Test bank for retail management a strategic approach 11th edition berman

Test Bank for Retail Management A Strategic Approach, 11th Edition: Berman

Test Bank for Retail Management A Strategic Approach, 11th Edition: Berman To download the complete and accurate content document, go to: https://testbankbell.com/download/test-bank-for-retail-management-a-strategic-appro ach-11th-edition-berman/

Visit TestBankBell.com to get complete for all chapters

Retail Management: A Strategic Approach, 11e (Berman/Evans) Chapter 6 Web, Nonstore-Based, and Other Forms of Nontraditional Retailing 1) Which strategy represents diversification?

A) electronic retailing B) direct retailing C) single-channel retailing D) multi-channel retailing Answer: D Diff: 1 Page Ref: 148 Skill: Terminology/Concept 2) The largest sector of nonstore retailing is ________.

A) the Web B) direct marketing C) electronic retailing D) vending machines Answer: B Diff: 1 Page Ref: 149 Skill: Terminology/Concept 3) A customer orders products by mail, phone, fax, or computer in ________.

A) services retailing B) direct marketing C) direct selling D) retail catalog showrooms Answer: B Diff: 1 Page Ref: 149 Skill: Terminology/Concept 4) Direct marketers are typically divided into two broad categories: ________ and ________.

A) single channel; dual channel B) static; interactive C) mail; phone D) general; specialty Answer: D Diff: 1 Page Ref: 150 Skill: Terminology/Concept

1 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

5) Which of these is not a strategic business advantage of direct marketing?

A) Products can be examined prior to purchase.

B) Reduced inventories can be held.

C) A very large geographic area can be efficiently covered.

D) Customers encounter no crowds or parking congestion.

Answer: A Diff: 2 Page Ref: 150-151 Skill: Terminology/Concept 6) Unlike traditional marketers, the profitability of direct marketers is highly sensitive to which types of expenses?

A) rental costs B) postage and paper stock costs C) energy costs D) fringe benefit expenses Answer: B Diff: 2 Page Ref: 151 Skill: Terminology/Concept 7) Which of the following is a not a disadvantage to a catalog-based direct marketer?

A) the inability to pinpoint specific customer segments through mailing lists B) the effect of increases in postal rates and paper stock costs on profits C) high clutter due to the large number of catalogs that are mailed D) the inability to revise prices when catalogs are prepared months in advance of distribution Answer: A Diff: 2 Page Ref: 151 Skill: Terminology/Concept 8) Direct marketers are most affected by which federal legislation?

A) Robinson-Patman Act B) 30-day rule C) Green River ordinances D) Blue laws Answer: B Diff: 1 Page Ref: 151 Skill: Terminology/Concept 9) The "30-day rule" requires direct marketers to ________.

A) ship orders within 30 days of receipt or notify customers of delays B) have 30 days worth of inventory on hand based on normal sales rates C) notify consumers of any delay by mail, phone, fax, or computer D) cancel orders if they cannot be shipped within 30 days of receipt Answer: A Diff: 1 Page Ref: 151 Skill: Terminology/Concept

2 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

10) Direct marketing is forecast to grow based on ________.

A) greater product standardization and the prominence of well-known brands B) the growth of private label brands C) direct marketing clutter D) reduced postal rates and paper stock costs Answer: A Diff: 1 Page Ref: 151 Skill: Terminology/Concept 11) Conventional vending machines are generally not considered as a form of direct marketing since ________.

A) most transactions involve beverages, food items, and cigarettes B) consumers do not complete transactions via mail, phone, fax, or computer C) the transaction is automated D) no credit or checks are involved as part of the transaction Answer: B Diff: 2 Page Ref: 151-152 Skill: Terminology/Concept 12) A way to collect, store, and use relevant information about customers is ________.

A) marketing information systems B) data-base retailing C) marketing research D) one-on-one research Answer: B Diff: 1 Page Ref: 152 Skill: Terminology/Concept 13) A retailer keeps an updated record of its customers' purchases, method of payment, and size and color preferences. This illustrates ________.

A) the 80-20 principle B) data-base retailing C) direct marketing D) Web retailing Answer: B Diff: 2 Page Ref: 152 Skill: Terminology/Concept 14) The high level of competition in direct marketing is due to ________.

A) high control over postal rates and paper costs B) high profitability of existing direct marketers C) low technological requirements for Web access D) ease of entry into direct marketing Answer: D Diff: 1 Page Ref: 153 Skill: Terminology/Concept

3 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

15) Direct marketing is increasingly used by store-based retailers. This illustrates ________.

A) multi-channel retailing B) downsizing C) diversification D) vertical integration Answer: A Diff: 1 Page Ref: 153 Skill: Terminology/Concept 16) Direct marketing is increasingly used by store-based retailers since it ________.

A) increases sales to the store's current target market B) is an inexpensive way to reach a broad geographic base C) appeals primarily to male shoppers D) enables the retailer to offer distinctive merchandise to small market segments Answer: B Diff: 1 Page Ref: 153 Skill: Terminology/Concept 17) A direct marketer can economically appeal to the needs of a particular customer segment through ________.

A) regional editions of catalogs B) infomercials C) specialogs D) micro-merchandising Answer: C Diff: 1 Page Ref: 153 Skill: Terminology/Concept 18) The promotional strategy of shopping networks ________.

A) enables purchases to be made only while an item is being advertised B) relies heavily on cooperative advertising allowances C) uses fringe times on cable television D) stresses the use of infomercials Answer: A Diff: 1 Page Ref: 154 Skill: Terminology/Concept 19) Infomercials are generally broadcast ________.

A) at peak hours on broadcast television B) continuously on broadcast television C) continuously on cable television D) at fringe times Answer: D Diff: 1 Page Ref: 154 Skill: Terminology/Concept

4 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

20) While an infomercial may be 30 minutes in length, it commonly has timed segments since ________.

A) the advertiser wants to better distribute ordering times B) the advertiser can change the advertised product if the response is low C) media rates are reduced D) most viewers watch only a few minutes at a time Answer: D Diff: 1 Page Ref: 154 Skill: Terminology/Concept 21) The first step in developing a direct marketing strategy is ________.

A) generating customers B) business definition C) customer response D) maintaining the database Answer: B Diff: 1 Page Ref: 155 Skill: Terminology/Concept 22) Which customer classification is least likely to respond to a direct marketer's efforts?

A) regulars B) nonregulars C) trivial buyers D) nonrespondents Answer: D Diff: 1 Page Ref: 156 Skill: Terminology/Concept 23) A typical response rate for a direct marketer is ________ percent of mailings.

A) less than 1 B) 2-3 C) 4-5 D) 6-10 Answer: B Diff: 1 Page Ref: 156 Skill: Terminology/Concept 24) In general, which of the following would have the highest response rate to a direct marketer's promotion?

A) a mailing of a general clothing catalog featuring sales merchandise B) a mailing of a special magazine subscription offer which includes a sweepstakes offer C) a mailing to past purchasers of a collectible doll for the third doll in a series D) a mailing based on a rented list Answer: C Diff: 1 Page Ref: 156 Skill: Terminology/Concept

5 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

25) An ethical issue that affects direct marketers relates to ________.

A) the sale of mailing lists B) different prices charged in store and catalog operations C) the distribution of overstocked goods to factory outlets D) the cancellation of orders from suppliers that cannot deliver goods on time Answer: A Diff: 1 Page Ref: 157 Skill: Terminology/Concept 26) Telemarketing is most closely part of ________.

A) direct marketing B) direct selling C) nontraditional retailing D) interactive retailing Answer: B Diff: 2 Page Ref: 157 Skill: Terminology/Concept 27) Direct selling and direct marketing are similar in that ________.

A) both are forms of dual distribution B) both enable 24-hour per day ordering C) mail and phone solicitations are used in both D) store locations and fixtures are not necessary Answer: D Diff: 2 Page Ref: 158 Skill: Terminology/Concept 28) Under the FTC's Telemarketing Sales Rule, telemarketers must ________.

A) disclose their identity, and that the purpose of the call is selling B) offer a refund to unsatisfied customers C) initiate all calls between 9 A.M. and 9 P.M. D) remove any prospect from their phone list on written request Answer: A Diff: 1 Page Ref: 158 Skill: Terminology/Concept 29) Which statement concerning vending machines is not correct?

A) Newspapers and cigarettes account for a high percent of vending machine sales.

B) Well-known brands and standardized nonfood items are best suited for vending machine sales.

C) Eighty-five percent of vending machine sales involve hot and cold beverages and food items.

D) Most vending machines still do not have dollar bill changers.

Answer: A Diff: 2 Page Ref: 160 Skill: Terminology/Concept

6 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

30) Which statement concerning the World Wide Web and the Internet is not correct?

A) The World Wide Web is one way of accessing the Internet.

B) The World Wide Web accounts for five percent of overall U.S. retail sales.

C) The World Wide Web has graphics, sound, video, and audio capability.

D) Almost all online interactive retailing is conducted on the World Wide Web. Answer: B Diff: 2 Page Ref: 160 Skill: Terminology/Concept 31) Which statement concerning the characteristics of World Wide Web users is not correct?

A) Females shop on the Web more often than males.

B) The majority of users spends 14 hours on the Web per month.

C) Adults over 60 use the Web most often.

D) Web users use the Web for information, entertainment, and interactive communications.

Answer: C Diff: 2 Page Ref: 162 Skill: Terminology/Concept 32) Which of the following is a negative feature for retailers of the World Wide Web? A) the small size of the potential audience B) the poor demographics of World Wide Web users C) low degree of interactivity between users and retailer sponsor D) credit card security issues reducing consumer purchasing Answer: D Diff: 2 Page Ref: 163 Skill: Terminology/Concept 33) Which of the following is not an advantage of using the Web by retailers?

A) A Web site generally costs less to develop and maintain than a store.

B) The potential marketplace on the Web is large and dispersed.

C) Web sites do not have to be maintained after they are developed.

D) People can visit Web sites at any time.

Answer: C Diff: 1 Page Ref: 163 Skill: Terminology/Concept 34) A freestanding, interactive computer terminal that displays products and related information on a video screen is commonly referred to as a(n) ________.

A) video kiosk B) interactive vending machine C) World Wide Web scanner D) Internet scanner Answer: A Diff: 1 Page Ref: 168 Skill: Terminology/Concept

7 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

35) A major advantage of the use of airport retailing by a retailer is ________.

A) tighter security at airports B) access to a captive audience C) interest in duty-free shopping by domestic travelers D) availability of larger stores Answer: B Diff: 2 Page Ref: 170 Skill: Terminology/Concept 36) Which of the following is an example of dual marketing?

A) single-channel retailing B) multi-channel retailing C) nonstore retailing D) electronic retailing Answer: B Diff: 2 Page Ref: 148 Skill: Applied/Comprehensive/Integrative 37) A major advantage of direct marketing is the ability of consumers to ________.

A) examine products prior to purchase B) receive merchandise several days after placing an order C) avoid crowds and parking congestion D) receive discounts based on direct marketers' lower costs Answer: C Diff: 1 Page Ref: 150 Skill: Applied/Comprehensive/Integrative 38) Which is not a reason why direct marketing is especially suitable to small retailers?

A) Small retailers can inexpensively expand their trading area through direct marketing.

B) The costs and time demands of developing and maintaining a mailing list are low.

C) Consumers cannot determine the size of a retailer based on its catalog or Web site.

D) The costs of entry into direct marketing are low.

Answer: B Diff: 2 Page Ref: 150-151 Skill: Applied/Comprehensive/Integrative 39) Merchandise cannot generally be examined by consumers in which retail formats?

A) vending machines and direct marketing B) direct selling and specialty stores C) membership clubs and flea markets D) retail catalog showrooms and membership clubs Answer: A Diff: 1 Page Ref: 151, 160 Skill: Applied/Comprehensive/Integrative

8 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

40) A direct marketer can best respond to the increases in paper costs by ________.

A) reducing the height and width of the catalog and lowering the size of all photographs proportionately B) using less costly grades of paper for photographs C) recommending a Web site for additional information D) purchasing recycled paper to appeal to ecologists, despite the still higher costs Answer: C Diff: 2 Page Ref: 151 Skill: Applied/Comprehensive/Integrative 41) Many direct marketers used to order merchandise after orders were placed by consumers.

Now, they place orders in anticipation of demand. This change in strategy is largely due to ________.

A) concern over better customer service B) the "30-day rule" C) discounts on purchases in advance of customer orders D) delays in order fulfillment houses Answer: B Diff: 2 Page Ref: 151 Skill: Applied/Comprehensive/Integrative 42) Direct selling is not considered part of direct marketing since ________.

A) personal communication is used to initiate customer contact B) no database is maintained C) consumers do not interact with the firm D) orders are not typically placed via mail or computer Answer: A Diff: 1 Page Ref: 152 Skill: Applied/Comprehensive/Integrative 43) The most valuable asset of a highly profitable direct marketer is generally its ________.

A) owned mailing lists B) rented mailing lists C) employees D) inventory Answer: A Diff: 2 Page Ref: 152 Skill: Applied/Comprehensive/Integrative

9 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

44) Which life-style trend increased the desirability of direct marketing for consumers?

A) increased consumer sophistication B) poverty-of-time C) component life-style D) increased ecological awareness Answer: B Diff: 2 Page Ref: 152-153 Skill: Applied/Comprehensive/Integrative 45) Low costs to develop and maintain a catalog or Web site, the ability to outsource order fulfillment operations, and low inventory needs all contribute to ________.

A) a low level of competition within direct marketing B) high direct marketing sales C) low barriers to entry for direct marketing D) the need for the 30-day rule of the Federal Trade Commission Answer: C Diff: 2 Page Ref: 153 Skill: Applied/Comprehensive/Integrative 46) 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 system C) a fully integrated system D) multi-channel retailing Answer: D Diff: 1 Page Ref: 153 Skill: Applied/Comprehensive/Integrative 47) Multi-channel retailing is an example of what form of market segmentation strategy?

A) differentiated B) homogeneous C) skimming D) niche Answer: A Diff: 2 Page Ref: 153 Skill: Applied/Comprehensive/Integrative 48) A direct marketer can effectively cater to a highly specialized niche market through use of a(n) ________.

A) search engine B) selective binding C) infomercial D) specialog Answer: D Diff: 2 Page Ref: 153 Skill: Applied/Comprehensive/Integrative 10 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

49) A direct marketer's selling advertising space to noncompeting firms in its catalogs most closely resembles ________.

A) vertical cooperative advertising B) a leased department C) an infomercial D) a regional edition Answer: B Diff: 2 Page Ref: 153 Skill: Applied/Comprehensive/Integrative 50) The promotional strategy of most infomercials A) stresses presold merchandise.

B) stresses infomercials.

C) encourages consumers to act immediately; otherwise, they have to wait for a special to be repeated.

D) utilizes network programming.

Answer: C Diff: 1 Page Ref: 154 Skill: Applied/Comprehensive/Integrative 51) Infomercials are ideally suited for ________.

A) nationally advertised manufacturer brands B) goods that are not widely available that require a demonstration to show their benefits C) private labels of major retailers D) goods priced below market Answer: B Diff: 2 Page Ref: 154 Skill: Applied/Comprehensive/Integrative 52) A direct marketer determines the goods and services sold as well as its target market in the ________ stage of a direct marketing strategy.

A) order fulfillment B) generating customers C) business definition D) consumer response Answer: C Diff: 1 Page Ref: 155 Skill: Applied/Comprehensive/Integrative

11 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

53) A fishing specialties retailer concerned about the quality of a list of fly fishermen enthusiasts seeks to test a mailing list broker's mailing list. The retailer should ________.

A) purchase a mailing list B) rent a mailing list C) purchase a PC-based list of homeowners and mail catalogs to selected towns D) seek to quickly develop its own list through a Web site Answer: B Diff: 2 Page Ref: 155 Skill: Applied/Comprehensive/Integrative 54) Which prospective customers are most likely to respond to a direct marketer's offering?

A) regulars and nonregulars B) regulars and new contacts C) new contacts and nonregulars D) new contacts and nonrespondents Answer: A Diff: 1 Page Ref: 156 Skill: Applied/Comprehensive/Integrative 55) Which prospective customers are least likely to respond to a direct marketer's offering?

A) regulars and nonregulars B) regulars and new contacts C) new contacts and nonregulars D) new contacts and nonrespondents Answer: D Diff: 1 Page Ref: 156 Skill: Applied/Comprehensive/Integrative 56) The handling of merchandise, including addressing, mailing, and billing customers is often conducted by third-party service providers on a fee basis. These firms are called ________.

A) direct marketing service specialists B) mailing list brokers C) expediters D) order fulfillment firms Answer: D Diff: 2 Page Ref: 157-158 Skill: Applied/Comprehensive/Integrative 57) The "30-day rule" most directly relates to which stage of a direct marketing strategy?

A) presenting the message B) measuring results C) maintaining the data base D) order fulfillment Answer: D Diff: 2 Page Ref: 157-158 Skill: Applied/Comprehensive/Integrative

12 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

58) A direct marketer can reduce its order fulfillment responsibilities by ________.

A) using a public warehouse B) using a private warehouse C) retaining a third party order fulfillment service provider D) using a bonded warehouse Answer: C Diff: 2 Page Ref: 157-158 Skill: Applied/Comprehensive/Integrative 59) A direct marketer determined that its customers' high levels of dissatisfaction with the firm concerned late delivery, the wrong items being delivered, or items arriving in defective condition due to being damaged in transit. These complaints concern which direct marketing strategy?

A) order fulfillment B) customer response C) measuring results D) customer contact Answer: A Diff: 2 Page Ref: 157-158 Skill: Applied/Comprehensive/Integrative 60) While a direct marketer's overall response rate is good, its average purchase amount per catalog is below average. Most of its orders were placed by phone. The direct marketer should ________.

A) train its telephone-based personnel to cross-sell merchandise B) utilize smaller catalogs for new contacts C) utilize larger catalogs for regular customers D) encourage customers to mail in their orders Answer: A Diff: 1 Page Ref: 157 Skill: Applied/Comprehensive/Integrative 61) A computer magazine routinely sells or rents mailing lists of its subscribers to local computer stores. The magazine classifies its customers into categories based on their completing a comprehensive questionnaire. The magazine's practice constitutes a(n) ________.

A) ethical practice B) invasion of privacy C) vertical cooperative promotion D) horizontal cooperative promotion Answer: B Diff: 1 Page Ref: 157 Skill: Applied/Comprehensive/Integrative

13 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

62) 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 Answer: B Diff: 2 Page Ref: 158 Skill: Applied/Comprehensive/Integrative 63) Which forms of nonstore and nontraditional retailing are used by retailers that need to demonstrate their products to consumers for at least 15 minutes to show their unique features?

A) the World Wide Web and video kiosks B) the World Wide Web and video catalogs C) infomercials and direct selling D) vending machines and direct marketing Answer: C Diff: 2 Page Ref: 157, 154 Skill: Applied/Comprehensive/Integrative 64) The use of party plans and group sales are strategies used by ________.

A) vending machine operators B) direct marketers C) Web-based marketers D) direct sellers Answer: D Diff: 1 Page Ref: 158-159 Skill: Applied/Comprehensive/Integrative 65) Vending machine operators can expand their range of goods sold by ________.

A) increasing the number of machines in offices and factories B) using microprocessors to record consumer preferences C) adding dollar bill changers and debit card readers to current and new machines D) adding voice synthesizers to existing and new machines Answer: C Diff: 2 Page Ref: 160 Skill: Applied/Comprehensive/Integrative 66) Rent (or a percent of sales) has to be paid for each location with ________.

A) video kiosks and vending machines B) the World Wide Web and the Internet C) the Internet and video catalogs D) video catalogs and video kiosks Answer: A Diff: 2 Page Ref: 160, 168 Skill: Applied/Comprehensive/Integrative

14 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

67) A major factor contributing to the low level of sales on the Web is ________.

A) consumer concern for credit card security on the Web B) the need to constantly update each Web site C) the poor demographics of Web users D) the need for a Web master to be available during the hours the site is available for viewing Answer: A Diff: 2 Page Ref: 163 Skill: Applied/Comprehensive/Integrative 68) A trade-off to using a high degree of graphics on a Web site is the ________.

A) need for high-speed modems to download the graphics B) need to constantly reconfigure the graphics C) larger size of the Web site D) increased downloading time for graphics-intensive sites Answer: D Diff: 2 Page Ref: 164 Skill: Applied/Comprehensive/Integrative 69) Some Web sites are a conglomeration of complementary noncompeting retailers. The Web site coordinator is responsible for promoting the master Web site address and for maintaining the computer server. Each retailer is then responsible for developing and updating its own Web site.

This arrangement closely resembles a ________.

A) central business district B) shopping center C) leased department D) franchise Answer: B Diff: 2 Page Ref: 166 Skill: Applied/Comprehensive/Integrative 70) Which nontraditional retailing has a temporary captive audience?

A) airport retailing B) vending machines C) infomercials D) direct marketing Answer: A Diff: 1 Page Ref: 169-169 Skill: Applied/Comprehensive/Integrative 71) Single-channel retailing is less complex to manage than multi-channel retailing.

Answer: TRUE Diff: 1 Page Ref: 148 Skill: Terminology/Concept

15 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

72) Direct marketing, direct selling, and vending machines are all forms of nonstore retailing.

Answer: TRUE Diff: 1 Page Ref: 149 Skill: Terminology/Concept 73) Direct marketing enables a retailer to cover a large geographic area inexpensively and efficiently.

Answer: TRUE Diff: 1 Page Ref: 149-150 Skill: Terminology/Concept 74) The profitability of catalog-based direct marketers is highly sensitive to postal rates and paper costs.

Answer: TRUE Diff: 1 Page Ref: 151 Skill: Terminology/Concept 75) Direct selling and conventional vending machines are included as forms of direct marketing since they are nonstore activities.

Answer: FALSE Diff: 2 Page Ref: 151-152 Skill: Terminology/Concept 76) The ease of entry into direct marketing means that this is a highly competitive industry.

Answer: TRUE Diff: 1 Page Ref: 153 Skill: Terminology/Concept 77) The addition of direct marketing to a store-based retailer is a complementary (instead of competitive) activity.

Answer: TRUE Diff: 2 Page Ref: 153 Skill: Terminology/Concept 78) Specialogs are often used to target new customers.

Answer: FALSE Diff: 2 Page Ref: 153 Skill: Terminology/Concept 79) Ordering information is flashed on the screen once in an infomercial.

Answer: FALSE Diff: 1 Page Ref: 154 Skill: Terminology/Concept

16 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

80) A direct marketing strategy should start with media selection.

Answer: FALSE Diff: 1 Page Ref: 155 Skill: Terminology/Concept 81) Direct marketers can either rent or purchase mailing lists.

Answer: TRUE Diff: 1 Page Ref: 155 Skill: Terminology/Concept 82) Most direct sales activity currently occurs in the workplace.

Answer: FALSE Diff: 1 Page Ref: 158 Skill: Terminology/Concept 83) Despite the negative publicity, sales of cigarettes through vending machines has increased in recent years.

Answer: FALSE Diff: 1 Page Ref: 160 Skill: Terminology/Concept 84) The World Wide Web is the multimedia-based portion of the Internet.

Answer: TRUE Diff: 1 Page Ref: 160 Skill: Terminology/Concept 85) The Web enables a retailer to efficiency reach geographically dispersed customers, including foreign ones.

Answer: TRUE Diff: 1 Page Ref: 160 Skill: Terminology/Concept 86) A major disadvantage of direct marketing over traditional forms of retailing is its lack of consumer convenience.

Answer: FALSE Diff: 2 Page Ref: 150 Skill: Applied/Comprehensive/Integrative 87) Direct selling is considered part of direct marketing based on its means of customer contact.

Answer: FALSE Diff: 1 Page Ref: 151 Skill: Applied/Comprehensive/Integrative

17 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

88) All forms of direct marketing rely on the development and maintenance of a consumer data base.

Answer: TRUE Diff: 2 Page Ref: 152 Skill: Applied/Comprehensive/Integrative 89) A database could easily be the most valuable asset for a direct marketer.

Answer: TRUE Diff: 2 Page Ref: 152 Skill: Applied/Comprehensive/Integrative 90) A direct marketing operation can expand the geographic customer base for an existing storebased retailer.

Answer: TRUE Diff: 2 Page Ref: 152 Skill: Applied/Comprehensive/Integrative 91) A direct marketer can reduce its catalog costs to selected target markets by using specialogs and selective bindings.

Answer: TRUE Diff: 1 Page Ref: 153 Skill: Applied/Comprehensive/Integrative 92) In planning an infomercial, a retailer should assume that the average viewer watches at least half of the advertisement.

Answer: FALSE Diff: 1 Page Ref: 154 Skill: Applied/Comprehensive/Integrative 93) A direct marketer contracts with a mailing list broker for one-time use of a mailing list. This constitutes a mailing list purchase.

Answer: FALSE Diff: 2 Page Ref: 155 Skill: Applied/Comprehensive/Integrative 94) Direct marketers of collectibles have the same repurchase rate as direct marketers of other merchandise.

Answer: FALSE Diff: 2 Page Ref: 156 Skill: Applied/Comprehensive/Integrative 95) It is comparatively difficult to evaluate the results of a direct marketing effort.

Answer: FALSE Diff: 2 Page Ref: 156 Skill: Applied/Comprehensive/Integrative

18 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

96) A direct marketer that uses a dual channel of distribution strategy does not need to maintain a common image between its store- and catalog-based retail operations.

Answer: FALSE Diff: 2 Page Ref: 158 Skill: Applied/Comprehensive/Integrative 97) Sales productivity in direct selling is comparatively low, due to the difficulty of reaching prospects.

Answer: TRUE Diff: 2 Page Ref: 159 Skill: Applied/Comprehensive/Integrative 98) Even though it is a nonstore retailer, vending machine operators need to pay rent (often as a percent of sales) for the use of a given location.

Answer: TRUE Diff: 2 Page Ref: 160 Skill: Applied/Comprehensive/Integrative 99) A major advantage of the use of the World Wide Web over paper-based catalogs is the ability of a retailer to immediately change pricing and product availability information.

Answer: TRUE Diff: 2 Page Ref: 163 Skill: Applied/Comprehensive/Integrative 100) An advantage of the World Wide Web, as compared to traditional paper-based catalogs, is freedom from concern over paper stock and postage prices.

Answer: TRUE Diff: 2 Page Ref: 163 Skill: Applied/Comprehensive/Integrative 101) a.

Outline the strategic business advantages of a retailer's use of direct marketing. b. What are the major limitations to direct marketing?

Diff: 1 Page Ref: 150-151 102) Why are direct selling and conventional vending machines not generally considered part of direct marketing?

Diff: 1 Page Ref: 151-152 103) What are the advantages to a store-based retailer adding a direct marketing operation? ...the disadvantages?

Diff: 2 Page Ref: 153 104) Describe the strategies of Ronco Showtime.

Diff: 2 Page Ref: 154 105) Outline the steps in conducting a direct marketing strategy.

Diff: 1 Page Ref: 155-157 19 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Test Bank for Retail Management A Strategic Approach, 11th Edition: Berman

106) Describe four measures that a direct marketer can use to measure the results of a solicitation.

Diff: 1 Page Ref: 157 107) a.

Outline the major reasons why direct selling has fallen or stagnated over the past few years. b. How can direct selling firms overcome these problems?

Diff: 1 Page Ref: 158-159 108) Discuss the major recent retail developments in vending machines.

Diff: 1 Page Ref: 160 109) Differentiate between the Internet and the World Wide Web. Diff: 1 Page Ref: 160 110) Describe the positive features of the World Wide Web for a retailer. ...the negative elements.

Diff: 1 Page Ref: 163-164 111) Under what circumstances would you recommend that a retailer utilize a video kiosk?

Diff: 2 Page Ref: 168 112) What are the relative advantages and disadvantages of airport retailing as compared to a traditional retail site?

Diff: 2 Page Ref: 168-170

20 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Visit TestBankBell.com to get complete for all chapters