3600 Ch 6

Nestle Purina developed 3 research questions:
1. Do our buyers use our branded Web sites?
2. Should we place ads on other Web sites?
3. If so, where should we place the advertising?
Combined online and off-line shopping panel data and conducted an online experiment. Found that:
Banner click-through rate was low (0.06%) = Bad news, but…
31% of subjects who were exposed to ads mentioned Purina vs. 21% for subjects not exposed to ads.

The high exposure group mentioned Purina more often than the low exposure group.

Home/health and living sites received the most visits from their customers.

What was Purina Conclusion?
online advertising was an effective way to build brand awareness and increase sales.
Where did Purina decide to place their ads?
Decided to place ads on petsmart.com and about.com
Data mining allows marketers to uncover patterns that help them ________.

a. refine marketing mix strategies
b. identify new product opportunities
c. predict consumer behavior
d. all of the above

d. all of the above
Data mining, customer profiling, and RFM can be performed by ________.
individual marketing personnel
Data mining involves the extraction of hidden predictive information in large databases through statistical analysis
T/F
True
Knowledge management is the process of managing ________.
the creation, use, and dissemination of knowledge
A complete marketing knowledge database includes all the data about ________.

a. customers
b. prospects
c. competitors
d. all of the above

d. all of the above
Which two metrics are currently in widespread use for knowledge management?

a. Return on Investment (ROI) and Total Cost of Ownership (TCO)
b. Return on Investment (ROI) and Total Quality Management (TQM)
c. Return on Assets (ROA) and Total Cost of Ownership (TCO)
d. Return on Assets (ROA) and Total Quality Management (TQM )

a. Return on Investment (ROI) and Total Cost of Ownership (TCO)
Computers and the internet create knowledge, but people are the enablers of learning. T/F
False
Which of the following is not a part of the marketing information system (MIS)?

a. assessing information needs
b. gathering information
c. manipulating information to align with the company’s vision
d. disseminating information to marketing decision makers

c. manipulating information to align with the company’s vision
Identify 3-4 different kinds of primary data collection methods that can be implemented on the internet.
• Online experiments
• Online focus groups
• Online observation
• Online survey research (e-mail or Web)
Primary data ________.

a. is gathered for the first time to solve a specific problem
b. can be collected online using focus groups, observation, interviews, and survey research
c. is more expensive and time consuming than secondary data collection
d. all of the above

d. all of the above
All of the following are reasons that the internet is fertile ground for primary data collection except ________.

a. internet research can only collect information from people who use the internet, leaving out a huge part of the population
b. the cooperation of consumers using traditional research approaches is declining
c. the internet is a quick and inexpensive method of collecting data
d. the internet allows for the sampling of consumers from diverse geographic areas

a. internet research can only collect information from people who use the internet, leaving out a huge part of the population
Client-side data collection involves ________.
collecting information about consumer surfing from the user’s PC
The internet is a fertile ground for primary data collection because of ________.
declining cooperation from consumers using traditional approaches
Customer profiling can aid in all of the following except ________.
increasing direct mailing costs by targeting high-response customers
What is Customer Profiling
Uses data warehouse information to help marketers understand characteristics and behavior of specific target markets.
Data warehouses are repositories for ________.
the entire organization’s database
Marketers cannot apply information from data warehouses as well as data in product and consumer databases T/F
False
RFM analysis scans the database for all of the following criteria except ________.

a. recency
b. relevancy
c. frequency
d. monetary value

b. relevancy