Question 1

Levi's sells its jeans through its website on the Internet and has received complaints from its retailers who were concerned about the negative effects of:
A)leapfrog marketing
B)a distribution detour
C)disintermediation
D)distribution disruption
E)customer circumvention

Accepted Answer

Disintermediation occurs when a manufacturer sells directly to consumers bypassing retailers.

Question 2

Which of the following is NOT true in describing issues in multichannel retailing?
A)Many retailers are struggling to integrate the shopping experience across all their channels.
B)Legacy systems along with disconnected customer and inventory databases hamper retailers' ability to maintain consistency across channels.
C)Technology upgrades are inexpensive for retailers to integrate all systems at once.
D)Multichannel retailers try to provide features and services that offer a good customer experience.

Accepted Answer

The expensive technology upgrades needed are a tough sell in today's budget-conscious retail environment,especially when online sales still account for such a small fraction of all sales.System integration is a financially and technologically daunting challenge for retailers.

Question 3

What is a way that retailers can reduce channel migration?
A)Promote private-label merchandise that can be purchased only from that retailer.
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 the above

Accepted Answer

To prevent customers from doing product research on their site and then purchasing the product elsewhere,retailers can market more heavily their own private label which can exclusively be found only at their retail business.

Question 4

What are the perceived risks in electronic shopping and are these concerns valid?

Accepted Answer

The answer of What are the perceived risks in electronic...

Question 5

Explain multichannel retailers' impact on cannibalization and share of wallets.

Accepted Answer

The answer of Explain multichannel retailers' impact on cannibalization and...

Question 6

Why are retailers concerned about disintermediation?
A)Manufacturers can offer broader assortments.
B)Retailers believe that manufacturers know more about the consumer since they manufacture the products that the consumer demands.
C)Manufacturers have a lot of experience in distribution.
D)Retailers believe that manufacturers could take sales away from them by allowing customers to buy products through the manufacturer's web site.

Accepted Answer

Retailers are concerned about disintermediation because manufactures may take away business from them if the customer would choose to purchase directly from the manufacturer.

Question 7

What are the advantages of shopping on the Internet versus using a catalog or stores?

Accepted Answer

The answer of What are the advantages of shopping on...

Question 8

What is disintermediation;and should a retailer be concerned?

Accepted Answer

The answer of What is disintermediation;and should a retailer be...

Question 9

Judy invites her friends over to her home for an evening of socializing along with everyone getting makeovers.Afterwards,the invited women were all shown the product that was used for their makeovers and they were given the opportunity to purchase the product and browse through a catalogue for additional products to purchase.This is an example of:
A)a party plan system.
B)a multilevel network.
C)an infomercial.
D)a pyramid scheme.

Accepted Answer

This is an example of a direct selling approach and more specifically a party plan system.

Question 10

Catherine was interested in purchasing a digital camera so she went on Best Buy's website to learn more about the different features and capabilities of the device.Since she was going to Target to buy her groceries anyway,she decided to just buy the digital camera at Target.This is an example of:
A)channel migration
B)cross-shopping
C)multi-channel users
D)entrepreneurs
E)electronic agents

Accepted Answer

Retailers hope to prevent channel migration as they want customers to both search for information and complete the transaction through their retail company.

Question 11

Which of the following assets can K-mart 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 on signage,bags and in advertising.
E)Prime its sales associates to use its website.

Accepted Answer

Retailers can benefit by utilizing multiple channels synergistically;one way is to print the website on signage,bags and use in all advertising.

Question 12

Why are traditional store-based and catalog retailers placing more emphasis upon their electronic channels,as well as evolving into multichannel retailers?

Accepted Answer

The answer of Why are traditional store-based and catalog retailers...

Question 13

Describe how multichannel retailers have the opportunity to have a strategic advantage over single-channel competitors.

Accepted Answer

The answer of Describe how multichannel retailers have the opportunity...

Question 14

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

Accepted Answer

The answer of What is m-commerce and how is it...

Question 15

JCPenney carries sizes for big and tall men,but all sizes are not available in all stores.What should JCPenney do in order to communicate this message to their customers?
A)They should advertise big and tall men's merchandise on all of their newspaper supplements and commercials.
B)JCPenney should train their sales associates to mention this when closing sales with each customer.
C)JCPenney should advertise this by featuring big and tall men on its Holiday Catalog.
D)JCPenney should actively advertise these assortments to competitors.
E)A database should be developed of those who purchase merchandise for big and tall men.Then,JCPenney should market specifically to those shoppers.

Accepted Answer

A centralized customer database with a complete history of each customer's interaction with the retailer is needed.

Question 16

________ occurs when a manufacturer sells directly to consumers bypassing retailers.
A)Disintermediation
B)A distribution detour
C)Leapfrog marketing
D)Distribution disruption
E)Customer circumvention

Accepted Answer

Retailers are concerned about disintermediation because manufactures can get direct access to their consumers by establishing a retail site on the Internet.

Question 17

McKenna was shopping for a new electric mixer.Online she found the perfect one at williams-sonoma.com,but when she went to the Williams-Sonoma store,she found the same mixer for $15 more.The retailer has a problem with:
A)depth of merchandise prices
B)a corporate problem between channels
C)price inconsistency across channels
D)product inconsistency
E)None of the above

Accepted Answer

Retailers might purposely price products differently across the channels because of different levels of competition in each channel.

Question 18

If manufacturers begin to sell direct to consumers,they can be viewed by retailers as:
A)Competitors
B)Wholesalers
C)Multi-channel users
D)Entrepreneurs
E)Electronic agents

Accepted Answer

Retailers are concerned about disintermediation because manufactures can get direct access to their consumers by establishing a retail site on the Internet and thus becomes a competitor.

Question 19

Store channel information systems are typically product-centric while non-store channels are __________________.
A)multi-centric
B)customer-centric
C)variable
D)mass customized
E)segmented

Accepted Answer

Information for stores are designed to record product transactions and manage product inventory.The information system keeps track of how much merchandise was shipped into a store and how much was sold,and then it determines how much needs to be reordered.Non-store channels are more customer centric because they also provide a record of each customer's purchase history and their search behavior.It is difficult for store-based systems to be more customer centric.

Question 20

When consumers collect product information on a retailer's website but buy the product from another retailer's store it is referred to as ________.
A)channel migration
B)cross-shopping
C)multi-channel users
D)entrepreneurs
E)electronic agents

Accepted Answer

Retailers hope to prevent channel migration as they want customers to both search for information and complete the transaction through their retail company.

Quiz 3: Multi-Channel Retailing

Levi's sells its jeans through its website on the Internet and has received complaints from its retailers who were concerned about the negative effects of:

Which of the following is NOT true in describing issues in multichannel retailing?

What is a way that retailers can reduce channel migration?

What are the perceived risks in electronic shopping and are these concerns valid?

Explain multichannel retailers' impact on cannibalization and share of wallets.

Why are retailers concerned about disintermediation?

What are the advantages of shopping on the Internet versus using a catalog or stores?

What is disintermediation;and should a retailer be concerned?

Catherine was interested in purchasing a digital camera so she went on Best Buy's website to learn more about the different features and capabilities of the device.Since she was going to Target to buy her groceries anyway,she decided to just buy the digital camera at Target.This is an example of:

Which of the following assets can K-mart utilize to attract shoppers to its website?

Why are traditional store-based and catalog retailers placing more emphasis upon their electronic channels,as well as evolving into multichannel retailers?

Describe how multichannel retailers have the opportunity to have a strategic advantage over single-channel competitors.

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

JCPenney carries sizes for big and tall men,but all sizes are not available in all stores.What should JCPenney do in order to communicate this message to their customers?

________ occurs when a manufacturer sells directly to consumers bypassing retailers.

McKenna was shopping for a new electric mixer.Online she found the perfect one at williams-sonoma.com,but when she went to the Williams-Sonoma store,she found the same mixer for $15 more.The retailer has a problem with:

If manufacturers begin to sell direct to consumers,they can be viewed by retailers as:

Store channel information systems are typically product-centric while non-store channels are __________________.

When consumers collect product information on a retailer's website but buy the product from another retailer's store it is referred to as ________.