Question 1

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

Accepted Answer

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.

Accepted Answer

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.

Accepted Answer

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.

Accepted Answer

Shoppers often have only a general sense of what they want (e.g. ,a sweater,something for dinner,a gift)but don't know the specific item they want,so they go to a store to see what is available before they decide what to buy.

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

Accepted Answer

Multichannel retailing involves using more than one channel to sell and deliver merchandise and services to consumers.

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

Accepted Answer

Infomercials are 30-60 minute TV programs that mix product demonstrations with order solicitations.

Question 7

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

Accepted Answer

Retailers need to provide a consistent brand image of themselves and their private-label merchandise across all channels.For example,Patagonia reinforces its image of selling high-quality,environmentally friendly sports equipment in its stores,catalogs,and website.Each of these channels emphasizes function,not fashion,in the descriptions of Patagonia's products.

Question 8

Stores offer immediate gratification to customers.

Accepted Answer

Customers can use merchandise immediately after they buy it in stores.Thus,when customers have a fever or need a last-minute gift,for example,they do not have to wait a day or two for the delivery of a prescription from Drugstore.com or of a gift from Amazon.com.

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.

Accepted Answer

Catalogs' share of sales is declining relative to the Internet.But catalogs are not going away.Their role is shifting from primarily generating sales to building a brand image and driving traffic to the Internet and physical stores.

Question 10

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

Accepted Answer

Direct selling is a retail channel in which salespeople interact with customers face-to-face in a convenient location,either at the customer's home or at work.Direct salespeople demonstrate merchandise benefits and/or explain a service,take an order,and deliver the merchandise.

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

Accepted Answer

Direct selling is a highly interactive retail channel in which considerable information is conveyed to customers through face-to-face discussions and demonstrations.However,providing this high level of personalized information,including extensive demonstrations,is costly.

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

Accepted Answer

When little merchandise is actually sold to the end users,it is just the founders and the initial distributors that profit from the inventory bought by later participants.

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.

Accepted Answer

Multichannel retailing involves using more than one channel to sell and deliver merchandise and services to consumers.

Question 14

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

Accepted Answer

Automated retailing is a retail channel in which merchandise or services are stored in a machine and dispensed to customers when they deposit cash or use a credit card.Automated retailing machines,also known as vending machines,are typically placed at convenient,high-traffic locations.

Question 15

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

Accepted Answer

Multichannel retailers can use their stores as "warehouses" for gathering merchandise for delivery to customers.Customers also can be offered the opportunity to pick up and return merchandise at the retailer's stores rather than pay shipping charges.

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.

Accepted Answer

The major advantage of TV home shopping is that customers can see the merchandise demonstrated either on their television screens or through streaming videos on the Internet.In response to the increase in cooking,decorating,do-it-yourself,and other lifestyle programming,home shopping retailers have incorporated more demonstrations into their programming in an attempt to educate their potential customers.

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.

Accepted Answer

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.The orders are placed by either telephoning a phone bank of operators or accessing the Internet to use the company's website.

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.

Accepted Answer

The consequences of security breaches can be far worse for the retailer from which the card number was stolen.Security breaches can ruin a retailer's reputation and possibly expose it to legal liability.

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.

Accepted Answer

About one-quarter of all direct sales are made using a party plan system.Salespeople encourage customers to act as hosts and invite friends or coworkers to a "party." The host or hostess receives a gift or commission for arranging the party.At the party,the merchandise is demonstrated and attendees place orders.

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

Accepted Answer

There are two types of DRTV advertisements: a long form,referred to as an infomercial and typically 30 to 60 minutes long,that mixes entertainment with product demonstrations,and a short form consisting of one- to two-minute advertisements on television.

Quiz 3: Multichannel Retailing

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

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.

Infomercials:

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

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

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

Stores offer immediate gratification to customers.

Current retailers are using catalog channels for:

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

Direct selling is characterized by all of these EXCEPT that it is not _____.

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

A multichannel retailer is one that:

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

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

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

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.

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.

A party plan system:

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