TRUE/FALSE QUESTIONS Answer whether the following statements are true or false
1 Define one-to-one marketing and discuss its relationship to database technology
2 Discuss the forces that have influenced the emergence of one-to-one marketing
3. Sydney's Sleighs has turned to one-on-one marketing in order to help track consumer response to promotional monies being spent. The company is demanding accountability for funds. true false
3 Describe the one-to-one marketing communications process
4. One of the key differences in the communications process of one-to-one marketing is that it generally involves less noise. true false
4 List the advantages and disadvantages of one-to-one marketing
5. Tina's Tax Service would like to utilize more one-to-one marketing. One of the advantages that Tina should enjoy is the relatively small up-front cost of setting up a database. true false 6. Privacy issues are not a primary concern of customers who are targeted through one-on-one marketing. true false
5. Tina's Tax Service would like to utilize more one-to-one marketing. One of the advantages that Tina should enjoy is the relatively small up-front cost of setting up a database. true false
6. Privacy issues are not a primary concern of customers who are targeted through one-on-one marketing. true false
5 List eight common one-to-one marketing applications
7. When consumers log onto the Web site of Amazon.com, they are greeted by name and provided a list of books that they might be interested in purchasing based on past purchases. This is an example of retaining loyal customers. true false 8. An Internet marketer of fresh flowers sends a message to all new customers that they will have the satisfaction of knowing that the flowers will arrive to the recipient's house on time and that they recipient will be pleased. This is an example of reinforcing consumer purchase decisions. true false
7. When consumers log onto the Web site of Amazon.com, they are greeted by name and provided a list of books that they might be interested in purchasing based on past purchases. This is an example of retaining loyal customers. true false
8. An Internet marketer of fresh flowers sends a message to all new customers that they will have the satisfaction of knowing that the flowers will arrive to the recipient's house on time and that they recipient will be pleased. This is an example of reinforcing consumer purchase decisions. true false
MULTIPLE-CHOICE QUESTIONS Select the response that best answers the question, and write the corresponding letter in the space provided.
10. All of the following have influenced the emergence of one-to-one marketing EXCEPT: a. new technology to lower production costs b. the increasing diversity of the U.S. population c. the demand for accountability d. decreasing brand loyalty e. new media alternatives 11. The decline in brand loyalty can be attributed to: a. excessive sales promotions b. the increasing power of retailers c. the proliferation of brands available d. none of the above e. all of the above
10. All of the following have influenced the emergence of one-to-one marketing EXCEPT: a. new technology to lower production costs b. the increasing diversity of the U.S. population c. the demand for accountability d. decreasing brand loyalty e. new media alternatives
11. The decline in brand loyalty can be attributed to: a. excessive sales promotions b. the increasing power of retailers c. the proliferation of brands available d. none of the above e. all of the above
12. The communications process for one-to-one marketing differs from that of traditional marketing in that the former: a. does not involve message encoding b. contains less "noise" c. utilizes the Internet d. does not require translation of the message e. requires no marketing research 13. Andrea's favourite Web site is a music retailer that offers the largest variety of music in the world. Each time she logs onto the web site, she receives a personalized message that suggests that she consider buying CDs by new jazz artists, based on her past jazz purchases. Andrea reads and interprets the message before deciding what to do. Andrea is in the act of: a. encoding b. providing feedback c. decoding d. channeling e. receiving
12. The communications process for one-to-one marketing differs from that of traditional marketing in that the former: a. does not involve message encoding b. contains less "noise" c. utilizes the Internet d. does not require translation of the message e. requires no marketing research
13. Andrea's favourite Web site is a music retailer that offers the largest variety of music in the world. Each time she logs onto the web site, she receives a personalized message that suggests that she consider buying CDs by new jazz artists, based on her past jazz purchases. Andrea reads and interprets the message before deciding what to do. Andrea is in the act of: a. encoding b. providing feedback c. decoding d. channeling e. receiving
14. Which of the following is NOT an advantage of one-to-one marketing? a. the ability to identify the most profitable and least profitable customers b. the ability to create long-term relationships with customers c. the ability to target marketing efforts only to those people most likely to be interested d. the ability to offer varied messages to different consumers e. the relatively low cost of creating a marketing database 15. A catalogue company selling premium-priced and durable children's clothing would like to find parents who are willing to spend top dollar for good quality clothing. The company should consider one-to-one marketing because it has the ability to: a. target marketing efforts only to those people most likely to be interested b. offer varied messages to different customers c. create long-term relationships with customers d. provide in-depth knowledge about customers and prospects e. create a database that can be used for the long term 16. Amazon.com, the Internet's leading bookseller, boasts that more than 64 percent of its sales in 1998 came from repeat customers. This demonstrates which of the following advantages of one-to-one marketing? a. the ability to identify the most profitable and least profitable customers b. the ability to create long-term relationships with customers c. the ability to target marketing efforts only to those people most likely to be interested d. the ability to offer varied messages to different consumers e. increased knowledge about customers and prospects 17. All of the following are disadvantages to one-to-one marketing EXCEPT: a. the high cost of creating a marketing database b. mounting privacy concerns by consumers c. the limited number of market segments that can be reached d. the relatively high failure rate of building a database e. none of the above
14. Which of the following is NOT an advantage of one-to-one marketing? a. the ability to identify the most profitable and least profitable customers b. the ability to create long-term relationships with customers c. the ability to target marketing efforts only to those people most likely to be interested d. the ability to offer varied messages to different consumers e. the relatively low cost of creating a marketing database
15. A catalogue company selling premium-priced and durable children's clothing would like to find parents who are willing to spend top dollar for good quality clothing. The company should consider one-to-one marketing because it has the ability to: a. target marketing efforts only to those people most likely to be interested b. offer varied messages to different customers c. create long-term relationships with customers d. provide in-depth knowledge about customers and prospects e. create a database that can be used for the long term
16. Amazon.com, the Internet's leading bookseller, boasts that more than 64 percent of its sales in 1998 came from repeat customers. This demonstrates which of the following advantages of one-to-one marketing? a. the ability to identify the most profitable and least profitable customers b. the ability to create long-term relationships with customers c. the ability to target marketing efforts only to those people most likely to be interested d. the ability to offer varied messages to different consumers e. increased knowledge about customers and prospects
17. All of the following are disadvantages to one-to-one marketing EXCEPT: a. the high cost of creating a marketing database b. mounting privacy concerns by consumers c. the limited number of market segments that can be reached d. the relatively high failure rate of building a database e. none of the above
18. Which of the following is NOT a common application of one-to-one marketing? a. retaining loyal customers b. identifying the best customers c. maintaining control over brand equity d. providing sales leads to telemarketers e. inducing product trial by new customers 19. Many high-end hotel chains award "points" for every dollar spent in one of their hotels. Customers who earn a high number of points are given special privileges that may include upgraded hotel rooms or several free nights. This application of one-to-one marketing is an example of: a. retaining loyal customers b. reinforcing customer purchase decisions c. maintaining control over brand equity d. designing targeted marketing communications e. inducing product trial by new customers 20. When a customer buys one of its cars, a Neptune Motor Company dealership sends out the entire team that was responsible for handling the customer's business. The team congratulates the customer for his/her purchase in a small celebration. This is an example of: a. increasing the effectiveness of distribution channel marketing b. reinforcing customer purchase decisions c. identifying the best customers d. designing targeted marketing communications e. inducing product trial by new customers 21. An Internet bookseller has noticed through your past purchases that you are interested in science fiction novels. As a result, each time you log into the bookseller's web site, you are greeted with a list of suggested best sellers in the area of science fiction. This is done in an attempt to: a. increase the effectiveness of distribution channel marketing b. reinforce customer purchase decisions c. cross-sell other products d. maintain control over brand equity e. induce product trial by new customers
18. Which of the following is NOT a common application of one-to-one marketing? a. retaining loyal customers b. identifying the best customers c. maintaining control over brand equity d. providing sales leads to telemarketers e. inducing product trial by new customers
19. Many high-end hotel chains award "points" for every dollar spent in one of their hotels. Customers who earn a high number of points are given special privileges that may include upgraded hotel rooms or several free nights. This application of one-to-one marketing is an example of: a. retaining loyal customers b. reinforcing customer purchase decisions c. maintaining control over brand equity d. designing targeted marketing communications e. inducing product trial by new customers
20. When a customer buys one of its cars, a Neptune Motor Company dealership sends out the entire team that was responsible for handling the customer's business. The team congratulates the customer for his/her purchase in a small celebration. This is an example of: a. increasing the effectiveness of distribution channel marketing b. reinforcing customer purchase decisions c. identifying the best customers d. designing targeted marketing communications e. inducing product trial by new customers
21. An Internet bookseller has noticed through your past purchases that you are interested in science fiction novels. As a result, each time you log into the bookseller's web site, you are greeted with a list of suggested best sellers in the area of science fiction. This is done in an attempt to: a. increase the effectiveness of distribution channel marketing b. reinforce customer purchase decisions c. cross-sell other products d. maintain control over brand equity e. induce product trial by new customers
6 Discuss the basics of one-to-one marketing database technology
22. The compilation of names, addresses, and other pieces of pertinent information about individual customers and prospects that affects what and how marketers sell to them is called a: a. marketing intelligence system b. marketing database c. predictive model d. data mart e. data mine 23. A greeting card company gave away a free card to any customer who purchased two cards and completed a small questionnaire on the back of the coupon. The coupon captured the customer's name, address, phone number, birthday, and several pieces of information about purchasing behaviour. The data received by the card company is an example of: a. predictive modelling b. custom data c. lifetime value analysis d. modeled data e. recency-frequency-monetary analysis 24 An Internet marketer of fresh flowers would like to build a database of customers who purchased flowers in the last twelve months and who spent over $100. The company should consider conducting: a. predictive modeling b. a custom data analysis c. a lifetime value analysis d. a modeled data analysis e. a recency-frequency-monetary analysis 25. A luxury car company has enjoyed repeat purchases from its most loyal customers and calculates the "value" of its most loyal customers at over $300,000. The car company has conducted: a. predictive modelling b. a custom data analysis c. a lifetime value analysis d. a modeled data analysis e. a recency-frequency-monetary analysis
22. The compilation of names, addresses, and other pieces of pertinent information about individual customers and prospects that affects what and how marketers sell to them is called a: a. marketing intelligence system b. marketing database c. predictive model d. data mart e. data mine
23. A greeting card company gave away a free card to any customer who purchased two cards and completed a small questionnaire on the back of the coupon. The coupon captured the customer's name, address, phone number, birthday, and several pieces of information about purchasing behaviour. The data received by the card company is an example of: a. predictive modelling b. custom data c. lifetime value analysis d. modeled data e. recency-frequency-monetary analysis
24 An Internet marketer of fresh flowers would like to build a database of customers who purchased flowers in the last twelve months and who spent over $100. The company should consider conducting: a. predictive modeling b. a custom data analysis c. a lifetime value analysis d. a modeled data analysis e. a recency-frequency-monetary analysis
25. A luxury car company has enjoyed repeat purchases from its most loyal customers and calculates the "value" of its most loyal customers at over $300,000. The car company has conducted: a. predictive modelling b. a custom data analysis c. a lifetime value analysis d. a modeled data analysis e. a recency-frequency-monetary analysis
