Principles of Marketing, 15e (Kotler/Armstrong)
Chapter 17 Direct and Online Marketing: Building Direct Customer Relationships
1) Amazon.com, eBay, and GEICO approach customers via Web sites or mobile apps. This is an
example of ________.
A) mass marketing
B) guerrilla marketing
C) direct marketing
D) multi-level marketing
E) ambush marketing
2) Which of the following statements is true of direct marketing?
A) Direct marketing is also referred to as referral marketing.
B) Salespersons are compensated for other salespeople they recruit.
C) Direct marketing offers sellers a low-cost alternative for reaching their markets.
D) Direct marketing involves two or more intermediaries.
E) In direct marketing, consumers earn a commission every time they buy a product.
3) Which of the following is true about online direct marketing?
A) Online direct marketing is also referred to as multi-level marketing.
B) Salespersons are compensated for other salespeople they recruit.
C) Online direct marketing results in speedier handling of channel and logistics functions.
D) Online direct marketing involves two or more intermediaries.
E) In online direct marketing, outside and inside sales forces coordinate to provide value
products to customers.
4) All of the following are benefits of online direct marketing for buyers EXCEPT ________.
A) access to numerous products
B) access to product reviews
C) live product demonstrations
D) convenience and speed
E) privacy
5) All of the following are benefits of direct marketing for sellers EXCEPT ________.
A) easy access to hard-to-reach markets
B) price and program flexibility
C) mass reach and immediate returns
D) lower cost per contact
E) easy to personalize products
6) A(n) ________ is an organized collection of comprehensive data about individual purchasers
or prospects.
A) corporate Web site
B) customer database
C) inventory
D) warehouse
E) enterprise system
7) Which of the following is most likely essential for direct marketing to be effective?
A) the selling concept
B) good customer database
C) well-trained sales force
D) ambush marketing
E) marketing myopia
8) Which of the following categories in the customer database includes information on
customers’ age, income, and birthdays?
A) demographic data
B) psychographic data
C) geographic data
D) buying behavior data
E) census data
9) ________ data in the customer database includes data about the recency, frequency, and
monetary value of past purchases of a customer.
A) Census
B) Psychographic
C) Geographic
D) Buying behavior
E) Demographic
10) ________ data in a customer database includes information regarding a customer’s activities,
interests, and opinions.
A) Demographic
B) Psychographic
C) Census
D) Geographic
E) Behavioral
11) All of the following are common uses for a direct marketing customer database EXCEPT
________.
A) generating sales leads
B) identifying prospective customers
C) profiling customers based on previous purchases
D) gathering marketing intelligence about competitors
E) building long-term customer relationships
12) Which of the following is most likely true about database marketing?
A) Extensive use of databases seldom intrudes consumers’ privacy.
B) Companies match customer needs and interests with products and services.
C) It is legal for online sellers to plant online cookies in the browsers of consumers.
D) It sets up do-not-call lists, do-not-mail lists, and do-not-track online lists.
E) Marketers can watch their competitor’s moves closely by monitoring the competitor’s
database.
13) Which of the following best comprises psychographic data?
A) buying preferences
B) family members and birthdays
C) age and income
D) address and region
E) activities and interests
14) All of the following are forms of direct marketing EXCEPT ________.
A) personal selling
B) point-of-purchase promotion
C) telemarketing
D) direct-mail marketing
E) kiosk marketing
15) ________ involves sending an offer, announcement, reminder, or other item to a person at a
particular address.
A) Kiosk marketing
B) Online marketing
C) Ambush marketing
D) Direct-mail marketing
E) Telemarketing
16) Which of the following types of marketing involves marketers sending out letters, brochures,
samples, and DVDs to consumers’ address?
A) direct-response marketing
B) direct-mail marketing
C) direct digital marketing
D) kiosk marketing
E) online marketing
17) Why does direct-mail marketing most likely remain a popular promotional tool for
marketers?
A) It does not disturb consumers enrolled in the Do Not Call Registry.
B) It provides something tangible for people to keep.
C) It builds long-term customer relationships.
D) It involves very low marketing costs.
E) It reaches the consumer very quickly.
18) Which of the following is an advantage of using digital catalogs?
A) lists the phone numbers of interested prospects
B) coordinates with direct-response television ads
C) points customers to the nearest kiosk
D) eliminates printing and mailing costs
E) creates emotional contact with customers
19) What is the primary advantage of printed catalogs?
A) filtering out interested prospects
B) offering immediate rebates and coupons
C) building emotional connections with customers
D) offering unlimited space for merchandise details
E) reaching consumers in a quick and inexpensive manner
20) Why are historically online shops such as Zappos.com adding catalogs to their marketing
methods?
A) to meet the increased demand in print catalogs
B) to reduce the costs involved in online marketing
C) to connect with customers in hard-to-reach places
D) to drive online sales and services
E) to reduce the need for telemarketers
21) Sales executives at Keiron Air Conditioners use phone directories to call customers and
convince them to buy their air conditioners. Which form of direct marketing is used here?
A) telemarketing
B) direct-mail marketing
C) catalog marketing
D) direct-response television marketing
E) kiosk marketing
22) By using ________ to contact potential customers, marketers sell directly to consumers.
A) undercover marketing
B) outbound telephone marketing
C) affinity marketing
D) multi-level marketing
E) ambush marketing
23) Which of the following is an advantage of a well-designed and targeted telemarketing plan?
A) exemption from the National Do Not Call Registry
B) ability to portray wider merchandise
C) purchasing convenience for customers
D) interactive infomercials via phone
E) coordination with nearby kiosks
24) How has do-not-call legislation helped direct marketers?
A) Marketers are compensated by the Federal Trade Commission for lost sales caused by the
laws.
B) Direct marketers have outsourced their activities to firms that are exempt from such laws.
C) Direct marketers have developed kiosks as an alternative to telemarketing.
D) Telemarketers are allowed to call customers for a small fee.
E) Telemarketers have developed opt-in calling systems.
25) Which of the following terms refers to a 30-minute television advertising program that
markets a single product?
A) social media
B) digital catalog
C) telemarketing
D) blog
E) infomercial
26) Which of the following is a major form of direct-response television marketing?
A) telemarketing
B) interactive TV
C) social media
D) digital catalog
E) podcast
27) Which term refers to an in-store machine that allows a customer to order merchandise not
carried in the store?
A) kiosk
B) automated teller machine
C) virtual catalog
D) interactive TV
E) direct-response device
28) Marbles Inc. has placed vending machines in most of its retail stores in Florida. Consumers
can order a pack of Marbles by just selecting their requirements on the touch screen. Which term
best describes such machines?
A) POP
B) kiosk
C) virtual catalog
D) interactive television
E) automated teller machine
29) ________ allows consumers to gain additional information about a product through the use
of a remote control.
A) Telemarketing
B) Kiosk marketing
C) Podcasting
D) Video conferencing
E) Interactive television
30) Florian Fasteners recently introduced a new line of products. In order to promote its product,
it sent samples to the addresses of a few select customers. Which of the following types of
marketing is evident from this example?
A) direct-mail marketing
B) telephone marketing
C) direct-response TV marketing
D) mobile marketing
E) kiosk marketing
31) Renkel Cosmetics sends a sample of the newest cosmetics line to all premium members’
addresses. Which of the following best describes Renkel’s form of marketing?
A) social media marketing
B) kiosk marketing
C) direct-response television marketing
D) catalog marketing
E) direct-mail marketing
32) Kirk’s Comic Store has its own mobile app that users can download for free. The app lets
users know about special events, discounts, and merchandise currently available in the store.
Which of the following forms of marketing is exemplified from this scenario?
A) social media marketing
B) kiosk marketing
C) direct-response television marketing
D) catalog marketing
E) direct-mail marketing
33) Geller Insurance calls qualified prospects to sell insurance. Which of the following forms of
marketing is evident from this example?
A) catalog marketing
B) kiosk marketing
C) direct-response television marketing
D) telemarketing
E) direct-mail marketing
34) Neal Murphy sells his company’s unique products on television programs. He also hosts a
30-minute show in which he demonstrates and explains the advantages of the product. At the end
of the show, a toll-free number is displayed on the screen that can be used by viewers to place
their orders for the product. Which of the following forms of advertising is evident here?
A) direct-response television advertising
B) telemarketing
C) interactive television marketing
D) podcast marketing
E) kiosk marketing
35) Donello Equipments hosts infomercials on television and at the same time allows its viewers
to interact with its advertisements. Viewers can request more details and order via their Internet-
ready smart televisions. Which of the following forms of marketing is evident here?
A) catalog marketing
B) telemarketing
C) interactive television
D) podcast marketing
E) kiosk marketing
36) Music Mogul has arrangements with several stores and retail chains to place their DVDs and
digital music machines in prime spots such as near billing counters and at store entrances.
Consumers can buy DVDs by placing cash at the given slots or they can buy music online via the
touch-screen interface on the machine. Which form of marketing is illustrated in this scenario?
A) direct-response television advertising
B) telemarketing
C) interactive television
D) podcast marketing
E) kiosk marketing
37) Fiona Lambrech is the marketing director of a newly established detergent company. In order
to introduce her product effectively into the market, Fiona sends samples of the detergent to a
select group of individuals. Which of the following forms of marketing was most likely used by
Fiona?
A) direct-mail marketing
B) catalog marketing
C) telephone marketing
D) kiosk marketing
E) direct-response television marketing
38) Green Gardens is a a click-and-mortar company that sells gardening and landscaping goods
and equipment. When customers are unable to find a product they need on the shelves of their
local Green Gardens store, customers order the product online with the help of the in-store
ordering machine. Which of the following best describes the ordering machine?
A) kiosk
B) digital catalog
C) podcast
D) tablet
E) online networks
39) What is the most likely reason that direct-response television marketing has increased in
recent years?
A) uses of social media
B) shifts in demographics
C) increases in global demand
D) changes in FTC legislation
E) advancements in technology
40) SparkClean is a company that specializes in producing cleaning products for automobiles. In
order to promote its products, SparkClean sends a complimentary sample of its products to auto-
enthusiasts. Which form of marketing is SparkClean involved in?
A) online marketing
B) viral marketing
C) telemarketing
D) kiosk marketing
E) direct-mail marketing
41) Which of the following is the fastest growing form of direct-marketing?
A) ambush marketing
B) online marketing
C) direct-mail marketing
D) kiosk marketing
E) telemarketing
42) The ________, a vast public web of computer networks, connects users of all types all
around the world to each other and to an amazingly large information repository.
A) Internet
B) Intranet
C) digital catalog
D) customer database
E) network bridge
43) E-tailers, such as Amazon.com and Expedia.com, that sell products and services directly to
final buyers exclusively over the Internet are known as ________.
A) brick-and-mortar companies
B) click-and-mortar companies
C) buy-here pay-here companies
D) click-only companies
E) shell companies
44) Gen-next Clothing has clothing stores across the U.S., and the firm also sells online directly
to customers. Which of the following best describes Gen-next Clothing?
A) click-and-mortar company
B) buy-here pay-here company
C) brick-and-mortar company
D) shell company
E) click-only company
45) Which term best describes Web sites such as Discovery.com and ESPN.com?
A) search engine
B) content site
C) online social network
D) transaction site
E) e-tailer
46) Due to the success of the dot-coms, traditional firms that have a physical establishment are
rapidly changing to ________.
A) shell corporations
B) click-only firms
C) click-and-mortar firms
D) buy-here pay-here firms
E) dummy corporations
47) ________ online marketing involves businesses selling goods and services online to final
consumers.
A) Business-to-consumer (B-to–C)
B) Consumer-to-consumer (C-to–C)
C) Government-to-business (G-to–B)
D) Consumer-to-business (C-to–B)
E) Business-to-business (B-to–B)
48) ________ online marketing involves reaching new business customers, selling to current
business customers, and serving business customers more efficiently and effectively.
A) B-to-C
B) B-to-B
C) C-to-C
D) C-to-B
E) G-to-B
49) ________ online marketing involves consumers buying or exchanging goods or information
directly with one another.
A) B-to-C
B) B-to-B
C) C-to-C
D) C-to-B
E) B-to-G
50) Craigslist.com and eBay are popular market spaces that facilitate the online exchange of
goods and information in the form of ________ online marketing.
A) B-to-C
B) B-to-B
C) C-to–C
D) C-to-B
E) B-to-G
51) ________ are online journals where people post their thoughts, usually on a narrowly
defined topic.
A) Social networks
B) Blogs
C) Forums
D) Search engines
E) Web directories
52) Which of the following is a benefit of using blogs as marketing tools for companies?
A) Blogs provide companies with a platform to help portray wider merchandise.
B) Blogs are online selling platforms for people located in hard-to-reach places.
C) Blogs help reach a wider audience compared to other online direct marketing tools.
D) Demographic information about customers can be easily discovered.
E) Blogs are an inexpensive yet personal way to reach a targeted audience.
53) Which of the following is a disadvantage of using blogs as a marketing tool?
A) The blogosphere is cluttered and difficult to control.
B) Advertising on a blog is typically expensive and time consuming.
C) Using blogs as a marketing tool offers minimum reach to a target audience.
D) Blogs when used as a marketing tool have a low rank in web directories and search engines.
E) Blogs do not provide the kind of personalized approach that today’s marketers are looking for.
54) ________ online marketing sites are online exchanges in which consumers search out sellers,
learn about their offers, initiate purchases, and sometimes even drive transaction terms.
A) B-to-C
B) B-to-B
C) G-to-B
D) C-to-B
E) B-to-G
55) Which of the following Web sites facilitates consumer-to-business online marketing?
A) ebay.com
B) Overstock.com
C) Craigslist.com
D) cisco.com
E) Priceline.com
56) Which of the following online marketing domains would most likely involve customers
driving online transactions rather than businesses?
A) B-to-G
B) G-to-B
C) B-to-B
D) B-to-C
E) C-to-B
57) Justbuy.com offers a wide variety of merchandise to its buyers. Customers order the product
on the Web site and get it delivered directly to their address. Which of the following best
describes Justbuy.com?
A) click-only company
B) click-and-mortar company
C) brick-and-mortar company
D) buy -here pay-here company
E) shell company
58) In addition to its Web site, Aaron Opticians has stores that offer a wide variety of eyeglasses,
sunglasses, and accessories. Buyers can order the product on the Web site or go to the nearest
store to make purchases. Which of the following best describes Justbuy.com?
A) click-only company
B) click-and-mortar company
C) brick-and-mortar company
D) buy-here pay-here company
E) shell company
59) VLX Global sells directly to final consumers and avoids intermediaries while catering to a
broad group of demographic segments. Which major online marketing domain is evident here?
A) B-to-C
B) B-to-B
C) G-to-B
D) C-to-B
E) C-to-C
60) Jane, a home-maker, regularly posts new entries on her popular blog. She often reviews
consumer products that she uses during the course of her day and then writes blogs about them.
Her blogs are popular among other home-makers. Many of them buy products that Jane blogs
about. Which major online marketing domain is illustrated from this example?
A) C-to-B
B) C-to-C
C) B-to-C
D) G-to-B
E) B-to-G