1. A direct marketer can best respond to the increases in paper costs by ________.

a.) purchasing recycled paper to appeal to ecologists, despite the still higher costs

b.) reducing the height and width of the catalog and lowering the size of all photographs proportionately

c.) using less costly grades of paper for photographs

d.) recommending a Web site for additional information

2. Low costs to develop and maintain a catalog or Web site, the ability to outsource order fulfillment operations, and low inventory need all contribute to ________.

a.) low barriers to entry for direct marketing

b.) a low level of competition within direct marketing

c.) high direct marketing sales

d.) the need for the 30-day rule of the Federal Trade Commission

3. Which of these is not a strategic business advantage of direct marketing?

a.) Reduced inventories can be held.

b.) A very large geographic area can be efficiently covered.

c.) Customers encounter no crowds or parking congestion.

d.) Products can be examined prior to purchase.