Question 1

A retail firm wants to focus its efforts on a narrow target market: deep-sea fishing enthusiasts who wish to purchase costly fishing accessories.The most appropriate nonstore-based strategy mix (with the lowest waste coverage)is _____.

Accepted Answer

A) airport retailing 
B) direct selling 
C) vending machines 
D) direct marketing

Question 2

A major disadvantage to the use of a blind mailing is the _____.

Accepted Answer

A) high mailing-list cost 
B) low response rate 
C) high paper costs per unit 
D) inability to purchase an appropriate list

Question 3

Web-based retailers can either operate their own fulfillment operation or assign these responsibilities to a third party.

Accepted Answer

A) True 
 B)False

Question 4

Duty-free shopping is an important component to airport retailing where global flights exits.

Accepted Answer

A) True 
 B)False

Question 5

The characteristics of Web users can be most accurately summarized as being _____.

Accepted Answer

A) empty nesters 
B) upscale 
C) sole survivors 
D) newly married

Question 6

In comparison to direct selling,in direct marketing,a consumer is first exposed to a good or service through a nonpersonal medium.

Accepted Answer

A) True 
 B)False

Question 7

Video kiosks can be situated in such locations as hotel lobbies and within a shopping center mall.

Accepted Answer

A) True 
 B)False

Question 8

Direct selling involves _____.

Accepted Answer

A) personal contact with consumers in their homes and a consumer's ordering via mail,phone,fax,or computer 
B) nonpersonal media and a consumer's ordering via mail,phone,fax,or computer 
C) personal contact with consumers in their homes and phone solicitations initiated by a retailer 
D) nonpersonal media and phone solicitations initiated by a retailer

Question 9

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

Accepted Answer

A) general;specialty 
B) mail;phone order 
C) low-end;high-end 
D) store;nonstore-based

Question 10

In comparison to traditional store-based retailing,startup costs in direct marketing are comparatively low.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) a duration of under 5 minutes 
B) a program-length commercial 
C) use of fringe times 
D) use of cable or broadcast television

Question 12

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

Accepted Answer

A) new contacts and nonrespondents 
B) nonregulars and new contacts 
C) nonregulars and nonrespondents 
D) nonregulars and new trails

Question 13

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

Accepted Answer

A) Startup costs can be very low. 
B) Customers are given a convenient method of shopping. 
C) A very large geographic area can be inexpensively covered. 
D) Products can be examined prior to purchase.

Question 14

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

Accepted Answer

A) multi-channel retailing 
B) scrambled merchandising 
C) the wheel of retailing 
D) rationalized retailing

Question 15

The Web is the least effective medium in reaching what type of customer?

Accepted Answer

A) the elderly 
B) the affluent 
C) college graduates 
D) professionals

Question 16

A traditional retailer contemplating a Web operation is concerned about its ability to ship small orders to individual consumers in a timely manner.Which aspect of its direct marketing strategy is the retailer questioning?

Accepted Answer

A) order fulfillment 
B) business definition 
C) data-base maintenance 
D) customer response

Question 17

A major limitation to direct marketing is the inability of consumers to examine a product prior to purchase.

Accepted Answer

A) True 
 B)False

Question 18

Direct marketing is limited to catalog purchases.

Accepted Answer

A) True 
 B)False

Question 19

The Web now accounts for over 10 percent of overall retail sales.

Accepted Answer

A) True 
 B)False

Question 20

A customer data base can more easily be developed and maintained in all forms of direct marketing than in other forms of retailing because _____.

Accepted Answer

A) goods are shipped to a customer's home or office 
B) consumer concern for privacy is high 
C) consumer responses to promotions are typically high 
D) high direct marketing clutter exists

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

A retail firm wants to focus its efforts on a narrow target market: deep-sea fishing enthusiasts who wish to purchase costly fishing accessories.The most appropriate nonstore-based strategy mix (with the lowest waste coverage) is _____.

A major disadvantage to the use of a blind mailing is the _____.

Web-based retailers can either operate their own fulfillment operation or assign these responsibilities to a third party.

Duty-free shopping is an important component to airport retailing where global flights exits.

The characteristics of Web users can be most accurately summarized as being _____.

In comparison to direct selling,in direct marketing,a consumer is first exposed to a good or service through a nonpersonal medium.

Video kiosks can be situated in such locations as hotel lobbies and within a shopping center mall.

Direct selling involves _____.

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

In comparison to traditional store-based retailing,startup costs in direct marketing are comparatively low.

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

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

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

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

The Web is the least effective medium in reaching what type of customer?

A traditional retailer contemplating a Web operation is concerned about its ability to ship small orders to individual consumers in a timely manner.Which aspect of its direct marketing strategy is the retailer questioning?

A major limitation to direct marketing is the inability of consumers to examine a product prior to purchase.

Direct marketing is limited to catalog purchases.

The Web now accounts for over 10 percent of overall retail sales.

A customer data base can more easily be developed and maintained in all forms of direct marketing than in other forms of retailing because _____.