Question 1

In the Sunday paper, Jessie 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

Direct-response marketing is a form of advertising where customers can respond to an offer by filling out and mailing in a form or by calling a phone number. In this case, the flyer is promoting the Nativity set and offering customers the option to purchase it by responding directly through the mail or phone.

Question 2

While on their family vacation, the Andersons 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. What type of retailing did this transaction most likely involve?

Accepted Answer

The transaction most likely involved automatic vending, as the Andersons used a machine to purchase the disposable camera without interacting with a person.

Question 3

What is a potential disadvantage of direct selling?

Accepted Answer

Direct selling can sometimes have a negative connotation with customers who may view it as pushy or intrusive. This can make it more difficult for salespeople to establish trust and rapport with potential customers.

Question 4

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

Accepted Answer

Tupperware, Sarah Coventry, Amway, and Avon all sell their products through non-retail channels such as direct selling, network marketing, or home parties, making them examples of nonstore retailers.

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 specifically refers to marketing directly to ultimate consumers through face-to-face sales presentations, whether at home, the workplace, or other locations. It is a form of personal selling that relies on building a personal relationship and creating a customized sales experience for each individual customer.

Question 6

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

Accepted Answer

Automatic vending is a type of nonstore retailing where consumers purchase products from a machine without the assistance of a salesperson or staff. Therefore, the best choice is A.

Question 7

Which of the following gives the marketer an opportunity to demonstrate the product in an environment where it most likely would be used?

Accepted Answer

Direct selling is the option that gives the marketer an opportunity to demonstrate the product in an environment where it most likely would be used. This is because direct selling involves a face-to-face interaction between the seller and the customer, allowing the seller to showcase the product's features and benefits in the context of the customer's needs and preferences. Catalog marketing, direct-response marketing, television home shopping, and online retailing do not provide the same level of personal interaction and demonstration as direct selling.

Question 8

Alexa 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 is an example of a party plan where a representative from a company makes a presentation to a group of people at someone's home and takes orders for their products.

Question 9

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

Accepted Answer

Neil accessing Overstock.com's site on the Internet and making a purchase qualifies as online retailing. The transaction is made through a website or an online platform, making it a virtual shopping experience.

Question 10

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 11

Which of the following is the performance of marketing-related activities by telephone?

Accepted Answer

Telemarketing is the performance of marketing-related activities by telephone.

Question 12

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 is an example of television home shopping, where customers can order products through a toll-free number while watching TV shows.

Question 13

Which of the following is not an advantage of franchising for the franchisee?

Accepted Answer

The statement E is not an advantage of franchising for the franchisee; it highlights a disadvantage, specifically the loss of control over certain aspects of the business operation due to the franchise agreement.

Question 14

Randy Lewis has come up with the idea of a system for picking up people's cars while they are at work, washing and waxing them, and returning them for a fee. Having been a big success in his home city, Randy plans to expand his operation into other cities. The service described here seems best suited to

Accepted Answer

The service described is best suited to franchising because it involves expanding the operation into other cities, which can be achieved through franchising. This allows Randy to maintain some control over the quality of the service while allowing others to invest in and operate their own businesses under the company's brand and guidelines.

Question 15

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 16

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

Accepted Answer

Direct-response marketing often involves costs such as advertising, processing, and fulfillment that can quickly eat into profit margins. A product priced above $20 is generally considered to have enough margin to justify these additional expenses, making it a more viable option for this marketing approach.

Question 17

Edward is talking with Juan about purchasing a Wendy's franchise. Juan tells Edward that one of the major advantages of franchising for him to consider is the

Accepted Answer

The higher success rate for franchises is a major advantage that Edward should consider. Franchises typically have a higher success rate than independent businesses, as they operate under a proven business model with an established brand and customer base. This can translate into less risk and greater potential for profitability for the franchisee. Options A, B, and C are not advantages of franchising, and option E is not a commonly cited advantage of franchising.

Question 18

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 the advantage of demonstrating the product in action, which can be particularly beneficial for a new kitchen device. This allows the retailer to showcase the features and benefits of the product in a more engaging and convincing way compared to simply listing them online. Additionally, the retailer may be able to use persuasive sales tactics, such as limited-time offers, to encourage viewers to make a purchase. While online retailing may have lower selling costs, easier financial transactions, and shorter cycle times, these factors may not outweigh the benefits of being able to visually demonstrate the product. Offering the product at a lower price may also be possible on television home shopping, but it is not necessarily a superior ability compared to online retailing.

Question 19

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 an arrangement in which a supplier (the franchisor) grants a dealer (the franchisee) the right to sell products or services using the franchisor's brand name, established products, and operating systems in exchange for some type of consideration, which usually includes an initial fee and ongoing royalties. The franchisee operates under the franchisor's guidelines and procedures, and benefits from the franchisor's marketing, training, and support. This is different from wholesaling, in which a supplier sells products to retailers or other intermediaries, and from licensing, in which a supplier grants a licensee the right to use a patented or proprietary technology in exchange for royalties or fees. Consignment involves a supplier sending products to a dealer who only pays for what they sell, and retailing involves a dealer selling products directly to consumers.

Question 20

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

Accepted Answer

The party plan is a retail strategy where a consumer acts as a host and invites friends to view merchandise in a group setting, where a salesperson demonstrates the products. This strategy is commonly used for products that require demonstration or explanation, such as cosmetics, home goods, and kitchen appliances. During the party plan, the host receives a commission or free products based on the sales made at the party.

Quiz 14: Retailing, Direct Marketing, and Wholesaling