Question 1

What type of retailing began with Montgomery Ward in the late 1800s?

Accepted Answer

Montgomery Ward was a pioneer in catalog marketing, where consumers could order products from a catalog and have them delivered to their homes. This allowed for widespread distribution of products and was a precursor to modern e-commerce.

Question 2

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 3

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 a consumer watching a television network, calling a toll-free number, and ordering a product with their credit card. This is an example of television home shopping, where consumers can purchase products advertised on television through a toll-free number, website, or mobile app.

Question 4

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

Accepted Answer

The "party plan" in retailing refers to a marketing technique where a consumer acts as a host and invites friends to view merchandise in a group setting, where a salesperson demonstrates the products. The host usually receives incentives or free merchandise based on the sales made at the party. Therefore, option E is the correct answer.

Question 5

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

Accepted Answer

Direct selling involves face-to-face sales presentations to consumers either at home or workplace. This method of marketing allows for a more personalized approach and can help build relationships between the seller and the customer. Direct selling is often associated with direct sales companies that use independent distributors, also known as consultants or representatives, to sell their products directly to consumers.

Question 6

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

The answer of When products are presented to television viewers,...

Question 7

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 way for customers to make an immediate purchase through means such as telephone or mail orders. This differs from telemarketing, which typically involves making unsolicited calls to potential customers. Direct selling refers to in-person sales interactions, while television home shopping involves selling products through televised demonstrations and purchasing through phone or online orders. Automatic vending involves purchases made through machines rather than direct communication with a retailer.

Question 8

Chadwick's sends its customers booklets containing its product offerings and allows them to place orders on the telephone, through the mail, or online. Chadwick's is primarily a(n)

Accepted Answer

Chadwick's primarily uses catalog marketing, as it sends booklets containing its product offerings to customers and allows them to place orders through various channels, including mail and telephone.

Question 9

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

Accepted Answer

Brad accessing Overstock.com's site on the Internet and purchasing a business laptop case is an example of online retailing.

Question 10

What is a potential disadvantage of direct selling?

Accepted Answer

Direct selling can be viewed negatively by some customers who may associate it with aggressive or pushy sales tactics. This can create a negative perception of the brand, making it harder to sell to those customers in the future.

Question 11

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 fits the definition of a party plan, where a salesperson makes a presentation and takes orders from a group of people gathered at someone's home. Telemarketing involves reaching out to customers over the phone, a warehouse club involves a membership-based store selling products in bulk, direct marketing involves reaching out to customers through mail or email, and a catalog showroom involves a physical location where customers can browse and purchase products from a catalog.

Question 12

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 provides a visual demonstration of the product, which is especially important for a new kitchen device where consumers want to see how it works before purchasing. Online retailing may not provide the same level of demonstration and could potentially lead to more returns or dissatisfied customers. While the cost of selling may be higher with television home shopping, the increased ability to demonstrate the product can lead to higher sales and customer satisfaction.

Question 13

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

The flyer for the collector's edition Nativity set is promoting the product through direct-response marketing, as customers are encouraged to purchase the product by filling out a form or calling a 1-800 number. This method allows for immediate response from the customer, making it a direct and effective way to market a product.

Question 14

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. Advo Systems illustrates which of the following methods of selling retail products?

Accepted Answer

The answer of Advo Systems is an organization that mails...

Question 15

The three major types of nonstore retailing are

Accepted Answer

The three major types of nonstore retailing are direct marketing, direct selling, and automatic vending. These encompass a range of methods that allow businesses to sell products and services to customers without requiring a traditional retail storefront.

Question 16

Lucas is planning a distribution strategy for his business. He is considering using direct marketing, direct selling, and automatic vending, which are all examples of ____ retailing.

Accepted Answer

Direct marketing, direct selling, and automatic vending are all examples of nonstore retailing, which refers to the selling of products through channels that do not require the physical presence of a store. Therefore, the best choice is C) nonstore.

Question 17

What is a potential disadvantage of direct selling?

Accepted Answer

Some customers may have negative perceptions of direct selling due to past negative experiences or stereotypes of pushy salespeople. This can make it harder for direct sellers to gain trust and make sales.

Question 18

All of the following are types of direct marketing except

Accepted Answer

The answer of All of the following are types of...

Question 19

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

Accepted Answer

The answer of What is the most popular type of...

Question 20

Sophia is the new marketing manager for a new line of laptop, MP3, and smart phone 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 on the telephone, called _____, and instead use _____, a type of nonstore retailing.

Accepted Answer

Sophia has decided not to use telemarketing as a marketing-related activity conducted on the telephone. Instead, she wants to use vending as a type of nonstore retailing, which can include selling the accessories through vending machines or kiosks in malls or other public places. Direct-selling and online retailing are not mentioned as options in the given scenario. E-marketing and specialty marketing may be used in conjunction with vending, but they are not specifically mentioned as Sophie's chosen options.

Quiz 16: Retailing, Direct Marketing, and Wholesaling

What type of retailing began with Montgomery Ward in the late 1800s?

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

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

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

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

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.

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

Chadwick's sends its customers booklets containing its product offerings and allows them to place orders on the telephone, through the mail, or online. Chadwick's is primarily a(n)

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

What is a potential disadvantage of direct selling?

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

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

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

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. Advo Systems illustrates which of the following methods of selling retail products?

The three major types of nonstore retailing are

Lucas is planning a distribution strategy for his business. He is considering using direct marketing, direct selling, and automatic vending, which are all examples of ____ retailing.

What is a potential disadvantage of direct selling?

All of the following are types of direct marketing except

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