Answer: TRUEDifficulty: ModerateLO: 12.3: Describe B2C e-commerce and the other common forms of nonstore retailingAACSB: Information technology65) Explain the differences between multilevel marketing and a pyramid scheme. Answer: In multilevel marketing, a master distributor recruits other people to become distributors. The master distributor sells the company's products to the people she entices to join and receives commissions on all the merchandise sold by the people recruited. It is a system that is growing in popularity, but not all forms of multilevel marketing are legal. Pyramid schemes are multilevel networks that are illegal. People at the top of the pyramid profit from payments made by large numbers of people at the bottom level who hope to advance to the top. In a pyramid scheme, little or no effort goes into actually marketing the products.Difficulty: ModerateLO: 12.3: Describe B2C e-commerce and the other common forms of nonstore retailingAACSB: Application of knowledge66) Describe how nonstore retailing has recently grown.67) Explain the limitations for marketers offering e-commerce shopping.
68) Explain the concept of nonstore retailing, giving one example of a well-known product that has been marketed this way.69) Barnes & Noble has many retail stores as well as a presence on the web. What are the concerns of Barnes & Noble regarding the relationship between the company's store sales and web sales?
- Summer '17
- Prof Farshad Salman