True / False Questions 1. (p. 595) Seamless, consistent communication, from every corner of the comp

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True / False Questions


1. (p. 595) Seamless, consistent communication, from every corner of the company, is how a firm earns a good reputation. 

2. (p. 596) Direct marketing is a measurable system of marketing that uses one or more advertising media to effect a measurable response and/or transaction at any location, with this activity stored in a database. 

3. (p. 596) Database marketers build and maintain a pool of data on current and prospective customers and other stakeholders and communicate with them using a variety of media from personal contact to direct mail to mass media. 

4. (p. 596-597) Because the commercial for Bowflex exercise equipment asked readers to phone for a CD on how the exercise system could help them strengthen their muscles, the promotional message would be characterized as direct-response advertising. 

5. (p. 598) While the boom in telecommunications and computer technology is spurring the growth of direct marketing in the United States, it has not had the same effect worldwide. 

6. (p. 598) The customer lifetime value (LTV) model is based on historical and potential share of wallet business. 

7. (p. 599) More often than not, the choice between the focus on share of market or on retention and loyalty is a short-term versus long-term trade-off. 

8. (p. 599) The two processes required to work with a marketing database are data storage and data retrieval. 

9. (p. 599) Data management is the process of gathering, consolidating, updating, and enhancing the information about customers and prospects that resides in the database. 

10. (p. 599) The RFM formula can be used to determine how much of an IMC program should be devoted to direct marketing. 



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