Principles of Marketing Chapter 17

Principles of Marketing, 17e, Global Edition (Kotler/Armstrong)
Chapter 17 Direct, Online, Social Media, and Mobile Marketing
1) Amazon.com and GEICO approach customers via Web sites or mobile apps. This is an example of
________ marketing.
A) mass
B) niche
C) individual
D) multi-level
E) direct
Answer: E AACSB: Information technology Skill: Concept
Objective: LO 17.1: Define direct and digital marketing and discuss their rapid growth and benefits to
customers and companies.
Difficulty: Easy
2) 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
E) privacy
Answer: C AACSB: Information technology Skill: Concept
Difficulty: Easy
3) Advantages of direct and digital marketing for sellers include all of the following EXCEPT
________.
A) low cost
B) efficiency
C) speed
D) need for sales training
E) flexibility
Answer: D AACSB: Information technology Skill: Concept
Difficulty: Easy
4) 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.
Answer: C AACSB: Analytical thinking Skill: Concept
Difficulty: Moderate
5) With direct marketing, companies can interact with customers in all of the following ways EXCEPT
________.
A) in person
B) learning more about customers' needs
C) personalizing products and services
D) answering questions from customers
E) by phone or online
Answer: A AACSB: Information technology Skill: Concept
Difficulty: Easy
6) 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 allows sellers to create immediate, timely, and personal offers.
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.
7) All of the following are benefits of direct marketing for sellers EXCEPT ________.
A) access to small groups or individuals
B) program flexibility
C) mass reach and immediate returns
D) low cost
E) easy to personalize products
Answer: C Skill: Concept
Difficulty: Easy
8) Direct and digital marketing involve targeting broad segments of customers.
Answer: FALSE AACSB: Information technology Skill: Concept
Difficulty: Easy
9) Most companies use direct marketing as a supplementary channel or medium.
Answer: TRUE Skill: Concept
Difficulty: Easy
10) Direct marketing seldom occurs on a one-to-one, interactive basis.
Answer: FALSE Skill: Concept
Difficulty: Easy
11) Direct marketing through catalogs and direct mailers is still the primary method used by marketing
professionals.
Difficulty: Easy
12) For customers, the benefits of direct marketing are being able to shop online anytime and
anywhere. Answer: TRUE
Skill: Concept
Difficulty: Easy
13) Direct marketing is an expensive way of reaching target markets.
Answer: FALSE
AACSB: Information technology Skill: Concept
Difficulty: Easy
14) How does direct marketing give buyers access to more comparative information about companies,
products, and competitors?
Answer: Catalogs and Web sites, both forms of direct marketing, can provide extensive product
information and helpful product reviews. Customers can easily research companies, products, and
competitors by comparing information in catalogs or on various Web sites.
Difficulty: Easy
15) How does online marketing provide flexibility for sellers?
Answer: Online marketing allows the marketer to make ongoing adjustments to its prices and programs
or make immediate, timely, and personal announcements and offers. Online catalogs, if used, can be
adjusted daily or even hourly if needed.
Difficulty: Easy
16) Explain the major benefits of direct marketing for customers and for sellers.
Answer: For customers, direct marketing is convenient, easy to use, and private. It gives buyers ready
access to a wealth of products and information, at home or work and around the globe. It is immediate
and interactive.
For sellers, direct marketing is powerful for building customer relationships. Marketers can target small
groups or individual consumers, tailor offers to individual needs, and promote these offers through
personalized communications. It provides great timing and offers a low-cost, efficient alternative for
reaching markets.
AACSB: Application of knowledge Skill: Concept
17) Which of the following is the fastest growing form of direct marketing?
A) ambush marketing
B) digital marketing
C) direct-mail marketing
D) kiosk marketing
E) telemarketing
Answer: B AACSB: Information technology Skill: Concept Objective: LO 17.2: Identify and discuss the
major forms of direct and digital marketing. Difficulty: Easy
Refer to the scenario below to answer the following question(s).
The Treble Clef sells music books, musical instruments, and novelty gifts of a musical nature. In recent
years, owner Gary Zahn has served as the local representative of several musical instrument
manufacturers, providing a contact person for three local schools. He sends a sample of a
manufacturer's products to schools that request a demonstration or presentation. "If we don't have it,
we can definitely get it for you," Gary tells all Treble Clef visitors and customers.
Most walk-ins are particularly interested in a specific piece of sheet music from a particular era or just
browsing among the hundreds of music knick-knacks in the store. Gary spends most of his time making
presentations to beginners at the local schools and making biweekly visits to the schools to deliver
instruments, make minor repairs, or pick up instruments to ship to the manufacturer for more
complicated repairs.
After establishing a loyal customer base, Gary was convinced that a Treble Clef Web site could benefit a
variety of customers. He began with a simple Web site that provided information about the store and
the types of gifts and services available. The site received so much response that Gary added a question-
and-answer option. Questions poured in, ranging from "Where can I get sheet music for 'Hello, Dolly'?"
to "Do you carry clarinet reeds?" to "My saxophone needs two new pads. When will you be at Elmhurst
School to repair it?" The Web site is now able to accept credit card orders, and gifts can even be
wrapped and shipped for no extra charge.
"This Web site idea was fantastic!" Gary admitted. "It allows us to be so responsive. And our novelties
sales have doubled!"
18) Which kind of Web site does Treble Clef use?
A) branded community Web site
B) corporate Web site
C) investor relations Web site
D) marketing Web site
E) online Web site
Answer: D AACSB: Analytical thinking Skill: Application Objective: LO 17.2: Identify and discuss the major
forms of direct and digital marketing. Difficulty: Challenging
19) Digital and traditional direct marketing forms must be blended into an integrated marketing
communications program for best results.
Answer: TRUE Skill: Concept Objective: LO 17.2: Identify and discuss the major forms of direct and digital
marketing. Difficulty: Easy
20) Identify the traditional direct marketing tools and differentiate them from the digital direct
marketing tools. What is their importance?
Answer: Traditional direct marketing tools include face-to-face selling, direct-mail marketing, catalog
marketing, telemarketing, direct-response television marketing, and kiosk marketing. In recent years,
however, digital direct marketing tools have burst onto the marketing scene, including online marketing
(Web sites, online ads and promotions, e-mail, online videos, and blogs), social media marketing, and
mobile marketing. It's important to remember that all of these tools•both the new digital and the more
traditional forms•must be blended into a fully integrated marketing communications program.
Skill: Concept Objective: LO 17.2: Identify and discuss the major forms of direct and digital marketing.
Difficulty: Easy
21) Online companies include all of the following EXCEPT ________.
A) content sites
B) online social media
C) search engines and portals
D) transaction sites
E) brick-and-mortar
Objective: LO 17.3: Explain how companies have responded to the Internet and the digital age with
various online marketing strategies.
Difficulty: Easy
22) Companies such as Amazon.com and Expedia.com that sell products and services directly to final
buyers exclusively over the Internet are known as ________.
A) transaction sites
B) content sites
C) search engines and portals
D) e-tailers
E) online social media
Difficulty: Easy
23) Which term best describes sites such as the New York Times on the Web and ESPN.com?
A) search engine
B) content site
C) online social network
D) transaction site
E) e-tailer
Answer: B AACSB: Information technology Skill: Concept
Difficulty: Easy
24) ________ companies use both offline and online marketing channels.
A) Start-up
B) Click-only
C) Omni-channel retailing
D) Brick-and-mortar
E) Brick-only
Difficulty: Easy
25) Online marketing includes marketing via the Internet using company Web sites, e-mail marketing,
blogs, and ________.
A) direct mail brochures
B) live demonstrations
C) samples
D) online video
E) focus groups
Difficulty: Easy
26) ________ are designed to engage consumers in interactions that will move them closer to a direct
purchase or other marketing outcome.
A) Online magazines
B) Marketing Web sites
C) Search engines
D) Digital catalogs
E) Podcasts
Answer: B
Difficulty: Easy
27) Gant Hardware is a huge chain of hardware stores. GantHardware.com helps customers conduct
product research and also lets them order directly online or redirects them to the nearest Gant retail
store. Which of the following best describes GantHardware.com?
A) marketing Web site
B) digital catalog
C) social network
D) podcast
E) blog
Answer: A AACSB: Analytical thinking Skill: Application
28) A(n) ________ is designed to present brand content that engages consumers and creates customer-
brand community.
A) podcast
B) branded community Web site
C) search engine
D) digital catalog
E) online magazine
Difficulty: Easy
29) Oscarz Aviation's Web site, GoOscarzAv.com, informs customers about a wide variety of services
offered by the firm. It also has a guestbook where customers can provide feedback on their experiences
with Oscarz Aviation. They can also view videos Oscarz Aviation posts, as well as read and respond to
blogs and ask questions. GoOscarzAv.com is an example of a(n)
________.
A) online social network

B) blog
C) kiosk
D) branded community Web site
E) digital catalog
Answer: D AACSB: Analytical thinking Skill: Application
30) Spartan Sportsgear is a company that sells sports equipment for adventure sports. It recently
launched ExtremeSpartan.com to showcase products and provide testimonials of famous adventure
sports athletes who use Spartan's products. It also includes videos and blogs. Which of the following
best describes ExtremeSpartan.com?
A) branded community Web site
B) digital catalog
C) social network
D) podcast
E) blog
31) Runner Sprintz, a particular brand of shoes, has its own Web site, myrunnersprintz.com that
welcomes consumers to "the Runner Sprintz Century," invites readers to post their Runner Sprintz
stories, and offers a wide variety of shoes for direct purchase. The site even allows customers to
individually design their own shoes and share them among their circles on the Web site. Which of the
following best describes myrunnersprintz.com?
A) Web directory
B) blog
C) corporate Web site
D) digital catalog
E) branded community Web site
Answer: E AACSB: Analytical thinking Skill: Application
32) Which of the following is NOT a specific goal of branded community Web sites?
A) present brand content that engages consumers
B) build closer customer relationships
C) generate engagement with and between the brand and its customers
D) increase online sales
E) allows visitors to interact with likeminded people to explore and communicate experiences with the
brand
Difficulty: Easy
33) Companies must attract visitors to their Web sites. Which of the following is a method companies
use to entice visitors not just to visit but also to return to a site?
A) using flashy graphics, bright colors and vivid pictures
B) aggressively promoting the site in broadcast advertising and through ads and links on other sites
C) offering prizes for visiting the site
D) providing rewards for visitors connecting their friends to the site
E) requiring registration on the first visit to the site
Answer: B AACSB: Analytical thinking Skill: Concept
Difficulty: Easy
34) Effective Web sites contain interactive tools that help find and evaluate content of interest, links to
other related sites, useful information, changing promotional offers, and ________.
A) celebrity endorsers
B) respected columnists
C) advertising for unrelated products
D) enticements for customers to include their friends and contacts
E) entertaining features that lend excitement
Difficulty: Easy
35) Online ads that incorporate animation, video, sound, and interactivity are called ________.
A) search-related ads
B) rich media ads
C) content-based ads
D) digital catalogs
E) parody ads
Difficulty: Easy
36) In ________, text-based ads and links appear alongside search engine results on sites such as
Google, Yahoo!, and Bing.
A) content sponsorships
B) digital billboards
C) digital catalogs
D) contextual advertisements
E) RSS feeds
Difficulty: Easy
37) While comparing hotel rates on Google's search engine, Brenda came across text-based ads and links
alongside the search results. This form of advertising is known as ________.
A) contextual advertising
B) rich media ads
C) content sponsorship
D) catalog advertising
E) social media advertising

38) Which of the following is true about e-mail marketing messages?
A) E-mail marketing messages involve sending an offer, announcement, reminder, or sample to a person
living at a particular address.
B) E-mail marketing messages involve connecting directly with carefully targeted consumers, exclusively
on a one-to-one, interactive basis.
C) E-mail marketing messages are effective in reaching the desired target market and result in low costs.
D) E-mail marketing messages cost more per thousand people reached than mass media such as
television or magazines.
E) E-mail marketing messages create a stronger emotional connection with the customers compared to
traditional direct mail.
39) A ________ is an unsolicited, unwanted commercial e-mail message that clogs up e-mailboxes.
A) catalog
B) spam
C) podcast
D) tweet
E) blog

Difficulty: Easy
40) Which of the following best describes permission-based e-mail marketing?
A) sending unsolicited, unwanted commercial e-mail messages
B) sending requests to users to join online social networking communities
C) sending e-mail pitches only to customers who "opt-in"
D) offering free promotional materials to new customers
E) gathering demographic details for customer databases
41) After selecting a sweater on the Land's End Web site, Kelly was asked to fill in details for the
customer database. Kelly was given a form that required her to fill in her name, date of birth, and e-mail
address. Kelly then checked a box that was next to the following statement:
"Yes, I would like to receive weekly promotional information from Land's End online." Which of the
following practices is evident from this scenario?
A) e-mail hosting service
B) e-mail spoofing
C) catalog marketing
D) contextual advertising
E) permission-based e-mail marketing

42) Randy keeps getting unwanted and annoying e-mails from several marketing firms unknown to him.
The number of these e-mails is alarmingly high in his inbox. Which of the following best describes these
e-mails?
A) malware
B) adware
C) Trojan
D) firewall
E) spam
43) ________ involves creating a video, e-mail, mobile message, advertisement, or other marketing
event that is so infectious that customers will seek it out or pass it along to their friends.
A) Telemarketing
B) Omni-channel marketing
C) Integrated marketing
D) Viral marketing
E) Kiosk marketing

Difficulty: Easy
44) Uptown-Clean Crew is a company that provides house-cleaning services in major urban and
suburban areas. Marketers at Uptown-Clean Crew developed a short, humorous video promoting the
company's services and posted it online. Soon the video was a rage as customers who saw the video
found it hilarious and they passed it on to their friends and colleagues calling it the "Uptown comedy."
Which form of marketing is illustrated from this scenario?
A) telemarketing
B) viral marketing
C) integrated marketing
D) omni-channel marketing
E) kiosk marketing
Answer: B AACSB: Analytical thinking Skill: Application
45) What is a disadvantage of a viral success?
A) Many people will see the marketing message.
B) The cost per exposure is relatively low.
C) Word-of-mouth is strong.
D) Publicity is always good.
E) Marketers have little control over where the message ends up.
46) Which of the following is NOT a deception or fraud concern for Internet users and marketers?
A) phishing
B) viral marketing
C) malware
D) cyber spying
E) spyware
Difficulty: Easy
47) Which of the following statements is true of viral marketing?
A) Marketers have significant control over where their viral messages end up.
B) Viral marketing gives consumers online places to congregate, socialize, and exchange views.
C) Because customers find and pass along the message, viral marketing can be very inexpensive.
D) In viral marketing, links appear alongside search engine results on sites such as Google and Bing.
E) Viral marketing messages are blocked by most search engines, security software, and social
networking sites.
48) Which of the following is most likely a disadvantage of viral marketing?
A) Viral marketing usually takes time to make an impact.
B) Viral marketing is very inexpensive.
C) Marketers have great control over who receives the viral message.
D) Viral marketing messages are offensive to the audiences who are not a part of the targeted market.
E) Viral marketing messages are blocked by most search engines.
49) Which of the following is most likely an advantage of viral marketing?
A) Viral marketing reinforces consumers' attitudes about a brand.
B) Most messages are likely to "go viral."
C) Consumers want to be a part of viral marketing.
D) Viral marketing can easily be successfully accomplished.
E) Viral marketing produces engagement and positive exposure for a brand.
Answer: E AACSB: Information technology
Skill: Concept
50) Which of the following is a reason a consumer would follow a company's blog?
A) The blog offers fresh insights or new ideas about the company or products.
B) The blog provides the consumer with familiar information.
C) The blog allows consumers to communicate with each other.
D) A well-followed blog gives the company influence in the marketplace.
E) Consumers know that companies want them to follow the blog postings.
Difficulty: Easy
51) ________ are communities over the Internet where people congregate, socialize, and exchange
views and information.
A) Corporate Web sites
B) Interactive television
C) Digital catalogs
D) Online social networks
E) Content sponsorships
Difficulty: Easy
52) ________ 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
Answer: B
Difficulty: Easy
53) 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 can offer a fresh, original, personal, and cheap way to enter into consumer conversations.
54) 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.
55) While blogs are a fundamentally a consumer-controlled medium, marketers can ________.
A) directly contact customers through them
B) use insights from them to improve their marketing programs
C) offer special promotions to new customers
D) retrieve research data from clicks in them
E) provide content
Answer: B AACSB: Information technology
Skill: Concept
56) What is a significant issue for social media and for companies using it as a marketing tool?
A) measuring viewership
B) creating content
C) identifying target markets
D) monetizing the tool
E) recognizing effective social media sites
57) A marketing Web site interacts with consumers to move them closer to a direct purchase or other
marketing outcome.
Answer: TRUE AACSB: Information technology Skill: Concept
Difficulty: Easy
58) Branded community Web sites are designed to present brand content that engages consumers and
builds closer customer relationships rather than to sell the company's products directly.
59) Marketers drive traffic to the company Web sites solely through using other online and digital
marketing tools.
Difficulty: Easy
60) Online-only companies are more successful than omni-channel marketing companies.
Difficulty: Easy
61) Search advertisers buy search terms from the search site and pay whenever the search terms come
up in the results of a consumer's search.
Difficulty: Easy
62) Consumers welcome e-mail marketing messages; opportunities to control the messages they receive
are frequently ignored.
Difficulty: Easy
63) E-mail can be the ultimate direct marketing tool, as it lets marketers send highly targeted, tightly
personalized, relationship-building messages.
Difficulty: Easy
64) Spam is unsolicited, unwanted commercial e-mail messages that clog up users' e-mailboxes.
Difficulty: Easy
65) Viral marketing allows marketers to send tailored messages to targeted customers who have chosen
to receive them.
Difficulty: Easy
66) Blogs can be used to appeal to specific special-interest groups, about almost any topic.
Difficulty: Easy
67) Provide two reasons why companies are shifting more of their marketing dollars to online
advertising.
Answer: As consumers spend more and more time online, companies are shifting more of their
marketing dollars to online advertising to build brand sales or attract visitors to their Internet, mobile,
and social media sites. The main forms of online advertising are display ads and search-related ads.
Difficulty: Easy
68) Describe the largest form of online advertising.
Answer: The largest form of online advertising is search-related ads, or contextual advertising. Text-and
image-based ads and links appear atop or alongside search engine results on sites such as Google,
Yahoo!, and Bing. A search advertiser buys search terms from the search site and pays only if consumers
click through to its site.
Difficulty: Easy
69) Explain the goal of viral marketing.
Answer: Viral marketing is the digital version of word-of-mouth marketing. Viral marketing involves
creating videos, ads, or other marketing content that are so infectious that customers will want to pass
them along to their friends.

Difficulty: Easy
70) Explain how a company benefits from monitoring the blogosphere.
Answer: They can offer a fresh, original, personal, and cheap way to enter into consumer online and
social media conversations. Beyond their own brand blogs, many marketers use third-party blogs to help
get their messages out. Marketers can use insights from consumer online conversations to improve their
marketing programs.
Difficulty: Easy
71) Identify the major advantage of the following forms of digital and social media marketing: Web sites,
viral marketing, e-mail, blogs, social media, and mobile ads and apps.
Answer: Web sites are designed to engage the customers. Marketing Web sites want to move them
closer to a direct purchase or other marketing outcomes. Branded community Web sites want to
provide content that builds closer customer relationships and generates engagement with and between
the brand and its customers.
Viral marketing can be very inexpensive when customers find and pass along the message or promotion.
E-mail lets marketers send highly targeted, tightly personalized, relationship-building messages.
Blogs can offer a fresh, original, personal and cheap way to enter into consumer online and social media
conversations.
Social media first and foremost are targeted and personal.
Mobile ads and apps are used to increase convenience for customers, whether in making a purchase or
accessing information.
Difficulty: Challenging
72) Compare and contrast the purpose and content of a branded community Web site to that of a
marketing Web site.
Answer: Branded community Web sites are designed to present brand content that engages consumers
and builds closer customer relationships, rather than to sell the company's products directly. Such sites
typically offer a rich variety of brand information, videos, blogs, activities, and other features that build
closer customer relationships and generate engagement with and between the brand and its customers.
In contrast, marketing Web sites are designed to engage consumers in an interaction that will move
them closer to a direct purchase. A marketing Web site allows customers to view, research, and
purchase specific items.
73) What are the characteristics of a successful Web site?

Answer: To attract visitors, companies aggressively promote their Web sites in offline print and
broadcast advertising and through ads and links on other sites. The key is to create enough engaging and
valued content to get consumers to come to the site, stick around, and come back again.
At the very least, a Web site should be easy to use and visually appealing. Ultimately, however, Web
sites must also be USEFUL. When it comes to online browsing and shopping, most people prefer
substance over style and function over flash. Thus, effective Web sites contain deep and useful
information, interactive tools that help find and evaluate content of interest, links to other related sites,
changing promotional offers, and entertaining features that lend relevant excitement.
74) What are the strengths and weaknesses of e-mail marketing?

Answer: E-mail is still the king as 91 percent of all U.S. consumers use e-mail every day, with 65 percent
of those opened on mobile devices. E-mail can be 40 times more effective at capturing customers than
Facebook and Twitter combined. Thanks to low costs, e-mail marketing brings one of the highest
marketing returns on investment. It lets marketers send highly targeted, personalized, relationship-
building messages that are colorful, inviting, and interactive. However, spam has produced consumer
irritation and frustration as it now accounts for 70 percent of all e-mail sent worldwide. Marketers want
to add value for consumers but not be intrusive and annoying.
75) Which kind of social media networks are smaller communities likely to join or create?
A) blog
B) niche
C) Internet
D) video
E) commercial
Objective: LO 17.4: Discuss how companies use social media and mobile marketing to engage consumers
and create brand community.
76) Runners can compare performances, set up profiles, meet new people, and share information on
Nike's Nike+ Web site. Nike+ is an example of a(n) ________.
A) podcast
B) blog
C) online community
D) content sponsorship program
E) kiosk
Answer: C AACSB: Analytical thinking Skill: Application
77) Which of the following is NOT a reason that companies use social media?
A) cost effectiveness
B) engagement and social sharing capabilities
C) ease of creating content

D) immediacy and timeliness
E) interactiveness
78) Which of the following is a challenge of marketing through online social networks?
A) Results are hard to measure.
B) Users seldom have control over the online social networks.
C) Most existing networks are already controlled by major corporations and therefore do not favor
competitors.
D) It is difficult to get the approval of the online advisory board to post an ad in a social network.
E) Marketing via online social networks is expensive and time-consuming.
79) Social media are all of the following EXCEPT ________.
A) expensive
B) interactive
C) personal
D) targeted
E) timely

Difficulty: Easy
80) An integrated social marketing campaign likely could include all of the following EXCEPT
________.
A) Facebook pages
B) Twitter postings
C) Instagram photos
D) television ads
E) YouTube videos
Difficulty: Easy
81) ________ marketing features marketing messages and promotions delivered to on-the-go
consumers through their handheld devices.
A) Kiosk
B) Ambush
C) Direct-mail
D) Mobile
E) Catalog
Answer: D

Difficulty: Easy
82) Mobile marketing is used to enrich the brand experience, stimulate immediate buying, or
________.
A) decrease advertising costs
B) help friends contact friends
C) make shopping easier
D) create new customer relationships
E) find new suppliers
Answer: C
83) Joanna uses her smartphone to accomplish many tasks everyday. She is also an avid shopper. Which
online marketing tool will benefit Joanna the most to help her shop?
A) e-mail messages from sites to which she subscribes
B) banking app for her bank
C) instant deals and digital coupons
D) YouTube video
E) Facebook friends
Answer: C AACSB: Information technology Skill: Application

84) 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) mobile marketing
E) direct-mail marketing
Answer: D AACSB: Analytical thinking Skill: Application
Difficulty: Easy
85) James is looking for a new suit for a job interview. He is shopping at Smith & Jones, a well-regarded
menswear store. While he looks at various styles and uses his smartphone to scan codes, the menswear
shopping app provides him with suggestions for shirts, ties, and shoes that would complete the
ensemble he needs to make a strong, positive impact at his interview. The ability of the app to provide
this information serves to ________.
A) enrich the shopping experience
B) annoy James
C) complicate the shopping experience
D) use James' data plan
E) interrupt the shopping experience

Difficulty: Easy
86) Social media marketing can be inexpensive for companies to use.
Answer: TRUE
Difficulty: Easy
87) Social media sites primarily exist for broad topics, making it difficult for marketers to appeal to
smaller communities and niche markets.
Difficulty: Easy
88) While many consumers welcome the convenience that mobile marketing ads offer, marketers still
must be smart about how they engage people on mobile devices.
Difficulty: Easy
89) Describe how marketers can engage in social media.
Answer: Marketers can engage in social media in two ways: They can use existing social media or they
can set up their own. Using existing social media seems easiest, but many companies have also created
their own online brand communities.
Difficulty: Easy
90) Explain integrated social media marketing.
Answer: Companies that use social media successfully are integrating a broad range of diverse media to
create brand-related social sharing, engagement, and customer community. They design full-scale social
media efforts that blend with and support other elements of a brand's marketing strategy and tactics.
Difficulty: Easy
91) Describe two ways that marketers can participate in online social networks. What are the challenges
and advantages of these approaches?
Answer: Marketers can engage in social media in two ways: They can use existing social media or they
can set up their own. Using existing social media seems the easiest. Thus, many brands now use a host
of social media sites. Although large social media networks are most familiar, countless niche social
media have also emerged. Niche online social networks cater to the needs of smaller communities of
likeminded people, making them ideal vehicles for marketers who want to target special interest groups.
Beyond these independent social media, many companies have created their own online brand
communities.
Using social media presents both advantages and challenges. On the plus side, social media are targeted
and personal, interactive, immediate and timely. Social media can be very cost effective. Perhaps the
biggest advantage of social media is their engagement and social sharing capabilities. Social media are
especially well suited to creating customer engagement and community•for getting customers involved
with the brand and with each other.
Social media marketing also present challenges. First, many companies are still experimenting with how
to use them effectively, and results are hard to measure. Second, such social networks are largely user
controlled. The company's goal in using social media is to make the brand a part of consumers'
conversations and their lives. However, marketers must become a valued part of the online experience
by developing a steady flow of engaging content.
92) Explain the strengths of mobile marketing from the marketer's point of view.
Answer: Companies can use mobile marketing to stimulate immediate buying, make shopping easier,
enrich the brand experience, or all of these. It lets marketers provide consumers with information,
incentives, and choices at the moment they are expressing an interest or when they are in a position to
make a buying choice. The rich-media ads can create substantial engagement and impact. They can
enrich the brand experience by providing information or even entertainment. They can target "anytime,
anywhere, and everywhere."
93) ________ 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
Answer: D Skill: Concept
Objective: LO 17.5: Identify and discuss the traditional direct marketing forms and overview public policy
and ethical issues presented by direct marketing.
Difficulty: Easy
94) All of the following are forms of traditional direct marketing EXCEPT ________.
A) face-to-face selling
B) point-of-purchase promotion
C) telemarketing
D) direct-mail marketing
E) kiosk marketing
Difficulty: Easy
95) Which of the following types of marketing involves sending out letters, brochures, samples, and
DVDs to consumers' addresses?
A) direct-response marketing
B) direct-mail marketing
C) direct digital marketing
D) kiosk marketing
E) online marketing
Difficulty: Easy
96) 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.
Answer: B AACSB: Application of knowledge Skill: Concept
97) 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
98) 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
99) While shopping at KelfanDesigns.com, Shelly came across a checkbox beside which a statement said,
"I want to receive promotional offers from KelfanDesigns.com." Which of the following types of
marketing is illustrated in this example?
A) telemarketing
B) viral marketing
C) direct response television marketing
D) contextual advertising
E) permission-based e-mail marketing
100) 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
101) 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
102) Digital catalogs offer all of the following benefits EXCEPT ________.
A) presenting an almost unlimited amount of merchandise
B) offering a broad assortment of presentation formats, including search and video
C) adding and removing products as needed
D) adjusting prices instantly to meet demand
E) touching the product
Answer: E AACSB: Analytical thinking Skill: Concept
103) 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
Answer: D AACSB: Analytical thinking Skill: Concept

Difficulty: Easy
104) 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
Answer: B Skill: Concept
Difficulty: Easy
105) In building a connection to customers through catalogs, marketers want to ________.
A) offer a new brand experience
B) inspire and engage
C) create word-of-mouth advertising
D) develop a viral following
E) perform marketing research
Difficulty: Easy
106) 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
107) 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
108) 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
Answer: D AACSB: Application of knowledge Skill: Application
109) Marketers publicize inbound toll-free numbers to consumers in television and print ads, direct mail,
and catalogs. The benefit to sellers is that it presents an opportunity for consumers to order products
and for the seller to build the relationship. A benefit to consumers is
________.
A) increased convenience
B) increased telemarketing calls
C) decreased telemarketing calls
D) 24/7 availability of support
E) a discounted price on the product
Answer: A AACSB: Application of knowledge Skill: Concept
Difficulty: Easy
110) 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
111) 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 that target consumers who have chosen to be
contacted and therefore are less invasive.
112) Neal Murphy sells his company's unique products on television programs. He 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
Answer: A AACSB: Application of knowledge Skill: Application
113) 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
Answer: E
Skill: Concept
Difficulty: Easy
114) Donello Equipment 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
E) kiosk marketing
115) ________ 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
Difficulty: Easy
116) Even large companies use infomercials for all the following reasons EXCEPT to
________.
A) recruit members
B) refer customers to retailers
C) attract buyers to online, mobile, and social media sites
D) introduce new advertising campaigns
E) sell their products

Difficulty: Easy
117) 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) advances in technology
118) Using interactive TV can allow consumers to perform all the following tasks during a company's ad
EXCEPT ________.
A) see what other sizes or colors are available
B) identify a nearby location at which the product is available
C) access additional product information
D) order the product
E) send product information to another device
119) 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
Difficulty: Easy
120) Green Gardens is 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
121) 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
Difficulty: Easy
122) 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 depositing payment or they can buy music online via the touchscreen interface on the machine.
Which form of marketing is illustrated in this scenario?
A) direct-response television advertising
B) telemarketing
C) interactive television
E) kiosk marketing
123) Charlie Putnam received an e-mail promoting a new financial services institution that offers
surprisingly low mortgage rates. The e-mail simply asked customers to provide their address, date of
birth, social security number, and current mortgage information in order to receive a free loan quote.
Suspicious of the offer, Charlie researched the company and discovered that the e-mail was a fraud. This
is an example of ________.
A) cyberbullying
B) phishing
C) adware
D) spamdexing
E) viral marketing
Answer: B AACSB: Analytical thinking Skill: Application
124) Buyers with low sales resistance can often be tempted by all the following common features of
infomercials EXCEPT ________.
A) elaborately staged demonstrations
B) "while they last" time limitations
C) free shipping
D) smooth-talking hosts
E) claims of drastic price reductions
Difficulty: Easy
125) Josh received an e-mail stating that he had won a lottery of $500,000 from Lottors Corporation.
The e-mail asked Josh to send his bank account details and social security number to transfer cash
directly to his account. Josh did not remember buying any lottery tickets, and so was apprehensive
about providing his bank details without verification. Which of the following is illustrated from this
scenario?
A) adware
B) viral marketing
C) telemarketing
D) cyberbullying
E) phishing
126) Which of the following is a type of identity theft that uses deceptive e-mails and fraudulent Web
sites to fool consumers into revealing their personal data?
A) bait-and-switch
B) cyber spying
C) viral marketing
D) phishing
E) spam
Difficulty: Easy
127) All of the following are Internet marketing concerns EXCEPT ________.
A) financial scams
B) access by vulnerable or unauthorized groups
C) phishing
D) identity theft
E) secure online and digital Web sites
128) What action do consumers continue to perform even though a majority are concerned with identify
theft?
A) shopping online
B) searching for product information
C) reading reviews from friends on Facebook
D) sending and responding to e-mail messages
E) watching videos
Answer: A AACSB: Ethical understanding and reasoning Skill: Concept
Difficulty: Easy
129) Consumers' names and additional information likely become part of ________ whenever they
enter a sweepstakes, apply for a credit card, visit a Web site, or send a tweet.
A) other consumers' contact lists
B) telemarketers' lists
C) their computer's cookie history
D) a company's database
E) the FTC's surveys regarding online privacy
Answer: D AACSB: Ethical understanding and reasoning Skill: Concept
Difficulty: Easy
130) To decrease direct marketing abuses, government agencies are investigating do-not-call lists, do-
not-mail lists, do-not-track-online lists, and ________.
A) claimed fraudulent credit card charges
B) Can Spam legislation
C) possibly deceptive television advertising
D) offerings of illegal products
E) bait-and-switch offers
131) To enable customers to opt out of seeing particular ads, marketers use a(n) ________. This is added
to behaviorally targeted online ads to tell consumers why they are seeing a particular ad.
A) advertising option icon
B) opt-in question
C) X to close the ad
D) survey
E) questionnaire
Difficulty: Easy
132) Which of the following acts requires that Web site operators obtain parental consent before
collecting personal information about children under the age of 13?
A) Safe Children's Act of 2001
B) Children's Online Privacy Protection Act
C) Children's Online Protection Act
D) Adam Walsh Child Protection and Safety Act
E) Children's Act for Responsible Employment
Answer: B AACSB: Ethical understanding and reasoning Skill: Concept
Difficulty: Easy
133) TRUSTe, a nonprofit self-regulatory organization, works with other companies to audit online
privacy and security measures. It lends its TRUSTe privacy seal to all the following communication
channels that meet its privacy and security standards EXCEPT ________.
A) mobile apps
B) e-mail marketing
C) telemarketing
D) Web sites
E) social media
Difficulty: Easy
134) The ________ was established by the Direct Marketing Association.
A) Privacy Promise to American Consumers
B) Trusted Email Open Standard
C) Children's Online Privacy Protection Act
D) CAN-SPAM legislation
E) Do Not Call Registry
Answer: A Skill: Concept
Difficulty: Easy
135) According to the "Privacy Promise to American Consumers" program, DMA members need to
comply with which of the following consumer privacy rules?
A) agree to notify customers when any personal information is rented, sold, or exchanged with others
B) offer to register all customers in the National Do Not Call Registry
C) make sure that consumers are adhering to the Children's Online Privacy Protection Act
D) educate consumers on the Can Spam legislation

E) include the advertising option icon to let consumers know why they are being targeted Answer: A
AACSB: Ethical understanding and reasoning Skill: Concept
Refer to the scenario below to answer the following question(s).
The Treble Clef sells music books, musical instruments, and novelty gifts of a musical nature. In recent
years, owner Gary Zahn has served as the local representative of several musical instrument
manufacturers, providing a contact person for three local schools. He sends a sample of a
manufacturer's products to schools that request a demonstration or presentation. "If we don't have it,
we can definitely get it for you," Gary tells all Treble Clef visitors and customers.
Most walk-ins are particularly interested in a specific piece of sheet music from a particular era or just
browsing among the hundreds of music knick-knacks in the store. Gary spends most of his time making
presentations to beginners at the local schools and making biweekly visits to the schools to deliver
instruments, make minor repairs, or pick up instruments to ship to the manufacturer for more
complicated repairs.
After establishing a loyal customer base, Gary was convinced that a Treble Clef Web site could benefit a
variety of customers. He began with a simple Web site that provided information about the store and
the types of gifts and services available. The site received so much response that Gary added a question-
and-answer option. Questions poured in, ranging from "Where can I get sheet music for 'Hello, Dolly'?"
to "Do you carry clarinet reeds?" to "My saxophone needs two new pads. When will you be at Elmhurst
School to repair it?" The Web site is now able to accept credit card orders, and gifts can even be
wrapped and shipped for no extra charge.
"This Web site idea was fantastic!" Gary admitted. "It allows us to be so responsive. And our novelties
sales have doubled!"
136) Gary sends samples of sheet music to schools for demonstration or presentation. Which of the
following types of marketing is being illustrated from this statement?
A) kiosk marketing
B) viral marketing
C) direct-mail marketing
D) telemarketing
E) direct-response television marketing
137) In addition to sending samples of sheet music to schools, Gary sends school music directors
messages with links to sample digital clips of the compositions. What kind of marketing is this?
A) e-mail marketing
B) viral marketing
C) kiosk marketing
D) mobile marketing
E) catalog marketing
138) Gary wants to expand the reach of his business. An effective approach to reaching the most likely
potential customers would be ________ marketing. The message will include a link to Treble Clef's Web
site.
A) e-mail
B) viral
C) kiosk
D) mobile
E) catalog
139) Digital catalogs eliminate printing and mailing costs.
Difficulty: Easy
140) Telemarketing is especially effective for business-to-business marketers.
Difficulty: Easy
141) With outbound telephone marketing, the company provides a toll-free phone number to receive
orders from television ads, print ads, direct mail, and catalogs.

Difficulty: Easy
142) Interactive TV (iTV) lets viewers interact with television programming and advertising.
Difficulty: Easy
143) You receive a text message on your phone from Upscale Furnishings about an upcoming sale on
custom furniture. Upscale Furnishings is developing a direct customer relationship with you through
kiosk marketing.
Answer: FALSE AACSB: Analytical thinking Skill: Application
144) Kiosk marketing connects users around the world to each other and to an amazingly large
information repository.
Difficulty: Easy
145) Kiosk marketing features marketing messages and promotions delivered to on-the-go consumers
through their mobile devices.
Difficulty: Easy
146) One common form of Internet fraud is phishing, a type of identity theft that uses deceptive e-mails
and fraudulent online sites to fool users into divulging personal data.
Difficulty: Easy
147) Because of strict consumer privacy regulations, invasion of privacy is no longer a concern for the
direct marketing industry.
Answer: FALSE AACSB: Ethical understanding and reasoning Skill: Concept
Difficulty: Easy
148) The Children's Online Privacy Protection Act requires online operators targeting children to post
privacy policies on their sites and notify parents about any information they are gathering and obtain
parental consent before collecting information from children under age 13.
Answer: TRUE AACSB: Ethical understanding and reasoning Skill: Concept
Difficulty: Easy
149) Why are people that are reached by direct mail better prospects for a company than those reached
by mass media such as television or magazines?
Answer: Unlike mass media, direct mail allows for high target-market selectivity, so only consumers who
are likely to become customers can be contacted; in addition, direct mail can be personalized for each
individual, which helps to build customer relationships.
AACSB: Analytical thinking Skill: Concept
Difficulty: Easy
150) Why are printed catalogs still thriving in the face of the growing popularity of Web-based catalogs?
Answer: Printed catalogs are more effective at creating an emotional connection with customers and
continue to be one of the best ways to drive online sales.
Difficulty: Easy
151) Explain how the creation of the National Do Not Call Registry may have helped telemarketers more
than it hurt them.
Answer: Rather than making unwanted calls, many of these marketers are developing "opt-in" calling
systems, in which they provide useful information and offers to customers who have invited the
company to contact them by phone or e-mail. The opt-in model provides better returns for marketers
than the formerly invasive one.
Difficulty: Easy
152) Why is the use of direct-response television growing in popularity?
Answer: Direct-response television (DRTV) marketing takes one of two major forms: direct-response
television advertising and interactive TV (iTV) advertising. Using direct-response television advertising,
direct marketers air television spots, often 60 or 120 seconds in length, which persuasively describe a
product and give customers a toll-free number or a Web site for ordering. It also includes full 30-minute
or longer advertising programs, called infomercials, for a single product. Successful direct-response
advertising campaigns can ring up big sales. Interactive TV (iTV) lets viewers interact with television
programming and advertising. Thanks to technologies such as interactive cable systems, Internet-ready
smart TVs, and smartphones and tablets, consumers can now use their TV remotes, phones, or other
devices to obtain more information or make purchases directly from TV ads. Interactive ads and
infomercials are appearing not just on TV, but also on mobile, online, and social media platforms, adding
even more TV-like interactive direct marketing venues.
Difficulty: Easy
153) Provide an example of how a marketer uses kiosk marketing.
Answer: Students' answers will vary. Many airlines and hotels use kiosks as self-service check-in devices;
many retail stores offer in-store ordering kiosks.
AACSB: Analytical thinking Skill: Application
Difficulty: Easy
154) How can firms that use new direct marketing technologies avoid backlash from consumers who
view such marketing as an invasion of privacy?
Answer: Marketers should always target their direct marketing offers carefully and bring real value to
customers through direct marketing. Firms can opt for database marketing so that consumers receive
offers that closely match their interests. Using sophisticated computer technologies, direct marketers
can mine these databases to "microtarget" their selling efforts. Most marketers have become highly
skilled at collecting and analyzing detailed consumer information.
Difficulty: Easy
155) How has the direct marketing industry taken steps to address privacy and security concerns?
Answer: Some companies use a nonprofit self-regulatory organization that audits a company's security
and privacy measures and then approves Web sites, mobile apps, e-mail marketing and other online and
social media channels that meet its privacy and security standards. The Direct Marketing Association
launched a Privacy Promise that asks member companies to agree to notify customers when any
personal information is rented, sold, or exchanged with others. They must also honor customer requests
to opt-out of receiving further solicitations or having their contact information transferred to other
marketers. Finally, they must abide by the DMA's Preference Service by removing the names of
consumers who do not wish to receive mail, phone, or e-mail offers.
Difficulty: Easy
156) Identify the major advantage of the following traditional forms of direct marketing: telephone,
direct mail, catalog, direct-response television, and kiosk.
Answer: Telephone marketing provides purchasing convenience and increased product and service
information.
Direct-mail marketing permits selectivity and personalization.
Paper catalogs create emotional connections with customers that digital sales spaces can't, and through
online catalogs, marketers can use real-time merchandising, adding or removing products based on their
availability.
Direct-response television marketing allows live demonstrations without salespeople having to visit
buyers' homes or businesses.
Kiosk marketing places information and ordering machines in convenient places, such as airports, stores,
and malls.
157) How has the implementation of the National Do Not Call Registry changed telephone marketing?
Answer: The National Do Not Call Registry was created by legislation, passed in 2003; it bans most
business telemarketing calls to registered phone numbers. However, people can still receive calls from
nonprofit groups, politicians, and companies with which they have recently done business. Millions of
customers have joined the do-not-call list, and businesses that break the laws can be fined heavily. The
use of unsolicited outbound telemarketing has greatly decreased due to the law, but inbound consumer
telemarketing and outbound business-to-business telemarketing remain strong and growing. Many
telemarketers are shifting their call-center activity from making unsolicited cold calls on often resentful
customers to managing existing customer relationships. They are developing "opt-in" calling systems, in
which they provide useful information and offers to customers who have invited the company to
contact them by phone or e-mail.
158) Internet marketing practices have raised a number of ethical and legal questions. Why is invasion of
privacy perhaps the number one online marketing concern?
Answer: Web site activities provide extensive personal information. This may leave consumers open to
information abuse if companies make unauthorized use of the information in marketing their products
or exchanging databases with other companies. Critics worry that through database marketing,
marketers know too much about consumers' lives and may not use that information responsibly, taking
unfair advantage of consumers.

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Principles of Marketing, 17e, Global Edition (Kotler/Armstrong)

Chapter 17 Direct, Online, Social Media, and Mobile Marketing

Answer: E AACSB: Information technology Skill: Concept

A) access to numerous products

B) access to product reviews

C) live product demonstrations

Answer: C AACSB: Information technology Skill: Concept

D) need for sales training

Answer: D AACSB: Information technology Skill: Concept

4) 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.

D) Direct marketing involves two or more intermediaries.

Answer: C AACSB: Analytical thinking Skill: Concept

B) learning more about customers' needs

C) personalizing products and services

D) answering questions from customers

Answer: A AACSB: Information technology Skill: Concept

6) 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.

D) Online direct marketing involves two or more intermediaries.

Answer: C AACSB: Information technology Skill: Concept

A) access to small groups or individuals

C) mass reach and immediate returns

Answer: C Skill: Concept

8) Direct and digital marketing involve targeting broad segments of customers.

Answer: FALSE AACSB: Information technology Skill: Concept

9) Most companies use direct marketing as a supplementary channel or medium.

Answer: TRUE Skill: Concept

10) Direct marketing seldom occurs on a one-to-one, interactive basis.

Answer: FALSE Skill: Concept

Answer: FALSE Skill: Concept

anywhere. Answer: TRUE

13) Direct marketing is an expensive way of reaching target markets.

AACSB: Information technology Skill: Concept

AACSB: Information technology Skill: Concept

15) How does online marketing provide flexibility for sellers?

AACSB: Information technology Skill: Concept

AACSB: Application of knowledge Skill: Concept

Refer to the scenario below to answer the following question(s).

18) Which kind of Web site does Treble Clef use?

A) branded community Web site

B) corporate Web site

C) investor relations Web site

D) marketing Web site

E) online Web site

21) Online companies include all of the following EXCEPT ________.

B) online social media

C) search engines and portals

Answer: E AACSB: Information technology Skill: Concept

C) search engines and portals

E) online social media

Answer: D AACSB: Information technology Skill: Concept

C) online social network

Answer: B AACSB: Information technology Skill: Concept

Answer: C AACSB: Information technology Skill: Concept

A) direct mail brochures