Question 1

A retailer engaged in direct marketing would probably select television home shopping over online retailing to sell a new kitchen device because of:

Accepted Answer

Television home shopping allows for live demonstrations, which can effectively showcase the features and benefits of a new kitchen device, potentially leading to higher sales.

Question 2

Brad accesses Overstock.com's site on the Internet and purchases a business laptop case. This is an example of _____.

Accepted Answer

Brad's purchase on Overstock.com's website is an example of online retailing, where he purchased the item directly through the internet. Direct-selling involves purchasing items directly from a salesperson, catalog retailing involves purchasing items through a catalog sent by the retailer, direct-response marketing involves purchasing items after seeing a promotional message, and home shopping involves purchasing items through a televised shopping program.

Question 3

In order to justify direct-response marketing, a product really needs to be priced above .

Accepted Answer

The answer of In order to justify direct-response marketing, a...

Question 4

An arrangement in which a supplier grants a dealer the right to sell products in exchange for some type of consideration is .

Accepted Answer

Franchising is the arrangement in which a supplier grants a dealer the right to sell products, along with the use of the supplier's business name and operating system, in exchange for an initial fee and ongoing royalties. It is a form of business alliance in which the franchisor provides the products, marketing and operational support, while the franchisee invests capital, manages the day-to-day operations, and agrees to follow the franchisor's established model.

Question 5

In the Sunday paper, Caitlin sees a flyer for a collector's edition nativity set that is available to purchase by filling out and mailing in a form or by calling a 1-800 number. This is an example of:

Accepted Answer

This is an example of direct-response marketing, where consumers can respond directly to the marketer via mail or phone to purchase a product.

Question 6

Advo Systems is an organization that mails product brochures and coupons to potential consumers who can then purchase these products by mail or by phone. Which of the following methods of selling retail products is illustrated by Advo Systems?

Accepted Answer

Advo Systems uses direct-response marketing, as it involves sending brochures and coupons directly to consumers, who can then respond by purchasing products via mail or phone.

Question 7

With respect to retailing, what is the "party plan"?

Accepted Answer

The answer of With respect to retailing, what is the...

Question 8

Redbox, ProActiv, and Clinique all sell their products through automatic vending, which is:

Accepted Answer

Automatic vending, also known as vending machines, are a type of nonstore retailing where products are sold to consumers without the need for a physical store location or salesperson. Redbox, ProActiv, and Clinique all utilize vending machines to sell their products directly to consumers.

Question 9

If Victor decides to buy a franchise, he will most likely have to supply:

Accepted Answer

Franchisees typically need to provide labor and pay a percentage of their sales as royalties to the franchisor.

Question 10

Kelly Cramer sees a lovely pair of earrings on a television network and calls a toll-free number to order them, paying with her credit card. This is an example of .

Accepted Answer

This scenario describes television home shopping, where the customer watches a program and calls a toll-free number to order the product.

Question 11

When a retailer advertises a product and makes it available for purchase through telephone or mail orders, the retailer is using .

Accepted Answer

Direct-response marketing involves advertising a product and providing a direct means for the consumer to purchase the product (such as through telephone or mail orders). While telemarketing and television home shopping may also include these methods, direct-response marketing specifically focuses on the direct response of the consumer to the advertisement. Automatic vending involves a machine dispensing a product rather than a consumer making a direct purchase through an advertisement. Direct selling typically involves a personal sales approach rather than advertising to a mass audience.

Question 12

The primary advantage of automatic vending as a form of retailing is that:

Accepted Answer

The answer of The primary advantage of automatic vending as...

Question 13

Tupperware, Sarah Coventry, Amway, and Avon sell products outside the confines of retail facilities. They are retailers.

Accepted Answer

These companies sell products through direct selling methods, which do not involve traditional retail facilities, making them non-store retailers.

Question 14

Which of the following is the most popular type of product sold through television home shopping?

Accepted Answer

Jewelry is often the most popular type of product sold through television home shopping due to its visual appeal and the ability to demonstrate its features effectively on TV.

Question 15

Sophia is the new marketing manager for a new line of laptop, MP3, and smartphone accessories made by the company, Skull Candy. These accessories are trendy, colorful, and more expensive than others on the market. After considering the target market for the products, Sophia has decided not to use marketing-related activities conducted through telemarketing, and instead use vending, a type of .

Accepted Answer

Vending is a form of nonstore retailing, which involves selling products outside of a traditional retail store setting.

Question 16

Which of the following is a potential disadvantage of direct selling?

Accepted Answer

Some customers view direct selling negatively because they may feel pressured or uncomfortable with the in-person sales approach.

Question 17

When products are presented to television viewers, who can purchase them by calling a toll-free number and paying with a credit card, is being used.

Accepted Answer

Television home shopping is a form of direct marketing in which products are presented to television viewers, who can purchase them by calling a toll-free number and paying with a credit card.

Question 18

The marketing of products to ultimate consumers through face-to-face sales presentations either at home or the workplace is known as .

Accepted Answer

Direct selling involves face-to-face sales presentations to consumers at their homes or workplaces.

Question 19

Alison asks ten of her friends over to her home to learn about exciting new cosmetic products. A salesperson from Angel Products makes a presentation and takes the women's orders. This is an example of .

Accepted Answer

This scenario describes a typical party plan, where a sales representative presents and sells a product to a group of people gathered at someone's home.

Question 20

While on their family vacation, the Millers realize they left their camera at home. They purchase a disposable camera at an amusement park using their credit card, but never interact with a person. Which type of retailing did this transaction most likely involve?

Accepted Answer

The transaction likely involved automatic vending, as the Millers used a credit card to purchase a disposable camera without interacting with a person, suggesting a vending machine.

Quiz 14: Retailing, Direct Marketing, and Wholesaling