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

Question 1

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

A)Startup costs are generally very high.
B)Pricing may be difficult to plan since catalogs need to be prepared well in advance.
C)It is difficult to pinpoint consumer segments through mailings.
D)Customer shopping is generally inconvenient.

Answer 1

B

Question 2

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

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

Answer 2

C

Question 3

Which statement concerning global direct marketing is not correct?

A)There is a decreasing acceptance of nonstore retailing outside the United States.
B)Outside the United States,annual direct sales are in the hundreds of billions of dollars.
C)Eddie Bauer and Lands' End are among the firms with a significant international presence.
D)There are direct marketing trade associations in such diverse countries as Australia,Brazil,China,and Russia.

Answer 3

A

Question 4

Which of the following are characteristics of direct marketing?

A)exposure to a good or service through a nonpersonal medium and ordering via mail,phone,fax,or computer
B)exposure to a good or service through a nonpersonal medium and ordering via personal interaction
C)exposure to a good or service through a personal medium and ordering via mail,phone,fax,or computer
D)exposure to a good or service through a personal medium and ordering via personal interaction

Question 5

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

A)single-channel retailing;multi-channel retailing
B)mass marketing;concentrated marketing
C)differentiated marketing;mass marketing
D)independent;a fully integrated vertical marketing system

Question 6

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

A)define one's business
B)select media
C)generate customers
D)arrange order fulfillment

Question 7

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

A)vending machines are located in offices,restaurants,and factories
B)consumers are solicited via in-person selling efforts
C)the transaction is not via mail,phone,fax,or computer
D)the average transaction is too low

Question 8

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

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

Question 9

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

A)nonregular
B)nonrespondent
C)new trial
D)new contact

Question 10

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

A)services retailing
B)direct marketing
C)direct selling
D)retail catalog showrooms

Question 11

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

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

Question 12

The fastest-growing form of direct marketing is _____.

A)direct selling
B)vending machines
C)airport retailing
D)Web-based retailing

Question 13

Direct marketers are most affected by which federal legislation?

A)Robinson-Patman Act
B)30-day rule
C)Green River ordinances
D)blue laws

Question 14

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

A)catalogs and Web-based retailing
B)kiosks and shopping networks
C)shopping networks and infomercials
D)cable television and shopping networks

Question 15

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

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 16

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

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 17

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

A)regulars and nonregulars
B)regulars and new trails
C)regulars and new contacts
D)buyers and users

Question 18

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

A)specialogs
B)prototype stores
C)scrambled merchandising
D)rationalized retailing

Question 19

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

A)marketing research
B)retail information systems
C)data-base retailing
D)direct selling

Question 20

Ease of entry into direct marketing is facilitated by _____.

A)low capital requirements due to no need for stores
B)the use of dual distribution channels
C)the need for technological skills
D)low paper and postage costs

Question 21

The overall response rate,average purchase amount,and sales volume by product category are _____ for direct marketers.

A)customer contact guidelines
B)order fulfillment guidelines
C)methods of measuring results
D)business definition guidelines

Question 22

Which of the following is not an example of a recent vending machine-related innovation?

A)electronic cash-handling mechanisms
B)microprocessors that track consumer preferences and trace malfunctions
C)voice synthesizers
D)theft-resistant vending machines

Question 23

The part of electronic retailing with interactive video and audio capability is referred to as the _____.

A)Internet
B)World Wide Web
C)information superhighway
D)virtual network

Question 24

Which forms of nontraditional marketing do not clearly fit into a "store-based" or "nonstore-based" classification?

A)catalog sales and airport retailing
B)vending machines and direct selling
C)video kiosks and airport retailing
D)direct marketing and direct selling

Question 25

Which of the following is not an adverse factor affecting direct selling?

A)the unavailability of female consumers in their homes due to a large proportion of the female population that currently works
B)high sales turnover of sales personnel
C)a poor image associated with direct selling careers
D)high mailing and catalog production costs

Question 26

Direct selling involves _____.

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 27

Merchandise cannot generally be examined by consumers in which retail formats?

A)membership clubs and flea markets
B)direct selling and specialty stores
C)direct marketing and vending machines
D)retail catalog showrooms and membership clubs

Question 28

A major benefit to airport retailers is _____.

A)limited competition
B)freedom from local sales tax
C)ease of stock replenishment
D)a captive audience

Question 29

From a consumer's perspective,a video kiosk most closely resembles a(n)_____.

A)vending machine
B)point-of-sale system
C)Web browser
D)ATM

Question 30

A firm uses both direct selling,as well as department store formats to sell its cosmetic products.This illustrates _____.

A)an independent vertical marketing system
B)a partially integrated vertical marketing system
C)a fully integrated vertical marketing system
D)multi-channel retailing

Question 31

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

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

Question 32

Fulfillment/reliability in terms of the Web relates to _____.

A)ease of navigating a Web site
B)download time for graphics products
C)number of clicks to purchase an item
D)accurate,timely delivery

Question 33

A freestanding,interactive electronic computer terminal that displays products and related information on a video screen is a(n)_____.

A)infomercial
B)Web browser
C)video kiosk
D)point-of-sale terminal

Question 34

Which statement concerning vending machines is correct?

A)Over 95 percent of vending machine sales involve hot and cold beverages and food items.
B)Eighty-five percent of vending machine sales involve cigarettes.
C)There has been significant growth in the sale of items priced above $5.00 in vending machines.
D)Most vending machines are equipped with dollar bill changers.

Question 35

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

Question 36

Which process involves the handling of a credit transaction,issuing receipts,forwarding orders to a warehouse,and shipping goods to a final consumer?

A)logistics
B)order fulfillment
C)inventory management
D)third-party logistics

Question 37

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

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

Question 38

Web-related global sales should have the highest market penetration for which type of goods and services?

A)cars
B)flowers
C)books
D)toys/dolls

Question 39

The system to process a direct marketing order is referred to as _____.

A)outsourcing
B)logistics
C)inventory management
D)order fulfillment

Question 40

Direct marketing is characterized by reduced inventories,low rental costs,and low display costs.These characteristics _____.

A)increase shopper convenience
B)enable ease of entry into direct marketing
C)make shopping safe for consumers
D)reduce direct marketing clutter

Question 41

The depersonalization of many neighborhoods and the increase in working women have had the greatest detrimental effect on which retailer?

A)direct marketing
B)direct selling
C)vending machines
D)retail catalog showroom

Question 42

Which of the following is an example of direct marketing?

A)a final consumer being exposed to a good or service through a Web-based ad
B)a final consumer being exposed to a good or service through a door-to-door salesperson
C)a final consumer being exposed to a good or service through a referral by a neighbor
D)a final consumer being exposed to a good or service through a referral by a department store's salesperson

Question 43

Which aspect of a direct marketing strategy involves the merging and purging of client names?

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

Question 44

A traditional bricks-and-mortar camera retailer also operates a Web site.While the store location features new cameras,the Web site features collectible cameras,as well as used equipment.This strategy illustrates _____.

A)multi-channel retailing
B)the retail life cycle
C)mass marketing
D)the theory of retail evolution

Question 45

Which of the following is not an example of an effective response to the changed environment affecting direct selling?

A)placing greater emphasis on workplace,as opposed to home-based,sales
B)supplementing direct selling with Web-based sales
C)reducing sales commissions to encourage direct salespeople to become more productive
D)hiring community residents to gain access to developments and housing complexes that block nonresidents

Question 46

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

Question 47

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

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

Question 48

A bricks-and-mortar retailer questions whether it should also sell goods through the Web as part of a dual distribution channel strategy.What step is involved in the retailer's direct marketing strategy?

A)order fulfillment
B)customer contact
C)customer response
D)business definition

Question 49

A common problem with all forms of direct marketing is the _____.

A)difficulty in a consumer's visualizing the product's texture,color,and fit
B)inability of a retailer to generate mailing lists from a customer data base
C)inability to classify shoppers on the basis of their past shopping behavior
D)high startup costs

Question 50

Which of the following transactions is not part of direct marketing?

A)a consumer searching for a camera dealer via a Yellow Pages phone directory
B)a consumer bidding on a camera accessory on eBay
C)a consumer shopping for a camera accessory from a catalog
D)a consumer purchasing a camera accessory at an airport retailer

Question 51

The major difference between the Internet and the World Wide Web is based on _____.

A)the faster speed of the Internet
B)the regulated nature of the Internet
C)the audio-visual capability of the World Wide Web
D)the free nature of the Internet

Question 52

The use of relationship marketing is most important for _____.

A)new contacts
B)regulars
C)loyalists
D)nonregulars

Question 53

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

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

Question 54

A direct marketer is involved in decisions relating to headlines,paper quality,and message content.What step is involved in the retailer's direct marketing strategy?

A)presenting the message
B)customer contact
C)business definition
D)customer response

Question 55

A direct marketer that seeks to reduce its inventory investment and risk through purchasing its goods after they are paid for by consumers needs to be concerned with _____.

A)the wheel of retailing
B)the four rights of consumers
C)employee empowerment
D)the 30-day rule

Question 56

The small average transaction size,high theft rate,and the need to constantly maintain vending machines contribute to which of the following characteristics of vending machines?

A)the need for high gross profit margins on items sold
B)the search for economies of scale
C)the need to make vending machines that can be sold throughout the world
D)the need to create vending machines that can be programmed

Question 57

From a data-base retailing perspective,which group most closely resembles the 80-20 principle?

A)regulars
B)new contacts
C)loyalists
D)nonregulars

Question 58

Which form of direct marketing uses advertising to first expose a consumer to a good or service?

A)specialogs
B)video kiosks
C)Web-based retailing
D)infomercials

Question 59

Which of the following is not a major limitation of direct marketing?

A)high direct marketing clutter
B)dated prices and styles due to catalog printing dates
C)the ability to target niche markets
D)inability of customers to examine products prior to purchase

Question 60

The increased participation of women in the workforce,longer commuting times,and increased numbers of single parents all contribute to the increased importance of _____ through direct marketing.

A)low costs
B)greater personalization
C)convenience
D)greater customer service

Question 61

Which of the following is not a role of the Web from the vantage point of the retailer?

A)to furnish customer service in the form of E-mail and "hot links"
B)to replace mail,phone,and fax communications
C)to reach geographically dispersed consumers,including foreign consumers
D)to provide information to consumers

Question 62

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

Question 63

Vending machines allow for around-the-clock sales.

Question 64

In comparison to direct marketing and Web-based retailing,sales growth in direct selling has been comparatively low.

Question 65

PayPal has become successful among consumers due to concerns with _____.

A)credit-card fraud
B)unsolicited E-mails
C)download time
D)graphics quality

Question 66

Which of the following is not a major benefit of the World Wide Web to a small retailer?

A)the ability to receive orders and inquiries on a 24/7 basis
B)the ability to reach distant customers,including foreign ones
C)the ability to reach all potential customers
D)the ability to project a large presence on the Web

Question 67

The retail strategy mix in direct selling emphasizes convenience in shopping and a personal touch.

Question 68

From a customer's perspective,which of the following is not a major impediment to Web-based retail transactions?

A)slow downloading times
B)local sales taxes to be paid
C)concern with credit card security
D)concern with privacy

Question 69

Which of the following is not a component of an electronic kiosk?

A)a printer
B)full motion audio and video
C)a magstripe card reader
D)cash receipt equipment

Question 70

Which of the following contributes to the very high sales per square foot in airport retailing?

A)a captive audience
B)high rental costs
C)a transitory population
D)high security

Question 71

Direct marketing is limited to catalog purchases.

Question 72

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

Question 73

Consumers order by mail,phone,fax,or computer,smart phone,or tablet in direct marketing.

Question 74

A characteristic of an excellent "telling" Web site is _____.

A)ease of ordering
B)consumer privacy
C)the high level of credit-card security
D)store hours and locations

Question 75

Which of the following is a major benefit to a retailer's use of the Web as opposed to a bricks-and-mortar facility?

A)better credit card security
B)simpler logistics
C)ability to target individual customers
D)lack of clutter

Question 76

In the media selection stage of a direct marketing strategy,a retailer needs to decide to rent or purchase an appropriate mailing list from a broker.

Question 77

Which of the following is a not a major disadvantage of Web-based retailing from a retailer's perspective?

A)the need to register with the appropriate search engines
B)the difficulty in accurately portraying color and texture
C)receiving Web-based sales from traditional bricks-and-mortar customers
D)the need to constantly maintain the Web site

Question 78

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

Question 79

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

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

Question 80

A significant aspect to direct marketing is the development and maintenance of a customer data base.