Advertising & IMC: Principles and Practice, 11e (Moriarty et al.)
Chapter 4 Action and Interaction: Direct Response and Promotions
1) ________ marketing occurs when a seller and customers deal with each other directly rather
than through an intermediary, such as a wholesaler or retailer.
A) Integrated
B) Simplified
C) Leveled
D) Direct-response
E) Tiered
2) Which of the following are the two fundamental components of the direct-marketing
business?
A) communication sent directly to the consumer and promotion of brand awareness
B) promotion of brand awareness and consumer response sent directly back to the source
C) IMC and database marketing
D) communication sent directly to the consumer and consumer response sent directly back to the
source
E) consumer response sent directly back to the source and comparative marketing
3) Direct-response marketing is typically designed to accomplish which of the following?
A) increase awareness
B) enhance attitudes
C) produce an immediate sale or response
D) gain acceptance among several stakeholders
E) encourage switching from a competitor’s product or service
4) What is the rationale for the higher cost of direct marketing?
A) The effectiveness of direct-response marketing is not easy to evaluate.
B) Consumers are more accepting of it than of other forms of brand communication.
C) Response rates have increased dramatically in the past 10 years.
D) Consumers feel more confident in marketers’ concerns for their privacy.
E) The messages are tightly targeted to reach prime prospects.
5) There are four main players in direct-response marketing communication. Which of the
following is NOT one of these four main players?
A) state and federal governments that regulate marketing communication
B) marketers who use direct response to sell products or services
C) agencies that specialize in direct response
D) media that deliver messages
E) consumers
6) Which of the following is NOT a type of company that has traditionally made extensive use of
direct marketing?
A) insurance companies
B) book and record clubs
C) gardening firms
D) publishers
E) oil companies
7) Service firms in direct marketing specialize in ________.
A) printing, mailing, list brokering, and data management
B) media buying
C) evaluating the results of direct-marketing campaigns
D) creating direct-marketing messages
E) delivering ordered products to customers
8) Which type of agency is responsible for making sure consumers receive whatever they request
in a timely manner, be it a catalog, additional information, or the product itself?
A) advertising agency
B) independent agency
C) service firm
D) fulfillment house
E) direct-marketing agency
9) Which term refers to a direct marketer’s potential customer?
A) offer
B) prospect
C) partner
D) contact
E) convert
10) What is the first step in the direct-response process?
A) market research to guide strategy
B) the offer
C) customer ordering
D) fulfillment
E) relationship building
11) Getting the product to those who order it is called ________.
A) optimization
B) generation
C) prospecting
D) conversion
E) fulfillment
12) Which of the following is NOT typically part of the offer in direct marketing?
A) product description
B) terms of sale
C) payment information
D) delivery information
E) rebate
13) In direct marketing, the ________ is made up of all variables intended to satisfy the needs of
the consumer.
A) message
B) media
C) fulfillment
D) offer
E) response
14) During the ________ step of the direct-response process, the DRC campaign must
communicate benefits to buyers by answering the enduring question: “What’s in it for me?”
A) strategy
B) offer
C) response
D) fulfillment
E) relationship building
15) During the ________ step in the direct-response process, the DRC message must make it as
easy as possible for customers to respond.
A) objectives
B) offer
C) response
D) fulfillment
E) relationship building
16) During the ________ step in the direct-response process, the goal is to respond quickly and
get the product to those who respond.
A) posttesting
B) offer
C) response
D) fulfillment
E) pretesting
17) Measuring and evaluating consumer behavior is part of the ________ step in the direct-
response process.
A) posttesting
B) offer
C) response
D) fulfillment
E) proposition
18) Which of the following is the original and most effective form of direct marketing?
A) personal sales
B) sales promotion
C) catalog marketing
D) print direct-response advertising
E) direct mail
19) Which of the following is communication for a product, service, or nonprofit organization
that is addressable?
A) personal sales
B) sales promotion
C) telemarketing
D) print direct-response advertising
E) direct mail
20) How is most direct mail sent?
A) first-class mail
B) second-class mail
C) second-class bulk mail
D) third-class bulk mail
E) certified mail
21) Which of the following is NOT an advantage of direct mail?
A) reaching a highly targeted audience
B) building in feedback
C) personalizing the message
D) simplifying the calculation of return on investment
E) providing a low cost per impression
22) Which of the following is most likely TRUE of infomercials?
A) They are the most popular method of direct-marketing.
B) They typically air during prime time on network television.
C) They are used if the product needs to be demonstrated.
D) They are typically used for products with low profit margins.
E) They are usually used for products that are widely available in retail outlets.
23) A ________ is a multipage direct-mail publication that shows a variety of merchandise.
A) letter
B) brochure
C) broadsheet
D) self-mailer
E) catalog
24) Which of the following is a TRUE statement about catalogs?
A) Catalogs, for the most part, have been replaced by online publications.
B) Catalogs are often part of a multichannel strategy for large retailers.
C) The growth in catalogs in the 21st century is in general-interest catalogs.
D) Few paper catalogs are associated with online catalogs.
E) Catalog retailers do not have physical retail outlets.
25) Which of the following is a form of personal sales?
A) direct-mail marketing
B) direct-response advertising
C) catalog marketing
D) telemarketing
E) Internet advertising
26) Rooms with large banks of phones and computers where workers send and receive calls are
known as ________.
A) call centers
B) telephone pits
C) call lists
D) call floors
E) call pits
27) Which of the following are the two types of telemarketing?
A) opt-in and opt-out
B) toll and toll-free
C) internal and external
D) business and organizational
E) inbound and outbound
28) In which type of telemarketing is the call initiated by the customer?
A) opt-in
B) opt-out
C) external
D) inbound
E) outbound
29) In which type of telemarketing does the call originate with the marketer?
A) opt-in
B) opt-out
C) external
D) inbound
E) outbound
30) Using ________, telemarketers call random numbers rather than numbers of qualified
prospects.
A) opt-in telemarketing
B) inbound telemarketing
C) cold calling
D) variable data marketing
E) conversion calling
31) Which of the following refers to the use of special computerized programs that use random
dialing, making it possible for telemarketing companies to call anyone, even those with unlisted
numbers?
A) opt-in telemarketing
B) opt-out telemarketing
C) cold calling
D) conversion calling
E) predictive dialing
32) What is the purpose of the national Do Not Call Registry?
A) to make businesses that use telemarketing to register all the numbers that they call
B) to allow consumers to receive telemarketing calls only from marketers that they want to call
them
C) to stop telemarketers from calling cell phone numbers because consumers must pay for those
calls
D) to allow consumers to “opt-out” of telemarketing calls from for-profit businesses
E) to stop telemarketers from calling people at work
33) ________ is a type of marketing communication that has characteristics of advertising but
also includes an element that allows the audience to make a direct response to the advertiser.
A) Direct-response advertising
B) Direct-focus advertising
C) Integrated marketing communications
D) Direct-marketing advertising
E) Direct-to-consumer advertising
34) A direct-response ad on television is known as a(n) ________.
A) infomercial
B) sponsored program
C) promotional program
D) telemarketing program
E) home shopping network
35) The ________ regulates email marketing.
A) Do Not Mail List
B) Mail Preference Service
C) McAfee Internet Security Suite
D) CAN-SPAM Act
E) Do Not Call Registry
36) Many marketers now use permission marketing to address the problem of ________.
A) social selling
B) predictive dialing
C) cold calling
D) spamming
E) variable data marketing
37) Knight-Abbey Commercial Printers and Direct Mailers is a large commercial printer in the
southeastern United States. The company develops, prints, and mails direct mail pieces for
several businesses. One of the company’s largest customers is Beau Rivage Casino in Gulfport,
Mississippi. Knight-Abbey personalizes and prints eight variations of a direct mail offer to
customers. In terms of the types of firms in direct-response advertising, which type is Knight-
Abbey?
A) advertising agency
B) direct-marketing agency
C) service firm
D) fulfillment house
E) print brokerage
38) Neal Murphy sells his company’s unique gift items on television programs and entire
channels dedicated to selling goods and services. Neal is using ________.
A) direct-response television advertising
B) internet-based infomercials
C) online marketing
D) telemarketing
E) data mining
39) After selecting a sweater on the Lands’ End website, Kelly Oldham filled out the required
customer and credit card information. A box with a checkmark inside was next to the following
statement: “Yes, I would like to receive promotional information via email from Lands’ End.”
The statement suggests that Lands’ End is using which of the following marketing tools?
A) spam
B) telemarketing
C) predictive dialing
D) data mining
E) permission marketing
40) Laurie is a college professor who teaches a course in direct marketing. She is a member of
the Direct Marketing Association (DMA), a trade association for businesses in the direct-
marketing industry, because it is a useful source of current information for her course. She
receives direct mail offers, emails, and telemarketing calls from a variety of businesses that are
also sent to other members of the DMA. What type of list is Laurie’s name most likely on?
A) house list
B) response list
C) compiled list
D) professional list
E) converted list
41) Which type of direct-marketing list consists of the marketer’s own customers or members?
A) data list
B) house list
C) converted list
D) response list
E) compiled list
42) Which type of direct-marketing list is the most valuable list to a marketer?
A) data list
B) house list
C) compiled list
D) response list
E) prospect list
43) Which type of list is derived from people who have answered some type of direct-response
offer?
A) data list
B) house list
C) compiled list
D) response list
E) prospect list
44) Which type of direct-marketing list is a list of some specific category, such as sports car
owners, new homebuyers, graduating seniors, or subscribers to a magazine?
A) data list
B) house list
C) compiled list
D) response list
E) prospect list
45) Organic Designs is a small, successful chain of stores offering stylish clothes made of all-
organic materials for infants, toddlers, and young children. Most of the Organic Designs stores
are located in urban areas. Now, Organic Designs is considering using direct marketing to reach
potential customers who live outside of the company’s existing markets, with the goal of
engaging attention and creating long-term relationships with a new group of customers. Which of
the following methods of direct marketing would most likely be effective in accomplishing this
goal?
A) telemarketing
B) print direct-response advertising
C) catalogs
D) opt-out marketing
E) bulk emailing
46) Gianna is a skeptical consumer whose motto is “I’ll believe it works when I see that it
works.” Which of the following would be the most effective form of direct marketing for a
marketer to use to reach Gianna and customers like her?
A) infomercials
B) catalogs
C) direct mail
D) telemarketing
E) data mining
47) An activity and communications program designed to build excitement in a market for a
limited period of time in order to stimulate trial, increase consumer demand, or improve product
availability is categorized as ________.
A) advertising
B) public relations
C) sales promotion
D) personal selling
E) event sponsorship
48) Which of the following is LEAST likely a typical target audience of sales promotion?
A) consumers
B) distributors
C) sales representatives
D) media
E) retailers
49) Through the process of ________, results derived from a promotion can be estimated and
compared with the projected cost of the effort.
A) investment planning
B) payout planning
C) added value planning
D) allowance analysis
E) continuity analysis
50) Promotions are typically LEAST effective at which of the following?
A) creating immediate sales
B) reinforcing brand image
C) building brand awareness
D) changing negative brand attitudes
E) generating product trial
51) Which of the following is NOT a reason for the growth of sales promotion?
A) decreasing brand loyalty
B) need for accountability
C) power of dominant retailers
D) growth of digital and other new media
E) pressure for long-term profits
52) Sales manuals, training programs, and supportive materials are all examples of ________
promotions.
A) retailer
B) partner
C) sales force
D) trade
E) channel
53) Which of the following is NOT a type of consumer promotion?
A) price deals
B) sampling
C) trade deals
D) sweepstakes
E) premiums
54) Which of the following is a common consumer price deal?
A) banded packs
B) refund
C) rebate
D) premium
E) contest
55) A temporary price reduction, sale price, or freebie is known as a ________.
A) refund
B) rebate
C) price deal
D) trade deal
E) price-off
56) The consumer promotion that provides a reduction in the normal price charged for a good or
service announced at the point of sale or through mass or direct advertising is known as a
________.
A) prize-pack deal
B) cents-off deal
C) bonus pack
D) banded pack
E) coupon
57) Which of the following provide the consumer with something extra through the package
itself?
A) prize-pack deals
B) cents-off deals
C) samples
D) self-liquidator premiums
E) coupons
58) Which of the following provide the consumer with more units of a product sold at a lower
price than if they were bought at the single-unit price?
A) prize-pack deals
B) cents-off deals
C) bonus packs
D) banded packs
E) rebates
59) Which of the following are the two types of coupons?
A) refund and rebate
B) immediate and delayed
C) percentage and cents-off
D) retailer and manufacturer
E) price cut and added value
60) Which consumer sales promotion is a marketer’s offer to return a certain amount of money to
the consumer who purchases the product?
A) rebate
B) sample
C) coupon
D) premium
E) self-liquidating
61) A consumer is able to try a product or service through ________.
A) a warranty
B) sampling
C) a premium
D) a specialty
E) swag
62) The consumer promotion that is a tangible reward for a particular act, usually purchasing a
product or visiting the point-of-purchase, is known as a ________.
A) sample
B) price deal
C) contest
D) sweepstakes
E) premium
63) Which type of consumer sales promotion creates excitement by offering impressive prizes
that consumers can win by chance?
A) price deals
B) specialty advertising
C) sweepstakes
D) sampling
E) premiums
64) ________ require participants to compete for a prize or prizes based on some sort of skill or
ability.
A) Sweepstakes
B) Swag offers
C) Contests
D) Premiums
E) Specialties
65) ________ presents the brand’s name on something that is given away as a reminder.
Examples include calendars, pens, T-shirts, mouse pads, and so forth.
A) A premium
B) A rebate
C) A bonus pack
D) Specialty advertising
E) Specialty sampling
66) Which of the following is NOT an objective of consumer promotions such as coupons?
A) generating awareness
B) generating trial
C) maintaining or increasing market share
D) reminding consumers about the brand
E) increasing profit margins
67) In a practice that is sometimes referred to as ________, trade promotions are directed at
distribution channel members.
A) value-added marketing
B) payout planning
C) channel marketing
D) partner relationship management
E) customer relationship management
68) Which of the following is a type of trade promotion?
A) refund
B) premium
C) point-of-purchase display
D) sampling
E) rebate
69) Which type of trade promotion rewards a reseller financially for purchase of a certain level
of a product or support of a promotion?
A) trade incentives and deals
B) contest
C) point-of-purchase display
D) self-liquidator
E) retailer kit