99. Vending machines are used primarily to sell goods where consumers have little interest in convenience. 100. Mall owners tend to like kiosks because they create a marketplace atmosphere. 101. One drawback of kiosks is that their high overhead costs result in low profit margins. 102. Direct selling is a distribution strategy that makes extensive use of the Internet and telephone. 103. Because so many people work outside the home and aren't at home during the day, companies that use direct selling are sponsoring parties at workplaces to sell their products. 104. In multilevel marketing, salespeople not only sell the product, they also recruit other people to sell the product. 105. In multilevel marketing "upliners" recruit "downliners" and receive a commission on the sales their downliners make. 106. The major disadvantage of multilevel marketing is that the high entry cost for most sellers means that only relatively wealthy individuals can use this approach. 107. Although there have been some unethical firms involved in multilevel marketing, this form of retailing remains quite successful. 108. Direct marketing involves having a salesperson visit the customer's home or place of business. 109. A major advantage of direct marketing is that it is a very convenient way for consumers to shop.
True FalseTrue False True False True False True False True FalseTrue FalseTrue FalseTrue FalseTrue False 110. Telemarketing, catalog sales, and online shopping are all examples of direct marketing. 111. In the battle between electronic retailers and traditional "bricks and mortar" retailers, the electronic retailers seem to have all of the advantages needed to emerge as the clear winners. 112. Many firms that want to use an intensive distribution strategy would find vending machines an attractive method of selling their goods. 113. Fancy Feet sells high quality socks and stockings by sending catalogs to customers and offering them a toll-free telephone number so that they can call in their orders 24 hours a day any day of the year. Fancy Feet uses telemarketing. 114. Direct selling has all but disappeared as a major form of nonstore retailing because the trend toward two-income households means fewer opportunities for selling in the home. 115. In multilevel marketing, salespeople have little incentive to recruit new salespeople, because the new salespeople may compete against them and reduce their income. 116. Chris Cole is a salesperson for Green Scene Lawn Care products. Chris' job requires him to sell Green Scene products, but he is also expected to recruit more salespeople for the company. He will earn a commission on all of the sales earned by the salespeople he recruits. Green Scene is using a retail distribution strategy known as multilevel marketing. 117. An important reason for the popularity of direct marketing is that many people enjoy developing a personal relationship with a salesperson that comes directly to their home or place or work. 118. Traditional retailers can stay competitive with online retailers by being part of a unified system of distribution.
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