SOLVED

21) The SG&A-to-net sales percentage for Target is 20.1% and 9.9% for Costco. Which statement best explains this difference? A) Costco has greater gross sales than Target. B) Target provides less bulk breaking than Costco. C) Costco pays sales representatives less than Target. D) Target invests more in customer service than Costco. E) Costco balances low prices with less customer service than Target. 22) What should most likely be the main focus of a retail positioning strategy? A) annual average sales ratios B) target market demands C) inventory turnover D) service output E) retailer type 23) Which type of retailer most likely has a positioning strategy characterized by extremely high spatial convenience, moderate product assortment, and narrow product variety? A) mail order/catalog B) department store C) category killer D) specialty store E) hypermarket 24) The positioning strategies of convenience stores, such as 7-Eleven, most likely emphasize ________. A) moderate wait time B) deep product assortment C) narrow product variety D) very high customer service E) very high spatial convenience 25) What is most likely suggested by the significant increase in retail e-commerce sales? A) Retailers are able to conduct efficient bulk breaking. B) Cost-side factors are consistent across markets. C) High profits stem from customer service. D) Consumers demand spatial convenience. E) Positioning relies on product assortment. 26) Which product category most likely relies on e-commerce sales the LEAST? A) clothing B) health and beauty aids C) computer hardware D) books and magazines E) appliances and electronics 27) Which term refers to the sale of a consumer product or service in a face to face manner away from a fixed retail location? A) e-commerce B) retailing C) direct selling D) telemarketing E) cold calling 28) Leah is holding a party at her home for the purpose of demonstrating and selling Mary Kay cosmetics. Leah receives a 10% commission from Mary Kay for every sale she makes. Leah is most likely engaged in ________. A) targeting B) positioning C) cold calling D) direct selling E) grey marketing 29) Why are pyramid schemes illegal? A) Firms engage in the online sale of products and services. B) Firms receive customer payments without selling products. C) Individuals are actively recruited to fill direct sales positions. D) Salespeople are overly persistent when trying to gain big sales. E) Sales recruits lack the business knowledge and skills to be ethical. 30) All of the following most likely indicate that a direct selling organization is legitimate EXCEPT ________. A) having low entry barriers B) clarifying the firm’s code of ethics C) paying for the recruitment of downline members D) basing rewards mostly on product and service sales E