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Chapter 17

Outlet Selection and Purchase

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 the above.

2. Which of the following is TRUE regarding Internet 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.

B and C

E.

A and C

3. The top categories of online spending include

A.
B.
C.
D.
E.

travel.
apparel.
computers and peripherals.
A and C.
all of the above.

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

A.
B.

retail outlet
contact point

C.

transaction point

D.

distribution outlet

E.

channel outlet

5. The process of consumers acquiring product through mail, telephone, or computer orders is
referred to as _____.

A.
B.
C.

outsourcing
outlet shopping
nontraditional shopping

D.

in-home shopping

E.

all of the above

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.
B.

alternative shopping
outsourcing

C.

multi-level marketing

D.

nontraditional shopping

E.

in-home shopping

7. It is predicted that the total Web-influenced in-store sales is _____.

A.

$217 million

B.

$38 billion

C.

$1.2 billion

D.

$232 billion

E.

$1,543 billion

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8. Which online shopping segment found by Experian is the highest catalog shopper?

A.

Virtual Shoppers

B.

Status Strivers

C.

Just the Essentials

D.

Original Traditionalists

E.

Shopping Lovers

9. Which online shopping segment found by Experian is older, middle income, and only looking for
functional necessity?

A.

Virtual Shoppers

B.

Status Strivers

C.

Just the Essentials

D.

Original Traditionalists

E.

Shopping Lovers

10. Greg is a carpenter and his wife, Marsha, is a second-grade teacher. They use their computer to
keep in touch with their children and rarely shop online. In which online shopping segment do they
belong?

A.

Virtual Shoppers

B.

Status Strivers

C.

Just the Essentials

D.

Original Traditionalists

E.

Shopping Lovers

11. Paul's grandchildren gave him a computer for Christmas, but he seldom uses it to shop. He only
goes to the grocery store to restock his pantry once a month. In which online shopping segment
does Paul belong?

A.

Virtual Shoppers

B.

Status Strivers

C.

Just the Essentials

D.

Original Traditionalists

E.

Shopping Lovers

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12. Which online shopping segment found by Experian is less likely than average to have bought
online in the past 12 months and enjoys shopping?

A.

Mall Maniacs

B.

Virtual Shoppers

C.

Status Strivers

D.

Shopping Lovers

E.

Mall Rats

13. Which of the following statements is FALSE regarding Internet retailing?

A.
B.

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


Annual growth in online sales remains steady at 12 percent.

C. Research has shown that consumers shop online for reasons different from those for shopping
from catalogs.
D. Catalogs and the Internet appear to work in a complementary fashion.
E.

Online sales are only about 15 percent of retail sales.

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

A.

want product delivered

B.

unique merchandise

C.
D.
E.

price
impulse
convenience

15. Jessica and Marty know how to shop online, but they prefer to go to the mall where they meet
their friends for coffee in the food court. Jessica and Marty represent which online shopper
segment?

A.

Mall Maniacs

B.

Virtual Shoppers

C.

Status Strivers

D.

Shopping Lovers

E.

Mall Rats

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16. Which online shopping segment found by Experian is younger, heavily female, and sees shopping
as fun?

A.

Virtual Shoppers

B.

Status Strivers

C.

Mall Maniacs

D.

Fun Seekers

E.

Mall Rats

17. Which of the following is NOT an online shopper segment?

A.
B.

Upscale Clicks and Bricks


Adventurous Explorers

C.

Status Strivers

D.

Just the Essentials

E.

All of the above are online shopper segments.

18. Kim did much of her Christmas shopping on the Internet last year. She enjoys buying online and
does so frequently. She also likes going to the mall so she can see and try on the latest fashions.
Kim represents which online shopper segment?

A.

Virtual Shoppers

B.

Status Strivers

C.

Mall Maniacs

D.

Fun Seekers

E.

Mall Rats

19. Which online shopping segment found by Experian is 10 percent more likely on average to have
shopped online in the past 12 months looking for good deals?

A.

Virtual Shoppers

B.

Status Strivers

C.

Mall Maniacs

D.

Fun Seekers

E.

Mall Rats

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20. Hank is seen by others as the go-to if they have questions related to finding good deals on the
Internet. He likes to shop online because, to him, it's more fun than going to a store. To which
online shopping segment does Hank belong?

A.

Virtual Shoppers

B.

Status Strivers

C.

Mall Maniacs

D.

Fun Seekers

E.

Mall Rats

21. Which online shopping segment found by Experian buys in stores and does heavy online
research prior to buying?

A.

Upscale Clicks and Bricks

B.

Business Users

C.

Fearful Browsers

D.

Virtual Shoppers

E.

Original Traditionalists

22. John can afford the finer things, and often goes to boutiques to make his purchases. He does,
however, research brands and prices online before doing so. To which online shopping segment
does John belong?

A.

Upscale Clicks and Bricks

B.

Business Users

C.

Fearful Browsers

D.

Virtual Shoppers

E.

Original Traditionalists

23. The top barrier(s) to Internet shopping is(are) ______.

A.

lack of touch

B.

privacy concerns

C.

difficult returns

D.
E.

A and B
B and C

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

A.

channel shoppers

B.

super shoppers

C.
D.
E.

omni-channel shoppers
mobile shoppers
none of the above

25. Tasha loves to shop at Macy's. She can scan Jessica Simpson bar codes with her BlackBerry 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.
D.
E.

omni-channel shoppers
mobile shoppers
none of the above

26. In order for online retailers to convert website visitors to buyers they must _____.

A.

design appropriate landing pages

B.

offer deep discounts

C.

offer free merchandise

D.

advertise with videos

E.

use pop-ups to get their attention

27. Approaches to reduce online privacy concerns include

A.
B.
C.
D.
E.

direct control through "opt-in" features.


the use of privacy statements.
signaling the firm's investment in the website.
A and B.
all of the above.

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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. Even with targeted e-mail campaigns, 90 percent of abandoned carts will stay that way.
D.
E.

Marketers see opportunities to turn abandoned carts into sales.


A and C

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

A.

don't like shopping

B.

dealing with crowds

C.

poorly informed salespeople

D.

parking and traffic

E. All of the above are reasons 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.

poorly informed salespeople

D.

parking and traffic

E.

the time it takes to shop

31. Suzy is having her sixth birthday party at Club Libby Lu at a department store in the mall. 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.
E.

brand stores
"destination areas" within stores

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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.
B.

lack of "touch"
online privacy concerns

C.

economic costs

D.

opportunity costs

E.

dispersion concerns

33. How can firms enhance consumers' control with regard to online privacy concerns?

A.

don't ask for information

B.

use bots

C.

use blogs

D.

use "opt in" approach

E.

use search engine optimization approaches

34. Sarah just purchased some casual twill pants from L.L.Bean. When she was checking out, she
was asked for her e-mail address. Below that box was a box that was checked that indicated she
would like to receive promotion messages and have her information shared with similar
marketers. She unchecked that box because she did not want to receive these promotional offers
and did not want her information shared. This is an example of which approach online retailers
are using to enhance consumers' control?

A.

"opt in" approach

B.

behavioral targeting

C.

search engine optimization

D.

bots

E.

blogs

35. MVM (My Virtual Model) helps consumers shopping online overcome which barrier?

A.
B.
C.

security
information quantity
lack of touch

D.
E.

flow
difficulty

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36. Omni-channel shoppers _____.

A.

rely on mobile and mobile shopping apps

B.

belong to Gen Y

C.

belong to Gen X

D.
E.

A and B
all of the above

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

A.

economic risk

B.

social risk

C.
D.
E.

physical risk
actual risk
all of the above

38. Consumers who browse and/or purchase in more than one channel are known as _____.

A.
B.

cosmopolitan
multi-channel shoppers

C.

multi-taskers

D.

market mavens

E.

opinion leaders

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 the above

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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.
B.

quality
selection

C.

price

D.
E.

style
all of the above

43. The "service" dimension of store image includes all of the following EXCEPT _____.

A.

easy returns

B.

sales personnel

C.
D.
E.

delivery
credit
All of the above are included.

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

A.
B.
C.

merchandise
service
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.
B.
C.

merchandise
service
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.
D.
E.

location and parking


congeniality, fun, excitement, and comfort
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.
B.
C.
D.
E.

merchandise
service
physical facilities
convenience
institutional

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

A.
B.
C.

usefulness
enjoyment
trustworthiness

D.
E.

style
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

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

A.
B.
C.
D.
E.

low price
low quality, but at a low price
high quality at a high price
high quality at a reasonable price
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.
E.

sales plus
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.
E.

sales plus
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.
D.
E.

What verbal statements should be used?


What is the cost of the item compared to the total media cost?
None of the above is a key decision.

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

A.

reference price

B.

comparison price

C.
D.
E.

base price
starting price
internal price

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

A.
B.

starting price
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.
B.

markup
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

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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-wheel 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

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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

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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.
E.

retail geographic model


retail distribution model

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

A.
B.

toothpaste
wedding dress

C.
D.
E.

beer
laundry detergent
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 the above

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

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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.
B.

deodorant
automobile

C.
D.
E.

socks
auto repairs
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

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76. Which of the following is a segment of consumers indifferent to shopping?

A.

Apathetic Shoppers

B.

Shopping Lovers

C.

Adventurous Explorers

D.

Shopping Avoiders

E.

Fun Seekers

77. Thelma and Louise look forward to Saturday morning when they can drive to their local diner and
have breakfast. They laugh at people who spend their weekends at the mall shopping. To which
shopping orientation do Thelma and Louise belong?

A.

Apathetic Shoppers

B.

Shopping Lovers

C.

Adventurous Explorers

D.

Shopping Avoiders

E.

Fun Seekers

78. Which of the following is a description of the shopping orientation known as Enthusiastic
Shoppers?

A. Their shopping styles are situation-specific or constantly changing.


B.

They look for the best deals at the lowest prices.

C. They shop to get what they want in the least amount of time.
D.
E.

They enjoy the recreational and social aspects of shopping.


They have no particular shopping motive.

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 the above

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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.
E.

generally planned and substitute


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.

C and D

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

A.

whiteouts

B.

blackouts

C.

stockouts

D.
E.

shortage
shrinkage

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

A.

customer characteristics

B.

symbols

C.

layout

D.

temperature

E.

furnishings

True / False Questions


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

False

86. Catalogs have appeared to suffer due to the growth of the Internet.
True

False

87. Concern regarding credit card security is one of the major reasons given among those who are
online but have never made a purchase online.
True

False

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

False

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.
True

False

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

False

91. Multi-channel shoppers generally spend less money than single-channel shoppers.
True

False

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92. Brand image and store image are similar concepts.


True

False

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

False

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

False

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


True

False

96. Bargain Seekers are motivated by their perceived role as a shopper who gets good deals and
lower prices.
True

False

97. Most purchases in supermarkets are planned.


True

False

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

False

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

False

100 One source of sales increases in response to price reductions comes from consumer stockpiling.
.
True False
101 A major component of store atmosphere is the number, characteristic, and behavior of other
.
customers.
True

False

17-23
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

102 Physical conditions of store atmosphere include layout, equipment, colors, furnishings, and
.
space.
True

False

103 A recent study found that the number one reason consumers abandoned their online shopping
.
carts was due to changing their mind.
True

False

104 Recent research finds that roughly 20 percent of online consumers abandon their shopping carts
.
without making a purchase.
True

False

Essay Questions
105 Name and describe three of the shopping segments identified by Experian.
.

106 Define "online retailer image," and discuss four of the several dimensions of online retailer image.
.

17-24
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

107 Define "store image," and discuss five of the several dimensions of store image.
.

108 Stacy owns a retail store specializing in home decor products. She is considering using price
.
advertising but is not sure what she needs to consider before doing so. She knows you are a
marketing major and has asked for your advice. Discuss three decisions she needs to consider
when using price advertising.

109 Jacqueline went to Walgreens to purchase some cold medicine, but the brand she wanted was
.
not on the shelf. There was an empty space on the shelf where it should have been. Explain the
variable that most likely will influence Jacqueline's brand decision right now and the impact of this
situation.

17-25
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

Chapter 17 Outlet Selection and Purchase Answer Key

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 the above.
Shoppertainment is the use of engaging, entertaining, and memorable store environments that
are emotionally engaging.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Outlet Selection and Purchase

2.

Which of the following is TRUE regarding Internet 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.

B and C

E.
A and C
Annual growth in the number of Internet users is low, with increases in the amount of online
spending coming from existing shoppers buying more.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Internet Retailing

17-26
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

3.

The top categories of online spending include

A.

travel.

B.

apparel.

C.

computers and peripherals.

D.

A and C.

E.
all of the above.
The top five categories of online spending continue to include travel, apparel, computers and
peripherals, automotive, and consumer electronics.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Internet Retailing

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
This has moved well beyond physical stores and catalogs to include the Internet, interactive TV
ads, and mobile shopping apps.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-01 Describe how retailing is evolving
Topic: The Evolving Retail Scene

17-27
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

5.

The process of consumers acquiring product through mail, telephone, or computer orders is
referred to as _____.

A.
B.
C.
D.

outsourcing
outlet shopping
nontraditional shopping
in-home shopping

E.
all of the above
These sources represent an important and growing percentage of total retail sales.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-01 Describe how retailing is evolving
Topic: The Evolving Retail Scene

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.

multi-level marketing

D.

nontraditional shopping

E.
in-home shopping
Consumers acquiring product through mail, telephone, or computer is referred to as in-home
shopping.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 17-01 Describe how retailing is evolving
Topic: The Evolving Retail Scene

17-28
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

7.

It is predicted that the total Web-influenced in-store sales is _____.

A.

$217 million

B.

$38 billion

C.

$1.2 billion

D.

$232 billion

E.
$1,543 billion
The Internet is a major retail channel and one aspect of in-home shopping.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Internet Retailing

8.

Which online shopping segment found by Experian is the highest catalog shopper?

A.

Virtual Shoppers

B.

Status Strivers

C.

Just the Essentials

D.

Original Traditionalists

E.
Shopping Lovers
Original Traditionalists are older, lower income, and are 55 percent less likely than average to
have bought online in the past 12 months.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Internet Retailing

17-29
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

9.

Which online shopping segment found by Experian is older, middle income, and only looking
for functional necessity?

A.
B.

Virtual Shoppers
Status Strivers

C.

Just the Essentials

D.

Original Traditionalists

E.
Shopping Lovers
Just the Essentials score lower than average on all forms of shopping.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Internet Retailing

10.

Greg is a carpenter and his wife, Marsha, is a second-grade teacher. They use their computer
to keep in touch with their children and rarely shop online. In which online shopping segment
do they belong?

A.

Virtual Shoppers

B.

Status Strivers

C.

Just the Essentials

D.

Original Traditionalists

E.
Shopping Lovers
Original Traditionalists are older, lower income, and are 55 percent less likely than average to
have bought online in the past 12 months.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Internet Retailing

17-30
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

11.

Paul's grandchildren gave him a computer for Christmas, but he seldom uses it to shop. He
only goes to the grocery store to restock his pantry once a month. In which online shopping
segment does Paul belong?

A.

Virtual Shoppers

B.

Status Strivers

C.

Just the Essentials

D.

Original Traditionalists

E.
Shopping Lovers
Just the Essentials score lower than average on all forms of shopping.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Internet Retailing

12.

Which online shopping segment found by Experian is less likely than average to have bought
online in the past 12 months and enjoys shopping?

A.

Mall Maniacs

B.

Virtual Shoppers

C.

Status Strivers

D.

Shopping Lovers

E.
Mall Rats
Mall Maniacs are middle income and like to try new things.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Internet Retailing

17-31
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

13.

Which of the following statements is FALSE regarding Internet retailing?

A.
B.

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


Annual growth in online sales remains steady at 12 percent.

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

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

E.
Online sales are only about 15 percent of retail sales.
Consumers shop online for various reasons, many of them similar to those for shopping from
catalogs.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Internet Retailing

14.

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

A.

want product delivered

B.

unique merchandise

C.
D.

price
impulse

E.
convenience
Consumers shop online for various reasons, many of them similar to those for shopping from
catalogs.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Internet Retailing

17-32
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

15.

Jessica and Marty know how to shop online, but they prefer to go to the mall where they meet
their friends for coffee in the food court. Jessica and Marty represent which online shopper
segment?

A.

Mall Maniacs

B.

Virtual Shoppers

C.

Status Strivers

D.

Shopping Lovers

E.
Mall Rats
Mall Maniacs are middle income, enjoy the social aspect of shopping, and like to try new
things.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Internet Retailing

16.

Which online shopping segment found by Experian is younger, heavily female, and sees
shopping as fun?

A.

Virtual Shoppers

B.

Status Strivers

C.

Mall Maniacs

D.

Fun Seekers

E.
Mall Rats
Status Strivers like to browse and shop to keep up with trends.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Internet Retailing

17-33
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

17.

Which of the following is NOT an online shopper segment?

A.

Upscale Clicks and Bricks

B.

Adventurous Explorers

C.
D.

Status Strivers
Just the Essentials

E.
All of the above are online shopper segments.
Adventurous Explorers is not an online shopper segment.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Internet Retailing

18.

Kim did much of her Christmas shopping on the Internet last year. She enjoys buying online
and does so frequently. She also likes going to the mall so she can see and try on the latest
fashions. Kim represents which online shopper segment?

A.

Virtual Shoppers

B.

Status Strivers

C.

Mall Maniacs

D.

Fun Seekers

E.
Mall Rats
Status Strivers like to browse and shop to keep up with trends.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Internet Retailing

17-34
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

19.

Which online shopping segment found by Experian is 10 percent more likely on average to
have shopped online in the past 12 months looking for good deals?

A.

Virtual Shoppers

B.

Status Strivers

C.

Mall Maniacs

D.

Fun Seekers

E.
Mall Rats
Virtual Shoppers are younger, split between higher and lower income, and tend to use the
Internet to find good deals.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Internet Retailing

20.

Hank is seen by others as the go-to if they have questions related to finding good deals on the
Internet. He likes to shop online because, to him, it's more fun than going to a store. To which
online shopping segment does Hank belong?

A.

Virtual Shoppers

B.

Status Strivers

C.

Mall Maniacs

D.

Fun Seekers

E.
Mall Rats
Virtual Shoppers are younger, split between higher and lower income, and tend to use the
Internet to find good deals.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Internet Retailing

17-35
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

21.

Which online shopping segment found by Experian buys in stores and does heavy online
research prior to buying?

A.

Upscale Clicks and Bricks

B.

Business Users

C.

Fearful Browsers

D.

Virtual Shoppers

E.
Original Traditionalists
Upscale Clicks and Bricks are higher income, middle age, and most likely to buy online and instore.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Internet Retailing

22.

John can afford the finer things, and often goes to boutiques to make his purchases. He does,
however, research brands and prices online before doing so. To which online shopping
segment does John belong?

A.

Upscale Clicks and Bricks

B.

Business Users

C.

Fearful Browsers

D.

Virtual Shoppers

E.
Original Traditionalists
Upscale Clicks and Bricks are higher income, middle age, and most likely to buy online and instore.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Internet Retailing

17-36
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

23.

The top barrier(s) to Internet shopping is(are) ______.

A.

lack of touch

B.

privacy concerns

C.

difficult returns

D.

A and B

E.
B and C
The top two barriers are lack of touch and privacy concerns.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Internet Retailing

24.

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

A.

channel shoppers

B.

super shoppers

C.
D.

omni-channel shoppers
mobile shoppers

E.
none of the above
The omni-channel consumer can use a mobile shopping app to scan a bar code and check
prices on the item across several local stores at once.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-02 Discuss the Internet and mobile as part of multi- and omni-channel shopping
Topic: Mobile as Part of an Omni-Channel Strategy

17-37
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

25.

Tasha loves to shop at Macy's. She can scan Jessica Simpson bar codes with her BlackBerry
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.
D.

omni-channel shoppers
mobile shoppers

E.
none of the above
The omni-channel consumer can use a mobile shopping app to scan a bar code and check
prices on the item across several local stores at once.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 17-02 Discuss the Internet and mobile as part of multi- and omni-channel shopping
Topic: Mobile as Part of an Omni-Channel Strategy

26.

In order for online retailers to convert website visitors to buyers they must _____.

A.

design appropriate landing pages

B.

offer deep discounts

C.

offer free merchandise

D.

advertise with videos

E.
use pop-ups to get their attention
Companies are trying to target their landing pages specifically to the type of consumer who is
clicking through.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Internet Retailing

17-38
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

27.

Approaches to reduce online privacy concerns include

A.
B.
C.
D.

direct control through "opt-in" features.


the use of privacy statements.
signaling the firm's investment in the website.
A and B.

E.
all of the above.
Research shows that consumers are more likely to provide transaction-specific information to a
trusted retailer than to one they are unfamiliar with.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Internet Retailing

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. Even with targeted e-mail campaigns, 90 percent of abandoned carts will stay that way.
D.

Marketers see opportunities to turn abandoned carts into sales.

E.
A and C
With targeted e-mails, consumers who abandon their carts can be reengaged and converted to
buyers.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Internet Retailing

17-39
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

29.

Which of the following is NOT a reason consumers give for why they don't like shopping in
stores?

A.

don't like shopping

B.

dealing with crowds

C.

poorly informed salespeople

D.

parking and traffic

E. All of the above are reasons consumers don't like shopping in stores.
For many people, in-store shopping is perceived as neither fun nor an efficient use of time.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Store-Based Retailing

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.

poorly informed salespeople

D.

parking and traffic

E.
the time it takes to shop
The main reason consumers gave for why they don't like shopping in stores is poorly informed
salespeople, followed closely by waiting in long lines.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Store-Based Retailing

17-40
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

31.

Suzy is having her sixth birthday party at Club Libby Lu at a department store in the mall. 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.
B.
C.
D.

kiosks
mini-stores
lifestyle centers
brand stores

E.
"destination areas" within stores
Destination areas within stores enhance their overall image and drive ongoing store traffic.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Store-Based Retailing

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.
B.

lack of "touch"
online privacy concerns

C.

economic costs

D.

opportunity costs

E.
dispersion concerns
Online privacy concerns include targeting children, being inundated with marketing messages,
and identify theft.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Internet Retailing

17-41
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

33.

How can firms enhance consumers' control with regard to online privacy concerns?

A.
B.
C.
D.

don't ask for information


use bots
use blogs
use "opt in" approach

E.
use search engine optimization approaches
Opt in features let consumers choose directly how their information is used.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Internet Retailing

34.

Sarah just purchased some casual twill pants from L.L.Bean. When she was checking out, she
was asked for her e-mail address. Below that box was a box that was checked that indicated
she would like to receive promotion messages and have her information shared with similar
marketers. She unchecked that box because she did not want to receive these promotional
offers and did not want her information shared. This is an example of which approach online
retailers are using to enhance consumers' control?

A.

"opt in" approach

B.

behavioral targeting

C.

search engine optimization

D.

bots

E.
blogs
Opt in features let consumers choose directly how their information is used.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Internet Retailing

17-42
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

35.

MVM (My Virtual Model) helps consumers shopping online overcome which barrier?

A.

security

B.

information quantity

C.

lack of touch

D.

flow

E.
difficulty
Virtual try-on functionality allows consumers to see how clothing looks on a model.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Internet Retailing

36.

Omni-channel shoppers _____.

A.

rely on mobile and mobile shopping apps

B.

belong to Gen Y

C.

belong to Gen X

D.

A and B

E.
all of the above
Omni-channel shoppers are digital savvy and a critical new target for retailers.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 17-02 Discuss the Internet and mobile as part of multi- and omni-channel shopping
Topic: Mobile as Part of an Omni-Channel Strategy

17-43
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

37.

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

A.
B.
C.
D.

economic risk
social risk
physical risk
actual risk

E.
all of the above
These are examples of economic risk.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Perceived Risk

38.

Consumers who browse and/or purchase in more than one channel are known as _____.

A.
B.

cosmopolitan
multi-channel shoppers

C.

multi-taskers

D.

market mavens

E.
opinion leaders
Various channels include physical stores, the Internet, catalogs, and so on.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-02 Discuss the Internet and mobile as part of multi- and omni-channel shopping
Topic: The Internet as Part of a Multi-Channel Strategy

17-44
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

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 the above
The selection of a specific retail outlet involves a comparison of the alternative outlets on the
consumer's evaluative criteria.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Attributes Affecting Retail Outlet Selection

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
Factors affecting consumers' retail outlet selection are outlet image, retailer brands, retail
advertising, and outlet location and size.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Attributes Affecting Retail Outlet Selection

17-45
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

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
Store image is the same as brand image.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Outlet Image

42.

The "merchandise" dimension of store image includes _____.

A.
B.
C.
D.

quality
selection
price
style

E.
all of the above
The merchandise dimension of store image includes quality, selection, price, and style.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Outlet Image

17-46
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

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 the above are included.
The service dimension of store image includes easy returns, sales personnel, deliveries, and
credit.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Outlet Image

44.

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

A.
B.

merchandise
service

C.

physical facilities

D.

store atmosphere

E.
institutional
The merchandise dimension of store image consists of quality, selection, style, and price.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Outlet Image

17-47
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

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.
B.

merchandise
service

C.

physical facilities

D.

store atmosphere

E.
institutional
The merchandise dimension of store image is concerned with quality, selection, style, and
price.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Outlet Image

46.

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

A.
B.
C.
D.

quality, selection, style, and price


layaway plan, sales personnel, easy return, credit, and delivery
location and parking
congeniality, fun, excitement, and comfort

E.
store reputation
The service dimension of a store's image is concerned with layaway plan, sales personnel,
easy return, credit, and delivery.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Outlet Image

17-48
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

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.
B.
C.
D.

merchandise
service
physical facilities
convenience

E.
institutional
The physical facilities dimension of store image is concerned with cleanliness, store layout,
shopping ease, and attractiveness.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Outlet Image

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.
D.

trustworthiness
style

E.
familiarity
The usefulness dimension of online retailer image is concerned with good product offers and
information, value, and alignment with consumers' interests.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Outlet Image

17-49
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

49.

The trustworthiness dimension of an online retailer's image is represented by which


components?

A.
B.
C.
D.

good product offers and information, value, aligned with interests


fun, attractive, pleasant to browse
easy to use and navigate, flexible site
reputation, information safety and security

E.
fast and flexible delivery and transactions
The trustworthiness dimension of an online retailer's image is represented by reputation and
information safety and security.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Outlet Image

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
Some store brands carry the name of the store; others have an independent name.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Retailer Brands

17-50
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

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
Some store brands carry the name of the store; others have an independent name.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Retailer 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
The traditional pattern of providing reasonable quality at a low price is no longer necessarily
optimal.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Retailer Brands

17-51
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

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
Retailers evaluating the benefit of price or other promotions must consider the impact on
overall store sales and profits, not just those of advertised items.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Retail Advertising

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

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Retail Advertising

17-52
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

55.

Which of the following is NOT a key decision for retailers considering price advertising?

A.
B.
C.
D.

How large a discount should be used?


Should a reference price be used?
What verbal statements should be used?
What is the cost of the item compared to the total media cost?

E.
None of the above is a key decision.
The cost of the item compared to the total media cost is not a key decision for retailers
considering price advertising.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Retail Advertising

56.

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

A.

reference price

B.

comparison price

C.
D.

base price
starting price

E.
internal price
If the claim is "Regularly $9.95, now only $6.95," $9.95 is the reference price.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Retail Advertising

17-53
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

57.

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

A.
B.

starting price
base price

C.

reference price

D.

comparison price

E.
markup
A reference price is a price with which other prices are compared.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Retail Advertising

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.
B.

markup
base price

C.

reference price

D.

deceptive price

E.
perceptual price
A reference price is a price with which other prices are compared.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Retail Advertising

17-54
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

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
Internal and external are types of reference prices.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Retail Advertising

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
The marketer provides the external reference price.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Retail Advertising

17-55
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

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
An external reference price is presented by a marketer for the consumer to use to compare
with the current price.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Retail Advertising

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
The consumer retrieves the internal reference price from memory.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Retail Advertising

17-56
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

63.

Neil is considering the purchase of a 4-wheel 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
The price retrieved from the consumer's memory is known as an internal reference price.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Retail Advertising

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
The best approach for retailers seems to be to present the sale price and the dollar amount
saved if it is large.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Retail Advertising

17-57
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

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
Unless the customer is particularly interested in fast service or convenience, he or she would
tend to prefer larger retail outlets over smaller outlets.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Outlet Location and Size

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
The retail attraction model, also called the retail gravitation model, is used to calculate the level
of store attraction based on store size and distance from the consumer.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Outlet Location and Size

17-58
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

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
The retail attraction model, also called the retail gravitation model, is used to calculate the level
of store attraction based on store size and distance from the consumer.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Outlet Location and Size

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
The retail attraction model, also called the retail gravitation model, is used to calculate the level
of store attraction based on store size and distance from the consumer.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Outlet Location and Size

17-59
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

69.

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

A.
B.

toothpaste
wedding dress

C.
D.

beer
laundry detergent

E.
soft drinks
Major high-involvement purchases such as automobiles or specialty items such as wedding
dresses generate greater willingness to travel.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Outlet Location and Size

70.

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

A.
B.
C.
D.

social cost
time cost
effort cost
physical cost

E.
all of the above
There are several risks in the purchase of products.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Perceived Risk

17-60
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

71.

Which of the following is NOT a type of cost associated with perceived risk?

A.
B.
C.
D.

social cost
time cost
effort cost
physical cost

E.
spatial cost
Spatial risk not a type of cost associated with perceived risk.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Perceived Risk

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.
B.
C.
D.

social cost
time cost
effort cost
physical cost

E.
mental cost
An example of a physical cost is a new medicine that produces a harmful side effect.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Perceived Risk

17-61
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

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.
B.
C.
D.

social cost
time cost
effort cost
physical cost

E.
mental cost
A time cost is the time the product is not available for use.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Perceived Risk

74.

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

A.
B.

deodorant
automobile
socks

C.
D.

auto repairs

E.
hair cut/style
Socks are inexpensive and are not often the subject of peer approval.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Perceived Risk

17-62
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

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
Shopping orientations are closely related to general lifestyle and are subject to similar
influences.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Shopping Orientation

76.

Which of the following is a segment of consumers indifferent to shopping?

A.

Apathetic Shoppers

B.

Shopping Lovers

C.

Adventurous Explorers

D.

Shopping Avoiders

E.
Fun Seekers
Apathetic Shoppers have no particular shopping motive.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Shopping Orientation

17-63
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

77.

Thelma and Louise look forward to Saturday morning when they can drive to their local diner
and have breakfast. They laugh at people who spend their weekends at the mall shopping. To
which shopping orientation do Thelma and Louise belong?

A.

Apathetic Shoppers

B.

Shopping Lovers

C.

Adventurous Explorers

D.

Shopping Avoiders

E.
Fun Seekers
Apathetic Shoppers have no particular shopping motive.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Shopping Orientation

78.

Which of the following is a description of the shopping orientation known as Enthusiastic


Shoppers?

A.
B.

Their shopping styles are situation-specific or constantly changing.


They look for the best deals at the lowest prices.

C.

They shop to get what they want in the least amount of time.

D.

They enjoy the recreational and social aspects of shopping.

E.
They have no particular shopping motive.
Enthusiastic Shoppers obtain social and entertainment value from shopping.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Shopping Orientation

17-64
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

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 the above
Influences operating within the retail outlet induce additional information processing and affect
the final purchase decision.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 17-04 Summarize the in-store and online influences on brand choice
Topic: In-Store and Online Influences on Brand Choices

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
Consumers often purchase brands different from or in addition to those planned.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-04 Summarize the in-store and online influences on brand choice
Topic: The Nature of Unplanned Purchases

17-65
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

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
A reminder purchase occurs when a consumer sees a product in a store and remembers that
she is almost out at home; an impulse purchase occurs when she sees an item in the store
and has a sudden, powerful urge to purchase it.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-04 Summarize the in-store and online influences on brand choice
Topic: The Nature of Unplanned Purchases

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.
C and D
Shelf talkers, danglers, and inflatables provide the maximum lift in sales.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-04 Summarize the in-store and online influences on brand choice
Topic: Point-of-Purchase Materials

17-66
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

83.

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

A.

whiteouts

B.

blackouts

C.

stockouts

D.

shortage

E.
shrinkage
The consumer must decide whether to (a) buy the same brand at another store, (b) switch
brands, (c) delay the purchase, or (d) forego the purchase altogether.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-04 Summarize the in-store and online influences on brand choice
Topic: Stockouts

84.

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

A.

customer characteristics

B.

symbols

C.
D.

layout
temperature

E.
furnishings
Ambient conditions include temperature, air quality, noise, music, and odor.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 17-04 Summarize the in-store and online influences on brand choice
Topic: Outlet Atmosphere

True / False Questions

17-67
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

85.

Consumers shop online for different reasons than they shop using catalogs.
FALSE
Consumers shop online for various reasons, many of them similar to those for shopping from
catalogs.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Internet Retailing

86.

Catalogs have appeared to suffer due to the growth of the Internet.


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

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Internet Retailing

87.

Concern regarding credit card security is one of the major reasons given among those who are
online but have never made a purchase online.
TRUE
Online privacy concerns include targeting children, being inundated with marketing messages,
and identify theft.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Internet Retailing

88.

For many people, in-store shopping is perceived as neither fun nor an efficient use of time.
TRUE
To combat this, retailers are fighting back with different store formats.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
17-68
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Store-Based Retailing

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.
FALSE
Virtual try-on functionality allows consumers to see how clothing looks on a model.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Internet Retailing

90.

Multi-channel shoppers often browse/search in one channel and use that information to make
a purchase in another channel.
TRUE
Various channels include physical stores, the Internet, catalogs, and so on.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 17-02 Discuss the Internet and mobile as part of multi- and omni-channel shopping
Topic: The Internet as Part of a Multi-Channel Strategy

91.

Multi-channel shoppers generally spend less money than single-channel shoppers.


FALSE
Multi-channel shoppers have higher incomes and spend 15 to 30 percent more than singlechannel shoppers.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-02 Discuss the Internet and mobile as part of multi- and omni-channel shopping
Topic: The Internet as Part of a Multi-Channel Strategy

17-69
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

92.

Brand image and store image are similar concepts.


TRUE
Store image is the same as brand image.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Outlet Image

93.

Sales of additional items to customers who come to purchase an advertised item are referred
to as spillover sales.
TRUE
Retailers evaluating the benefit of price or other promotions must consider the impact on
overall store sales and profits, not just those of advertised items.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Retail Advertising

94.

Studies continue to show that price is frequently the prime reason consumers select a retail
outlet.
FALSE
Studies show that price is frequently not the prime reason consumers select a retail outlet;
retailers would benefit by emphasizing service, selection, and affective benefits.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Retail Advertising

17-70
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

95.

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


TRUE
The perception of risk differs among customers, depending in part on their past experiences
and lifestyles.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Perceived Risk

96.

Bargain Seekers are motivated by their perceived role as a shopper who gets good deals and
lower prices.
TRUE
Recreational and social aspects of shopping are not of interest to Bargain Seekers.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Shopping Orientation

97.

Most purchases in supermarkets are planned.


FALSE
Two-thirds of supermarket purchase decisions are made in-store.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-04 Summarize the in-store and online influences on brand choice
Topic: The Nature of Unplanned Purchases

98.

Unplanned purchases can be further subdivided into substitute and impulse purchases.
FALSE
Unplanned purchases can be further subdivided into reminder and impulse purchases.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
17-71
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

Difficulty: 3 Hard
Learning Objective: 17-04 Summarize the in-store and online influences on brand choice
Topic: The Nature of Unplanned Purchases

99.

Sales increases generated by the addition of various types of P-O-P materials in supermarkets
are called "lift."
TRUE
The effectiveness of P-O-P materials can be substantial because they capture consumer
attention.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-04 Summarize the in-store and online influences on brand choice
Topic: Point-of-Purchase Materials

100.

One source of sales increases in response to price reductions comes from consumer
stockpiling.
TRUE
Stockpiling often leads to increased consumption of the brand because it is readily available.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 17-04 Summarize the in-store and online influences on brand choice
Topic: Price Reductions and Promotional Deals

101.

A major component of store atmosphere is the number, characteristic, and behavior of other
customers.
TRUE
Crowding must be considered because it can generate negative emotions and reduce
browsing.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 17-04 Summarize the in-store and online influences on brand choice
Topic: Outlet Atmosphere

17-72
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

102.

Physical conditions of store atmosphere include layout, equipment, colors, furnishings, and
space.
TRUE
A store's atmosphere affects the shopper's mood/emotions and willingness to visit and linger.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 17-04 Summarize the in-store and online influences on brand choice
Topic: Outlet Atmosphere

103.

A recent study found that the number one reason consumers abandoned their online shopping
carts was due to changing their mind.
FALSE
A recent study found that the number one reason consumers abandoned their online shopping
carts was because shipping and handling costs were too high.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 17-04 Summarize the in-store and online influences on brand choice
Topic: Website Functioning and Requirements

104.

Recent research finds that roughly 20 percent of online consumers abandon their shopping
carts without making a purchase.
FALSE
Research suggests that roughly 7 in 10 shopping carts are started but abandoned prior to
purchase.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 17-04 Summarize the in-store and online influences on brand choice
Topic: Website Functioning and Requirements

Essay Questions

17-73
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

105.

Name and describe three of the shopping segments identified by Experian.

Research has uncovered six shopping segments, and students can discuss any three.
a. Upscale Clicks and Bricksare 68 percent more likely than average to have bought
online in the past 12 months. They are higher income and middle age. They buy online and instore and do heavy online research prior to buying.
b. Virtual Shoppersare 10 percent more likely than average to have bought online in the
past 12 months. Younger and split between higher and lower income, this group tends to use
the Internet to find good deals.
c. Status Striversare 4 percent more likely than average to have bought online in the past
12 months. Younger and heavily female, this group sees shopping as fun and as a form of
recreation. They like to browse and shop to keep up with trends. Highest mall shoppers.
d. Mall Maniacs15 percent less likely than average to have bought online in the past 12
months. Middle income, this group likes trying new things. They enjoy shopping. Second
highest mall shoppers.
e. Just the Essentials27 percent less likely than average to have bought online in the past
12 months. Older and middle income, this group is only looking for functional necessity. Score
lower than average on all forms of shopping.
f. Original Traditionalists55 percent less likely than average to have bought online in the
past 12 months. Older and lower income, this group is brand and store loyal, buy American,
buy green. Roughly average on mall shopping. Highest catalog shoppers.

AACSB: Analytical Thinking


Blooms: Understand
Difficulty: 3 Hard
Learning Objective: 17-01 Describe how retailing is evolving
Topic: Internet Retailing

17-74
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

106.

Define "online retailer image," and discuss four of the several dimensions of online retailer
image.

A given consumer's or target market's perception of all of the attributes associated with an
online outlet is generally referred to as an online retailer image. A recent study found seven
dimensions and related components, and students can discuss any four.
a. Usefulnessgood product offers and information, value, aligned with interests
b. Enjoymentfun, attractive, pleasant to browse
c. Ease of useeasy to use and navigate, flexible site
d. Trustworthinessreputation, information safety and security
e. Stylehelpful, friendly, knowledgeable, calm
f. Familiarityadvertising online and offline, general familiarity
g. Settlementfast and flexible delivery and transactions

AACSB: Analytical Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Outlet Image

107.

Define "store image," and discuss five of the several dimensions of store image.

A given consumer's or target market's perception of all the attributes associated with a retail
outlet is generally referred to as the store image. One study found the following nine
dimensions and components of these dimensions of store image, and students can discuss
any five.
a. Merchandisequality, selection, style, and price
b. Servicelayaway plan, sales personnel, easy return, and attractiveness
c. Clientelecustomers
d. Physical facilitiescleanliness, store layout, shopping ease, and attractiveness
e. Conveniencelocation and parking
f. Promotionadvertising
g. Store atmospherecongeniality, fun, excitement, comfort
h. Institutionalstore reputation
i. Post-transactionsatisfaction

AACSB: Analytical Thinking


Blooms: Understand
Difficulty: 2 Medium
17-75
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Outlet Image

108.

Stacy owns a retail store specializing in home decor products. She is considering using price
advertising but is not sure what she needs to consider before doing so. She knows you are a
marketing major and has asked for your advice. Discuss three decisions she needs to consider
when using price advertising.

Retailers face three decisions when they consider using price advertising:
a. How large a price discount should be used?
b. Should comparison or reference prices be used? Showing a comparison price increases
the perceived savings significantly. However, the strength of the perception varies with the
manner in which the comparison or reference price is presented. Most consumers understand
external reference prices (i.e., those presented by the marketer) and are influenced by them
but do not completely believe them because of the perception that retailers inflate reference
prices.
c. What verbal statements should accompany the price information? The best approach
for retailers seems to be to present the sale price and either the dollar amount saved if it is
large, the percentage saved when it is large, or both if both are large. The regular price could
be shown in any of these conditions. Such words or phrases as "now only," "compare at," or
"special" appear to enhance the perceived value of a sale. However, this varies by situation,
initial price level and discount size, consumer group, and retail outlet.

AACSB: Analytical Thinking


Blooms: Understand
Difficulty: 3 Hard
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection
Topic: Retail Advertising

17-76
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

109.

Jacqueline went to Walgreens to purchase some cold medicine, but the brand she wanted was
not on the shelf. There was an empty space on the shelf where it should have been. Explain
the variable that most likely will influence Jacqueline's brand decision right now and the impact
of this situation.

This is an example of a stockout, which means the store is temporarily out of a particular
brand. Jacqueline must now decide whether to buy the same brand but at another store,
switch brands, delay the purchase and buy the desired brand later at the same store, or forgo
the purchase altogether. In addition, her verbal behavior and attitude may change. With
respect to verbal behavior, she may make negative comments to peers about the original store
and/or positive comments to peers about the substitute store and/or brand or product. With
respect to attitude, she may develop a less favorable attitude toward Walgreens and/or a more
favorable attitude toward the substitute store and/or brand or product. Three types of perceived
costs affect the likely response of a consumer to a stockout. Substitution costs refer to the
reduction in satisfaction a consumer believes a replacement size, brand, or product will
provide. This is a function of the consumer's commitment or loyalty to the preferred brand and
the perceived similarity of potential substitutes. Transaction costs refer to the mental, physical,
time, and financial costs of purchasing a substitute product or brand. Opportunity costs are the
reduction in satisfaction associated with forgoing or reducing consumption of the product. How
these costs will be perceived and thus, which of the outcomes will occur depends on the
particular consumer, product, and situation.

AACSB: Analytical Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 17-04 Summarize the in-store and online influences on brand choice
Topic: Stockouts

17-77
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.