Q&A Hero

Q: 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

Q: 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.

Q: 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

Q: 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

Q: As a result of legislation, consumers who do not want to receive telephone calls related to a 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.

Q: 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 more efficient means of targeting consumers than telemarketing. C. Telemarketing has risen in popularity as a result of the National Please-Do-Call registry legislation. D. Consumer privacy, industry standards, and ethical guidelines have become important issues. E. Some firms are considering shifting their direct-mail and door-to-door budgets to telemarketing techniques.

Q: In the telemarketing industry, issues such as consumer privacy, __________, and industry standards have become a topic of discussion among consumers, Congress, the Federal Trade Commission (FTC), and businesses. A. product quality B. price differences C. ethical guidelines D. on-time delivery E. competitive antics

Q: 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

Q: 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

Q: Online retailing has evolved to include social shopping options like intermediaries (Groupon), marketplaces (Goggle Offer), and __________ (Yipit). A. swap meets B. aggregators C. flash mobs D. showroomers E. arbitrators

Q: 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

Q: 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 to compare shipping costs and prices on other sites. Of the shoppers who leave, __________ do not return. A. 30% B. 40% C. 50% D. 60% E. 70%

Q: One of the biggest problems online retailers face is that nearly __________ 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%

Q: Online retail purchases by consumers can be the result of several very different approaches, which include: (1) using a shopping "bot" to search for a product at locations with the best price; (2) participating in an online auction; (3) going directly to online malls; and (4) A. paying dues to become a member of an online discount service. B. becoming a secret shopper. C. participating in a buying cooperative. D. using direct selling. E. becoming a member of a research group that evaluates new products.

Q: In recent years, online sales accounted for __________ of all retail sales. A. 5 percent B. 10 percent C. 20 percent D. 30 percent E. 40 percent

Q: Walmart recently introduced its Site-to-Store service thatA. offers shoppers a virtual reality shopping experience from their home computers.B. allows customers to order online and receive free same-day pickup at a local store.C. provides free shipping to customers if they order $45 or more of selected items.D. allows customers to "showroom," coming to the store, compare an item's price on the Internet, and then honor a competitor's lower price if they bring an ad of the item to the store.E. allows customers hold online auctions for Walmart overstock or seasonal items that are being discontinued to make room for new inventory.

Q: 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 savvy buyers; computer novice buyers

Q: Which type of utility is created by online shopping? A. time B. price C. product D. process E. promotion

Q: 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

Q: In the past, television home shopping programs have attracted mostly A. 20 to 30 year old men. B. 30 to 40 year old women. C. 40 to 50 year old men. D. 40 to 60 year old women. E. 50 to 70 year old men.

Q: Which of the following statements regarding QVC is most accurate? A. QVC broadcasts five hours a day every weekday evening during prime time. B. QVC reaches more than 300 million households in the U.S., U.K., Germany, Italy, China, and Japan. C. QVC never offers the same product two days in a row. D. QVC sells all its items by dropping the price to less than $10.00 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.

Q: QVC is a television home shopping network. It generates sales of more than $8.6 billion from its 60 million customers by A. restricting purchases only through its Mall of America studio. B. broadcasting live five hours a day every weekday evening during prime time. C. offering more than 1,150 products each week. D. offering overstocked items from retailers at a fraction of the original cost. E. running live podcasts and live streaming over the Internet.

Q: Currently, the three largest television home shopping programs in the United States are A. QVC, HSN, and ShopNBC. B. Direct Shopper, Shop at Home, and ShopNBC. C. ValueVision, Shop at Home, and QVC. D. Shop America, Direct shopper, and J.S. Global. E. Shop at Home, QVC, and HSN.

Q: Jim Smith is an avid fly fisherman who lives in Deer Key, FL. For his hobby, Jim 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 in Deer Key, 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

Q: 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

Q: Usage of specialty catalogs, like those from firms like IKEA, Crate and Barrel, and L.L. Bean have been affected by all of the following factors EXCEPT: A. influence of larger retailers as their marketing activities have increased the number and variety of products consumers purchase through direct mail and catalogs. 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 catalog shopping where consumers view the products they are interested in and then order those they want over the telephone.

Q: 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. a focus on proven rather than prospective customers. C. the use of thinner, lightweight paper products. D. the banning of "junk" mail by a growing number of environmentally-concerned communities. E. a resurgence in non-automated telemarketing.

Q: 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 specialty catalogs for market niches. D. the banning of "junk" mail by a growing number of environmentally-concerned communities. E. a resurgence in non-automated telemarketing.

Q: Ikea catalog photo An IKEA mail order catalog (see photo above) is an example of __________ retailing. A. intrusive B. intertype C. scrambled D. nonstore E. hypermarket

Q: In choosing the appropriate marketing channel, a firm should consider the interests that buyers might want fulfilled. These interests fall into four broad categories: (1) information; (2) convenience; (3) variety; and (4) __________. A. availability B. quality C. brand name recognition D. price E. pre- or postsale services

Q: In choosing the appropriate marketing channel, a firm should consider the interests that buyers might want fulfilled. These interests fall into four broad categories: (1) information; (2) convenience; (3) __________; and (4) pre- or postsale services. A. availability B. quality C. variety D. brand name recognition E. adaptability

Q: In choosing the appropriate marketing channel, a firm should consider the interests that buyers might want fulfilled. These interests fall into four broad categories: (1) __________; (2) convenience; (3) variety; and (4) pre- or postsale services. A. profitability B. information C. quality D. brand name recognition E. availability

Q: Which is the most common form of distribution density used today? A. selective distribution B. intensive distribution C. extensive distribution D. exclusive distribution E. concentrated distribution

Q: The distribution intensity associated with products such as personal computers such as those from Dell is referred to as __________. A. intensive distribution B. selective distribution C. extensive distribution D. exclusive distribution E. concentrated distribution

Q: Which type of distribution lies between the two distribution extremes, combining some market coverage benefits and some control over resale? A. intensive distribution B. discriminate distribution C. exclusive distribution D. selective distribution E. concentrated distribution

Q: Selective distribution refers to A. the density of distribution whereby a firm tries to place its products or services in as many outlets as possible. B. the distribution of products or services in markets where there are currently no other competitors. C. the distribution of products or services where the producer owns the entire channel of distribution. D. the density of distribution whereby a firm tries to place its products or services with only one retail outlet in a specified geographical area. E. the density of distribution whereby a firm tries to place its products or services in a few retail outlets in a specific area.

Q: A level of distribution density whereby a firm tries to place its products in a few retail outlets in a specific geographical area is referred to as __________. A. intensive distribution B. extensive distribution C. selective distribution D. exclusive distribution E. concentrated distribution

Q: For which of the following products would their respective manufacturers be most likely to use exclusive distribution? A. Timex watches, Hanes underwear, and Nike shoes B. Chanel perfume, Steinway pianos, and Baccarat crystal C. Oreos, Teddy Grahams, and Nilla Wafers D. paper clips, light bulbs, and file folders E. Lean Cuisine meals, Breyer's Ice Cream, and Coca-Cola

Q: Which type of distribution density does Piaget use when this maker of fine jewelry and watches distributes its products through a single retailers in select cities in the United States? A. intensive distribution B. extensive distribution C. selective distribution D. exclusive distribution E. private label distribution

Q: Which type of distribution density does Rolls Royce use when the car manufacturer maintains only one dealership in any large metropolitan area? A. exclusive distribution B. intensive distribution C. extensive distribution D. selective distribution E. private label distribution

Q: Bentley Motors makes one of the world's most prestigious automobile brands, targeting the ultra-luxury segment. Which type of market coverage does Bentley most likely use? A. intensive distribution B. extensive distribution C. selective distribution D. exclusive distribution E. private label distribution

Q: John Deere manufactures and distributes industrial and farm equipment. These types of equipment are considered to be specialty products. Which type of market coverage does John Deere most likely use? A. intensive distribution B. exclusive distribution C. extensive distribution D. selective distribution E. private label distribution

Q: Retailers and industrial distributors prefer exclusive distribution for two reasons. One is that __________. A. it provides a point of difference for a retailer or distributor B. it eliminates channel conflict C. it is usually chosen for convenience D. it has market coverage benefits E. it is the most common form of distribution intensity

Q: Retailers and industrial distributors prefer exclusive distribution for two reasons. One is that __________. A. it is the most common form of distribution intensity B. it eliminates channel conflict C. it is usually chosen for convenience D. it has market coverage benefits E. it limits head-to-head competition for an identical product

Q: There are three degrees of distribution - one of these being intensive distribution. What is the extreme opposite of this degree of density? A. exhaustive distribution B. thorough distribution C. selective distribution D. concentrated distribution E. exclusive distribution

Q: Exclusive distribution refers toA. the distribution of products or services in markets where there are currently no other competitors.B. the distribution of products or services where the producer owns the entire channel of distribution.C. the density of distribution whereby a firm tries to place its products or services with only one retail outlet in a specified geographical area.D. the density of distribution whereby a firm tries to place its products or services in as many outlets as possible.E. the density of distribution whereby a firm tries to place its products or services in a few retail outlets in a specific area.

Q: A level of distribution density whereby only one retailer in a geographical area carries the firm's products is referred to as __________. A. intensive distribution B. extensive distribution C. selective distribution D. concentrated distribution E. exclusive distribution

Q: Breath mints, bottled water, and batteries would most likely use which type of distribution density? A. extensive distribution B. intensive distribution C. selective distribution D. exclusive distribution E. concentrated distribution

Q: Candy bars should most likely be sold using which type of target market coverage? A. exclusive distribution B. direct distribution C. intensive distribution D. dual distribution E. selective distribution

Q: Intensive distribution refers toA. the distribution of products or services in markets where there are currently no other competitors.B. the distribution of products or services where the producer owns the entire channel of distribution.C. the density of distribution whereby a firm tries to place its products or services with only one retail outlet in a specified geographical area.D. the density of distribution whereby a firm tries to place its products or services in as many outlets as possible.E. the density of distribution whereby a firm tries to place its products or services in a few retail outlets in a specific area.

Q: The density of distribution whereby a firm tries to place its products or services in as many outlets as possible is referred to as __________. A. intensive distribution B. extensive distribution C. selective distribution D. exclusive distribution E. concentrated distribution

Q: The three degrees of distribution density are A. intensive, extensive, and selective. B. extensive, concentrated, and selective. C. intensive, exclusive, and selective. D. extensive, pervasive, and concentrated. E. concentrated, exclusive, and intensive.

Q: In marketing, the term __________ is used to describe the number of stores in a geographical area. A. density B. breadth C. depth D. mass E. concentration

Q: In terms of target market coverage, density refers to the number of __________ in a geographical area. A. target market customers B. competitors C. wholesalers D. retail stores E. stakeholders

Q: When choosing a marketing channel or intermediary, it is important to ask three key questions: (1) Which channel and intermediaries will provide the best coverage of the target market? (2) Which channel and intermediaries will best satisfy the buying requirements of the target market? and (3) A. How many of the firm's competitors will be using the same channels? B. Which channels have strategic channel alliances with other resellers? C. How long have the channel members and intermediaries been in business? D. Who is responsible for negotiating the channel or intermediary contracts? E. Which channel and intermediaries will be the most profitable?

Q: Walmart can obtain cooperation from manufacturers in terms of product specifications, price levels, and promotional support, given its position as the world's largest retailer. Walmart plays the important role in a(n) A. service-sponsored retail system. B. administered vertical marketing system. C. retailer-sponsored cooperative. D. administered cooperative system. E. manufacturer-sponsored cooperative.

Q: Procter & Gamble can obtain cooperation from supermarkets in terms of displaying, promoting, and pricing its products, given its broad assortment of brand-name products. Which type of vertical marketing system does Procter & Gamble represent? A. corporate vertical marketing system B. integrated vertical marketing system C. contractual vertical marketing system D. administered vertical marketing system E. forward integration vertical marketing system

Q: Which of the following statements best describes the difference between a corporate vertical marketing system and an administered vertical marketing system? A. Administered vertical marketing systems gain power through ownership while corporate vertical marketing systems gain power through contractual agreement. B. Administered vertical marketing systems gain power through the size and influence of one channel member and through ownership, rather than through contractual arrangement. C. Administered vertical marketing systems gain power through contractual agreements and ownership rather than through size. D. Administered vertical marketing systems are usually larger and more profitable than corporate vertical marketing systems. E. Administered vertical marketing systems achieve coordination in production and distribution through the size and influence of one channel member rather than through ownership.

Q: An administered vertical marketing system refers to a marketing system A. that achieves coordination at successive stages of production and distribution by contractual agreements between channel members. B. that achieves coordination at successive stages of production and distribution by cooperation and consensus among all members of the marketing chain. C. that achieves coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership. D. where a channel member (producer, wholesaler, or retailer) is elected to coordinate, direct, and support all other channel members. E. that is run and coordinated completely outside the traditional chain of distribution by a firm that specializes in that industry's specific logistics needs.

Q: The type of vertical marketing system that achieves coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership is referred to as a(n) __________. A. corporate vertical marketing system B. integrated vertical marketing system C. contractual vertical marketing system D. administered vertical marketing system E. interactive vertical marketing system

Q: A(n) __________ is common in the employment services and tax services industries where franchisors license individuals or firms to dispense a service under a trade name and specific guidelines. A. service-sponsored franchise system B. service-sponsored retail franchise system C. manufacturer-sponsored wholesale franchise system D. manufacturer-sponsored retail franchise system E. administered vertical marketing system

Q: A(n) __________ exists when a franchisor licenses individuals or firms to dispense a service under a trade name and specific guidelines. A. service-sponsored retail franchise system B. manufacturer-sponsored wholesale franchise system C. manufacturer-sponsored retail franchise system D. administered vertical marketing system E. service-sponsored franchise system

Q: Firms that have designed a unique approach for performing a service and wish to profit by selling the franchise to others employ a __________. A. customer-generated franchising system B. service-sponsored retail franchise system C. manufacturer-sponsored wholesale franchise system D. manufacturer-sponsored retail franchise system E. administered vertical marketing systems

Q: A __________ is common in the soft drink industry where the manufacturer sells its concentrate to wholesalers, who carbonate it, and market the finished product to retailers. A. service-sponsored franchise system B. service-sponsored retail franchise system C. manufacturer-sponsored wholesale franchise system D. manufacturer-sponsored retail franchise system E. administered vertical marketing system

Q: In the automobile industry, many companies use a __________, whereby a manufacturer licenses dealers to sell its cars subject to various sales and service conditions. A. service-sponsored producer franchise system B. service-sponsored retail franchise system C. manufacturer-sponsored wholesale franchise system D. manufacturer-sponsored retail franchise system E. administered vertical marketing system

Q: Jacob has developed a lawn care service that will revolutionize the lawn care industry. Jacob has limited operating capital and yet he still wants a wide distribution of his new product. Which of the following options would be the best choice for Jacob? A. He should develop an administered vertical marketing system. B. He should establish a corporate vertical marketing system. C. He should open up branch offices around the country to provide the exposure he needs. D. He should establish a wholesaler-sponsored voluntary chain. E. He should establish a service-sponsored retail franchise system.

Q: Ford uses a(n) __________, whereby the company license dealers in North America to sell Ford automobiles subject to various sales and service conditions. A. service-sponsored producer franchise system B. service-sponsored retail franchise system C. manufacturer-sponsored wholesale franchise system D. manufacturer-sponsored retail franchise system E. administered vertical marketing system

Q: The four most popular types of franchise arrangements are A. service-sponsored franchise systems, service-sponsored retail franchise systems, manufacturer-sponsored wholesale franchise systems, and manufacturer-sponsored retail franchise systems. B. service-sponsored retail franchise systems, corporate vertical marketing systems, wholesaler-sponsored voluntary chains, and service-sponsored franchise systems. C. manufacturer-sponsored wholesale franchise systems, service-sponsored retail franchise systems, corporate vertical marketing systems, and wholesaler-sponsored voluntary chains. D. manufacturer-sponsored retail franchise systems, service-sponsored retail franchise systems, corporate vertical marketing systems, and wholesaler-sponsored voluntary chains. E. administered vertical marketing systems, service-sponsored retail franchise systems, corporate vertical marketing systems, and wholesaler-sponsored voluntary chains.

Q: There are four popular types of franchising: (1) manufacturer-sponsored retail franchise systems; (2) manufacturer-sponsored wholesale franchise systems; (3) service-sponsored franchise systems; and (4) __________. A. service-sponsored retail franchise systems B. wholesaler-sponsored franchise systems C. horizontal-marketing franchise systems D. contractual-sponsored franchise systems E. customer-generated franchise systems

Q: There are four popular types of franchising: (1) manufacturer-sponsored retail franchise systems, (2) __________; (3) service-sponsored retail franchise systems; and (4) service-sponsored franchise systems. A. service-sponsored retail franchise systems B. manufacturer-sponsored wholesale franchise systems C. horizontal-marketing franchise systems D. contractual-sponsored franchise systems E. customer-oriented franchise systems

Q: There are four popular types of franchising: (1) __________; (2) manufacturer-sponsored wholesale franchise systems; (3) service-sponsored retail franchise systems; and (4) service-sponsored franchise systems. A. contractual-sponsored franchise systems B. wholesaler-sponsored franchise systems C. manufacturer-sponsored retail franchise systems D. horizontal-marketing franchise systems E. customer-oriented franchise systems

Q: Franchising is one form of a(n) __________. A. corporate vertical marketing system B. horizontal marketing system C. administered vertical marketing system D. wholesaler-sponsored voluntary system E. contractual vertical marketing system

Q: Franchising refers to A. a contractual agreement between multiple retailers sharing the same business mission to operate with a consistent business model to not only achieve enhanced buying power but also increase customer loyalty. B. a contractual arrangement between a parent company and an individual or firm that allows the latter to operate a certain type of business under an established name and according to specific rules. C. purchasing the name, branding, and raw materials from one organization and transferring it to another. D. a practice whereby one firm's marketing channel is used to sell another firm's product. E. selling an idea to a larger company and letting it do all the manufacturing, distribution, and marketing.

Q: A contractual arrangement between a parent company and an individual or firm that allows the latter to operate a certain type of business under an established name and according to specific rules is referred to as __________. A. a corporate vertical marketing system B. a wholesaler sponsored voluntary chain C. a retailer-sponsored cooperative D. franchising E. an administered vertical marketing system

Q: Ace Hardware is a national __________ that allows its members, retailers of paint and hardware products, to concentrate their buying power through wholesalers and more importantly plan collaborative promotional and pricing activities. A. service-sponsored retail system B. administered cooperative system C. retailer-sponsored cooperative D. manufacturer-sponsored cooperative E. wholesaler-sponsored voluntary chain

Q: A retailer-sponsored cooperative refers toA. small, independent retailers forming an organization that operates a wholesale facility cooperatively.B. a vertical marketing system that involves a contractual relationship between a wholesaler and small independent retailers to standardize and coordinate buying practices, merchandising programs, and inventory management.C. an agreement among small, privately owned manufacturers to pool their resources by sharing installations, heavy equipment, and warehousing that they would be unable to afford on their own.D. an agreement among retailers to pool their resources by purchasing services such as signage, snow removal, and trash removal that affects the physical space (strip mall, etc.) they all share.E. small, independent retailers that pool their resources to fianc store expansion programs.

Q: Which type of contractual vertical marketing system involves small independent retailers forming an organization that operates a wholesale facility cooperatively? A. retailer-sponsored cooperative B. service-sponsored retail system C. administered cooperative system D. manufacturer-sponsored cooperative E. wholesaler-sponsored voluntary chain

Q: IGA and Ben Franklin variety and craft stores are examples of A. service-sponsored retail systems. B. wholesaler-sponsored voluntary chains. C. retailer-sponsored cooperatives. D. administered cooperative systems. E. manufacturer-sponsored cooperatives.

Q: A vertical marketing system that involves a contractual relationship between a wholesaler and small independent retailers to standardize and coordinate buying practices, merchandising programs, and inventory management efforts is referred to as a(n) __________. A. service-sponsored retail franchise system B. retailer-sponsored cooperative C. administered vertical marketing system D. manufacturer-sponsored retail franchise system E. wholesaler-sponsored voluntary chain

Q: There are three variations of contractual vertical marketing systems: retailer-sponsored cooperatives, franchising, and __________. A. service-oriented voluntary chains B. channel-dominated voluntary chains C. wholesaler-sponsored voluntary chains D. distributorship cooperatives E. reseller franchising