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Multiple Choice Quiz
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1
Which of the following statements about QVC is true?
A)QVC's traditional target market is affluent, educated women on the East and West coasts.
B)QVC is not allowed to sell products valued at over $50.
C)QVC is trying to repackage itself for 40-60 year old midwestern men.
D)QVC's problem is viewers wait and think too long before making purchases.
E)None of the above statements about home shopping channels are true.
2
According to the text, which of the following factors in American society has directly led to the rapid growth of direct marketing?
A)more white-collar workers postponing marriage till their 30s
B)the growing popularity of TiVo
C)rampant corporate restructuring
D)the growing use of consumer credit cards
E)the internationalization of the markets
3
Victoria' Secret television image advertising supports its retail stores and catalog sales. In this example direct marketing is combined with:
A)advertising
B)personal selling
C)public relations
D)sales promotion
E)direct selling
4
Brown & Williamson (B & W) developed a tagline for its Kool menthol cigarettes —"We Built the House of Menthol." To support its new tagline, B & W sent postcards to customers listed in an in-house database. The postcards showed the Kool logo and the words "It's Coming." The first step B & W should have taken to implement this direct marketing program was to:
A)determine the media to use to deliver this direct marketing message
B)determine the organizational budget
C)determine how the direct-marketing program's success was going to be evaluated
D)establish the program's objectives
E)do none of the above
5
The U.S. Postal Service recommends direct marketers use an RFM scoring method for determining the effectiveness of their databases. The "M" is RFM stands for:
A)market accessibility
B)market share
C)monetary transactions between the company and the customer
D)market redundancy
E)mail coverage
6
In the _____ to direct marketing, the medium is used directly to obtain an order. The goal is to generate an immediate sale when the ad is shown.
A)two-step approach
B)primacy channel
C)exclusive channel
D)recency approach
E)one-step approach
7
Almost every electronics retailer has a mail-in warranty and information card which allows the firms to create:
A)mailing lists
B)acculturation factors
C)support media
D)demographic segmentation definitions
E)a strategic differential
8
Broadcast commercials for JCPenney advising viewers to watch their mail for bonus coupons from JCPenney are an example of:
A)disintermediation
B)the two-step approach
C)direct-response advertising
D)dual channel usage
E)supplementary advertising
9
Which of the following statements about teleshopping is true?
A)Teleshopping is only available in the United States.
B)The rapid growth in teleshopping resulted from the significant increase in the number of dual-income families.
C)Only products that are valued at $100 or less are sold through teleshopping.
D)Teleshopping cannot effectively sell intangible products.
E)QVC is the major shopping channel in the United States.
10
The three forms of direct selling are the party plan, repetitive person-to-person selling, and:
A)telemarketing
B)direct-response marketing
C)online selling
D)personal teleshopping
E)nonrepetitive person-to-person selling
11
What is the simplest way to determine the effectiveness of a direct-marketing program?
A)refer to the number of names in a database
B)qualify those prospects who expressed interest in the direct-marketing program
C)count the number of responses generated
D)measure RFM
E)conduct split-run tests
12
What does it mean when an advertiser expresses concern about direct marketing providing selective reach?
A)The advertiser wants to use direct-response television.
B)The advertiser believes the success of the direct-marketing effort depends on media context support.
C)The advertiser is concerned about waste coverage.
D)The advertiser is concerned about image issues.
E)The advertiser wants low CPM on an absolute and a relative basis.
13
Which of the following is a disadvantage associated with direct marketing?
A)inability to personalize the advertising message
B)waste coverage
C)inflexibility
D)increasing postal rates
E)inability to measure effectiveness of the medium





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