GACE Marketing Practice Exam

The correct choice highlights that one of the key benefits of direct selling is the establishment of stronger personal relationships with consumers. This selling method often involves one-on-one interactions between sales representatives and customers, allowing for personalized communication and a tailored approach to meet consumer needs.

In direct selling, the representatives can spend time educating customers about the products, addressing their specific questions, and building trust through ongoing engagement. This personal touch can lead to enhanced customer loyalty and satisfaction, as consumers feel valued and understood. By cultivating these relationships, direct sellers can create a community of loyal customers who are more likely to make repeat purchases and recommend products to others, thereby enhancing overall sales effectiveness.

In contrast, factors like higher prices due to retail markups or wider distribution through third-party vendors do not align with the principles of direct selling, which often aims to minimize additional costs and intermediaries. Limited product knowledge for consumers also contradicts the essence of direct selling, where education and information dissemination are critical components.