Question 1

In a strict sense,only CUTCO enjoys an economy of scale,not its direct sellers.

Accepted Answer

As a marketing channel,CUTCO's direct sellers also attain economies of scale by selling only CUTCO-branded products to end users.

Question 2

CUTCO is the channel member with channel control and power over the student sales force.

Accepted Answer

Vector Marketing Channel controls and influences the behavior of the channel members below it,i.e.,the student sales force.

Question 3

Why are CUTCO sales people not small-scale franchisees?&#10;A) They do not establish retail outlets.&#10;B) They only deal with Vector Marketing for the only product they sell.&#10;C) They do not pay a royalty.&#10;D) They do not pay Vector Marketing for the right to sell CUTCO products.&#10;E) all of the above

Accepted Answer

Although a direct retailer may resemble a franchise,it is different for all the reasons listed.

Question 4

Students who work for Vector Marketing are a form of selective distribution.

Accepted Answer

Vector Marketing is a company that specializes in direct sales, and they have a selective distribution strategy which involves recruiting students as independent contractors to sell their product. They carefully select and train their sales representatives to ensure they are meeting specific criteria to represent their brand. Therefore, students who work for Vector Marketing are a form of selective distribution.

Question 5

Which of the following businesses does not use direct retailing?&#10;A) Vector Marketing&#10;B) Tupperware&#10;C) Pampered Chef&#10;D) Amway&#10;E) CUTCO independent sales representatives

Accepted Answer

In the marketing channel,the sales reps are hired and managed by Vector.

Question 6

CUTCO is an example of a company that concentrates on __________ to achieve its economy of scale in cutlery and related implements.&#10;A) distribution&#10;B) direct sales&#10;C) franchising with college students&#10;D) manufacturing&#10;E) all of the above

Accepted Answer

Specialty manufacturers such as CUTCO achieve their economies of scale by focusing on producing large quantities of a single product line or item.

Question 7

In the retailing mix,which of the following only applies to CUTCO's success?&#10;A) price&#10;B) place&#10;C) product&#10;D) personnel&#10;E) promotion

Accepted Answer

As a direct sales operation,CUTCO really has no retailing mix.This is the only P that applies: product.

Question 8

CUTCO's college student sales force performs the role of channel members.

Accepted Answer

CUTCO's college student sales force serves as channel members as they are an external group that helps to promote and sell CUTCO's products directly to consumers.

Question 9

Vector Marketing is a(n)__________.&#10;A) independent direct marketer for CUTCO&#10;B) merchant wholesaler&#10;C) CUTCO broker&#10;D) corporate subsidiary of CUTCO&#10;E) CUTCO agent

Accepted Answer

Vector Marketing is not an independent direct marketer but rather part of CUTCO's corporate family.

Question 10

&#34;Products that are more complex,customized,and expensive&#34; benefit from direct marketing channels.Knives and scissors are fairly low-tech.Why does CUTCO use direct sales?&#10;A) Because it is located in New York State.&#10;B) Because its products are difficult to find&#10;C) CUTCO sells to an exclusive market-newlyweds, professional chefs, cooking schools, and the like.&#10;D) Direct sales forces can demonstrate CUTCO's product factors over cheaper retail and imported cutlery to justify its price.&#10;E) Actually, the technology used to make high-quality CUTCO products at the factory is customized and complex.

Accepted Answer

A producer's desire to control pricing,positioning,and brand image also tends to influence channel selection,especially for firms that sell products vulnerable to discount retailers and alternative product item equivalents.

Deck 44: Cutco Cutlery Corporation: Direct to Consumer for Over 60 Years!