You Represent a Group of Investors Who Are Exploring Alternatives

question 133

Multiple Choice

You represent a group of investors who are exploring alternatives for entering the retailing business. Many of these investors have significant past experience working for other retailing companies and they realize the retailing business is very competitive. They also realize there is a high failure rate for startups in this industry. They ask you recommend a retailing strategy that would meet the following criteria:
No storefront would be needed
No personal selling would be needed
No traditional store operating expenses are necessary
Customers can place orders via the Internet, telephone or mail
Low operating expenses and limited customer service required
Which of following retailing strategy are you going to recommend they use?

• A) Telemarketing
• B) Automatic vending
• C) Direct selling
• D) Television home shopping
• E) Catalog marketing

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Definitions:

Electricity

The flow of electrons from a source of higher electrical potential to a source of lower electrical potential through a conductor.

12-Volt Circuit

An electrical pathway that operates at 12 volts, commonly found in automotive electrical systems.

6-Ohm Resistor

An electronic component that opposes the flow of electrical current, with a resistance value of six ohms.

Series

Refers to an electrical circuit configuration in which components are connected end-to-end, such that the current flows through each component in sequence.