Test Bank Docx Chapter 17 Outlet Selection and Purchase

Chapter 17 Test Bank

Multiple Choice Questions

1. Brick and mortar stores with the goal to design environments that are emotionally engaging, entertaining, and memorable are using a strategy known as

A. visual inventory

B. social media engagement

C. push and pull technology

D. shoppertainment

E. All of these choices are correct.

2. Which of the following is true regarding online shopping?

A. Most future growth will come from new users.

B. Most future growth will come from existing buyers.

C. Annual growth in the number of Internet users is low.

D. Most future growth will come from existing buyers and annual growth in the number of Internet users is low.

E. Most future growth will come from new users and annual growth in the number of Internet users is low.

3. The top categories of online spending include

A. personal care products

B. apparel

C. electronics and appliances

D. personal care products and electronics and appliances

E. All of these choices are correct.

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

A. retail outlet.

B. contact point.

C. transaction point.

D. distribution outlet.

E. channel outlet.

5. Consumers acquiring products through catalogs, telemarketing, direct mail, or computer orders is referred to as

A. outsourcing.

B. outlet shopping.

C. non-traditional shopping.

D. in-home shopping.

E. All of these choices are correct.

6. Jane was looking through the Pottery Barn catalog and saw some lamps she liked. Instead of calling the toll-free number to purchase the lamps, she went to Pottery Barn's website and ordered them. This is an example of

A. alternative shopping.

B. outsourcing.

C. multilevel marketing.

D. nontraditional shopping.

E. in-home shopping.

7. Online retail spending represents what percentage of total retailing in the United States?

A. less than 1%

B. 9%

C. 21%

D. 38%

E. over 50%

8. Mobile retailing sales are projected to account for what percentage of online retail sales in the U.S.?

A. less than 1%

B. 10%

C. 25%

D. 40%

E. over 50%

9. What are the top categories searched for by smartphone shoppers?

A. personal care products

B. apparel (clothing, shoes and accessories)

C. electronics

D. personal care products and apparel (clothing, shoes and accessories)

E. apparel (clothing, shoes and accessories) and electronics

10. The top reason mobile shoppers download a shopping app is

A. recommended by others.

B. to make a specific activity/task easier.

C. to complete a purchase.

D. to get a specific reward for downloading the app.

E. to access discounts or offers.

11. Which of the following is not a smartphone activity done in-store by mobile shoppers?

A. read reviews of a product

B. compared prices

C. spoke with a sales representative

D. looked for discounts or offers

E. All of these choices are smartphone activities done in-store.

12. What is the top smartphone activity done in-store by mobile shoppers?

A. compared prices

B. looked for discounts or offers

C. browsed for products

D. took a picture of a product

E. read reviews of a product

13. Which of the following statements is false regarding online retailing?

A. The Internet is a major influence on in-store sales.

B. Amazon accounts for over 40 percent of online retail sales in the United States.

C. Research has shown that consumers shop online for reasons different to those for shopping from catalogs.

D. Catalogs and the Internet appear to work in a complementary fashion.

E. Online sales are only about 9 percent of retail sales.

14. Which of the following is the major reason consumers give for shopping online?

A. want product delivered same-day

B. unique merchandise (available only online)

C. price

D. impulse

E. customer service

15. Which of the following statements about omni-channel shoppers is (are) true?

A. Over 85 percent of shoppers are omni-channel shoppers.

B. The more channels an omni-shopper uses the more that shopper spends in-store.

C. Omni-channel shoppers have the same income as single-channel shoppers.

D. Omni-channel shoppers spend the same amount as single-channel shoppers online.

E. All of these choices are correct.

16. Shoppers who search online and ultimately buy a product at a physical store engage in?

A. in-store shopping

B. webrooming

C. showrooming

D. sequential shopping

E. single-channel shopping

17. What activity involves going to a brick-and-mortar store to see a product and then buying it online?

A. in-store shopping

B. webrooming

C. showrooming

D. sequential shopping

E. single-channel shopping

18. Kim needs a new washer and dryer. She looks at Consumer Reports online to research different machines. She determines that a Whirlpool set is best for her. She heads to her local Sears to examine the machines in person and ultimately buys the machines at the store. What type of shopping behavior is Kim exhibiting?

A. in-store shopping

B. webrooming

C. showrooming

D. sequential shopping

E. single-channel shopping

19. Jeremy needs a new pair of running shoes. He visits the local running store at a nearby shopping center. He tries on several pairs at the store. After determining which pair he likes the most, he heads home to look online for that exact shoe at the cheapest price. Jeremy is engaging in?

A. in-store shopping

B. webrooming

C. showrooming

D. sequential shopping

E. single-channel shopping

20. Which of the following is (are) true about omni-channel shopping behavior?

A. Showrooming is more common than is webrooming.

B. Omni-channel shoppers tend to be Baby Boomers.

C. Showrooming is common among Millennials.

D. Webrooming involves searching in store and buying online.

E. All of these choices are true.

21. Providing in-aisle checkout service is a way for retailers to combat what omni-channel shopping behavior?

A. in-store shopping

B. webrooming

C. showrooming

D. sequential shopping

E. single-channel shopping

22. A local electronics retailer asked sales associates to stay late several evenings one week for training on the current merchandise sold in store and new mobile devices to help consumers with product assistance or ordering while in store. This retailer is educating his employees in order to help combat what omni-channel shopping behavior?

A. in-store shopping

B. webrooming

C. showrooming

D. sequential shopping

E. single-channel shopping

23. The top two barriers to online shopping are

A. preference to buy product in-store.

B. preference to see product in person.

C. preference to talk to salesperson in person.

D. preference to buy product in-store and preference to see product in person.

E. preference to see product in person and preference to talk to salesperson in person.

24. Shoppers who browse and/or purchase in more than one channel are known as

A. channel shoppers.

B. super shoppers.

C. omni-channel shoppers.

D. mobile shoppers.

E. None of these choices are correct.

25. Tasha loves to shop at Macy's. She can scan Jessica Simpson bar codes with her mobile shopping app and check prices and availability in Macy's and other stores at the same time. To which shopping segment does Tasha belong?

A. channel shoppers

B. super shoppers

C. omni-channel shoppers

D. deal prone shoppers

E. None of these choices are correct.

26. In order for online retailers to overcome shoppers' inability to "touch" the product they can

A. design appropriate web pages.

B. offer deep discounts.

C. offer free merchandise.

D. advertise with videos.

E. simulate the experience with technology.

27. Approaches to reduce online privacy concerns include

A. making it easier to contact the store

B. the use of security verification systems

C. improving the search capabilities

D. making it easier to contact the store and the use of security verification systems

E. All of these choices are correct.

28. Which of the following is false regarding shopping cart abandonment?

A. Roughly 70 percent of all shopping carts consumers start are abandoned before purchase.

B. Those who abandon carts cannot be reengaged.

C. Targeted email campaigns should focus on a promotional deal.

D. The top reason for abandonment is the high cost of shipping and handling.

E. Roughly 70 percent of all shopping carts consumers start are abandoned before purchase and targeted email campaigns should focus on a promotional deal.

29. Which of the following is not a reason consumers gave for why they don't like shopping in stores?

A. don't like shopping

B. dealing with crowds

C. salespeople are poorly informed

D. parking and traffic

E. All of these choices are reasons why consumers don't like shopping in stores.

30. What was the main reason consumers gave in a survey for why they don't like shopping in stores?

A. don't like shopping

B. dealing with crowds

C. salespeople are poorly informed

D. parking and traffic

E. the time it takes to shop

31. Suzy is having her sixth birthday party at Sweet and Sassy Salon. She and six of her friends will get a complete "make-over" with glittery makeup and shiny extensions added to their hair. This is an example of which approach retailers are taking to improve the shopping experience?

A. kiosks

B. mini-stores

C. lifestyle centers

D. brand stores

E. "destination areas" within stores

32. Which of the following barriers to online purchasing is related to consumer fears regarding how personal information about them that is gathered online might be used?

A. lack of "touch"

B. online privacy concerns

C. economic costs

D. opportunity costs

E. dispersion concerns

33. Mobile apps that anticipate user needs and provide related information through automatic updates are called:

A. smart apps

B. advertising apps

C. pull-based apps

D. push-based apps

E. omni-channel apps

34. Sarah is interested in purchasing a new coffee table for her living room. She is unsure what size, shape and color of table will look best in her apartment, but realizes that she can't just bring several options home to try out. She heads to a local furniture store for help. What mobile retailing technology may be useful to Sarah in choosing a table?

A. push-based apps

B. in-store beacons

C. artificial Intelligence

D. augmented reality

E. one-click mobile payments

35. Chatbots are an example of what emerging technology in mobile retailing?

A. push-based apps

B. in-store beacons

C. artificial Intelligence

D. augmented reality

E. one-click mobile payments

36. Omni-channel shoppers

A. rely on mobile and mobile shopping apps

B. belong to Gen Y

C. belong to Gen X

D. rely on mobile and mobile shopping apps and belong to Gen Y

E. All of these choices are correct.

37. Financial cost, time cost, and effort cost are examples of

A. economic risk.

B. social risk.

C. physical risk.

D. actual risk.

E. All of these choices are correct.

38. Which emerging mobile retailing technology is helpful in alleviating consumers' perceived social and economic risks associated with buying products like furniture?

A. push-based apps

B. in-store beacons

C. artificial Intelligence

D. augmented reality

E. one-click mobile payments

39. Which of the following affects consumers' retail outlet selection?

A. outlet image

B. retailer brands

C. retail advertising

D. outlet location and size

E. All of these choices are correct.

40. Which of the following is not a factor affecting consumers' retail outlet selection?

A. outlet image

B. retailer brands

C. retail advertising

D. outlet location and size

E. number of levels of distribution

41. A given consumer's or target market's perception of all the attributes associated with a retail outlet is generally referred to as the

A. store atmosphere.

B. servicescape.

C. store image.

D. store ambiance.

E. store personality.

42. The "Merchandise" dimension of store image includes

A. quality.

B. selection.

C. price.

D. style.

E. All of these choices are correct.

43. The "Service" dimension of store image includes all of the following except

A. easy returns.

B. sales personnel.

C. delivery.

D. credit.

E. All of these choices are included.

44. Which dimension of store image consists of quality, selection, style, and price components?

A. merchandise

B. service

C. physical facilities

D. store atmosphere

E. institutional

45. Rebecca is opening a women's shoe store. She is carefully considering the quality, selection, style, and price that she wants for her store. Which dimension of store image is she concerned with?

A. merchandise

B. service

C. physical facilities

D. store atmosphere

E. institutional

46. Which of the following components represent the service dimension of a store's image?

A. quality, selection, style, and price

B. layaway plan, sales personnel, easy return, credit, and delivery

C. location and parking

D. congeniality, fun, excitement, and comfort

E. store reputation

47. Wendy was describing to her friend what the American Girl store is Chicago is like. She was telling her about all the different rooms that were in the store, such as a room for each doll (e.g., Bitty Baby, Felicity, Kit, etc.), a room for furniture, a room for girl-sized clothing that matched the dolls' clothing, the tea room, and the auditorium where she saw a stage show. Which dimension of store image was Wendy describing?

A. merchandise

B. service

C. physical facilities

D. convenience

E. institutional

48. Good product offers and information, value, and alignment with consumers' interests are components of which dimension of online retailer image?

A. usefulness

B. enjoyment

C. trustworthiness

D. style

E. familiarity

49. The trustworthiness dimension of an online retailer's image is represented by which components?

A. good product offers and information, value, aligned with interests

B. fun, attractive, pleasant to browse

C. easy to use and navigate, flexible site

D. reputation, information safety and security

E. fast and flexible delivery and transactions

50. Brands owned and sold by a specific retail outlet are known as

A. primary brands.

B. secondary brands.

C. store brands.

D. internal brands.

E. limited distribution brands.

51. Kelly likes to shop at Target. She really likes the Archer Farms brands with the rooster on the label, which is one of Target's own brands and can only be purchased there. These types of brands are known as

A. primary brands.

B. secondary brands.

C. store brands.

D. internal brands.

E. limited distribution brands.

52. What is the key to success of store brands?

A. low price

B. low quality, but at a low price

C. high quality at a high price

D. high quality at a reasonable price

E. attractive packaging

53. Sales of additional items to customers who came to purchase an advertised item are referred to as

A. incremental sales.

B. spillover sales.

C. marginal sales.

D. sales plus.

E. impulse sales.

54. Harriet is very frugal, so she regularly combs the grocery ads looking for bargains. Usually she'll go to a particular store just to buy an advertised item, but sometimes she purchases other items that were not advertised as well. The purchase of the unadvertised items represent which type of sales?

A. incremental sales

B. spillover sales

C. marginal sales

D. sales plus

E. impulse sales

55. Which of the following is not a key decision for retailers considering price advertising?

A. How large a discount should be used?

B. Should a reference price be used?

C. What verbal statements should be used?

D. What is the cost of the item compared to the total media cost?

E. None of these choices are key decisions.

56. A price with which other prices are compared is known as a(n)

A. reference price.

B. comparison price.

C. base price.

D. starting price.

E. internal price.

57. When a retailer represents a price as "regularly $15.99, now $9.99," the $15.99 is called the

A. starting price.

B. base price.

C. reference price.

D. comparison price.

E. markup.

58. Leslie loves to shop at T.J. Maxx and feels she is saving a lot of money because the price tags usually have the manufacturer's suggested retail price (MSRP) listed and crossed off and the T.J. Maxx price below much lower. The MSRP is being used as a

A. markup.

B. base price.

C. reference price.

D. deceptive price.

E. perceptual price.

59. Which of the following are types of reference prices?

A. primary and secondary

B. direct and indirect

C. latent and manifest

D. internal and external

E. high and low

60. Which type of reference price is presented by a marketer for the consumer to use to compare with the current price?

A. base reference price

B. external reference price

C. private reference price

D. outlet reference price

E. public reference price

61. Todd owns a discount sporting goods store, and several of the items in his store have a manufacturer's suggested retail price (MSRP) above Todd's lower price. Todd is using the MSRP as a(n)

A. base reference price.

B. external reference price.

C. perceptual reference price.

D. internal reference price.

E. disclosed reference price.

62. Which type of reference price or price range does a consumer retrieve from memory to compare with a price in the market?

A. base reference price

B. historical reference price

C. private reference price

D. internal reference price

E. repeat reference price

63. Neil is considering the purchase of a 4-wheeler ATV. He visited a distributor to look at different models, and when he looked at prices he compared them with a price his brother told him he paid for an ATV. The price Neil retrieves from memory is known as a(n)

A. base reference price.

B. external reference price.

C. internal reference price.

D. private reference price.

E. personal reference price.

64. A $10 savings on a $200 item should

A. not show the regular price.

B. show the dollar savings but not the percentage savings.

C. show the percentage savings but not the dollar savings.

D. show both the dollar savings and the percentage savings.

E. show neither the dollar savings nor the percentage savings.

65. All other things being equal, consumers tend to prefer

A. external reference prices over internal reference prices.

B. dollar savings over percentage savings.

C. percentage savings over dollar savings.

D. larger retail outlets over smaller outlets.

E. smaller retail outlets over larger outlets.

66. The retail attraction model is also called the

A. retail gravitation model.

B. retail dispersion model.

C. retail composition model.

D. retail network model.

E. retail concentration model.

67. Which model is used to calculate the level of store attraction based on store size and distance from the consumer?

A. retail multiattribute model

B. retail attraction model

C. retail attribution model

D. retail geographic model

E. retail distribution model

68. Jim is trying to determine the level of his store's attraction by using the square footage as a measure of breadth of merchandise and the distance to the store from different geographic areas. Which model is he using?

A. retail multiattribute model

B. retail gravitation model

C. retail attribution model

D. retail geographic model

E. retail distribution model

69. For which product are consumers more willing to travel longer distances to shop for?

A. toothpaste

B. wedding dress

C. beer

D. laundry detergent

E. soft drinks

70. The purchase of products involves the risk that they may not perform as expected, causing which of the following to be high?

A. social cost

B. time cost

C. effort cost

D. physical cost

E. All of these choices are correct.

71. Which of the following is not a type of cost associated with perceived risk?

A. social cost

B. time cost

C. effort cost

D. physical cost

E. spatial cost

72. Tylenol, which is an analgesic known as acetaminophen, warns in some of its advertising that consumers should read labels carefully because several other types of medications include acetaminophen (e.g., Tylenol Sinus) and consumers could overdose on this medicine and potentially suffer liver damage. Which type of cost is associated with this risk?

A. social cost

B. time cost

C. effort cost

D. physical cost

E. mental cost

73. Lori purchased new tires for her car, and she can bring it back every 5,000 miles to have the tires rotated free of charge. However, Lori doesn't do it because that would require that she take her car to the shop and either leave it and have someone get her and take her back later or sit and wait for the tires to be rotated. Which type of cost does this represent?

A. social cost

B. time cost

C. effort cost

D. physical cost

E. mental cost

74. Purchase of which product typically represents low social risk and low economic risk for consumers?

A. deodorant

B. automobile

C. socks

D. auto repairs

E. hair cut/style

75. A shopping style that puts particular emphasis on certain activities or shopping motivations is called a

A. shopping segment.

B. shopping typology.

C. shopping orientation.

D. shopping perspective.

E. store atmosphere.

76. Which of the following is a segment of consumers who follow a strict budget and often put their family's needs ahead of their own?

A. Bargain Hunter

B. Knowledge Seeker

C. Practical Player

D. Brand Desirer

E. Mobile Warrior

77. Thelma and Louise look forward to Saturday morning when they can drive to their local mall and walk into the various stores. They enjoy being able to feel products in the store so that they are more confident they are buying the right thing. To which shopping orientation do Thelma and Louise belong?

A. Store Reassurer

B. Knowledge Seeker

C. Practical Player

D. Brand Desirer

E. Mobile Warrior

78. Which of the following is a description of the shopping orientation known as a Store Reassurer?

A. These shoppers are known as "precision shoppers."

B. These shoppers do their homework online before making a purchase.

C. These shoppers heavily rely on their smartphones when shopping.

D. These shoppers prefer to shop at a store rather than online.

E. These shoppers like to buy the very latest, and quality is a priority for them.

79. Which of the following is a variable that influences brand decisions inside a retail outlet?

A. point-of-purchase materials

B. price reductions

C. outlet atmosphere

D. stockout situations

E. All of these choices are correct.

80. Purchases made in a retail outlet that are different from those the consumer planned to make prior to entering that retail outlet are called

A. incremental purchases.

B. irrational purchases.

C. unplanned purchases.

D. emotional purchases.

E. deviant purchases.

81. Unplanned purchases are further subdivided into which two categories?

A. primary and secondary

B. direct and indirect

C. reminder and impulse

D. generally planned and substitute

E. latent and manifest

82. Which of the following shelf-based point-of-purchase materials provide the maximum lift in sales?

A. coupon dispensers

B. retail price promo signs

C. shelf talker, dangler, etc.

D. inflatable (mobile)

E. shelf talker, dangler, etc. and inflatable (mobile)

83. A retailer being temporarily out of a particular brand is called

A. whiteouts.

B. blackouts.

C. stockouts.

D. shortage.

E. shrinkage.

84. Which of the following is an ambient condition related to store atmosphere?

A. customer characteristics

B. symbols

C. layout

D. temperature

E. furnishings

85. Consumers shop online for different reasons than they shop using catalogs.

86. Online retailing represents the majority of all retail sales in the United States.

87. Preference to see the product in person is one of the major reasons given for not buying online.

88. For many people in-store shopping is perceived as neither fun nor an efficient use of time.

89. Online marketers of apparel will never be able to overcome the lack of "touch" issue with consumers and as a consequence, apparel is having little sales success online.

90. Omni-channel shoppers often browse/search in one channel and use that information to make a purchase in another channel.

91. Omni-channel shoppers generally spend less money than single-channel shoppers.

92. Brand image and store image are similar concepts.

93. Sales of additional items to customers who come to purchase an advertised item are referred to as spillover sales.

94. Studies continue to show that price is frequently the prime reason consumers select a retail outlet.

95. Perceived risk is considered a consumer characteristic as well as a product characteristic.

96. Practice Players are motivated by their desire to have a fast, easy, and convenient shopping experience.

97. Most purchases in supermarkets are planned.

98. Unplanned purchases can be further subdivided into substitute and impulse purchases.

99. Sales increases generated by the addition of various types of P-O-P materials in supermarkets are called "lift."