You represent a group of investors who are exploring alternatives for entering the retailing business. Many of these investors have significant past experience working for other retailing companies and they realize the retailing business is very competitive. They also realize there is a high failure rate for startups in this industry. They ask you recommend a retailing strategy that would meet the following criteria:
No storefront would be needed
No personal selling would be needed
No traditional store operating expenses are necessary
Customers can place orders via the Internet, telephone or mail
Low operating expenses and limited customer service required
Which of following retailing strategy are you going to recommend they use?

Question

Quizplus · Accepted Answer

Catalog marketing meets all of the criteria listed. Customers can place orders via the Internet, telephone or mail, and there is no need for personal selling or a storefront. Operating expenses can be kept low, and customer service can be limited, as orders are processed through the catalog.

You Represent a Group of Investors Who Are Exploring Alternatives