Retailing Ch.3 SMART

When compared to other channels, which three of the following are benefits of stores?

- Immediate gratification - Personal service - Risk reduction

Select from the following all the ways in which an Internet channel helps retailers be more competitive?

- It allows retailers to offer a greater selection of merchandise - It helps retailers enter new markets economically - It provides retailers with information they can use to improve the shopping experience.

One advantage stores have over other channels is that if a customer needs additional information on a product, or needs questions answered, a sales associate is readily available to help. The result of this is that _____.

- it reduces the customer's perceived risk of purchase - it increases the customer's confidence that purchase problems will be corrected

Select from the following the risks consumers are concerned with when shopping online:

- the security of credit card transactions - the potential of privacy violations - how the collection of personal information will be used.

Select from the following all the ways that retailers use the information collected from Internet channels:

- to provide unique promotions to individual consumers - to help design stores and/or websites - to offer suggestions on what items a customer might be interested in purchasing.

Which of the following is a nonstore retail channel?

An internet retail channel

______ is a retail channel in which merchandise or services are stored in a machine and dispensed to customers when they deposit cash or use a credit card.

Automated retailing

How do multichannel retailers leverage their stores to lower the cost of fulfilling orders?

By using their stores as warehouses for gathering merchandise for delivery to customers

What is an advantage of catalog channels over other retail channels?

Catalogs allow consumers to place an order from almost anywhere at any time.

Match the term on the left with its correct description on the right.

Channel - involves the opportunity to complete a transaction. Medium - is primarily used to communicate information to consumers.

_______ occurs when a customer gets product information from one retailer, but then buys from a competitor.

Channel migration

True or false: The only way retailers can expand their market presence is to build new stores.

False

The broad term to describe retailers interacting with consumers via the Internet, whether they use a computer, tablet, or a smartphone is ________.

Internet retailing

What should retailers consider before engaging in multichannel retailing?

It is difficult to sustain regional price differences when customers can easily check prices on the Internet

Mobile retailing is also called

M-commerce

Which of the following is an example of showrooming?

Naomi enters a store to know more about a particular product brand of guitars, then searches the internet to find the product for a lower price.

When it comes to brand image across channels, what do retailers need to do to be successful?

Provide a consistent brand image across all channels

Why do store-based retailers or catalogers add Internet channels in their retail strategy?

Retailers like to improve their offerings and build a competitive advantage

________ a form of channel migration.

Showrooming

Anton is very particular about the clothes he buys. He doesn't like fabric that itches his skin and he has a hard time getting clothes to fit him. What benefit would shopping in a store give Anton over other retail channels?

The ability to touch the fabrics and try on the clothes

True or false: Direct selling is a highly interactive retail channel.

True

Ryan is using an electronic retailing channel if he ______.

accesses the internet to purchase a product

Unlike store channels, all non-store retail channels _______.

are limited in the degree to which they can satisfy the entertainment needs of consumers.

Samuel is using an automated retail channel if he _______

buys a product from a vending machine.

A _______ channel is a nonstore retail channel in which the retail offering is communicated to customers through a catalog of the products mailed to customers.

catalog

A retail _____ is the way a retailer sells and delivers merchandise and services to its customers.

channel

Steve collects information about guitars from the official website of T&Y Corp. He purchases a guitar from T&Y Corp's competitor after a month. Steve's buying behavior is an example of

channel migration

Jackson ordered a new ski jacket online from his favorite retailer. He had the coat shipped directly to the store located close to his house so he could pick it up directly rather than have it shipped. This is an example of a customer using

cross-channel retailing.

Compared to what is available in a store or in a catalog, a retailer's website typically offers a(n)______ of merchandise.

deeper assortment

The retail channel in which salespeople interact with customers face-to-face in a convenient location, either at the customer's home or at work is called ______.

direct selling

When selling merchandise through the Internet channel, retailers ______.

do not incur the costs of building new stores

Using an internet channel _____.

enables customers to solve problems rather than just get information about specific products

A person who buys merchandise from firms and then resells it to consumers in face to face setting, often at the consumer's home is acting as an _______ distributor.

independent

The most significant potential benefit of a(n)______ channel is its ability to personalize merchandise offerings and information.

internet

Which shopping channel allows retailers to develop extensive purchase histories that can be used to provide valuable insights into the shopping behavior of customers?

internet channels

Adding an Internet channel _____.

is attractive to retailers with strong brand names but limited locations and distribution.

Retailers are better able to personalize merchandise offerings on Internet channels through the use of _______.

live chats

Which of the following is an advantage of mobile channels?

location sensitivity

Customers who patronize store retail channels ______.

may prefer to pay with cash as it does not result in potential interest payments

Of the various types of retail channels, the ______ channel has the highest growth rate.

mobile

A customer engaging in _____ is also engaging in Internet retailing.

mobile retailing

Retailing that involves using more than one channel to sell and deliver merchandise and services to consumers is referred to as

multichannel retailing

When customers are engaged in cross-channel retailing, they use _____ channels to make purchases.

multiple

Multichannel retailers _______.

need to adjust their pricing strategy because of the competition they face in different channels

The use of catalogs, the Internet, or mobile phones to purchase products would all be classified as ______ retail channels.

nonstore

A retailer that has many shopping channels (stores, catalogs, website, etc.) but makes a coordinated effort to ensure that all of its channels provide a seamless and synchronized experience for the customer is engaged in ________ retailing

omnichannel

To reduce showrooming, a multichannel retailer should _______.

promote private-label merchandise that can be purchased only from the retailer

which of the following is a disadvantage of mobile channels?

screen size

Reuben visits a store to know more about the different brands of gaming consoles available in the market. After learning about gaming consoles, he places an order at a different retail store through the store's website because it is less expensive. Reuben's buying behavior is an example of ______.

showrooming

_______ occurs when a consumer goes into a store to learn about different brands and products and then searches the internet for the same product sold at a lower price.

showrooming

When retailers sell and deliver their products to customers through only one channel, they are called

single-channel retailers

A customer who conducts a purchase transaction through a social media site is engaged in s-retailing, otherwise known as

social retailing

A challenge faced by multichannel retailers is that ________.

the activities performed by distribution centers that support a store channel differ from those that support an internet channel

A disadvantage of a store channel is that ______.

the market for customers who shop in stores is typically limited to customers living in proximity to those stores

Retailers engaging in multichannel retailing should realize that ______.

typically, different assortments are often appropriate for each of the channels.

When it comes to providing information to help consumers make better buying decisions, the information available through Internet channels is ______.

unlimtied

Multichannel retailers are still struggling to provide an integrated shopping experience across all their channels because ______.

various skills and unique resources are needed to manage each channel.

Automated retailing machine are also known as _________ machines.

vending