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121) 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.
122) Online retail purchases by consumers can be the result of several very different approaches,
including patronizing online malls, becoming a member of an online discount service, and
A) becoming a secret shopper.
B) participating in a buying cooperative.
C) using direct selling.
D) shopping via vending machine.
E) participating in an online auction.
123) One of the biggest problems online retailers face is that about ________ percent of online
shoppers make it to "checkout" and then leave the website to compare shipping costs and prices
on other sites.
A) 10
B) 20
C) 30
D) 50
E) 80
124) 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.
125) 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
126) Online retailing has evolved to include social shopping options like intermediaries
(Groupon), marketplaces (Google Offer), and ________ (Yipit).
A) swap meets
B) aggregators
C) flash mobs
D) showroomers
E) arbitrators
127) 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.
128) 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
129) 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 become more effective 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.
130) 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.
131) 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.
132) 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.
133) Direct selling, sometimes called ________, involves direct sales of goods and services to
consumers through personal interactions and demonstrations in their home or office.
A) interface marketing
B) flex marketing
C) interactive selling
D) responsive selling
E) door-to-door retailing
134) 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.
135) 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.
136) In response to the changes in the United States, many direct sellers are implementing a(n)
________ 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
137) 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 shopping online or in big discount stores.
138) 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.
139) 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.
140) The activities related to managing the store and the merchandise in the store, which
includes retail pricing, store location, retail communication, and merchandise are referred to as
the
A) wheel of retailing.
B) distribution mix.
C) retail life cycle.
D) retailing mix.
E) retail store positioning.
141) The retailing mix refers to the activities related to managing a store, and includes
A) product, price, promotion, and place.
B) the four utilities of time, form, possession, and place.
C) the colors, sizes, shapes, and perceived value of the store's products.
D) retail pricing, store location, retail communication, and merchandise.
E) selection of store location, selection of merchandise, hiring and training of employees, and
promotion of both the store and products.
142) When developing retailing strategies, marketers develop a retailing mix that includes
A) products, services, promotions, and retail communication.
B) promotions, publicity, and press releases.
C) retail pricing, store location, retail communication, and merchandise.
D) physical environment, people, process, and productivity.
E) direct mail, online stores, traditional stores, and outlet stores.
143) The retailing mix includes all of the following except which?
A) merchandise
B) target market
C) retail pricing
D) store location
E) retail communication
144) When setting prices for merchandise, retailers must decide on the markup, the markdown,
and the ________ for markdowns.
A) relevance
B) necessity
C) percentage
D) timing
E) consequence
145) A markup refers to
A) the difference between the final selling price and how the customer values the product.
B) selling brand name merchandise at lower than regular prices.
C) the amount added to the cost the retailer paid for a product to reach the final selling price.
D) the difference between the retail cost and initial selling price.
E) the reduction in retail price, usually expressed as a percentage equal to the amount reduced,
divided by the original price, and then multiplied by 100.
146) The amount added to the cost the retailer paid for a product to reach the final selling price is
referred to as
A) a markup.
B) a markdown.
C) an original markup.
D) a maintained margin.
E) a cost-plus markup.
147) Jane Westerlund owns a small retail picture frame store in a local strip mall. She just bought
10 picture frames from a promising woodworker for $36 each. Based on market conditions, she
will sell these for $100 each. What is her markup in dollar terms?
A) $136
B) $64
C) $72
D) $360
E) $10
148) The difference between the retailer's cost and the initial selling price is referred to as the
A) net margin.
B) maintained markup.
C) markdown.
D) differential markup.
E) original markup.
149) A retailer bought a collectible Precious Moments figurine for $26. She sets the initial
selling price at $60. The final selling price was $52. What was the original markup?
A) $26
B) $86
C) $78
D) $34
E) $112
150) A maintained markup is
A) the difference between the final selling price and the retailer's cost.
B) the initial selling price minus the amount paid by the retailer.
C) the amount the manufacturer adds to achieve the desired suggested retail price.
D) the net margin.
E) the highest price listed for the product.
151) The difference between the final selling price and the retailer's cost is referred to as the
A) original markup.
B) maintained markup.
C) markdown.
D) differential markup.
E) discounted price.
152) Another term for maintained markup is
A) original markup.
B) maintained markup.
C) markdown.
D) gross margin.
E) net margin.
153) A retailer bought a collectible Precious Moments figurine for $26. She sets the initial
selling price at $60. The final selling price was $52. What was the maintained markup?
A) $112
B) $52
C) $26
D) $34
E) $86
154) Jane Westerlund owns a small retail picture frame store in a local strip mall. She just bought
10 picture frames from a promising woodworker for $36 each. Based on market conditions, she
planned to sell these for $100 each. Recently, however, sales have been a bit slow. Jane decides
to reduce the price for the frames to $80. What is her maintained markup in dollar terms?
A) $100
B) $20
C) $44
D) $64
E) $80
155) Discounting a product when the product does not sell at the original price is referred to as
A) an inverse markup.
B) a markdown.
C) price sensitivity.
D) concession pricing.
E) a rebate.
156) A markdown refers to
A) the difference between the final selling price and the retailer's cost.
B) the amount the manufacturer adds to achieve the desired suggested retail price.
C) discounting a product when it does not sell at the original price and an adjustment is
necessary.
D) the lowest price to which a retailer can reduce a sales ticket and still make a profit.
E) the net margin.
157) Many retailers take a markdown as soon as sales fall to free valuable selling space and cash.
This illustrates one tactic for handling the ________ of markdowns.
A) timing
B) demand
C) availability
D) bargain hunting
E) customer value
158) When retailers set prices on new models or styles of products, the price of existing models
often is ________ to quickly sell them.
A) benchmarked
B) off-priced
C) value-added
D) marked down
E) maintained
159) To increase the demand for complementary products, the price of a product often is
A) marked up.
B) marked down.
C) off-priced.
D) value-subtracted.
E) maintained.
160) Markdowns can be used to
A) increase competition with other retailers in the immediate vicinity.
B) placate dissatisfied customers.
C) enhance customer perceptions of product quality.
D) increase demand for complementary products.
E) reduce the sense of urgency among repeat buyers.
