Question 1

Geocoding allows for combining demographic information,geographic information,and lifestyle data.

Accepted Answer

A) True 
 B)False

Question 2

The primary advantage of direct mail is that mail can be easily targeted to specific consumer groups and to specific individuals.

Accepted Answer

A) True 
 B)False

Question 3

CRM is built on two primary metrics: lifetime value of customers and RFM analysis.

Accepted Answer

A) True 
 B)False

Question 4

An important key to success in permission marketing programs is to make sure participants have actually agreed to participate and not been tricked into participating or signed up without their knowledge.

Accepted Answer

A) True 
 B)False

Question 5

The easiest part of building a data warehouse is:

Accepted Answer

A)  data coding through RFM analysis and lifetime value calculations 
B)  the appended demographic and psychographic information 
C)  obtaining the history of customer interactions and contact with a firm 
D)  collecting customer names and addresses

Question 6

Database marketing involves collecting customer data for the purpose of developing direct marketing programs.

Accepted Answer

A) True 
 B)False

Question 7

When promotional materials are only sent to customers who have given their approval,the program is called:

Accepted Answer

A)  direct mail 
B)  Internet marketing 
C)  permission marketing 
D)  a frequency program

Question 8

Through data mining a company can build a profile of its best customers,which can then be used to identify prospective new customers or upgrade current customers to a higher level of purchasing.

Accepted Answer

A) True 
 B)False

Question 9

In calculating the lifetime value of a market segment,the figures that are more difficult to obtain and are contained only in the marketing database are:

Accepted Answer

A)  retention rates and purchases per year 
B)  fixed and variable costs 
C)  database costs and acquisition costs 
D)  marketing and advertising costs

Question 10

The marketing team at Levi-Strauss responded to the decline in sales by developing a strong database marketing program.

Accepted Answer

A) True 
 B)False

Question 11

In developing data-driven communications with customers,maintaining customer profile information is important because the information helps the marketing team create personalized communications.

Accepted Answer

A) True 
 B)False

Question 12

The following are principles for building a successful frequency or loyalty program,except:

Accepted Answer

A)  exclude less valuable customers through data mining 
B)  design the program to enhance the value of the product 
C)  calculate the full cost of the program 
D)  design a program that maximizes the customer's motivation to make the next purchase

Question 13

In terms of alternative forms of direct marketing,ride-alongs are materials that are placed with a company's own catalog or direct-mail pieces,such as a record club's catalog.

Accepted Answer

A) True 
 B)False

Question 14

In purchasing a direct mailing list,a compiled list consists of individuals who have:

Accepted Answer

A)  met a specific demographic profile 
B)  responded to previous direct mail offers made by the company purchasing the list 
C)  made purchases or responded to direct mail offers in the past 
D)  responded to a direct mail offer within the last 30 days

Question 15

Haley often purchases clothes from the VF Corporation online.On her birthday,the VF Corporation sends her an e-mail birthday card with a free voucher for $20 for her next online purchase.This is an example of:

Accepted Answer

A)  data mining 
B)  RFM analysis 
C)  data coding 
D)  trawling

Question 16

In coding data using RFM analysis,a value of "5" for the "R" would indicate:

Accepted Answer

A)  the group of customers who have made the lowest number of purchases within the a specific time period 
B)  the group of customers who have made the highest number of purchases within the a specific time period 
C)  the group of customers with the longest amount of elapsed time since the last purchase 
D)  the group of customers who made the most recent purchases

Question 17

The primary reason for building a database,coding the information,and mining the data is to use the output to:

Accepted Answer

A)  develop marketing programs customized for each customer 
B)  place customers into segments for the purpose of data-driven marketing programs 
C)  customize marketing programs to fit each market segment's profile 
D)  establish one-on-one communications with each customer

Question 18

Database-driven marketing programs should be designed to increase sales and profits.

Accepted Answer

A) True 
 B)False

Question 19

Direct mail is a primary tool for promoting Internet Web sites and online sales.

Accepted Answer

A) True 
 B)False

Question 20

Purchase and Web site visit histories are sufficient to build a quality database.

Accepted Answer

A) True 
 B)False

Exam 11: Database and Direct Response Marketing

Geocoding allows for combining demographic information,geographic information,and lifestyle data.

The primary advantage of direct mail is that mail can be easily targeted to specific consumer groups and to specific individuals.

CRM is built on two primary metrics: lifetime value of customers and RFM analysis.

An important key to success in permission marketing programs is to make sure participants have actually agreed to participate and not been tricked into participating or signed up without their knowledge.

The easiest part of building a data warehouse is:

Database marketing involves collecting customer data for the purpose of developing direct marketing programs.

When promotional materials are only sent to customers who have given their approval,the program is called:

Through data mining a company can build a profile of its best customers,which can then be used to identify prospective new customers or upgrade current customers to a higher level of purchasing.

In calculating the lifetime value of a market segment,the figures that are more difficult to obtain and are contained only in the marketing database are:

The marketing team at Levi-Strauss responded to the decline in sales by developing a strong database marketing program.

In developing data-driven communications with customers,maintaining customer profile information is important because the information helps the marketing team create personalized communications.

The following are principles for building a successful frequency or loyalty program,except:

In terms of alternative forms of direct marketing,ride-alongs are materials that are placed with a company's own catalog or direct-mail pieces,such as a record club's catalog.

In purchasing a direct mailing list,a compiled list consists of individuals who have:

Haley often purchases clothes from the VF Corporation online.On her birthday,the VF Corporation sends her an e-mail birthday card with a free voucher for $20 for her next online purchase.This is an example of:

In coding data using RFM analysis,a value of "5" for the "R" would indicate:

The primary reason for building a database,coding the information,and mining the data is to use the output to:

Database-driven marketing programs should be designed to increase sales and profits.

Direct mail is a primary tool for promoting Internet Web sites and online sales.

Purchase and Web site visit histories are sufficient to build a quality database.