segment or cluster basis, or on an individual basis.

A more effective market penetration strategy is to concentrate marketing efforts on market segments that contain larger customer penetrations.

When a customer is retained, it is only the revenue that is generated over a oneyear period that constitutes the value of that customer.

There is an average or typical "response rate" that a marketing campaign should expect to generate.

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.

In direct marketing, the budget is a function of:

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

In the event it is decided to reject the null hypothesis, it is rejected in favor of the __________:

A "lift" should provide an increase in the average response rate due to making a special offer to all market segments or clusters.

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

The rate by which a company converts _ into _ is called the conversion rate.

Net profit is defined as:

A "cost per inquiry" (CPI) differs from a "cost per response" (CPR) because:

In attempting to measure the impact of a lift, marketers will utilize_________

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.

The term "unit margin" is defined as:

Return on investment (ROI) or Return on Advertising Investment (ROAI) is calculated by:

Breaking even on a campaign at least ensures a minimum profit.