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Questions and Answers
What is the primary characteristic of direct selling?
What is the primary characteristic of direct selling?
- Online marketplaces
- Sales through retail stores
- Sales via traditional advertising
- Selling products directly to consumers (correct)
Which of the following is NOT a feature typically associated with direct selling?
Which of the following is NOT a feature typically associated with direct selling?
- Multi-level marketing strategies
- In-store promotions (correct)
- Personal interaction with customers
- Home parties or demonstrations
What is a common method used in direct selling?
What is a common method used in direct selling?
- Television advertising
- Door-to-door sales (correct)
- Social media targeting ads
- In-store pricing discounts
How does direct selling benefit companies?
How does direct selling benefit companies?
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In direct selling, what is a potential drawback for sales representatives?
In direct selling, what is a potential drawback for sales representatives?
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Study Notes
Direct Selling Fundamentals
- Direct selling is a retail strategy where sales representatives connect with customers directly, often in their homes or at events, to make sales.
Distinctive Features of Direct Selling
- It bypasses traditional retail channels like stores.
Commonly Used Methods
- Home parties, where representatives demonstrate and sell products to a group of invited guests, are a common approach.
Benefits for Companies
- Lower overhead costs compared to traditional retail, as direct selling relies on independent representatives rather than storefront locations.
- Personalized customer experience allows representatives to build relationships and cater to individual needs.
Potential Drawbacks for Representatives
- Income instability, as earnings are usually commission-based and can fluctuate depending on sales performance.
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