Question 1

Which of the following is a major limitation to direct marketing for a retailer?

Accepted Answer

Pricing may be difficult to plan since catalogs need to be prepared well in advance. This can lead to issues with keeping prices up to date and accurately reflecting any sales or promotions that may be happening in-store.

Question 2

Which of the following is not always an example of nonstore retailing?

Accepted Answer

Airport retailing can involve physical stores located within an airport terminal, which would qualify as a form of store retailing. Direct selling, direct marketing, and vending machines all involve selling products or services without a traditional physical store location, making them examples of nonstore retailing.

Question 3

Which statement concerning global direct marketing is not correct?

Accepted Answer

The statement that there is a decreasing acceptance of nonstore retailing outside the United States is not correct. Nonstore retailing, including direct marketing, is growing globally and becoming more popular in many countries.

Question 4

Which of the following are characteristics of direct marketing?

Accepted Answer

Direct marketing involves exposure to a good or service through a nonpersonal medium (such as TV, radio, internet, etc.) and ordering via mail, phone, fax, or computer. Option A fits this description. Option B refers to personal interaction, which is not typically associated with direct marketing. Option C involves personal medium, which may refer to face-to-face communication or direct mail, but the ordering method is still through mail, phone, fax, or computer, which does not align with direct marketing. Option D involves personal interaction, which is not typically associated with direct marketing.

Question 5

A store-based retailer that uses the Web to expand its target market has evolved from _____ to _____.

Accepted Answer

Single-channel retailing refers to retailers that only use one sales channel, such as a physical store. Multi-channel retailing refers to retailers that use multiple sales channels, including the Web. So, a store-based retailer that is expanding its market by using the Web is evolving from single-channel retailing to multi-channel retailing.

Question 6

The first step in enacting a direct marketing strategy is to _____.

Accepted Answer

Before developing a direct marketing strategy, it is important to define one's business and have a clear understanding of the target audience, goals, and budget. This will help in selecting the appropriate media and developing messages that are tailored to the needs and preferences of the customers. Generating customers and arranging order fulfillment come after defining the business and selecting media.

Question 7

Vending machine transactions are not considered part of direct marketing because _____.

Accepted Answer

Direct marketing typically involves solicitation through mail, phone, fax, or computer. Since vending machine transactions do not involve any of these channels, they are not considered part of direct marketing.

Question 8

The use of direct marketing by a store-based retailer demonstrates _____.

Accepted Answer

Direct marketing is a form of multi-channel retailing, where a store-based retailer uses channels like mail, telephone, or email to directly communicate with customers and promote their offerings.

Question 9

A prospective consumer who has never been sought before by a direct marketer can be classified as a _____.

Accepted Answer

A prospective consumer who has never been sought before by a direct marketer is classified as a "new contact" because they represent a fresh opportunity for engagement and marketing efforts.

Question 10

A customer orders products by mail,phone,or fax in _____.

Accepted Answer

Direct marketing involves contacting and selling products directly to customers through various methods, such as mail, phone, or fax. This matches the scenario described in the question. Services retailing involves selling services rather than products, direct selling involves face-to-face sales, and retail catalog showrooms involve physical locations where customers can browse and purchase products.

Question 11

Direct marketers can be divided into two categories: _____ and _____.

Accepted Answer

Direct marketers can be divided into general, which targets a broad audience, and specialty, which targets a specific niche or interest group.

Question 12

The fastest-growing form of direct marketing is _____.

Accepted Answer

Web-based retailing has seen explosive growth in recent times due to the increasing use of technology and the internet for shopping. This form of direct marketing allows businesses to reach a wider audience and engage with customers in a more personalized way, leading to increased sales and customer loyalty.

Question 13

Direct marketers are most affected by which federal legislation?

Accepted Answer

The 30-day rule is a federal regulation that requires direct marketers to ship goods within 30 days of receiving an order, making it directly relevant to their operations.

Question 14

The two components of TV-based direct marketing are _____.

Accepted Answer

TV-based direct marketing includes shopping networks and infomercials as the two components. Catalogs and web-based retailing are examples of direct mail and online marketing respectively, not TV-based direct marketing. Kiosks are physical touchpoints for marketing and shopping networks are not specifically limited to cable television.

Question 15

Which of the following is not a major benefit to direct marketing for a retailer?

Accepted Answer

Direct marketing typically does not offer the opportunity to physically examine products prior to purchase, which may be a disadvantage for some customers.

Question 16

Which of the following is not a characteristic of an infomercial?

Accepted Answer

Infomercials typically have a longer duration than traditional commercials, often lasting 30 minutes or more.

Question 17

Which types of consumers are most likely to respond to a direct marketer?

Accepted Answer

The answer of Which types of consumers are most likely...

Question 18

A direct marketer can reduce the costs of catering to a market niche through the use of _____.

Accepted Answer

Specialogs are specialized catalogs that are targeted to a narrow audience or market niche. By using these catalogs, direct marketers can reduce the costs associated with creating and distributing catalogs to a broader audience. Additionally, specialogs allow direct marketers to tailor their offerings specifically to the needs and interests of their target audience, increasing the likelihood of a successful sale. Prototype stores, scrambled merchandising, and rationalized retailing are not directly related to reducing the costs of catering to a market niche in the context of direct marketing.

Question 19

A way of collecting,storing,and using relevant information about consumers is _____.

Accepted Answer

Database retailing refers to the process of collecting, storing, and using relevant information about consumers in a database system. This information can then be used to create personalized marketing messages, promotions, and offers to targeted consumers. Marketing research is a broader term that includes various research techniques to gather data on consumer behavior, preferences, and attitudes. Retail information systems refer to the IT systems and technologies used by retailers to manage and control their operations, including inventory management, point-of-sale systems, and customer relationship management. Direct selling is a sales method where products or services are directly sold to consumers through sales representatives, without the need for a physical retail store.

Question 20

Ease of entry into direct marketing is facilitated by _____.

Accepted Answer

Direct marketing often does not require physical stores, reducing the capital requirements for entry.

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