Question 1

Ariana has just moved to a new apartment.A few days after moving she received a letter from Bed,Bath,and Beyond with a coupon for merchandise she may need in her new apartment.This is an example of the database marketing technique known as trawling.

Accepted Answer

Trawling is a database marketing technique in which companies scan their customer database and target them with offers based on their past purchase behavior or demographic information. In this case, Bed, Bath, and Beyond targeted Ariana with a coupon based on her recent move, which is an example of trawling.

Question 2

The most common database-driven marketing programs are permission marketing,frequency programs,and customer relationship management efforts.

Accepted Answer

This statement is true, as permission marketing, frequency programs, and customer relationship management are all examples of marketing strategies that rely on the use of a database to segment and target customers.

Question 3

The key technology for database-driven customer communications is the cell phone.

Accepted Answer

The key technology for database-driven customer communications is typically the database management system (DBMS), not the cell phone. The DBMS allows for the storage, retrieval, and management of customer data, which can then be used for communications through various channels, including but not limited to cell phones.

Question 4

A permission marketing program means promotions are only sent to customers that ask for them.

Accepted Answer

Permission marketing is a strategy where customers give their consent to receive promotional messages or emails, ensuring that they only receive messages they are interested in.

Question 5

Faith received an e-mail from Volkswagen exactly one year after she purchased her Volkswagen.The company thanked her for her purchase and encouraged her to access the company's Web site.This is an example of the database marketing technique of trawling.

Accepted Answer

Trawling in database marketing involves searching through customer data to identify specific events or milestones, such as the anniversary of a purchase, to send targeted communications.

Question 6

When a customer makes a purchase over the Internet,the only communication that is important is sending them a thank you and acknowledgment of the order.

Accepted Answer

While sending a thank you and acknowledgment of the order is important, it is not the only communication that is important when making a purchase over the internet. It is important to also provide tracking information, updates on shipping and delivery, and address any issues or concerns the customer may have.

Question 7

Record and book clubs that send out monthly mailings of books and records to purchase are using a permissions marketing program.

Accepted Answer

These clubs are sending out monthly mailings with the recipient's permission to market their products, which falls under the definition of permissions marketing.

Question 8

A company's marketing team segments customers into 6 groups based on their lifetime value calculations.The highest value segment,President's Gold,should be targeted with rewards for purchases to encourage them to continue making purchases.

Accepted Answer

The statement suggests that the highest value segment, President's Gold, should be targeted with rewards for purchases. This would encourage them to continue making purchases, thus increasing the likelihood of their lifetime value increasing even further. Therefore, the statement is true.

Question 9

A company's marketing team segments customers into 6 groups based on their lifetime value calculations.The second highest value segment,President's Silver,should be targeted with rewards to move them to the highest segment.

Accepted Answer

Targeting customers with rewards is a common strategy to increase their lifetime value by retaining them and encouraging them to make repeat purchases. Since the President's Silver segment has the second-highest lifetime value, they are likely to be valuable customers, and rewarding them could help move them to the highest segment, which would increase their value even more. Therefore, targeting this segment with rewards is a logical strategy.

Question 10

In developing data-driven communications with customers through Web visits,identification codes allow a visitor to register with the site through an ID name or number and a password.

Accepted Answer

This statement is true. Identification codes such as an ID name or number and a password allow a visitor to register with a site and access personalized content or services. This enables the site to collect data on the visitor's behavior and preferences, which can be used to improve communication and targeting efforts.

Question 11

The primary reason for building a database,coding the information,and data mining is to use the output to build programs that will boost sales revenues.

Accepted Answer

The primary reason for building a database, coding the information, and data mining is to organize and analyze large amounts of data for various purposes such as improving business operations, decision-making, and identifying patterns or trends. While boosting sales revenues may be a potential outcome, it is not the primary reason for these activities.

Question 12

In permission marketing,permission is normally obtained from individuals in exchange for an incentive.

Accepted Answer

Permission marketing is based on obtaining permission from individuals to receive marketing messages in exchange for an incentive, such as exclusive content or discounts. This is done to ensure that the individual is interested and engaged with the brand, leading to more effective and targeted marketing.

Question 13

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

Maintaining accurate and relevant customer profile information is essential for creating effective data-driven marketing strategies that are personalized to individual customers' preferences and behaviors. By leveraging customer data, marketers can tailor their messaging, offers, and recommendations to better align with each customer's unique needs and interests.

Question 14

Personalized communications with customers through database information builds relationships and leads to both repeat purchases and customer loyalty.

Accepted Answer

Personalizing communications with customers based on their database information shows them that their individual needs and preferences are being recognized and valued. This fosters a sense of trust and loyalty, which can lead to repeat purchases and even recommendations to friends and family.

Question 15

Trawling is the process of coding data files with lifetime values and RFM codes.

Accepted Answer

Trawling is the process of fishing with a net or line. The process of coding data files with lifetime values and RFM codes is known as data mining or segmentation.

Question 16

When customers make contact with a company,the customer's profile,history,and other information contained in the database should be available to the company contact person as he or she deals with the customer.

Accepted Answer

This is known as a CRM system, which stands for customer relationship management. It allows companies to track and manage their interactions with customers and have all relevant information easily accessible to their employees.

Question 17

Customer contact personnel with a company should not use RFM codes or lifetime values of individual customers to affect the way they deal with a customer since every customer should be treated equally.

Accepted Answer

RFM codes and lifetime values are tools that can help a company understand its customers' behavior and preferences better. However, it should not be the sole basis for how customer contact personnel interact with individual customers. Although each customer should receive the same level of service and support, understanding their past interactions and behaviors can help tailor the communication and approach to better meet their needs and expectations.

Question 18

A database marketing program provides the tools to personalize messages and keep records of the types of communications that work and those that do not work.

Accepted Answer

A database marketing program is designed to personalize messages and capture data on their effectiveness, allowing for targeted and customized marketing campaigns.

Question 19

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

This is true. In order for permission marketing to be effective and ethical, it is important for participants to have voluntarily and knowingly agreed to receive marketing messages. This helps to build trust with customers and reduces the likelihood of complaints or legal issues. Any attempts to deceive or trick customers into signing up for marketing messages can damage relationships and reputations.

Question 20

By segmenting customers into lifetime value segments,a company's marketing department can personalize a different marketing program for each customer within the segments.

Accepted Answer

Segmenting customers into lifetime value segments allows a company to create personalized marketing programs for each segment, not for each individual customer within the segments.

Quiz 11: Database and Direct Response Marketing