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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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Description
Test your knowledge on the key characteristics and features of direct selling. This quiz covers methods, benefits, and potential drawbacks associated with direct selling practices. Perfect for students and professionals looking to enhance their understanding of sales strategies.
