HMS 419 Chapter 6 Exam Review – Flashcards
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The process of direct marketing includes
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collecting data, analyze data, utilizing appropriate media, tracking and measuring, judging effectiveness
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What statement regarding the state of the direct marketing industry is true?
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*idontknow
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The process of gathering and using information about customer behavior and aspirations is called ___.
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database marketing
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Database marketing is used to develop closer relationships with customers in several ways. Which of the following statements best describes one of the main uses?
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*idontknow
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The practice of combining databases and then updating mailing lists or removing duplicate names from a list is called ___.
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merge/purge
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Measurements routinely used in predictive modeling involve ___.
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*idontknow
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The database maintained by the United States Postal Service that companies use to update customer contact information and lower mailing costs by eliminating "nixies" is called the ___.
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NCOA The National Change of Address
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Lists of names that are prepared by commercial businesses and contain names that might be from census data or club membership rosters are called ___.
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compiled lists
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Which statement is true regarding costs of lists?
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a list is only as good as its accuracy, handled by facilitating firms that owns, manage, and broker names and addresses to direct marketers, might specialize in certain types of industries or cover a range of business types
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What is a significant reason why direct marketing has grown as an industry and become more popular with customers?
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*idontknow
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According to the article about Steve Jobs in "From the Field 6.1," which of the many technological advancements has been most advantageous to the catalogue industry?
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mac computers
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The recession that began officially in 2008 heralded changes in consumer behavior. Which customer-centered challenge explains the guilt some people felt that compelled them to reduce expenditures even though they had adequate financial resources?
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reticence to spend
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During times of global economic downturn, retailers face business challenges. How did the upscale French company Pineault Printemps Redoute (PPR) deal with mergers and acquisitions to its advantage?
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they divested itself of Conforama
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Which is the top multichannel merchant company in the United States?
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dell
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Companies like Brookstone, Delia's, and Victoria's Secret that operate catalogues, brick-and-mortar stores and online stores are called ___.
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multichannel merchants
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What is a major difference between catalogue retailing and selling through conventional stores?
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*idontknow
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Disappointment with product fit, color, or quality is one drawback of catalogue retailing often cited by customers. What can be done to counter these problems?
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providing fabric swatches, liberal return policies, and postage aid return
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A catalogue creates a mood through its ___.
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through size, design, layout, photography, and paper quality
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Which retail company reduced the number of catalogues it mailed because it learned that its core customers preferred in-store shopping?
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williams-sonoma
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Which statistic reflects the correct status of direct mail marketing in 2011?
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52% of total mail volume
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Direct mail that arrives at households along with the newspaper or in envelopes stuffed with offers from many businesses is called ___.
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insert media
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According to the article in "From the Field 6.2," one way to ensure that direct mail is not automatically thrown in the trash unread is to use ___.
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appealing to the senses: distinctive feel can be powerful, images and sound are vital in sensory market, taste and smell (flavor strips)
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What direct mail tactic did Dell use during an economic downturn to reach customers less expensively?
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increased mailing to best customers and hand raisers (prospect customers), used smaller pieces such as postcards to inform
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Do-not-mail lists, postal rate increases, and adopting metrics to measure results are challenges faced by direct mailers. How are businesses dealing with these issues?
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*idontknow
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Telemarketing offers customers flexibility because calls can be initiated from almost anywhere. Which term best describes this type of calling?
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inbound calls
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What is a major problem when using telemarketing to reach prospective customers in less-developed countries?
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up to date directories are virtually non-existent making telemarketing difficult
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Direct marketing companies intending to expand globally by entering several countries at the same time will choose which tactic?
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sprinkle strategy
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The form of direct marketing that has the highest usage rate is ___.
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email and internet marketing
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Telephone call center problems are experienced worldwide; which statement best epitomizes this commonality?
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offshoring call centers is a concern of business (foreigners), customers worldwide are adopting government sponsored do not call list, customers want personal service more than self service.
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What products account for the most sales in direct selling?
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home and family care
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Direct selling occurs most commonly ___.
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person to person, consultative
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The direction of interaction in consultive selling is controlled by the ___.
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sales person
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Cutco Cutlery's sales force is primary composed of ___.
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college students
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Which of the following is not an example of party-plan selling?
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gold parties
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Amway was the second largest global direct selling company in 2011 and the largest multilevel marketer in the world. What differentiates a multilevel company from other types of direct selling businesses?
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salesperson pays a commission on sales they generate to the leader who has recruited them
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How might a vending company overcome the "psychology of dealing with a nonperson"?
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have a full-service assortment of vending, having an attendant to greet, service machine, even make change
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What do Best Buy, Quicksilver, Pepsico, and Dove have in common?
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vending machines with select product
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A major benefit of using a marketplace cart as a form of nonstore retailing is that carts ___.
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less risky way from entrepreneurs to gain a foothold, popular in downtown sites, tourist areas, and shopping malls
