Deck 3: Multichannel and Omnichannel Retailing

Question 1

Automated retailing 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.

Answer 1

False
A particularly concerning form of channel migration is called showrooming. Showrooming 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.

Question 2

An example of s-retailing is when

A) a customer has their credit card skimmed when making an online purchase.
B) a customer posts a review of a product with 5-star satisfaction.
C) a customer shops and compares items only in store and also makes their purchase in a store.
D) a customer utilizes the self-checkout system at a store.
E) a customer clicks on an advertisement on Facebook and is connected to the advertiser's website to make a purchase.

Answer 2

E
Social retailing, also known as s-retailing, involves conducting purchase transactions through a social media site

Question 3

Omnichannel retailing is a coordinated multichannel retail offering that provides a seamless and synchronized customer experience, using all of the retailer's shopping channels.

Answer 3

True
Omnichannel retailing refers to a coordinated multichannel retail offering that provides a seamless and synchronized customer experience, using all of the retailer's shopping channels. These various channels run in collaboration and effectively

Question 4

The majority of retail transactions take place online.

Question 5

A multichannel retailer is one that 

A) is a combination of single-channel retailers.
B) channels all assortments through stores.
C) works with other retailers who are in the channel.
D) sells merchandise or services through more than one channel.
E) buys merchandise from multiple channels to sell in the stores.

Question 6

Avon, a cosmetics company, primarily uses which form of retailing?  

A) expanded
B) direct selling
C) omnichannel
D) automated
E) showrooming

Question 7

An effective way of combatting channel migration is for retailers to offer exclusive items and brands.

Question 8

Direct selling is characterized by all of the following except that it is not

A) a highly interactive form of retailing.
B) taking place in the home.
C) mainly performed by independent agents.
D) a low-cost method of retailing.
E) used for selling personal care products.

Question 9

How is m-commerce different than e-commerce? 

A) main retailing versus event retailing
B) a planned purchase versus an impulse purchase
C) researching products online prior to purchasing versus an impulse purchase online
D) an interchange of goods on a large scale versus on a small scale
E) accessing the Internet using a tablet or smartphone versus a computer

Question 10

Which of the following is not an advantage of Internet retailing over store retailing?

A) can offer a larger assortment of product offerings
B) can offer more detailed information and product reviews
C) can enter new markets more quickly and economically
D) can collect more information about the customers' buying behavior
E) can offer increased security in payment transactions

Question 11

Automated retailing is a retail channel in which merchandise or services are stored in a machine and dispensed to customers. 

Question 12

What best describes using all of the retailer's shopping channels to create a seamless and synchronized customer experience?

A) Social retailing
B) M-Commerce
C) Omnichannel retailing
D) Multichannel retailing
E) Direct retailing

Question 13

Direct selling is a retail channel where salespeople interact with customers face-to-face.

Question 14

The highest percentage of retail sales is through what channel?

A) Internet
B) Stores
C) Catalog
D) Mobile
E) Social media

Question 15

Mason's is an apparel store that also offers online shopping apart from its stores. Therefore, Mason's is a(n)

A) computerized retailer.
B) direct seller.
C) electronic retailer.
D) single-channel retailer.
E) multichannel retailer.

Question 16

What can an online retailer site do to increase personalization?   

A) Offer live chats.
B) Offer expanded merchandise assortments.
C) Offer free shipping.
D) Offer order online pick up in store.
E) Offer unlimited time on returns.

Question 17

M-commerce should be approached by retailers the same as e-commerce.

Question 18

Stores offer immediate gratification to customers.

Question 19

Multichannel and omnichannel retailers can leverage their stores to lower the cost of fulfilling orders and processing returned merchandise.

Question 20

Retailers need to provide a consistent brand image of themselves and their private-label merchandise across all channels.

Question 21

Which of the following is True of the benefits offered by Internet shopping? 

A) The Internet offers a limited assortment of products.
B) Customers can get information that is useful across channels.
C) The perceived risk is lower when compared to store channels.
D) The Internet is not economically viable for retailers looking to expand their markets.
E) It has limited effectiveness in making personalized recommendations.

Question 22

Retailers can use multiple channels synergistically by

A) using one channel to promote the others.
B) providing similar assortments across channels.
C) providing a limited amount of information to customers.
D) concentrating only on catalogs for product promotions.
E) reducing prices for products in all channels.

Question 23

Which retail channel has the least perceived risk when purchasing products? 

A) Internet
B) Stores
C) Catalog
D) Showrooming
E) Mobile retailing

Question 24

By obtaining information about customer preferences and past purchase behavior, retailers operating an electronic channel are able to: 

A) design more secure sites for credit card users.
B) develop faster download times.
C) promote showrooming.
D) respond immediately to consumer inquiries.
E) tailor merchandise and recommendations.

Question 25

Which of the following strategies can a retailer utilize to attract shoppers to its website? 

A) Persuade investors with positive sales forecasts.
B) Encourage vendors to deliver the assortments.
C) Focus on bankruptcy proceedings to create a trustworthy image.
D) Print the website address on signage, bags, and in advertising.
E) Prime its sales associates to use its website.

Question 26

Which of the following is a benefit of only store channel shopping?

A) Convenience
B) Extensive information
C) Personalization
D) Immediate gratification
E) Broad and deep assortments

Question 27

Redbox, a DVD rental service, utilizes machines to dispense DVDs to customers. Which form of retailing is Redbox using?

A) Internet retailing
B) Store Channel
C) Direct Selling
D) Automated retailing
E) Catalog retailing

Question 28

Which of the following is not a benefit of a store channel shopping experience? 

A) Browsing
B) Immediate gratification
C) Risk reduction
D) Personal service
E) Expanded assortments

Question 29

A retailer that sells product online through their website but does not accept that product to be returned to their store if the customer is not satisfied with it is not yet fulfilling a(n) ________ strategy.

A) multichannel
B) multilevel network
C) omnichannel
D) cross migration
E) single channel

Question 30

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.

A) live chats
B) cookies
C) showrooming
D) contact scraping
E) intranet portals

Question 31

Brett has a headache and needs a pain reliever. He goes to the nearby drugstore, buys some Tylenol, and uses it. Which of the following benefits offered by stores can be seen in the given example?

A) Risk reduction
B) Immediate gratification
C) Personal service
D) Entertainment and Social experience
E) Browsing

Question 32

Which of the following benefits is offered by the Internet channel? 

A) Deeper assortments
B) Immediate gratification
C) Social interaction
D) Personal service
E) Less perceived risk

Question 33

Compared to other retail formats, the greatest benefit that store shopping offers is

A) the ability to touch and feel the products.
B) personal safety.
C) easy availability of information for product comparison.
D) broader and deeper assortments.
E) availability of detailed information for evaluating a product.

Question 34

Which of the following is not a method for devising an effective omnichannel strategy?

A) Offering varying prices for each channel depending on which channel is most costly to manage
B) Using each channel to promote the others, such as highlighting their web address on bags that customers carry from their stores
C) Fulfilling orders placed online through the website from stores to increase shipping speed
D) Offering coupons through e-mail for customers to use in store
E) Having private events in stores for customers that RSVP through a social media invite

Question 35

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?

A) Immediate Gratification
B) Entertainment and social interaction
C) Convenience
D) Personal service
E) Touch and feel products

Question 36

Which retail channel has the ability to economically provide the most product information for the consumer purchasing products?

A) Internet
B) Stores
C) Direct Selling
D) Automated
E) All of these

Question 37

Which of the following statements about Internet retailing is True? 

A) Internet retailing gives customers an opportunity to use all five senses.
B) Customers can have more personalized information on products.
C) Customers do not receive sufficient information to evaluate products.
D) The electronic channel offers a less satisfying shopping experience than catalogs.
E) Online stores offer limited assortments compared to store channels.

Question 38

Which of the following is not a method for devising an effective omnichannel strategy?

A) allowing returns of merchandise to any channel regardless of channel of purchase
B) having the same pricing strategies and promotions for all channels
C) splitting buying responsibilities up at the corporate office to specialize in either stores or e-commerce to better understand the different customers' buying behaviors
D) having a consistent image across all channels
E) advertising in-store that additional sizes and colors are available online

Question 39

Which channel allows the customer the most ease and unbiased information about products? 

A) Internet
B) Stores
C) Catalog
D) Showrooming
E) Automated retailing

Question 40

Automated retailing

A) is most effective in high-traffic areas.
B) is based on the idea that social relationships influence buying habits.
C) uses a master distributor as lead salesperson.
D) is a recruiting tool for multilevel networks.
E) promotes products through infomercials.

Question 41

How does the Internet help customers evaluate merchandise when making buying decisions?

Question 42

________ occurs when customers gather information from a retailer's channel and buy products from a competitor's channel.

A) Channel expansion
B) Channel integration
C) Channel migration
D) Omniretailing
E) Automated retailing

Question 43

Explain how channel migration poses a challenge to multichannel and omnichannel retailers.

Question 44

Which of the following terms represents a form of channel migration? 

A) Showrooming
B) Phishing
C) Multilevel system
D) Omniretailing
E) Pyramid scheme

Question 45

How have traditional store-based retailers benefitted by adding Internet channels to their operations?

Question 46

Explain the perceived risks involved in Internet shopping. 

Question 47

Which of the following strategies aids in reducing channel migration? 

A) Offer uniquely relevant information to customers.
B) Persuade suppliers to increase their sales forecasts.
C) Encourage vendors to deliver complete assortments.
D) Increase efficiencies of supply chain management.
E) None of these

Question 48

Multichannel and omnichannel retailers struggle to provide an integrated shopping experience, because

A) various channels demand various skills and unique resources.
B) they do not have intermediaries for supplying products.
C) they generally offer limited assortments in their channels.
D) multichannel retailing often results in a pyramid scheme.
E) merchandise is offered at the same price across channels.

Question 49

Which of the following statements is True of the operations of multichannel retailers?

A) Integrating various channel operations does not pose a major problem.
B) They need to maintain a consistent image across channels.
C) Most retailers have a common organization to manage all channels.
D) Competition does not have a significant impact on pricing.
E) Similar assortments are often suitable for various channels.

Question 50

________ involves selling the same products at the same prices through the same distribution system for all channels.

A) Channel migration
B) Showrooming
C) Automated retailing
D) Integration
E) Personalization

Question 51

Describe the direct selling channel along with pros and cons of the direct selling model.

Question 52

________ 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.

A) Returning
B) Direct selling
C) Automated retailing
D) Showrooming
E) Sweethearting

Question 53

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

A) sweethearting.
B) automated retailing.
C) omniretailing.
D) showrooming.
E) channel integration.

Question 54

Retailers can reduce showrooming by

A) designing programs to sell merchandise to other distributors rather than end-users.
B) using a single channel to promote products.
C) offering limited assortments on their websites.
D) promoting private-label merchandise that can be purchased only from the retailer.
E) recruiting people to become distributors in their network.

Question 55

What is m-commerce, and how is it different from e-commerce?

Question 56

How can multichannel and omnichannel retailers reduce showrooming? 

Question 57

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 big-box store to make other purchases. She sees the camera there and purchases it. Which of the following terms describes Catherine's actions?

A) Channel migration
B) Channel expansion
C) E-tailing
D) Phishing
E) Automated retailing