1) Which of the following marketing techniques refers to the application of business intelligence systems to the planning and execution of marketing programs?
A) ambush marketing
B) viral marketing
C) database marketing
D) guerrilla marketing
2) Databases are not a key component of database marketing.
3) Data mining techniques are essential for database marketing.
4) What is database marketing?
5) ________ is a way of analyzing and ranking customers according to their purchasing patterns.
A) Composite forecast
B) RFM analysis
C) Regression analysis
D) Delphi technique
6) Which of the following is the first step in the process of producing an RFM score?
A) dividing the customers according to the amount spent on purchases
B) sorting customer purchase records based on the purchase frequency
C) sorting customer purchase records by the date of most recent purchase
D) dividing customers into two groups based on the gender and giving each group a score
7) In RFM analysis, an R score of 5 shows that ________.
A) a customer has not made any recent purchases
B) a customer has bought the most expensive items
C) a customer has frequently ordered expensive items
D) a customer has purchased the least expensive items
8) In RFM analysis, an F score of 1 shows that ________.
A) a customer has bought the least expensive items
B) a customer has frequently placed orders
C) a customer has always bought the most expensive items
D) a customer has rarely made a purchase
9) In RFM analysis, customers who have bought the least expensive items are indicated by an M score of ________.
A) 2
B) 5
C) 1
D) 4
10) Cheryl Inc., a leading cosmetics manufacturer, wants to identify its most valued customers. Each customer is assigned an RFM score based on their purchasing patterns. One of their valued customers has an RFM score of 545. In this case, the ideal action for Cheryl's sales team is to ________.
A) up-sell more expensive goods to this customer
B) contact this customer immediately
C) not waste any time on this customer
D) set up an automated contact system for this customer