Building Direct Customer Relationships Answer Key

Direct and Online Marketing: Building Direct Customer Relationships A) mass marketing B) personalized marketing C) records management D) customer filtering Answer: E Page Ref: 489 Diff: 2 AACSB: Use of IT Skill: Concept Objective: 17-1 2) What are the two main goals of direct marketing? A) to identify a potential customer and obtain an immediate response B) to obtain an immediate response and to facilitate a purchase C) to obtain an immediate response and build a lasting customer relationship D) to provide information and build a lasting customer relationship E) to save marketing dollars and facilitate a purchase Answer: C Diff: 2 Page Ref: 490 Skill: Concept Objective: 17-1 Modern direct marketers rely heavily on database technologies and the Internet, while early direct marketers primarily used direct mailers, telemarketing, and ________. A) door-to-door salespeople ) catalogs C) POP promotions D) e-mail E) inside salespeople Answer: B Page Ref: 490 Diff: 1 AACSB: Use of IT Skill: Concept Objective: 17-1 4) Amazon.com, eBay, and GEICO employ ________ as the only method of doing business with customers. A) mass marketing B) sales promotion C) direct marketing D) public relations E) personal selling Answer: C Page Ref: 491 Diff: 1 Skill: Concept Objective: 17-1 5) Direct marketing is continuing to become more ________ oriented. A) television B) Web C) mail D) telephone E) radio Answer: B Page Ref: 491 Diff: 2 AACSB: Use of IT Skill: Concept Objective: 17-1 All of the following are benefits of direct marketing for buyers EXCEPT ________. A) access to numerous products B) access to product reviews guaranteed low prices D) convenience E) privacy Answer: C Page Ref: 492 Diff: 2 Skill: Concept Objective: 17-1 7) All of the following are benefits of direct marketing for sellers EXCEPT ________. A) efficiency in reaching markets B) price and program flexibility C) mass reach and frequency D) lower cost-per-contact E) efficiency in order processing Answer: C Page Ref: 492-493 Diff: 2 Skill: Concept Objective: 17-1 One of the advantages of direct marketing for sellers is that direct marketing ________. offers access to buyers outside local markets B) eliminates the need for a company to employ a sales force C) provides statistical information about industry buying habits D) provides comparative information about customers and competitors E) avoids expenses related to a storefront, such as rent, insurance, and utilities Answer: A Diff: 3 Page Ref: 493 AACSB: Reflective Thinking Skill: Concept Objective: 17-1 9) Which of the following is essential for direct marketing to be effective? A) an online presence B) a good customer database C) a well-trained sales force D) inbound telephone marketing E) digital direct marketing technologies Answer: B Diff: 2 Page Ref: 493 Skill: Concept Objective: 17-1 10) A customer database is an organized collection of geographic, demographic, psychographic, and ________ data about individual customers or prospects. A) ethical B) cultural C) medical D) behavioral E) sociological Answer: D Page Ref: 493 Diff: 2 Skill: Concept Objective: 17-1 11) Information about a customer's age, income, and family make-up is in the ________ category of a customer database. A) demographic B) psychographic C) geographic D) behavioral E) assessment Answer: A Page Ref: 493 Diff: 2 Skill: Concept Objective: 17-1 12) Psychographics data in a customer database used by direct marketers includes information regarding a customer's ________ and ________. A) interests; income B) activities; opinions C) age; buying preferences D) opinions; age E) hobbies; income Answer: B Page Ref: 493 Diff: 2 Skill: Concept Objective: 17-1 13) All of the following are common uses for a direct marketing customer database EXCEPT ________. A) generating sales leads B) identifying prospective customers C) profiling customers based on previous purchases D) gathering marketing intelligence about competitors E) building long-term customer relationships Answer: D Diff: 3 Page Ref: 494 Skill: Concept Objective: 17-1 14) How does database marketing benefit consumers? A) Companies make name-brand products and images readily available to customers. B) Companies match customer needs and interests with products and services. C) Customers receive better prices on products and services that they need. D) Customers receive faster and more reliable service from companies. E) Customers receive instant credit from more companies. Answer: B Diff: 3 Page Ref: 494 Skill: Concept Objective: 17-1 15) All of the following are forms of direct marketing EXCEPT ________. A) personal selling B) public relations C) telephone marketing D) direct-mail marketing E) kiosk marketing Answer: B Page Ref: 495 Diff: 1 Skill: Concept Objective: 17-2 16) Which kind of marketing involves sending an offer, announcement, reminder, or other item to a person at a particular address? A) kiosk marketing B) digital direct marketing C) catalog marketing D) direct-mail marketing E) telephone marketing Answer: D Page Ref: 495 Diff: 1 Skill: Concept Objective: 17-2 Catalogs, brochures, CDs, and DVDs are all examples of which type of marketing? A) direct-response marketing ) direct-mail marketing C) digital direct marketing D) kiosk marketing E) online marketing Answer: B Page Ref: 495 Diff: 1 Skill: Concept Objective: 17-2 B) high target market selectivity C) ability to be personalized D) measurable results ) flexibility Answer: A Page Ref: 496 Diff: 3 Skill: Concept Objective: 17-2 ) The use of which of the new forms of direct-mail marketing is booming? A) fax mail ) e-mail C) voice mail D) U.S. mail E) instant messages Answer: B Page Ref: 496 Diff: 2 Skill: Concept Objective: 17-2 20) Most companies that create print catalogs now also provide ________ catalogs to eliminate production, printing, and mailing costs. A) DVD B) e-mail C) store D) Web-based E) personalized Answer: D Page Ref: 496 Diff: 2 Skill: Concept Objective: 17-2 21) Which of the following is an advantage of printed catalogs over digital catalogs? A) the ability to offer an almost unlimited amount of merchandise B) efficiencies in production, printing, and mailing costs C) a stronger emotional connection with customers D) less competition for customers' attention E) real-time merchandising Answer: C Diff: 2 Page Ref: 497 AACSB: Reflective Thinking Skill: Concept Objective: 17-2 22) Marketers use ________ telephone marketing to receive orders from television ads and catalogs. A) inbound B) outbound C) interactive D) direct-response E) business-to-business Answer: A Page Ref: 497 Diff: 1 Skill: Concept Objective: 17-2 23) Which of the following is an advantage of a well-designed and targeted telemarketing plan? A) real-time merchandising B) high recruitment and referral rate C) purchasing convenience for customers D) emotional connections with customers E) limitless merchandise available to customers Answer: C Diff: 3 Page Ref: 497 AACSB: Reflective Thinking Skill: Concept Objective: 17-2 24) How has the National Do Not Call Registry changed the telemarketing industry? A) Telemarketing for nonprofit groups has become nonexistent. B) Telemarketing is no longer used by small and medium sized companies. C) Telemarketing has replaced direct mail and personal selling because of low costs. D) Telemarketers are more effectively developing relationships with new customers. E) Telemarketers are more effectively managing relationships with existing customers. Answer: E Diff: 3 Page Ref: 498 Skill: Concept Objective: 17-2 25) Why are historically online shops such as Zappos.com and JohnandKiras.com adding catalogs to their marketing methods? A) to entertain customers with interesting products B) to offer a wider array of merchandise C) to save money and increase profits D) to attract the attention of new customers E) to reduce the need for telemarketers Answer: D Diff: 3 Page Ref: 498 Skill: Concept Objective: 17-2 26) Which of the following is the most accurate name for a 30-minute television advertising program marketing a single product? A) direct-response TV advertisement B) home shopping channel C) integrated marketing D) direct-response commercial E) infomercial Answer: E Page Ref: 499 Diff: 1 Skill: Concept Objective: 17-2 27) What are two major forms of direct-response television marketing? A) home television response and direct-response TV advertising B) home shopping channels and infomercials C) home-selling and toll-free response D) call-in response and web-site response E) home shopping channels and podcasts Answer: B Diff: 2 Page Ref: 499 Skill: Concept Objective: 17-2 Direct-response advertisements always contain ________, making it easier for marketers to gauge the effectiveness of their sales pitches. A) a mailing address for comments ) a 1-800 number or Web address C) a hit button to record the number of viewers D) an order number E) pop-ups Answer: B Page Ref: 500 Diff: 2 Skill: Concept Objective: 17-2 29) Why have direct-response television commercials seen an increase in popularity in recent years? A) It is has become simpler to replicate the success of classic direct-response TV ads that introduced items such as the Veg-O-Matic. B) Traditional broadcast and cable advertising has become prohibitively expensive for many major corporations. C) The ability to track phone calls and Web-site hits makes it easy to measure the return on advertising investment. D) The sophisticated image of home shopping channels has given direct-response commercials more credibility. E) Consumers are more likely to respond to this type of marketing than to other forms of direct marketing. Answer: C Diff: 3 Page Ref: 500 Skill: Concept Objective: 17-2 30) A television program or entire channel dedicated to selling goods and services is known as a(n) ________. A) direct-response television advertisement B) home shopping channel C) infomercial D) digital catalog E) kiosk Answer: B Page Ref: 500 Diff: 1 Skill: Concept Objective: 17-2 31) Firms , such as Kodak and Fuji, are placing ________ in stores, airports, and other locations to provide people with information about products and services or to enable customers to place orders. A) kiosks B) TV monitors C) wireless networks D) cell phones E) vending machines Answer: A Page Ref: 501 Diff: 1 AACSB: Use of IT Skill: Concept Objective: 17-2 32) Ring-tone giveaways, mobile games, and text-in contests are all examples of ________ marketing. A) kiosk B) online C) podcast D) vodcast E) mobile phone Answer: E Page Ref: 502 Diff: 1 AACSB: Use of IT Skill: Concept Objective: 17-2 33) Marketers view mobile phones as the next big marketing medium for all of the following reasons EXCEPT ________. A) More consumers are using their cell phones for text messaging, surfing the Web, and watching videos. B) Unlike telemarketing, mobile phone marketing is initially appealing to most cell phone users. C) Cell phones are very popular with the highly desirable 18-to-34-year-old demographic. D) Cell phone users can respond instantly to time-sensitive offers. E) Most consumers always have their cell phones with them. Answer: B Diff: 3 Page Ref: 502 AACSB: Use of IT Skill: Concept Objective: 17-2 34) Which of the following enables consumers to download files from the Internet to a handheld device? A) telemarketing B) interactive TV C) podcasting D) infomercials E) direct-mail Answer: C Page Ref: 503 Diff: 1 AACSB: Use of IT Skill: Concept Objective: 17-2 35) ________ allows consumers to gain additional information about a product through the use of a remote control. A) Mobile phone marketing B) Infomercials C) Podcasting D) Vodcasting E) Interactive television Answer: E Page Ref: 503 Diff: 1 AACSB: Use of IT Skill: Concept Objective: 17-2 What is the fastest growing form of direct-marketing? A) mobile-phone marketing ) online marketing C) interactive TV D) direct-response television E) podcasts Answer: B Page Ref: 504 Diff: 2 Skill: Concept Objective: 17-3 37) The Internet gave birth to ________, which operate only on the Internet. A) brick-and-mortar companies B) click-and-mortar companies C) big box companies D) click-only companies E) Web-and-mortar companies Answer: D Diff: 1 Page Ref: 504 AACSB: Use of IT Skill: Concept Objective: 17-3 38) As one of the first ________, Amazon.com changed the rules of marketing and set the bar high for the online customer experience. A) e-tailers B) transaction sites C) content sites D) search engines E) click-and-mortar companies Answer: A Diff: 2 Page Ref: 504 AACSB: Use of IT Skill: Concept Objective: 17-3 39) New York Times on the Web, ESPN.com, and Encyclopedia Britannica Online are known as ________ because they provide financial, research, and other information. A) search engines B) content sites C) portals D) ISPs E) e-tailers Answer: B Page Ref: 504 Diff: 2 AACSB: Use of IT Skill: Concept Objective: 17-3 40) ________ is the term used to describe a company that does not use online marketing. A) Offline business B) Brick-and-mortar C) Click-and-mortar D) E-business E) Corporate site Answer: B Page Ref: 504 Diff: 2 Skill: Concept Objective: 17-3 41) The growth of the Internet caused many brick-and-mortar firms to ________ in response to customer demands and a changing marketplace. A) become click-only firms B) send out more catalogs C) become click-and-mortar firms D) develop more infomercials E) expand their outside sales forces Answer: C Diff: 2 Page Ref: 504 AACSB: Use of IT Skill: Concept Objective: 17-3 42) Which of the following is NOT one of the four major online marketing domains? A) B2C (business-to-consumer) B) B2R (business-to-retailer) C) B2B (business-to-business) D) C2C (consumer-to-consumer) E) C2B (consumer-to-business) Answer: B Diff: 2 Page Ref: 505 Skill: Concept Objective: 17-3 43) The popular press has paid the most attention to ________ online marketing, which is the online selling of goods and services to final consumers. A) B2C B) B2B C) C2C D) C2B E) global Answer: A Page Ref: 505 Diff: 2 Skill: Concept Objective: 17-3 44) B2B uses all of the following online resources to reach new business customers EXCEPT ________. A) trading networks B) social networks C) e-mail D) online product catalogs E) customized Web sites Answer: B Page Ref: 506 Diff: 2 AACSB: Use of IT Skill: Concept Objective: 17-3 45) The online exchange of goods and information between final consumers is called ________. A) B2C B) B2B C) C2C D) C2B E) social networking Answer: C Page Ref: 507 Diff: 2 Skill: Concept Objective: 17-3 46) Amazon.com Auctions, eBay, and Craigslist.com are popular market spaces that facilitate the online exchange of goods and information and are examples of ________ online marketing. A) B2C B) B2B C) C2C D) C2B E) global commerce Answer: C Page Ref: 507 Diff: 2 Skill: Concept Objective: 17-3 47) What is the benefit to companies of using blogs as marketing tools? A) Blogs provide companies with additional revenue. B) Blog content is easy to filter, monitor, and control. C) Long-term customer relationships can be developed through blogs. D) Demographic information about customers can be easily tracked. E) Blogs are an inexpensive yet personal way to reach a fragmented audience. Answer: E Diff: 3 Page Ref: 508 Skill: Concept Objective: 17-3 48) Which of the following is a potential drawback to advertising on a blog? A) The content of a blog is difficult to control. B) Advertising on a blog is typically expensive. C) It is difficult to use blogs to reach highly targeted audiences. D) Blogs are losing popularity as consumers begin to favor newer Internet forums. E) Blogs do not provide the kind of personalized medium that today's marketers want. Answer: A Diff: 3 Page Ref: 508 Skill: Concept Objective: 17-3 49) ________ online marketing sites are online exchanges in which consumers search out sellers, learn about their offers, and initiate purchases. A) B2C B) B2B C) C2C D) C2B E) B2R Answer: D Page Ref: 508 Diff: 2 Skill: Concept Objective: 17-3 50) When consumers can drive transactions with businesses, what type of online marketing is being used? A) blogs B) podcasting C) social networking D) business-to-consumer E) consumer-to-business Answer: E Page Ref: 508 Diff: 1 Skill: Concept Objective: 17-3 51) For most companies, the first step in conducting online marketing is to ________. A) send e-mails B) create a Web site C) create a Web community D) place promotions online E) develop search-related ads Answer: B Diff: 2 Page Ref: 508 Skill: Concept Objective: 17-4 What is the main purpose of a corporate Web site? A) to sell the company's products directly ) to build customer goodwill C) to show a catalog and give shopping tips D) to give out coupons and tell about sales events or contests E) to point out and explain competitors' weaknesses Answer: B Diff: 2 Page Ref: 509 Skill: Concept Objective: 17-4 53) ________ are designed to build customer goodwill and to supplement other sales channels, rather than to sell the company's products directly. A) Marketing Web sites B) Corporate Web sites C) Small business Web sites D) Non-profit corporation web sites E) Rich media display ads Answer: B Page Ref: 509 Diff: 2 Skill: Concept Objective: 17-4 ________ are designed to engage consumers in interactions that will move them closer to a direct purchase or other marketing outcome. A) Corporate Web sites ) Marketing Web sites C) Web communities D) Brand Web sites E) Affiliate programs Answer: B Page Ref: 509 Diff: 2 Skill: Concept Objective: 17-4 A) context: the site's layout and design B) content: text, pictures, sounds, and video that the Web site contains ) commerce: the site's ability to enable commercial transactions E) connection: the degree that the site is linked to other sites Answer: D Diff: 3 Page Ref: 510 AACSB: Use of IT Skill: Concept Objective: 17-4 56) Of the seven Cs of effective Web site design, ________ refers to the ways that the site enables user-to-user communication. A) context B) content C) community D) customization E) cause Answer: C Page Ref: 510 Diff: 2 AACSB: Use of IT Skill: Concept Objective: 17-4 57) According to the seven Cs of effective Web site design, a Website's capability to enable commercial transactions is its level of ________. A) customization B) content C) connection D) commerce E) communication Answer: D Page Ref: 510 Diff: 2 AACSB: Use of IT Skill: Concept Objective: 17-4 ) ________ are online ads that appear between screen changes on a Web site, especially while a new screen is loading. A) Pop-unders ) Interstitials C) Search-related ads D) Contextual ads E) Banner ads Answer: B Page Ref: 511 Diff: 2 AACSB: Use of IT Skill: Concept Objective: 17-4 59) Which of the following types of ads can users block through the use of applications developed by Web browser providers? A) banners B) pop-ups C) contextual ads D) pop-unders E) rich-media ads Answer: B Page Ref: 511 Diff: 2 AACSB: Use of IT Skill: Concept Objective: 17-4 ) Display ads that use eye-catching techniques such as float, fly, and snapback are called ________. A) banners B) pop-ups C) contextual ads D) pop-unders ) rich-media ads Answer: E Page Ref: 511-512 Diff: 2 AACSB: Use of IT Skill: Concept Objective: 17-4 61) A large percentage of online advertising expenditures goes towards ________, which are text-based ads and links that appear alongside search engine results. A) content sponsorships B) reminder advertisements C) informative advertisements D) contextual advertisements E) corporate sponsorships Answer: D Page Ref: 512 Diff: 2 AACSB: Use of IT Skill: Concept Objective: 17-4 62) When companies work with each other online and offline to promote each other, they are creating ________. A) search-related advertisements B) contextual advertisements C) interstitial relationships D) content sponsorships E) alliance and affiliate programs Answer: E Diff: 2 Page Ref: 512 Skill: Concept Objective: 17-4 63) What does the term viral marketing mean? A) It is another term for online privacy. B) It is another term for online security. C) It refers to problems associated with computer viruses. D) It refers to word-of-mouth marketing that occurs online. E) It refers to negative publicity associated with company blogs. Answer: D Diff: 1 Page Ref: 512 Skill: Concept Objective: 17-4 64) Which of the following is a primary disadvantage of viral marketing? A) The costs of viral marketing are too high for most companies. B) The brand associated with the viral message is usually forgotten. C) Marketers have little control over who receives the viral message. D) Viral messages are offensive to many potential customers. E) Viral messages are blocked by most search engines. Answer: C Diff: 3 Page Ref: 513 AACSB: Use of IT Skill: Concept Objective: 17-4 65) All of the following are examples of online social networks EXCEPT ________. A) blogs B) MySpace.com C) YouTube D) interstitials E) virtual worlds Answer: D Page Ref: 513 Diff: 1 AACSB: Use of IT Skill: Concept Objective: 17-4 66) Online communities where people socialize or exchange information and opinions are called ________. A) corporate Web sites B) marketing Web sites C) online social networks D) interactive Web sites E) affiliate programs Answer: C Page Ref: 513 Diff: 1 AACSB: Use of IT Skill: Concept Objective: 17-4 67) Which of the following is a challenge of marketing through online social networks? A) Users often resent an intrusive marketing message. B) Existing networks are resistant to direct advertising. C) Most existing networks are already controlled by major corporations. D) Virtual worlds will most likely replace social networks in the near future. E) Measuring the frequency and volume of network usage is difficult. Answer: A Diff: 3 Page Ref: 514-515 AACSB: Use of IT Skill: Concept Objective: 17-4 68) What characteristic of niche sites makes the medium MOST appealing to marketers? A) audience sizes larger than those of social networking sites B) wide variety of demographics and purchasing patterns C) audiences of people with similar interests D) commercial transaction capabilities E) podcasting and vodcasting capabilities Answer: C Diff: 3 Page Ref: 514-515 Skill: Concept Objective: 17-4 69) Unsolicited and unwanted commercial e-mail is known as ________. A) phishing B) e-tailing C) display ads D) pop-unders E) spam Answer: E Page Ref: 516 Diff: 1 Skill: Concept Objective: 17-4 According to your textbook, what is the most likely future for online marketing? A) Online marketing will replace magazines, newspapers, and eventually stores as sources for information and products. B) The growth of online marketing will continue but at a much slower pace. C) The use of online marketing will decline until its effectiveness can be better measured. ) Online marketing will remain an important approach in an integrated marketing mix. E) Online social networking will become the primary type of online marketing. Answer: D Diff: 3 Page Ref: 516 Skill: Concept Objective: 17-4 B) telephone marketing C) direct-response television marketing D) mobile phone marketing E) kiosk marketing Answer: A Page Ref: 517 Diff: 2 Skill: Concept Objective: 17-5 72) Which of the following is a type of identity theft that uses deceptive e-mails and fraudulent web sites to fool consumers into revealing their personal data? A) unauthorized groups B) reverse information C) viral feeds D) phishing E) spyware Answer: D Page Ref: 517 Diff: 2 Skill: Concept Objective: 17-5 73) Which of the following is NOT a deception or fraud concern for Internet users and marketers? A) phishing B) viral marketing C) eavesdropping D) access by unauthorized groups E) spyware Answer: B Page Ref: 517 Diff: 2 Skill: Concept Objective: 17-5 74) What happened in direct response to the FTC finding that many Web sites were collecting personal information from children without disclosure or parental permission? A) California enacted the California Online Privacy Protection Act. B) Congress passed the Children's Online Privacy Protection Act. C) Children began to be targeted by more Web sites. D) The Direct Marketing Association developed a "Privacy Promise to American Consumers." E) Nonprofit organizations began auditing companies' privacy and security measures. Answer: B Diff: 3 Page Ref: 519 Skill: Concept Objective: 17-5 75) All of the following are the likely results of direct marketing abuses EXCEPT ________. A) decreased consumer response rates B) decreased returns on advertising expenses C) increasingly negative consumer attitudes D) requests for more Internet oversight and legislation E) requests for more restrictive legislation of direct marketing Answer: D Diff: 3 Page Ref: 519 Skill: Concept Objective: 17-5 76) Direct marketing rarely occurs on a one-to-one, interactive basis. Answer: FALSE Diff: 2 Page Ref: 490 Skill: Concept Objective: 17-1 77) Mega Music sells products to customers only through its Web-site. Mega Music employs the direct model as its marketing approach. Answer: TRUE Diff: 3 Page Ref: 491 AACSB: Analytic Skills Skill: Application Objective: 17-1 78) For customers, the benefits of direct marketing are that it is an easy, private, and convenient way to shop. Answer: TRUE Diff: 1 Page Ref: 492 Skill: Concept Objective: 17-1 79) Today's marketers use database marketing to promote their offerings through personalized communications to small target groups or even individual customers. Answer: TRUE Diff: 1 Page Ref: 494 Skill: Concept Objective: 17-1 80) The marketing manager of Charlie's Car Parts uses a customer database to e-mail promotional information to customers. The demographic information in the database provides the manager with the data he needs regarding his customers' buying preferences. Answer: FALSE Diff: 3 Page Ref: 493 AACSB: Analytic Skills Skill: Application Objective: 17-1 81) Database marketing requires little initial investment beyond training personnel to code and mine data. Answer: FALSE Diff: 2 Page Ref: 495 AACSB: Use of IT Skill: Concept Objective: 17-1 82) Though direct-mail permits high target-market selectivity and can be personalized, it does not allow easy measurement of results. Answer: FALSE Diff: 2 Page Ref: 496 Skill: Concept Objective: 17-2 83) Catalog marketing has grown explosively during the past 25 years, and recently the Internet has helped boost its popularity even more. Answer: TRUE Diff: 2 Page Ref: 497 Skill: Concept Objective: 17-2 84) With inbound telephone marketing, the company provides a toll-free phone number to receive orders from television ads, print ads, direct mail, and catalogs. Answer: TRUE Diff: 2 Page Ref: 497 Skill: Concept Objective: 17-2 85) Do-not-call legislation has made telemarketing an ineffective form of direct marketing, especially for nonprofit groups. Answer: FALSE Diff: 2 Page Ref: 498 Skill: Concept Objective: 17-2 86) Because of its association with somewhat questionable pitches and get-rich-quick schemes, direct-response television is becoming less popular than traditional broadcast and cable advertising. Answer: FALSE Diff: 2 Page Ref: 500 Skill: Concept Objective: 17-2 87) You receive a text message from Upscale Furnishings about an upcoming sale on custom furniture. Upscale Furnishings is developing a direct customer relationship with you through kiosk marketing. Answer: FALSE Diff: 3 Page Ref: 501 AACSB: Analytic Skills Skill: Application Objective: 17-2 88) Because several satellite broadcast systems are now offering ITV capabilities, interactive TV is likely to become a more widely used direct marketing medium. Answer: TRUE Diff: 2 Page Ref: 503 AACSB: Use of IT Skill: Concept Objective: 17-2 89) Today, many click-and-mortar companies are experiencing more online success than their click-only competitors. Answer: TRUE Diff: 3 Page Ref: 504 Skill: Concept Objective: 17-3 90) B2C Web sites deal with exchanges between businesses and companies. Answer: FALSE Diff: 1 Page Ref: 505 Skill: Concept Objective: 17-3 91) Unlike Internet consumers, traditional offline consumers initiate and control contact with marketers. Answer: FALSE Diff: 2 Page Ref: 506 Skill: Concept Objective: 17-3 92) Sales via B2B online marketing are expected to decrease in the next decade. Answer: FALSE Diff: 2 Page Ref: 506 Skill: Concept Objective: 17-3 93) Business customers of Dell Computer have access to customized Web sites that include purchasing and asset management reports and system-specific technical information. Dell uses B2B online marketing. Answer: TRUE Diff: 3 Page Ref: 506-507 AACSB: Analytic Skills Skill: Application Objective: 17-3 94) Companies such as eBay and Overstock.com facilitate C2C online marketing. Answer: TRUE Diff: 1 Page Ref: 507 AACSB: Use of IT Skill: Concept Objective: 17-3 95) C2B online marketing often involves the interchange of information through Internet forums, including customers' praise for and complaints about products. Answer: TRUE Diff: 2 Page Ref: 508 AACSB: Use of IT Skill: Concept Objective: 17-3 96) Companies conduct online marketing by creating a Web site, placing ads and promotions online, setting up or participating in online social networks, or mailing catalogs to potential customers. Answer: FALSE Diff: 2 Page Ref: 509 AACSB: Use of IT Skill: Concept Objective: 17-4 97) Natalie Brennan has been saving her money to buy a BMW convertible. Natalie has spent hours on the BMW Web site choosing the exterior and interior colors and studying the various options and models. Natalie has been using BMW's marketing Web site. Answer: TRUE Diff: 3 Page Ref: 509 Skill: Application Objective: 17-4 98) Banners are online ads that pop up between changes on a Web site. Answer: FALSE Diff: 2 Page Ref: 511 AACSB: Use of IT Skill: Concept Objective: 17-4 99) Permission-based e-mail advertising allows marketers to send tailored messages to targeted customers who choose to have chosen to receive them. Answer: TRUE Diff: 1 Page Ref: 516 AACSB: Use of IT Skill: Concept Objective: 17-4 100) Since the introduction of the Do-Not-Call Registry, fraudulent schemes such as investment scams and phony collections for charity have been on the decline. Answer: FALSE Diff: 2 Page Ref: 517 Skill: Concept Objective: 17-5 101) In a brief essay, explain the major benefits of direct marketing to both customers and sellers. Answer: For customers, direct marketing is convenient, easy to use, and private. It gives buyers ready access to a wealth of products and information, at home or work and around the globe. It is immediate and interactive. For sellers, direct marketing is powerful for building customer relationships. Using database marketing, marketers can target small groups or individual consumers, tailor offers to individual needs, and promote these offers through personalized communications. It provides great timing and offers a low-cost, efficient alternative for reaching markets. Direct marketing has become the fastest-growing form of marketing. Diff: 2 Page Ref: 492 AACSB: Reflective Thinking Skill: Application Objective: 17-1 102) How can a customer database be used as a relationship-building tool? Answer: A customer database is an organized collection of data about individual customers or prospects, including detailed geographic, demographic, psychographic, and behavioral data. Companies can mine their databases to learn about customers in detail, and then fine-tune their market offerings and communications to the special preferences and behaviors of target segments or individuals. As the customer relationship continues, the company can learn more about the customer and can more accurately fine-tune its offerings to satisfy the customer's needs. Diff: 2 Page Ref: 493-494 AACSB: Analytic Skills Skill: Application Objective: 17-2 103) In a short essay, identify the major advantage of the following forms of direct marketing: telephone, direct-mail, catalog, direct-response television, and kiosk. Answer: Telephone marketing provides purchasing convenience and increased product and service information. Direct mail marketing permits selectivity and personalization. Catalog marketing allows customers to buy just about anything they desire, and through online catalogs marketers can use real-time merchandising, adding or removing products based on their availability. Direct-response television marketing allows live demonstrations without salespeople coming to your home or business. Kiosk marketing places information and ordering machines in convenient places, such as airports, stores, and malls. Diff: 3 Page Ref: 495-501 Skill: Application Objective: 17-2 104) How has the implementation of the National Do-Not-Call Registry changed telephone marketing? Answer: The National Do-Not-Call Registry was created by legislation passed in 2003; it bans most business telemarketing calls to registered phone numbers. However, people can still receive calls from nonprofit groups, politicians, and companies with which they have recently done business. Millions of customers have joined the do-not-call list, and businesses that break the laws can be fined heavily. The use of unsolicited outbound telemarketing has greatly decreased due to the law, but inbound consumer telemarketing and outbound business-to-business telemarketing remain strong and growing. Many telemarketers are shifting their call-center activity from making unsolicited cold calls on often resentful customers to managing existing customer relationships. They are developing "opt-in" calling systems, in which they provide useful information and offers to customers who have invited the company to contact them by phone or e-mail. Diff: 2 Page Ref: 498 AACSB: Analytic Skills Skill: Application Objective: 17-2 105) List and briefly describe the four major online marketing domains. Answer: a. B2C (business-to-consumer) online marketing involves businesses selling goods and services online to final consumers. Today, almost anything can be purchased online. b. B2B (business-to-business) online marketing involves businesses using Web sites, e-mail, online product catalogs, online trading networks, and other online resources to reach new business customers, better serve existing business customers, and obtain buying efficiencies and better prices. c. C2C (consumer-to-consumer) online marketing involves consumers buying or exchanging goods or information directly with one another. Web sites such as eBay and Craigslist.com facilitate C2C trading, and blogs are an influential source of consumer-toconsumer information sharing. d. C2B (consumer-to-business) online marketing involves consumers searching out online sellers, learning about their offers, and initiating purchases, sometimes even setting the terms of a transaction. Diff: 2 Page Ref: 505-508 Skill: Application Objective: 17-3 106) How do Internet consumers differ from traditional offline consumers? Answer: They differ in their approaches to buying and in their responses to marketing. The exchange process via the Internet has become more customer-initiated and customer-controlled. In traditional marketing, the audience is somewhat passive; in online marketing, customers actively select which Web sites they will visit and what marketing information they will receive about which products and under what conditions. Diff: 3 Page Ref: 506 AACSB: Analytic Skills Skill: Application Objective: 17-3 107) Compare and contrast the purpose and content of a corporate Web site to that of a marketing Web site. Answer: Corporate Web sites are designed to build customer goodwill and to supplement other sales channels, rather than to sell the company's products directly. They offer a rich variety of information and other features in an effort to answer customer questions, build closer relationships, and generate excitement about the company. In contrast, marketing Web sites are designed to go beyond the function of a corporate Web site and actually engage consumers in an interaction that will move them closer to a direct purchase. A marketing Web site allows customers to view, research, and purchase specific items. Diff: 3 Page Ref: 509 AACSB: Analytic Skills Skill: Application Objective: 17-4