Question 1

In _____________,salespeople are independent contractors who not only sell the product,but also recruit additional salespeople.
A)telemarketing
B)two-stage marketing
C)hierarchical marketing
D)multilevel marketing

Accepted Answer

In multilevel marketing, salespeople are not only selling the product but are also recruiting additional salespeople. This is also known as network marketing or pyramid selling.

Question 2

Delacroix Shoes produces top-quality high-fashion shoes,designed for the person concerned about style.Delacroix gives only a few preferred retailers in a given market area the right to market its product.Delacroix Shoes uses:
A)intensive distribution.
B)selective distribution.
C)exclusive distribution.
D)limited function distribution.

Accepted Answer

The answer of Delacroix Shoes produces top-quality high-fashion shoes,designed for...

Question 3

In the terminology of multilevel marketing,which of the following statements about the relationship between upliners and downliners is most accurate? In multilevel marketing,
A)upliners are intermediaries who deal directly with final customers,while downliners are intermediaries who coordinate the transportation and storage services the upliners need to move the goods they sell through the channel of distribution.
B)upliners are salespeople who act as independent contractors,earning commissions on their own sales and also on the sales of downliners,who are additional salespeople that they recruit.
C)upliners sell through electronic retailing arrangements,while downliners use more traditional methods of retail selling.
D)upliners use intensive distribution strategies to sell a good,while downliners use either a selective or exclusive distribution strategy to sell the same type of good.

Accepted Answer

In multilevel marketing, upliners are experienced salespeople who act as independent contractors, earning commissions on their own sales and also on the sales of downliners. Downliners are additional salespeople that upliners recruit to be part of their network and who also earn commissions on their own sales and on the sales of any other downliners they recruit. This creates a multilevel or hierarchical organization of salespeople, where upliners earn a percentage of the sales made by the downliners they have recruited.

Question 4

Companies who send salespeople to customers' homes or places of work are making use of __________ selling.
A)direct
B)point of contact
C)downline
D)nonretail

Accepted Answer

The answer of Companies who send salespeople to customers' homes...

Question 5

The characteristic that all forms of direct marketing have in common is that they:
A)are carried out by agents or brokers.
B)involve face-to-face or teleconferencing sessions with the customer.
C)include some type of activity that directly links manufacturers to the ultimate consumer.
D)make use of exclusive distribution systems with a network of traditional "bricks and mortar" stores.

Accepted Answer

The common characteristic among all forms of direct marketing is that they involve some kind of direct connection between manufacturers and the ultimate consumer. This can take many forms, such as direct mail, email marketing, telemarketing, or online marketing, but the key is that there is a direct link between the marketer and the consumer. Direct marketing differs from traditional marketing channels, which rely on intermediaries like retailers or wholesalers to distribute products to consumers.

Question 6

___________ is the sale of goods and services by telephone.
A)Cel-tailing
B)Teleselling
C)Telemarketing
D)Direct marketing

Accepted Answer

Telemarketing is the specific term used to describe the sale of goods and services by telephone. Cel-tailing and teleselling are not commonly used terms, and direct marketing refers to various marketing methods including email, direct mail, and telemarketing.

Question 7

Sports Coasters sells good quality athletic wear by sending its customers a catalog nine times a year.The company has no retail stores,but offers a toll free order number that operates 24 hours a day,365 days a year.Sports Coasters sells using a technique known as:
A)tel-tailing.
B)indirect marketing.
C)telemarketing.
D)multilevel marketing.

Accepted Answer

Sports Coasters is using telemarketing to sell its products by using a toll-free order number that operates around the clock. This is a form of direct marketing, but it is specifically using the telephone to make sales.

Question 8

Mall owners like to have __________ located along the walkways of their malls,because they create a marketplace type of atmosphere.
A)cartels
B)storettes
C)kiosks
D)minimarts

Accepted Answer

Kiosks are small, temporary booths that sell a variety of goods and services along the walkways of malls. They create a bustling and diverse atmosphere, similar to a marketplace. Cartels, storettes, and minimarts are not commonly used terms in the context of mall ownership or retail.

Question 9

Which of the following statements about kiosks and carts is the most accurate?
A)Kiosks and carts are popular with mall owners because their sales are exempt from sales taxes.
B)Mall owners often want kiosks and carts to be located along their walkways because they create a marketplace atmosphere.
C)Kiosks and carts have struggled in recent years because of their high overhead costs.
D)Most mall owners would like to eliminate kiosks and carts from their walkways,but are barred by law from doing so.

Accepted Answer

Mall owners often see kiosks and carts as a way to create a vibrant marketplace atmosphere and encourage more foot traffic. While kiosks and carts do have some overhead costs, they are often more affordable than opening a full-scale store, which is why they are so popular with small business owners. Sales tax exemption varies by state and is not a universal benefit of owning a kiosk or cart. While some mall owners may wish to eliminate kiosks and carts, there is no law that prevents them from doing so, as the decision to include or exclude these types of business is up to the mall management.

Question 10

___________ means selling goods and services to ultimate consumers over the Internet.
A)Electronic retailing
B)B2B distribution
C)E-selling
D)Intercommerce

Accepted Answer

Electronic retailing, also known as e-tailing, refers to the sale of goods and services directly to consumers over the internet. This includes online stores, auctions, and marketplaces. B2B distribution refers to business-to-business sales and E-selling is a general term that could refer to selling over any electronic platform, including social media or email. Intercommerce is not a commonly used term in e-commerce.

Question 11

In multilevel marketing,salespeople have an incentive to:
A)recruit new salespeople,because they receive a commission on the sales made by the people they recruit.
B)perform as many of the marketing functions as possible,because each function they perform adds to their commission.
C)sell the product using both direct and indirect marketing methods in order to reach different types of customers.
D)limit the number of salespeople in their franchise area so that they can maximize their own sales.

Accepted Answer

In multilevel marketing, salespeople receive a commission on the sales made by the people they recruit, so there is a strong incentive to recruit new salespeople. This can create a hierarchical structure where top-level salespeople earn commissions on the sales made by those below them, leading to a focus on recruitment rather than direct sales.

Question 12

Which of the following assessments of electronic retailing is most accurate?
A)Electronic retailing has two major advantages over traditional businesses: simplicity and very low startup costs.
B)One of the reasons electronic retailing firms have been so successful has been their ability to deal with customer complaints and provide personalized services more efficiently than traditional firms.
C)Traditional retailers seldom find much success when they attempt to incorporate online selling into their businesses.
D)The line between electronic retailing and traditional retailing is blurring as traditional retailers go online.

Accepted Answer

As traditional retailers venture into online selling, the lines between electronic and traditional retailing are becoming blurred. This is because traditional retailers are competing with e-tailers and adopting similar methods to provide convenience to their customers. Therefore, it can be concluded that option D is the most accurate assessment of electronic retailing. Options A and B are partially correct, but they do not provide a complete understanding of the current state of electronic retailing. Option C is incorrect because many traditional retailers have found success in online selling.

Question 13

Any marketing method that directly links manufacturers or intermediaries with the ultimate consumer could be classified as:
A)direct selling.
B)online marketing.
C)direct marketing.
D)kiosk-based.

Accepted Answer

Direct marketing involves direct communication between the manufacturer/intermediary and the ultimate consumer through various channels such as mail, email, social media, telemarketing, etc. Direct selling involves face-to-face selling primarily in a person-to-person mode. Online marketing refers to marketing activities done via the internet. Kiosk-based marketing is a form of direct marketing, where kiosks are used to directly communicate with customers. Hence, the best choice is C- direct marketing.

Question 14

Which of the following statements identifies a key advantage of direct marketing? Direct marketing:
A)enables sales people to close a non-refundable sale in the customer's home or place of work.
B)allows firms to expand their markets by selling to both ultimate consumers and other marketing intermediaries.
C)is popular with consumers because it is so convenient to shop from home or work.
D)creates a strong incentive for salespeople to recruit additional salespeople in order to gain the greatest possible market coverage.

Accepted Answer

The answer of Which of the following statements identifies a...

Question 15

Vending machines are most often used to sell:
A)shopping goods.
B)convenience goods.
C)specialty goods.
D)inferior goods.

Accepted Answer

Vending machines are typically used to sell convenience goods, which are items that consumers need or want quickly and easily, without making a special trip to a store. Examples include snacks, drinks, and small toiletry items. Shopping goods are items that consumers are willing to put more time and effort into purchasing, while specialty goods are unique or high-end items that may require more salesperson interaction. Inferior goods are items whose demand decreases as consumers' incomes rise, while vending machine goods are typically affordable and accessible to a wide range of consumers.

Question 16

Lazario Motor Car Company produces some of the most luxurious and expensive cars in the world.The company typically authorizes only a single dealership to sell its cars in certain major metropolitan areas.In less populous areas,Lazario authorizes a single dealer for an entire state or region.The manufacturer of Lazario automobiles is using an)___________ distribution strategy for its product.
A)intensive
B)primary
C)extrinsic
D)exclusive

Accepted Answer

Lazario Motor Car Company is using an exclusive distribution strategy for its product as it authorizes only a single dealership to sell its cars in certain major metropolitan areas and a single dealer for an entire state or region in less populous areas.

Question 17

In the terminology of multilevel marketing,downliners:
A)are the intermediaries who are responsible for handling the shipping of goods down the channel of distribution from the producer to the retailer.
B)are salespeople who have been recruited by other salespeople known as upliners to market the product.
C)sell through a telemarketing arrangement,while upliners use direct selling.
D)are experienced salespeople who are allowed to sell in more than one franchise area by the distributor.

Accepted Answer

Downliners are salespeople who have been recruited by another salesperson, known as an upliner, to market and sell a product in a multilevel marketing system. The upliner earns commissions from the sales made by their downliners.

Question 18

Direct mail,telemarketing,and catalog sales are all common examples of:
A)direct marketing.
B)downline selling.
C)multilevel marketing.
D)direct selling.

Accepted Answer

Direct mail, telemarketing, and catalog sales are all forms of direct marketing, which involves communicating directly with the customer to promote a product or service. Direct selling typically involves face-to-face selling, while multilevel marketing involves recruiting others to sell products and earn commission from their sales. Downline selling is not a commonly used term in the marketing industry.

Question 19

In multilevel marketing,independent contractors who sell a product can increase their own incomes by recruiting _________ to also sell the product.
A)commissionaires
B)front-men
C)merchant wholesalers
D)downliners

Accepted Answer

The term "downline" is commonly used in multilevel marketing to refer to the individuals recruited by an independent contractor to also sell the product. These downliners can increase the recruiter's income through commission on their sales. Therefore, the best choice is D.

Question 20

Tammy Knowles is the publisher of "New Woman Magazine," which is a publication targeted to Gen Y women.Because it is a small,new publication,some of the larger bookstores,convenience stores and newsstands are not agreeing to distribute the magazine.Tammy is very concerned by this trend,because she believes that her publication,like most magazines,needs ____________ distribution in order to succeed.
A)selective
B)exclusive
C)intensive
D)exhaustive

Accepted Answer

Intensive distribution is the best choice for a small, new publication like "New Woman Magazine." This strategy involves distributing the product widely and making it available in as many outlets as possible, including small and unconventional ones, to achieve maximum market coverage. Selective or exclusive distribution may limit the reach of the publication, while exhaustive distribution may not be feasible for a small publication.

Quiz 15: Distributing Products

In _____________,salespeople are independent contractors who not only sell the product,but also recruit additional salespeople.

Delacroix Shoes produces top-quality high-fashion shoes,designed for the person concerned about style.Delacroix gives only a few preferred retailers in a given market area the right to market its product.Delacroix Shoes uses:

In the terminology of multilevel marketing,which of the following statements about the relationship between upliners and downliners is most accurate? In multilevel marketing,

Companies who send salespeople to customers' homes or places of work are making use of __________ selling.

The characteristic that all forms of direct marketing have in common is that they:

___________ is the sale of goods and services by telephone.

Sports Coasters sells good quality athletic wear by sending its customers a catalog nine times a year.The company has no retail stores,but offers a toll free order number that operates 24 hours a day,365 days a year.Sports Coasters sells using a technique known as:

Mall owners like to have __________ located along the walkways of their malls,because they create a marketplace type of atmosphere.

Which of the following statements about kiosks and carts is the most accurate?

___________ means selling goods and services to ultimate consumers over the Internet.

In multilevel marketing,salespeople have an incentive to:

Which of the following assessments of electronic retailing is most accurate?

Any marketing method that directly links manufacturers or intermediaries with the ultimate consumer could be classified as:

Which of the following statements identifies a key advantage of direct marketing? Direct marketing:

Vending machines are most often used to sell:

In the terminology of multilevel marketing,downliners:

Direct mail,telemarketing,and catalog sales are all common examples of:

In multilevel marketing,independent contractors who sell a product can increase their own incomes by recruiting _________ to also sell the product.