Deck 3: Multichannel Retailing

Question 1

RFID is a technology which will be a part of the future technology to be used in retailing.

Answer 1

True
Explanation: RFID,self-checkout,and personalized virtual reality displays are some of the technologies that will exist in future retails stores.

Question 2

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 2

False
Explanation: 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 3

Infomercials:

A) are 60-second commercials.
B) usually solicit orders placed by telephone.
C) are software applications for customers.
D) are not shown on broadcast television.

Answer 3

B
Explanation: Infomercials are a form of TV home shopping with 30-60 minute programs that mix entertainment with product demonstrations and then solicit orders placed by telephone.

Question 4

Shoppers often have only a general sense of what they want.

Question 5

Mason's is an apparel store which 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 6

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?

A) Infomercial
B) Widget
C) Showrooming
D) Catalog channel
E) Podcast

Question 7

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

Question 8

Stores offer immediate gratification to customers.

Question 9

Current retailers are using catalog channels for:

A) developing multilevel systems for direct marketing.
B) collecting information to customize offers for customers.
C) building a brand image and driving traffic to stores.
D) channel integration.
E) none of these.

Question 10

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

Question 11

Direct selling is characterized by all of these 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 12

When a multilevel direct selling becomes a pyramid scheme,_____.

A) annual sales of products often double
B) the salespeople are no longer independent agents
C) the use of the party plan becomes more commonplace
D) the selling format is usually franchised
E) relatively little merchandise is sold to end users

Question 13

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 14

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

Question 15

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

Question 16

Which of the following statements is true of TV home shopping?

A) Goods are automatically dispensed to customers on cash payment.
B) There are two types of advertising: party plan and multilevel.
C) The impact of advertisements on people cannot be determined accurately.
D) Salespeople interact directly with customers.
E) Customers can see the merchandise demonstrations before buying.

Question 17

The direct-response TV (DRTV)channel is a retail channel in which customers watch a TV advertisement that demonstrates merchandise and then place orders for that merchandise.

Question 18

The consequences of security breaches are worse for the retailer than the consumer if a credit card number was stolen from their place of business.

Question 19

A party plan system:

A) is a form of direct-response advertising.
B) is a form of direct selling involving salespeople.
C) forms a part of automated retailing.
D) uses a master distributor as lead salesperson.
E) is a recruiting tool for multilevel networks.

Question 20

A(n)_____ is a form of DRTV advertisement that is typically 30 to 60 minutes long and mixes entertainment with product demonstrations.

A) sponsored film
B) documentary
C) podcast
D) widget
E) infomercial

Question 21

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?

A) Multilevel system
B) Party plan system
C) Showrooming
D) Automated retailing
E) Catalog marketing

Question 22

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 23

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?

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

Question 24

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

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

Question 25

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) None of these

Question 26

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 27

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 28

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 29

_____ are software applications designed to improve the consumers' shopping experiences when using smartphones and tablets.

A) Infomercials
B) Widgets
C) Blogs
D) Wikis
E) Apps

Question 30

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):

A) party plan system.
B) multilevel network.
C) infomercial.
D) pyramid scheme.
E) omniretailing program.

Question 31

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 32

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 33

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.

A) shell game
B) e-tailing program
C) pyramid scheme
D) party plan system
E) phishing scheme

Question 34

_____ enable online retailers to collect customer information as they navigate through the retailers' websites.

A) Blogs
B) Widgets
C) Apps
D) Cookies
E) Podcasts

Question 35

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 36

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 37

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 38

Which of the following is NOT a direct selling approach?

A) A party plan system
B) A multilevel network
C) An infomercial
D) Pyramid scheme
E) None of these

Question 39

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 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

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 42

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.

A) blogs
B) apps
C) wikis
D) cookies
E) widgets

Question 43

Explain the perceived risks involved in Internet shopping.

Question 44

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?

A) Self-checkout terminals
B) Widgets
C) Cookies
D) Personal shopper programs
E) All of these

Question 45

Describe the direct selling channel along with the two different types of direct selling.

Question 46

_____ 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) Complete integration
E) Personalization

Question 47

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 48

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 49

Multichannel retailers struggle to provide an integrated shopping experience because:

A) various channels demand 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 50

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

Question 51

_____ 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 52

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 53

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

Question 54

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 55

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?

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

Question 56

Describe the working of a catalog channel.

Question 57

_____ 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 58

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

Question 59

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

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

Question 60

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 61

How can multichannel retailers reduce showrooming?

Question 62

Explain how pricing presents a challenge to multichannel retailers.

Question 63

List some technologies that will be a part of a future retail store.

Question 64

Explain how channel migration poses a challenge to multichannel retailers.