Quiz

1.	Which of the following has been a failure in database marketing since 1985? RFM The Web Treating all customers alike Email Direct mail
2.	In the case given in this chapter, it was suggested that the increased retention was due to Customer communications Advanced software CRM More loyal customers Cookies on the Web
3.	What is considered to be a good average response rate for email communications? 30 percent 20 percent 2 percent 1 percent 0.4 percent
4.	What is the most important factor in database marketing success? Software A data warehouse The Web Marketing strategy CRM
5.	In risk/revenue analysis, the marketer concentrates most on Those customers in priority A and priority B The lifetime value of priority B customers The churn model The lifetime value model The data warehouse
6.	What’s wrong with treating all customers alike? It’s undemocratic. The resources available to devote to the best customers will be too small. Even worthless customers deserve a break. It is impossible to segment customers by behavior. Customers would not like it.
7.	Where is a microsite for customer response ideally located? On the main company Web site On a PC On a mainframe On the computer holding the database In a risk/revenue matrix
8.	Which is not true of the MCI Friends and Family program? It worked very well for a few years. It was copied by other companies. It made innovative use of the Web. It was a cost-effective way to add customers. It helped MCI to become a telecom giant.
9.	What is a database marketing control group? Customers who get a special test group of communications Those who dictate database marketing strategy Top management Those who do not get any of the test communications A privileged customer group
10.	Discount certificates are Best distributed by direct mail Used for building customer loyalty Used to boost margins Used to ward off competition Not a good way to recruit new customers who last

Answers

1.	(c) Treating all customers alike
2.	(a) Customer communications
3.	(e) 0.4 percent
4.	(d) Marketing strategy
5.	(a) Those customers in priority A and priority B
6.	(b) The resources available to devote to the best customers will be too small.
7.	(d) On the computer holding the database
8.	(c) It made innovative use of the Web.
9.	(d) Those who do not get any of the test communications
10.	(e) Not a good way to recruit new customers who last