Consumer Behavior

If a consumer makes purchases in a retail store that are different from those he or she wanted to make before entering the store, then those purchases are referred to as

unplanned purchases

Treena searched online for the boots she wanted and then went to the store to buy them. She engaged in _____ to purchase the boots.

webrooming

Identify the most suitable example of omni-channel shoppers.

A consumer who compares prices of products online and buys the products in a store

Identify an example of partitioned prices.

A product with separately mentioned product price and shipping charge

What are the top five categories of online purchases in the US?

- apparel - electronics - beauty items - home furnishings - personal care products

What are two types of shopping orientation?

- mobile warrior - bargain hunter

What are the two biggest reasons consumers abandon an online shopping cart prior to purchase?

- shipping costs are too high - not ready to make the purchase

What are three types of perceived risk consumers have when purchasing a product?

- social cost - financial cost - physical cost

What are three factors that affect a store's atmosphere?

- sound - lighting - odors

In what decade did many stores begin to develop their own store brands to compete with national brands?

1970s

Research indicates that about _____ online shopping carts are abandoned before the purchase is made.

7 in 10

Which scenario is an example of in-home shopping?

a man who buys furniture from a catalog

Most of the factors that have an impact on the effectiveness of point-of-purchase (P-O-P) materials in generating "lift" by consumers in retail stores relate to the

ability to capture consumer attention

Taking into consideration that the effect of distance or travel time varies by product, what product would generate the consumer's greatest willingness to travel to make a purchase?

an automobile

Caroline doesn't like shopping at Sweater Stop because the aisles are narrow and it's always crowded with people. Caroline is choosing not to shop at this store because of its'

atmosphere

A consumer's shopping style that puts particular emphasis on certain activities or shopping motivations is called the shopping

orientation

The most recent report cited in the text, notes that Amazon accounts for _____ of US online retail sales.

over 40%

While purchasing products, the ability to _____ enables consumers to shop willingly and purchase more.

pay by credit card instead of cash

Sunnies Baked Goods, a bakery in Seattle, wants to promote its new apple tarts. It provides coupons to consumers through lucky draws held on different days. What strategy is Sunnies using to advertise its products?

price reductions and promotional deals

The rate of in-store and unplanned purchasing varies by _____ consumer, and situation.

product

The process of completing a transaction that a consumer had started, once he or she selected a retail outlet and a brand, is referred to as _____ a product.

purchasing

A price of a product with which other prices are compared is called a

reference price

The price at which a decent volume of a product or brand being discounted is normally sold by a retail store should be the _____.

regular price

The level of store attraction based on the distance of a store from a consumer and store size is calculated using the

retail attraction model

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

retail outlet

According to the Roper survey cited in the text, the number one reason consumers don't like to shop in stores is

salespeople are poorly informed

Consumers who use webrooming when purchasing a product first

search online for the product

The atmosphere of a business such as a bank or restaurant is called the

servicescape

Kellen isn't sure she wants to buy the high-waisted jeans because she doesn't think her friends will like them on her. What type of perceived risk is Kellen concerned with?

social cost

Tess, a fashion designer, decides to purchase a red ABC brand hand bag. She goes to a retail outlet and purchases a red ABC brand hand bag. Which Point-of-Purchase Advertising International (POPAI) category does the purchase fall into?

specifically planned purchase

If additional items are sold to customers who visit a retail store to buy an advertised item, it is known as

spillover sales

Marlo went to the store to buy her favorite shampoo that was on sale and ended up buying three birthday cards and some soda while she was there. The items she bought in addition to the shampoo are known as

spillover sales

If a particular brand is temporarily unavailable in a store, the situation is referred to as a

stockout

Micah suggested brighter light bulbs should be placed in the dressing rooms so customers could see better when trying on clothing. What aspect of the store is Micah trying to improve?

store atmosphere

Stores like The Gap and Lululemon are an extreme example of a

store brand

Terry doesn't like to shop at Gilmore Clothing because the aisles are always a mess. Terry's perception of the _____ is stopping him from shopping.

store image

The _____ is a consumer's perception of all the attributes associated with a retail outlet.

store image

James went to the store to buy ketchup. A brand he doesn't usually buy is on sale so he decides to purchase it instead of his usual brand. James made a(n) _____ purchase.

unplanned

True or false: Mobile Warriors are likely to engage in webrooming over showrooming.

False

It is projected that mobile retailing will exceed _____ by 2021.

50%

What are four sources of price reductions that can lead to an increase in retail sales?

- arrival of new customers - stockpiling by current brand users - switching to discounted brands by users of competing brands - nonproduct category buyers assigning superior value to discounted brands

What are four types of in-home shopping options for consumers?

- direct mail - television - telemarketing - catalogs

According to the survey cited in the text, the top two categories shopped for on a mobile device are

- electronics - clothing

What are three dimensions associated with an online retailer image?

- familiarity - trustworthiness - usefulness

What are the two best approaches for retailers to advertise discounted pricing of their products to consumers?

- presenting the percentage saved if it is large - presenting the dollar amount saved if it is large

What are two things retailers can do to promote omni-channel shopping?

- provide price comparisons in-store - educate employees

What are three factors related to sales personnel that influence the effectiveness of sales efforts in driving consumer purchase behavior?

- relationship between a customer and a salesperson - knowledge, authority, and skill of a salesperson - nature of the consumer's buying task

What is an example of an online "superstore"?

Amazon.com

merchandise promotion store atmosphere clientele

M: price, quality, style, and selection P: advertising SA: comfort, congeniality, excitement, and fun C: customers

Which consumer is an example of an omni-channel shopper?

Carol compares prices of purses using a mobile application while standing in a retail store.

Fears of consumers about how their personal information that is collected online might be utilized are referred to as their

online privacy concerns

Everyday Low Prices Partitioned Prices

EDLP: preferred by shoppers who purchase a large number of items at once PP: preferred by shoppers who purchase products online

External reference price Internal reference price

ERP: A marketer presents this price for a consumer to compare with the product's current price IRP: A consumer recalls this price or price range from memory to compare with a price in the market

True or false: In the retail gravitation model, store size is assumed to be a measure of the effort, both physical and psychological, to reach a given retail area.

False

True or false: Mobile apps have little influence over consumers when they shop at a brick and mortar store.

False

True or false: Retail outlets include only physical stores and catalogs.

False

In which country, according to Point-of-Purchase Advertising International, are in-store decisions made much less frequently than in the other two countries?

Germany

Which example portrays a store with a "destination area"?

Justin Dept. Stores have high-end hair salons in their high-traffic stores.

Knowledge seekers Brand desirers Bargain hunters Practical players

KS: webrooming BD: boutique shopping BH: large discount retailers PP: service-oriented retailers

low-involvement purchases high-involvement purchases

LIP: Shoppers are unwilling to travel very far. HIP: Shoppers are willing to travel.

low-involvement purchases high-involvement purchases

LIP: attractive-looking avatars because they are more likable HIP: expert avatars because they are more credible

low-involvement purchases high-involvement purchases

LIP: predominantly self-service HIP: greater likelihood of interaction with sales personnel

Identify a true statement about omni-channel shoppers.

Nearly 75% of shoppers utilize two or more channels to browse and buy.

substitution costs transaction costs opportunity costs

SC: decrease in satisfaction a consumer identifies while replacing a product, brand, or size TC: ascertained mental, physical, time, and financial costs of replacing a product or brand OC: decreased consumer satisfaction as a result of reducing or forgoing consumption of a product

specifically planned generally planned substitute unplanned in-store decisions

SP: A consumer purchases an item or brand from a store as he or she had decided to purchase. GP: A consumer makes a decision before entering a store to purchase a product category but not a specific product. S: A consumer changes from a generally or specifically planned item to a functional alternative. U: A consumer buys an item that he or she did not have in mind while entering a store. ISD: The purchases that are the sum of substitute, unplanned, and generally planned purchases.

What is an example of point-of-purchase materials used to impact sales?

The grocery store chain places coupon dispensers for orange juice in the breakfast cereal aisle.

How do most consumers respond to external reference prices when they see them in the store?

They do not completely believe them.

What is an accurate statement about omni-channel shoppers?

They rely heavily on mobile shopping applications.

True or false: One way to keep shoppers in-store is to make sure employees are properly trained and have current knowledge of the store's products.

True

True or false: Retailers are designing different shopping experiences, like lifestyle centers, to lure customers to shop in stores instead of online.

True

Target recently introduced limited-time designer collections as a way to draw customers into the store. These collections are examples of

destination areas

Virtual characters that act as company representatives and can act as online sales clerks are called

avatars

Perceived risk is considered a product characteristic and a _____ characteristic.

consumer

A direct result of the advent of mobile and mobile applications in the context of in-store shopping is that they have

enabled consumers to search for deals, prices, and brands while being in a physical store.

When considering perceived risk for retailers, an online retailer would be viewed as having _____ risk.

higher

If a purchase is made with little or no deliberation because of a sudden, powerful urge to have a product, it is known as a(n)

impulse purchase

Kary is shopping for a dress to wear for her office gala when she notices Blush brand of watches for women. She thinks the design of the watches is trendy and really wants one so she purchases a watch. In this scenario, the type of purchase made by Kary is an example of a(n)

impulse purchase

The reason consumers do not completely believe in external reference prices, although they are influenced by them, is that

inflated reference prices are used by some retailers.

If everything else is basically equal, a consumer will generally choose to shop at the store which

is closest to them

From a business standpoint, what is the most obvious barrier to Internet shopping?

lack of online access

Ally Appliance Corp. has implemented a two-step verification system that customers must go through to access their account online. This system is an example of how companies are addressing

online privacy concerns

What is the top-ranked purchasing channel for most consumers in most categories?

traditional stores