Question 1

Ordering information is flashed on the screen once in an infomercial.

Accepted Answer

In an infomercial, ordering information is typically shown multiple times throughout the presentation to ensure viewers have ample opportunity to note down the details.

Question 2

The use of party plans and group sales are strategies used by ________.
A) vending machine operators
B) direct marketers
C) Web-based marketers
D) direct sellers

Accepted Answer

Party plans and group sales are commonly used by direct sellers in the direct selling industry. Vending machine operators, web-based marketers, and even some direct marketers may not often use party plans or group sales as part of their business model.

Question 3

A major factor contributing to the low level of sales on the Web is ________.
A) consumer concern for credit card security on the Web
B) the need to constantly update each Web site
C) the poor demographics of Web users
D) the need for a Web master to be available during the hours the site is available for viewing

Accepted Answer

Consumer concern for credit card security on the Web is a major factor hindering the level of sales on the Web. Consumers may feel uncomfortable sharing their credit card information online, resulting in a lack of trust and fewer sales.

Question 4

Vending machine operators can expand their range of goods sold by ________.
A) increasing the number of machines in offices and factories
B) using microprocessors to record consumer preferences
C) adding dollar bill changers and debit card readers to current and new machines
D) adding voice synthesizers to existing and new machines

Accepted Answer

By adding dollar bill changers and debit card readers to current and new machines, vending machine operators can expand the range of goods sold by allowing consumers to purchase items without needing exact change or cash. This can potentially increase sales and attract more customers. Increasing the number of machines or adding voice synthesizers may not necessarily expand the range of goods sold. Using microprocessors to record consumer preferences may help operators personalize offerings, but it may not necessarily expand the range of goods sold.

Question 5

Direct marketing enables a retailer to cover a large geographic area inexpensively and efficiently.

Accepted Answer

Direct marketing allows retailers to target specific audiences and reach them through various channels such as mail, email, and online advertising. This method saves on advertising costs compared to traditional advertising channels such as TV and radio commercials. Moreover, it enables the business to reach a large geographic area with ease and precision, which is a significant advantage that can result in increased sales and customer loyalty.

Question 6

The depersonalization of many neighborhoods and the increase in working women have had the greatest detrimental effect on which retailer?
A) direct marketing
B) direct selling
C) vending machines
D) retail catalog showroom

Accepted Answer

Direct selling relies heavily on personal interactions and relationships within neighborhoods. With the depersonalization of neighborhoods and more women working (thus less available for home-based sales presentations), direct selling faces significant challenges.

Question 7

Specialogs are often used to target new customers.

Accepted Answer

Specialogs are specialized catalogs used primarily to target existing customers by offering specific or niche products that cater to their known preferences or purchase history, rather than targeting new customers.

Question 8

Single-channel retailing is less complex to manage than multichannel retailing.

Accepted Answer

Single-channel retailing involves selling products through a single platform, such as a physical store or an online store. Managing a single channel is usually less complex than managing multiple channels. Multichannel retailing, on the other hand, involves selling products through multiple channels, such as physical stores, online stores, mobile apps, social media platforms, and marketplaces, which can be more complex and challenging to manage.

Question 9

Direct marketing,direct selling,and vending machines are all forms of nonstore retailing.

Accepted Answer

Direct marketing involves promoting and selling products through direct communication with customers, direct selling involves selling products directly to consumers without the use of a store, and vending machines allow customers to purchase products without a physical store. All of these methods are examples of nonstore retailing.

Question 10

A direct marketing strategy should start with media selection.

Accepted Answer

A direct marketing strategy should start with identifying the target audience and creating a message that will appeal to them. Media selection should come after the target audience and message have been determined.

Question 11

The profitability of catalog-based direct marketers is highly sensitive to postal rates and paper costs.

Accepted Answer

Catalog-based direct marketers rely heavily on mailing catalogs to potential customers, which means that any increase in postal rates will directly impact their bottom line. In addition, paper costs are a significant expense for these businesses, as they need to print and distribute large volumes of catalogs on a regular basis. Therefore, any fluctuations in paper prices will also affect their profitability.

Question 12

Some Web sites are a conglomeration of complementary noncompeting retailers.The Web site coordinator is responsible for promoting the master Web site address and for maintaining the computer server.Each retailer is then responsible for developing and updating its own Web site.This arrangement closely resembles a ________.
A) central business district
B) shopping center
C) leased department
D) franchise

Accepted Answer

The arrangement described in the statement is similar to a shopping center, where there is a central location or website and various retailers operate their own stores within that location/website. Each retailer is responsible for their own site/store, but they all benefit from being part of the larger shopping center/website.

Question 13

Which nontraditional retailing has a temporary captive audience?
A) airport retailing
B) vending machines
C) infomercials
D) direct marketing

Accepted Answer

Airport retailing has a temporary captive audience because passengers who are waiting for flights have limited options for shopping and dining within the airport terminal.

Question 14

The ease of entry into direct marketing means that this is a highly competitive industry.

Accepted Answer

The statement is true. As there are low barriers to entry in terms of costs and technology, many businesses can enter the direct marketing industry, leading to high competition.

Question 15

Which forms of nonstore and nontraditional retailing are used by retailers that need to demonstrate their products to consumers for at least 15 minutes to show their unique features?
A) the World Wide Web and video kiosks
B) the World Wide Web and video catalogs
C) infomercials and direct selling
D) vending machines and direct marketing

Accepted Answer

Infomercials and direct selling are forms of nonstore and nontraditional retailing that allow retailers to demonstrate their products to consumers for an extended period of time, which is necessary for products with unique features that require explanation. The World Wide Web and video options (A and B) are better suited for products that can be easily explained with shorter presentations, and vending machines and direct marketing (D) do not allow for product demonstrations at all.

Question 16

The addition of direct marketing to a store-based retailer is a complementary (instead of competitive)activity.

Accepted Answer

Direct marketing can help increase awareness and drive traffic to a store-based retailer, leading to increased sales and customer loyalty. It is not a direct competition but rather a complement to traditional in-store marketing efforts.

Question 17

Direct selling and conventional vending machines are included as forms of direct marketing since they are nonstore activities.

Accepted Answer

Direct selling is considered a form of direct marketing because it involves marketing products directly to consumers in a non-retail environment. However, conventional vending machines are not typically considered a form of direct marketing, as they involve an automated sales process without direct human interaction or personal selling efforts.

Question 18

Rent (or a percent of sales)has to be paid for each location with ________.
A) video kiosks and vending machines
B) the World Wide Web and the Internet
C) the Internet and video catalogs
D) video catalogs and video kiosks

Accepted Answer

Rent or a percentage of sales typically applies to physical locations or placements, such as those for video kiosks and vending machines, rather than digital platforms like the World Wide Web and the Internet.

Question 19

A computer magazine routinely sells or rents mailing lists of its subscribers to local computer stores.The magazine classifies its customers into categories based on their completing a comprehensive questionnaire.The magazine's practice constitutes a(n)________.
A) ethical practice
B) invasion of privacy
C) vertical cooperative promotion
D) horizontal cooperative promotion

Accepted Answer

The magazine's practice of selling or renting its subscribers' mailing lists without obtaining explicit consent from the subscribers can be considered an invasion of privacy. While the magazine may have classified its customers based on a questionnaire, it is still important to give subscribers the option to opt-out of having their information shared with third parties.

Question 20

A trade-off to using a high degree of graphics on a Web site is the ________.
A) need for high-speed modems to download the graphics
B) need to constantly reconfigure the graphics
C) larger size of the Web site
D) increased downloading time for graphics-intensive sites

Accepted Answer

Using a high degree of graphics on a website increases the downloading time for graphics-intensive sites. This can result in slower loading times, which may frustrate or discourage users from visiting the site. This trade-off should be considered when designing a website, as a balance must be struck between aesthetics and functionality.

Quiz 6: Web, nonstore-Based, and Other Forms of Nontraditional Retailing

Ordering information is flashed on the screen once in an infomercial.

The use of party plans and group sales are strategies used by ________.

A major factor contributing to the low level of sales on the Web is ________.

Vending machine operators can expand their range of goods sold by ________.

Direct marketing enables a retailer to cover a large geographic area inexpensively and efficiently.

The depersonalization of many neighborhoods and the increase in working women have had the greatest detrimental effect on which retailer?

Specialogs are often used to target new customers.

Single-channel retailing is less complex to manage than multichannel retailing.

Direct marketing,direct selling,and vending machines are all forms of nonstore retailing.

A direct marketing strategy should start with media selection.

The profitability of catalog-based direct marketers is highly sensitive to postal rates and paper costs.

Which nontraditional retailing has a temporary captive audience?

The ease of entry into direct marketing means that this is a highly competitive industry.

Which forms of nonstore and nontraditional retailing are used by retailers that need to demonstrate their products to consumers for at least 15 minutes to show their unique features?

The addition of direct marketing to a store-based retailer is a complementary (instead of competitive)activity.

Direct selling and conventional vending machines are included as forms of direct marketing since they are nonstore activities.

Rent (or a percent of sales) has to be paid for each location with ________.

A computer magazine routinely sells or rents mailing lists of its subscribers to local computer stores.The magazine classifies its customers into categories based on their completing a comprehensive questionnaire.The magazine's practice constitutes a(n) ________.

A trade-off to using a high degree of graphics on a Web site is the ________.