Question 1

The number of product categories offered by a retailer is referred to as the depth of merchandise.

Accepted Answer

The number of product categories offered by a retailer is referred to as the breadth of merchandise. The depth of merchandise refers to the variety of products within each category.

Question 2

Consumers around the world want to purchase when they are ready and expect the product to be available on demand.

Accepted Answer

With the rise of e-commerce and the increasing use of mobile devices for shopping, consumers now expect to be able to purchase products whenever they are ready, and they expect those products to be available on demand. This trend is particularly evident in the growing demand for same-day or next-day delivery options.

Question 3

While popular with consumers,vending machines are not particularly profitable.

Accepted Answer

Although popular with consumers, vending machines are not necessarily the most popular form of non-store retailing. Rising costs in labor, gasoline, and maintenance, coupled with a very competitive environment that limits price increases, keeps margins low.

Question 4

Supply chains work most efficiently and effectively when producing small volumes of products and moving them through the distribution system in small amounts.

Accepted Answer

Supply chains typically work most efficiently and effectively when producing large volumes of products and moving them through the distribution system in large amounts. This allows for economies of scale and lower per-unit costs.

Question 5

Within a particular product category,the variety and assortment of products carried by retailers remain the same.

Accepted Answer

The variety and assortment of products carried by retailers within a particular product category can vary depending on factors such as customer demand, availability, and competition. Retailers may also adjust their product offerings based on seasonal or trend changes.

Question 6

A general rule in retailing is that broader,deeper product assortments and expanded service options require a higher price to cover increased costs.

Accepted Answer

This is a common economic principle known as the "cost-volume-profit" relationship. As a retailer offers more products and services, their costs for inventory, personnel, and overhead increase, which in turn can lead to higher prices in order to maintain profits.

Question 7

It is not common for multiple retailers to target the same group.

Accepted Answer

It is actually common for multiple retailers to target the same group, especially if it is a lucrative demographic or if there is a lot of competition in the industry. Retailers will often differentiate themselves based on factors such as price, quality, and brand image to try to appeal to the same group of consumers.

Question 8

Assortment is the number of product categories offered by a retailer.

Accepted Answer

Assortment refers to the variety of products within a category that a retailer offers, not the number of product categories.

Question 9

From information search to purchase,the Internet gives consumers greater access to more choices and different product options.

Accepted Answer

The statement is true. The Internet provides consumers with more options and access to different products through online searches, reviews, and comparison tools, helping them make more informed purchase decisions.

Question 10

Customers are satisfied interacting with a company or product based primarily on visiting a retail store.

Accepted Answer

While visiting a retail store can be a positive interaction for some customers, others may prefer to interact through online channels or other means. Satisfaction with a company or product can come from a variety of factors beyond just retail store visits.

Question 11

Assortment is referred to as the depth of merchandise.

Accepted Answer

Assortment refers to the variety and range of merchandise in a particular category or department, it is commonly referred to as the depth of merchandise.

Question 12

The primary advantage of the television home shopping retail format is the ability to show and demonstrate the product.

Accepted Answer

The ability to show and demonstrate the product is one of the primary advantages of the television home shopping retail format.

Question 13

E-retailing is the fastest-growing retail format.

Accepted Answer

According to numerous reports by market research firms, e-retailing is indeed the fastest-growing retail format. E-commerce sales continue to increase year-over-year, and the COVID-19 pandemic has further accelerated the growth of online retail as more consumers have shifted to shopping online.

Question 14

In-store retailing offers consumers the most payment options and is the only retailing format that easily accommodates cash payment.

Accepted Answer

In-store retailing accepts various payment options such as cash, credit/debit cards, and mobile payments. Online retailing may not always accept cash as a payment option.

Question 15

Variety is the number of different product items within a product category.

Accepted Answer

Variety refers to the number of different product categories a company offers, while assortment refers to the number of different product items within a product category.

Question 16

The Internet has decreased the efficiency of B2B relationships.

Accepted Answer

The internet has actually increased the efficiency of B2B relationships by providing faster communication, easier access to information, and streamlined purchasing and procurement processes.

Question 17

In evaluating a Web site,one of the key measures is its "stickiness," which refers to the length of time visitors remain at the site.

Accepted Answer

Stickiness refers to the ability of a website to keep visitors engaged and on the site for longer periods of time, thus increasing the likelihood that they will fulfill a desired action or conversion.

Question 18

Companies create call centers around the world to handle regional customer traffic over the course of a 24-hour business cycle.

Accepted Answer

This statement is true. Many companies have call centers located in different countries or regions to handle customer traffic at all hours of the day. This allows for better customer service and support.

Question 19

One of the oldest forms of retailing,catalog retailing has started to lose its popularity as two-income households often do not like shopping from home.

Accepted Answer

The statement is incorrect. Catalog retailing is still popular, but it is facing competition from the growth of e-commerce and online shopping. Two-income households often prefer online shopping for convenience and greater product selection. However, many people still prefer browsing catalogs and ordering by mail or phone.

Question 20

National brands tend to be supported with excellent product design,support,and marketing communications by their manufacturers.

Accepted Answer

National brands typically have a lot of resources and investment put into their product design, support, and marketing communications to maintain and grow their market share.

Quiz 12: Points of Customer Interface: Bricks and Clicks