Deck 6: Outlet Selection and Product Purchase

Question 1

Any source of products or services for consumers is referred to as a:

A) store.
B) catalogue retail outlet.
C) retail outlet.
D) shop.

Answer 1

C

Question 2

The 'physical facilities' dimension of store image includes:

A) sales personnel.
B) shopping ease.
C) selection.
D) all of the given answers.

Answer 2

B

Question 3

Retailers and manufacturers often share the cost of promotional deals.

Answer 3

True

Question 4

For many product categories, stores rather than brands form the evoked set.

Question 5

When making a purchase decision, a consumer can follow the sequence:

A) outlet selection first, brand selection second.
B) outlet and brand selection simultaneously.
C) brand (or item) selection first, outlet selection second.
D) All of the given answers are correct.

Question 6

The retail gravitation model predicts the impact of store location on market share.

Question 7

Sales increases in response to price reductions come from:

A) users of competing brands switching to the reduced-price brand.
B) consumers who do not shop at the store coming to the store to buy the brand.
C) non-product category buyers buying the brand because it now has a superior value to the substitute product.
D) all of the given answers.

Question 8

Retail outlets can be:

A) garage sales.
B) weekend markets.
C) farmers markets.
D) all of the given answers.

Question 9

The 'service dimension' of store image includes:

A) easy return.
B) sales personnel.
C) delivery.
D) all of the given answers.

Question 10

For a target market using an outlet first, brand second decision sequence, a manufacturer should:

A) develop point-of-purchase displays.
B) use more exclusive distribution.
C) implement programs targeted at retail sales personnel.
D) develop point-of-purchase displays and implement programs targeted at retail sales personnel.

Question 11

Merchandise is not part of a store's image.

Question 12

Time of purchase is important to track because it enables suppliers to meet demand at peak times.

Question 13

For a target market using a brand first, outlet second decision sequence, a retailer should:

A) have price specials on brands.
B) use image advertising.
C) stock many brands and/or key brands.
D) have price specials on brands and stock many brands and/or key brands.

Question 14

An outlet-first decision sequence would suggest brand image advertising.

Question 15

A stockout occurs when a consumer decides to go to a different store to make a purchase.

Question 16

A point-of-purchase display is most effective if:

A) used alone.
B) used in conjunction with advertising.
C) used for a long time period.
D) used at some distance from the actual product.

Question 17

The retail attraction model helps a marketer understand the level of store attraction based on store size and brand awareness.

Question 18

For a target market using a brand first, outlet second decision sequence, a manufacturer should:

A) use brand availability advertising.
B) develop brand image management.
C) use more exclusive distribution.
D) All of the given answers are correct.

Question 19

When consumers select the brand before the retail outlet, the manufacturer can leverage this by using more exclusive distribution.

Question 20

For a target market using a brand first, outlet second decision sequence, a manufacturer should not:

A) use brand availability advertising.
B) develop brand image management.
C) use more exclusive distribution.
D) None of the given answers are correct.

Question 21

Individuals drawn to a store by an advertised item most often:

A) do not purchase anything.
B) do not purchase the advertised item but purchase one or more other items.
C) purchase only the advertised item.
D) purchase the advertised item and one or more additional items.

Question 22

To reach a consumer who uses the brand first, outlet second decision sequence for a TV purchase the retailer should:

A) stock many key brands like Sony and Panasonic.
B) do cooperative advertising with the manufacturer.
C) do a price special for key brands.
D) All of the given answers are correct.

Question 23

A stockout situation is:

A) caused when a store is temporarily out of a particular brand or product.
B) caused by a failure to integrate place correctly into the retail channel.
C) market demand being underestimated due to a failure to understand consumer behaviour.
D) caused by a failure to integrate place correctly into the retail channel and market demand being underestimated due to a failure to understand consumer behaviour.

Question 24

The retail gravitation model predicts, in part, the impact of _____________ on market share.

A) store image
B) relative advertising level
C) store location
D) store price level

Question 25

Point-of-purchase displays generally have:

A) no influence on brand choice.
B) modest influence on brand choice.
C) high influence on brand choice.
D) their major influence on product category sales.

Question 26

Purchase of an item that the shopper did not have in mind on entering the store is a(n) ________________ purchase.

A) generally planned
B) substitute
C) unplanned
D) emotional

Question 27

Mark is a heavy Coke drinker but only buys Coke when it's on special. He engages in:

A) stock anticipating.
B) stock manipulating.
C) stockpiling.
D) stock controlling.

Question 28

Spillover sales refer to:

A) sales made at one store because of crowds in a nearby store.
B) accessory sales made because a major item was purchased.
C) sales of additional items to customers who came to purchase an advertised item.
D) sales made at one store to customers who came to an area to visit another store.

Question 29

Shopping orientation refers to:

A) the situation that led to a particular shopping trip.
B) the particular approach and pattern of external information search and outlet selection formed by an individual consumer.
C) whether the decision process was brand first/store second, store first/brand second or simultaneous.
D) the level of service provided by a retail outlet.

Question 30

Petrol, pens and socks are products that are characterised by:

A) high social/medium financial risk.
B) low financial/low social risk.
C) low financial/high social risk.
D) high financial/low social risk.

Question 31

___________ is an example of a shopping orientation cluster.

A) Urban Professionals
B) Time Starved Consumers
C) Capable Shopping Haters
D) Hedonic Consumers

Question 32

Background music, scent, short aisles and neutral-colour carpets all make up a store's:

A) atmospherics.
B) price level.
C) central environment.
D) defining cues.

Question 33

In general consumers use convenience outlets for:

A) high-involvement purchases.
B) purchases of durable goods.
C) services.
D) routine purchases.

Question 34

Price advertising requires all of the following decisions except:

A) how large a price discount should be used.
B) what price promotions have been offered in the past.
C) whether comparison or reference prices should be used.
D) what verbal statements should accompany the price information.

Question 35

To reach a consumer who decides to use the outlet first, brand second decision sequence for a TV purchase the manufacturer should:

A) distribute in key outlets such as Harvey Norman.
B) organise point-of-purchase displays in stores.
C) conduct programs to strengthen existing outlets' promotion of their products.
D) All of the given answers are correct.

Question 36

Handbags, hairstyles and gifts are products that are characterised by:

A) high social/high financial risk.
B) low financial/low social risk.
C) low financial/high social risk.
D) high financial/low social risk.

Question 37

All of the following are examples of shopping orientation clusters except:

A) Happy Busy Shoppers.
B) Happy Social Shoppers.
C) Challenged Shopping Avoiders.
D) Sad Shopping Nuts.

Question 38

Retailers should manage not only their own image but also:

A) the image of their competitors.
B) the image of their shopping area.
C) the image of their target market.
D) all of the given answers.

Question 39

The effectiveness of sales personnel is influenced by the interaction(s) of the:

A) salesperson's resources.
B) nature of the customer's buying task.
C) customer-salesperson relationship.
D) All of the given answers are correct.

Question 40

Shoppers who have no pleasure from shopping:

A) tend to visit convenience stores.
B) do not appreciate in-home shopping.
C) do not use online services.
D) tend to visit crowded shopping malls.

Question 41

In a retail attraction model:

A) travel time is raised to the power S_i.
B) the effect of distance can vary by product.
C) the attraction factor is assumed to be a measure of breadth of merchandise.
D) None of the given answers are correct.

Question 42

Which are the major dimensions of store image? Illustrate your answer by using examples.

Question 43

The risk that consumers face when purchasing a product is classified as:

A) financial risk.
B) social risk.
C) performance and psychological risk.
D) all of the given answers.

Question 44

Which of the following is not a source of sales increases in response to price reductions?

A) consumers who do not normally shop at the store making purchases at the store
B) non-category buyers who now buy the product based on a superior level of perceived value
C) increased competition
D) users of competing brands who switch to the advertised brand

Question 45

Which of the following is not a decision retailers face when using price advertising?

A) what verbal statements should accompany the price information
B) whether comparison or reference prices should be used
C) how large a price discount should be used
D) All of the given answers are decisions retailers face.

Question 46

A retail attraction model would predict that:

A) high-involvement purchases are almost all made locally.
B) larger stores tend to be located closer to the consumer.
C) low-involvement purchases generate low willingness to travel to distant trading areas.
D) None of the given answers are correct.

Question 47

Rachel's House of Beauty, a hairdressing and beauty salon aimed at the under-30 market, has the latest music playing, air-conditioning, comfortable lounges and mocktails in the waiting area. These are all examples of:

A) atmospherics.
B) store abstraction.
C) servicescape.
D) atmospherics or servicescape.

Question 48

In terms of retailing strategy:

A) discount stores should consider stocking brand-name merchandise in product categories with high perceived risk.
B) social risk can be reduced through warranties.
C) traditional outlets have a major advantage with product lines characterised by low perceived risk.
D) free shipment is not a strategy to help reduce perceived risk.

Question 49

Purchases that are made as a result of the consumer seeing a product, which acts as a reminder that they need it, are called:

A) impulse purchases.
B) reminder purchases.
C) planned purchases.
D) none of the given answers.

Question 50

Which are the two most common types of unplanned purchases and how can retailers increase them?

Question 51

Define shopping orientation and illustrate how this may affect consumer behaviour.

Question 52

A retail attraction model involves all of the following variables except:

A) an attraction factor for a particular product category.
B) travel time to store.
C) time spent in store.
D) store dimensions.