Question 1

Malcolm 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, Malcolm plans to expand his operation into other cities. The service described here seems best suited to

Accepted Answer

Franchising would be the best choice for expanding this operation into other cities. The franchisee would operate under Malcolm's brand name and business model, while also benefiting from his experience and support. This would allow for consistent service, quality control, and potential for growth.

Question 2

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 platform for demonstrating the product's features, benefits and usage. As a potential customer watches the demonstration, he/she can see how the product works and its benefits. Thus, a retailer would choose television home shopping over online retailing to sell a new kitchen device because it offers a superior ability to demonstrate the product.

Question 3

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

Accepted Answer

Automatic vending is a type of nonstore retailing where products are sold through self-service vending machines. Redbox, ProActiv, and Clinique sell their products through vending machines, making them examples of nonstore retailers.

Question 4

Victor knows that if he decides to buy a franchise, he will most likely have to supply

Accepted Answer

The answer of Victor knows that if he decides to...

Question 5

What is a potential disadvantage of direct selling?

Accepted Answer

Some customers may view direct selling negatively because they may not want to be approached by salespeople in traditional direct selling methods or may have had negative experiences with direct selling in the past. This can make it more difficult for direct selling companies to build trust and establish relationships with potential customers.

Question 6

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 7

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 the customer watches a program and calls a toll-free number to place an order.

Question 8

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

Accepted Answer

These retailers sell products without a physical retail storefront, making them non-store retailers.

Question 9

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 10

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 describes a party plan, in which a salesperson makes a presentation to a group of friends in someone's home and takes orders for the products.

Question 11

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

Accepted Answer

The answer of Which of the following is not an...

Question 12

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

Accepted Answer

One of the major advantages of franchising is a higher success rate compared to starting a business from scratch. This is because franchises benefit from an established brand, proven business model, and ongoing support from the franchisor.

Question 13

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

Accepted Answer

The party plan is a method of direct selling where the consumer acts as a host and invites friends to view merchandise in a group setting, where a salesperson demonstrates the products. Each guest has the opportunity to place an order during the event.

Question 14

While on their family vacation, the Millers 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 Millers purchased a disposable camera through a machine without interacting with a person.

Question 15

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

Telemarketing involves conducting marketing-related activities on the telephone, which Sophia has decided not to use. Instead, she has opted for vending, a type of nonstore retailing that allows customers to buy products directly from automated machines without the need for salespeople or physical stores. This is a good fit for the trendy and colorful accessories offered by Skull Candy, which are likely to be popular with young, tech-savvy consumers who are comfortable with using vending machines and other self-service technologies to make purchases. Therefore, the best choice is C.

Question 16

Which of the following best describes wholesalers?

Accepted Answer

The answer of Which of the following best describes wholesalers?
...

Question 17

An arrangement in which a supplier grants a dealer the right to sell products in exchange for some type of consideration is

Accepted Answer

The description given in the question matches with the concept of franchising, where a franchisor (supplier) grants a franchisee (dealer) the right to sell their products in exchange for fees or royalties. The franchisee operates under the franchisor's brand name and business model.

Question 18

In franchising, which of the following is not a benefit that the franchiser gains?

Accepted Answer

The franchiser does not gain more control over how the franchisees operate the establishments as a benefit. Instead, the franchisee typically gains more control over the day-to-day operations of the franchise.

Question 19

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

Accepted Answer

The description fits the definition of direct selling, in which products are marketed directly to consumers through face-to-face sales presentations at home or the workplace. Direct marketing typically refers to promotion through various channels, including mail, email, and online ads. Direct-response marketing involves encouraging consumers to respond directly to an advertisement, such as by calling a phone number or visiting a website. Telemarketing is a form of direct marketing that involves contacting consumers via telephone. Personal selling is a broader term that encompasses any type of individualized sales presentation, whether conducted in person or through other means.

Question 20

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 making a purchase is an example of online retailing.

Quiz 14: Retailing, Direct Marketing, and Wholesaling