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121) All of the following are reasons direct-mail and catalog retailing are attractive except
which?
A) They can create customer value by providing a fast and convenient means of making a
purchase.
B) They can serve as an element of a multichannel strategy designed to encourage consumers to
visit a website, a social media page, or even a store.
C) Their paper costs and postal rates have declined, making them less expensive to send.
D) They can eliminate the cost of a store and clerks.
E) They can improve marketing efficiency through segmentation and targeting.
122) Higher paper costs, increased postage rates, the growing interest in do-not-mail legislation,
and concern for "green" mailings have resulted in
A) a switch to online catalogs and direct-to-customer e-mail advertisements.
B) the use of thinner, lightweight paper products.
C) a focus on proven customers or specialty catalogs for market niches.
D) the banning of "junk" mail by a growing number of environmentally concerned communities.
E) a resurgence in nonautomated telemarketing.
123) The use of specialty catalogs from firms such as IKEA, Crate and Barrel, and L.L. Bean
have been affected by all of the following factors except which?
A) The possibility of the U.S. Postal Service reducing delivery to five days a week.
B) Higher paper costs, an increase in postage rates, and the possibility of the U.S. Postal Service
reducing delivery to five days a week.
C) The growing interest in do-not-mail legislation.
D) The concern for "green" mailings and catalogs.
E) The growing influence of television home shopping.
124) The marketing managers at Omaha Steaks used airlines' databases to mail a special offer to
frequent flyers. Eight weeks after shipping the steaks to the frequent flyers who responded to the
offer, the company's salespeople followed up by telephoning customers to ask for new orders.
This is an example of which types of nonstore retailing?
A) direct selling and telemarketing
B) direct mail and telemarketing
C) telemarketing and online retailing
D) online retailing and direct mail
E) direct mail and direct selling
125) Jim Smith is an avid fly fisherman and he needs large rubber rafts, hip waders, special
fishing rods, reels, line, and an assortment of fishing tackle and lures. There are no sporting
goods stores near him so Jim orders his fishing supplies from the L.L. Bean catalog. His supplies
are generally delivered to his home within 72 hours. Jim is using a ________ to satisfy his
fishing supply needs.
A) home delivery retailer
B) quick-response retailer
C) direct-mail marketer
D) flexible response marketer
E) regional marketer
126) Currently, the three largest television home shopping programs in the United States are
A) QVC, HSN, and Evine.
B) Shop at Home, QVC, and HSN.
C) Direct Shopper, Shop at Home, and ShopNBC.
D) ValueVision, Shop at Home, and QVC.
E) Shop America, Direct Shopper, and HSN.
127) QVC is a television home shopping network. It generates sales of more than $8 billion from
its 60 million customers by
A) directing customers to purchase through its Mall of America retail store.
B) broadcasting live 12 hours a day, 365 days a year.
C) offering more than 770 products each week on a 24-hour-a-day broadcast.
D) offering overstocked items from retailers at a fraction of the original cost.
E) running live podcasts and live streaming over the Internet.
128) Which of the following statements regarding QVC is most accurate?
A) QVC broadcasts 12 hours a day, 365 days a year.
B) QVC reaches 360 million homes in the United States, United Kingdom, Germany, Japan,
Italy, and China.
C) QVC never offers the same product two days in a row.
D) QVC sells all its items by dropping the price to $1.00, regardless of the product value, if it is
not sold in one day.
E) QVC entices customers to "stay tuned" by offering free products to random callers.
129) In the past, television home shopping programs have attracted mostly
A) 18- to 34-year-old men.
B) 25- to 45-year-old women.
C) 35- to 56-year-old men.
D) 35- to 64-year-old women.
E) 12- to 17-year-old boys.
130) Some experts suggest that television shopping programs are becoming a modern version of
________ by combining elements of reality TV programs, talk shows, and infomercials.
A) augmented reality
B) door-to-door retailing
C) telemarketing
D) direct-response wholesaling
E) indirect selling
131) Which type of utility is created by online shopping?
A) time
B) price
C) product
D) process
E) promotion
132) The term bricks and clicks refers to ________ and ________, respectively.
A) catalogs; websites
B) search engines; websites
C) traditional retailers; online retailers
D) buildings; shoppers
E) computer novice buyers; computer savvy buyers
133) Leveraging its physical stores to enhance value for customers, Walmart offers online
shoppers a service
A) using a virtual reality shopping experience from their home computers.
B) to order online and receive free same-day pickup at a local store.
C) providing free shipping to customers if they order $100 or more of selected items.
D) to shop in-store using virtual personal shoppers.
E) to attend online auctions for Walmart overstock or seasonal items that are being discontinued
to make room for new inventory.
134) Online retail purchases by consumers can be the result of several very different approaches,
including going directly to online malls, visiting a website that offer "flash sales," and
A) becoming a secret shopper.
B) participating in a buying cooperative.
C) using direct selling.
D) participating in an online auction.
E) shopping via vending machine.
135) Some retailers now allow consumers to respond to their text messages announcing a sale for
a specified time period. Consumers must then visit the site to purchase the sale items. Which of
the following retailing websites offers these limited time "flash sales"?
A) TextBuyIt
B) Best Buy
C) PeaPod
D) eBay
E) Gilt
136) One of the biggest problems online retailers face is that nearly ________ percent of online
shoppers make it to "checkout" and then leave the website to compare shipping costs and prices
on other sites.
A) 16
B) 26
C) 36
D) 56
E) 66
137) One of the biggest problems online retailers face is that nearly two-thirds of online shoppers
make it to "checkout" and then leave the website
A) because of slow download times.
B) to compare shipping costs and prices on other sites.
C) because of security fears when entering credit card information.
D) due to the inability to experience the product in person.
E) over dissatisfaction with product availability.
138) Experts suggest that online retailers should think of their websites as ________ if they are
to attract and retain customers.
A) cash cows
B) dynamic billboards
C) virtual reality stores
D) traditional retail stores
E) online entertainment
139) Online retailing has evolved to include social shopping options like intermediaries
(Groupon), marketplaces (Storenvy), and ________ (Yipit).
A) swap meets
B) aggregators
C) flash sales
D) showroomers
E) arbitrators
140) Using the telephone to interact with and sell directly to consumers is referred to as
A) digital marketing.
B) telemarketing.
C) solicitation marketing.
D) telecommerce.
E) direct selling.
141) In the telemarketing industry, issues such as ________, ethical guidelines, and industry
standards have become a topic of discussion among consumers, Congress, the Federal Trade
Commission (FTC), and businesses.
A) competitive antics
B) coercion tactics
C) freedom of speech
D) language issues
E) consumer privacy
142) Which of the following statements regarding telemarketing is most accurate?
A) Shopping bots are computers that place automated or "robo" (i.e., robotic) telemarketing calls.
B) Direct mail is typically viewed as a more efficient means of targeting consumers than
telemarketing.
C) Telemarketing has risen in efficacy as a result of the National Please-Do-Call registry
legislation.
D) Consumer privacy, industry standards, and ethical guidelines have become important issues.
E) Many firms are considering shifting their direct-mail and door-to-door budgets to
telemarketing techniques.
143) As a result of legislation, consumers who do not want to receive telephone calls related to
company sales efforts can
A) purchase telephones that block unwanted calls.
B) place their telephone numbers on the National Do Not Call Registry.
C) request phone numbers that begin with the area code 555 that automatically block
telemarketing solicitors.
D) request phone numbers that begin with the area code 888 that automatically block
telemarketing solicitors.
E) use an unlisted telephone number.
144) The sales of products and services to consumers through personal interactions and
demonstrations in their homes or offices is referred to as
A) direct selling.
B) person-to-person sales.
C) face-to-face selling.
D) direct-response selling.
E) customized selling.
145) Sales of goods and services to consumers through personal interactions and demonstrations
in their homes or offices is referred to as direct selling, or
A) person-to-person sales.
B) interactive selling.
C) door-to-door retailing.
D) individual promotion.
E) customized selling.
146) Companies such as Avon, Fuller Brush, Mary Kay, and World Book are examples of firms
that use
A) interface marketing.
B) flex marketing.
C) direct selling.
D) interactive selling.
E) responsive selling.
147) Direct selling is likely to continue to have strong growth in markets
A) in which people prefer not to have a social shopping experience.
B) where convenience is not especially important.
C) in which consumers are knowledgeable shoppers.
D) where there is a lack of effective distribution channels.
E) that have an excellent infrastructure.
148) In response to the changes in the United States, many direct sellers are implementing a
________ strategy by expanding into other countries with their current product lines.
A) market development
B) market penetration
C) accelerated development
D) product development
E) diversification
149) Growth in the direct-selling industry is the result of two trends: direct-selling retailers are
expanding into markets outside the United States, and
A) increased gas prices and traffic congestion are causing people to want the store to deliver the
products to them.
B) the pendulum is beginning to swing back to more mothers (and fathers) staying home during
the day with children, making direct selling more convenient.
C) the cost of purchasing or leasing real estate to build an actual "brick" retail store is becoming
prohibitive.
D) graduating business students are finding it more difficult to find a traditional sales position
and like the idea of being their own bosses.
E) some consumers prefer one-on-one customer service and a social shopping experience rather
than online shopping or big discount stores.
150) Which of the following statements regarding direct selling is most accurate?
A) Unlike other forms of nonstore retailing, direct selling takes place in the business market.
B) Direct selling is found exclusively in the United States.
C) Direct selling succeeds because it provides customers with a social shopping experience.
D) Direct sales have been declining rapidly in the United States since the 1980s.
E) By definition, direct selling can only take place in a home.
151) A customer was unable to go to the store on her own to buy gifts for the holidays. She
contacted a Pampered Chef representative who came to her home, showed her not only catalogs
but actual products, answered all her questions, and had all the customer's gifts sorted and
delivered. This is an example of
A) interface marketing.
B) flex marketing.
C) direct selling.
D) interactive selling.
E) responsive selling.
152) The analytical tool that positions retail outlets in terms of the breadth of their product line
and value added, such as location, product reliability, or prestige, is the
A) growth share matrix.
B) MAC framework.
C) market-product grid.
D) retail positioning matrix.
E) wheel of retailing.
153) The retail positioning matrix is an analytical tool that
A) positions retail outlets in terms of the breadth of product line and value added.
B) identifies the best location for building or leasing a retail store.
C) identifies the specific customer base served by all stores within a given radius.
D) identifies the most likely target market for a retail outlet based upon its size.
E) identifies the elements of the retailing mix.
154) The vertical dimension of the retail positioning matrix is
A) depth of product line.
B) relative market share.
C) value added.
D) breadth of product line.
E) stage in the retail life cycle.
155) The horizontal dimension of the retail positioning matrix is
A) depth of product line.
B) value added.
C) relative market share.
D) breadth of product line.
E) stage in the retail life cycle.
156) The value added dimension of the retail positioning matrix includes elements such as
product reliability, prestige, and
A) level of service.
B) market share.
C) location.
D) price.
E) number of employees.
157) The value added dimension of the retail positioning matrix includes elements such as
location, product reliability, and
A) prestige.
B) price.
C) market share.
D) number of employees.
E) level of service.
158) Which of the following retailers would best fit in quadrant A shown in the retail positioning
matrix, Figure 16-8 above?
A) Payless ShoeSource
B) Macy's department store
C) 7-Eleven convenience store
D) Walmart
E) Lamborghini automobile dealer
