chapter 3

a multichannel retailer is one that
sells merchandise or services through more than one channel.
Mason’s is an apparel store which also offers online shopping apart from its stores. Therefore, Mason’s is a(n) _____.
multichannel retailer
Current retailers are using catalog channels for:
building a brand image and driving traffic to stores.
A(n) _____ is a form of DRTV advertisement that is typically 30 to 60 minutes long and mixes entertainment with product demonstrations.
infomercial
infomercials
usually solicit orders placed by telephone.
Ben saw a 30 minute TV show. During the show, the presenter was showing how to prepare a variety of dishes so that they would be totally fat-free. Each item was prepared using a special cooker. During the show, the audience was given several opportunities to buy the cooker. Which of the following terms describes the 30 minute show?
infomerical
Which of the following statements is true of TV home shopping?
Customers can see the merchandise demonstrations before buying.
Direct selling is characterized by all of these EXCEPT that it is not _____.
a low cost method of retailing
a party plan system
is a form of direct selling involving salespeople.
When a multilevel direct selling becomes a pyramid scheme, _____.
relativilty little merchandise is sold to end users
automated retailing
is most effective in high-traffic areas.
Redbox, a DVD rental service, utilizes machines to dispense DVDs to customers. Which form of retailing is Redbox using?
automated retailing
Which of the following is NOT a direct selling approach
infomercial
which of the following forms of direct selling has independent businesspeople serving as master distributors and recruiting other people to become distributors in their network
multilevel system
A(n) _____ develops in direct marketing when a firm and its program are designed to sell merchandise and services to other distributors, rather than to end-users.
pyramid scheme
Judy regularly buys cosmetics from a salesperson. She invites her friends over to her home for an evening of socializing along with everyone getting makeovers. Afterwards, the salesperson showed the product that was used for their makeovers, and they were given the opportunity to purchase the product and browse through a catalog for additional products to purchase. This is an example of a(n):
party plan system
Which of the following is NOT a benefit of a store channel shopping experience?
none of these
Which of the following is a benefit of ONLY store channel shopping?
immediate gratification
Margaret went to the mall to meet her sister, Val. While at the mall, they witnessed a back-to-school fashion show in a store. They took a walk and watched the children play in the center arena. Which benefit of store shopping did Margaret and Val enjoy?
entertainment and social interaction
Compared to other retail formats, the greatest benefit that store shopping offers is:
the ability to touch and feel products
Which retail channel has the least perceived risk when purchasing products?
stores
Ryan needs a painkiller. He goes to the nearby drugstore, buys it, and uses it. Which of the following benefits offered by stores can be seen in the given example?
immedatite gratification
Which of the following benefits is offered by the Internet channel?
deeper assortments
Which of the following statements about Internet retailing is TRUE?
Customers can have more personalized information on products.
Which retail channel has the ability to economically provide the most product information for the consumer purchasing products?
internet
Which of the following is true of the benefits offered by Internet shopping?
customers can get information that is useful across channels
By obtaining information about customer preferences, and past purchase behavior, retailers operating an electronic channel are able to:
tailor merchandise and reccomendations
Internet retailers offer _____, where customers can click a button at any time and have an instant messaging e-mail or voice conversation with a customer service representative.
live chats
enable online retailers to collect customer information as they navigate through the retailers’ websites.
cookies
are software applications designed to improve the consumers’ shopping experiences when using smartphones and tablets.
apps
Shades N Hues is a large cosmetics retailer. It recently developed a software application which enables customers with smartphones to look at the latest products. Hence, the store is using _____ to improve customers’ shopping experience.
apps
Retailers can use multiple channels synergistically by:
using one channel to promote the othrs
Which of the following strategies can a retailer utilize to attract shoppers to its website?
D. Print the website address on signage, bags and in advertising.
Multichannel retailers struggle to provide an integrated shopping experience because:
various channels demand unique resources
_____ involves selling the same products at the same prices through the same distribution system for all channels.
complete integration
Which of the following statements is true of the operations of multichannel retailers?
They need to maintain a consistent image across channels.
_____ occurs when a consumer goes into a store to learn about different brands and products and then searches the Internet for the same product sold at a lower price.
showrooming
occurs when customers gather information from a retailer’s channel and buy products from a competitor’s channel.
channel migration
Matt often goes to a retail store to look at electronic goods. He learns about the brands and products and searches the Internet for lower prices. This act by Matt is an example of _____.
showrooming
retailers can reduce showrooming by
promoting private-label merchandise that can be purchased only from the retailer.
Which of the following terms represents a form of channel migration?
showrooming
Which of the following strategies aids in reducing channel migration
A. Offer uniquely relevant information to customers.
Catherine wanted to purchase a digital camera. Hence, she visited an online retailer’s website to learn more about the different features and capabilities of the device. Catherine went to a supermarket to make other purchases. She sees the camera there and purchases it. Which of the following terms describes Catherine’s actions?
channel migration
Linda wants to buy a diamond pendant. She wants information on the best deals available online. Which of the following technologies would best suit her requirement?
personal shopper programs