Question 1

Which of the following is True of the benefits offered by Internet shopping? 
A) The Internet offers a limited assortment of products.
B) Customers can get information that is useful across channels.
C) The perceived risk is lower when compared to store channels.
D) The Internet is not economically viable for retailers looking to expand their markets.
E) It has limited effectiveness in making personalized recommendations.

Accepted Answer

Internet channels enable retailers to provide customers with more personalized information about products and services. They offer sellers the unique opportunity to collect information about consumer shopping. Internet channels provide an opportunity for retailers to enter new markets economically. They provide information that retailers can use to improve the shopping experience across all channels.

Question 2

Retailers can use multiple channels synergistically by
A) using one channel to promote the others.
B) providing similar assortments across channels.
C) providing a limited amount of information to customers.
D) concentrating only on catalogs for product promotions.
E) reducing prices for products in all channels.

Accepted Answer

Retailers also benefit by using multiple channels synergistically. Multichannel and omnichannel retailers can use one channel to promote the services offered by other channels. For example, the URL of a store's website can be advertised on in-store signs, shopping bags, credit card billing statements, point-of-sale (POS) receipts, and the print or broadcast advertising used to promote the store.

Question 3

Which retail channel has the least perceived risk when purchasing products? 
A) Internet
B) Stores
C) Catalog
D) Showrooming
E) Mobile retailing

Accepted Answer

The physical presence of the store reduces perceived risk and increases customers' confidence that any problems with a purchase will be corrected. Customers can easily access people in the store to resolve issues concerning defective or unsuitable merchandise or get additional information on how to use a product.

Question 4

By obtaining information about customer preferences and past purchase behavior, retailers operating an electronic channel are able to: 
A) design more secure sites for credit card users.
B) develop faster download times.
C) promote showrooming.
D) respond immediately to consumer inquiries.
E) tailor merchandise and recommendations.

Accepted Answer

The interactive nature of the Internet provides an opportunity for retailers to personalize their offerings for each of their customers. For example, Amazon.com serves customers a personalized landing page with information about books and other products of interest based on the customer's past purchases and search behavior on the website.

Question 5

Which of the following strategies can a retailer utilize to attract shoppers to its website? 
A) Persuade investors with positive sales forecasts.
B) Encourage vendors to deliver the assortments.
C) Focus on bankruptcy proceedings to create a trustworthy image.
D) Print the website address on signage, bags, and in advertising.
E) Prime its sales associates to use its website.

Accepted Answer

Retailers benefit by using multiple channels synergistically. Multichannel and omnichannel retailers can use one channel to promote the services offered by other channels. For example, the URL of a store's website can be advertised on in-store signs, shopping bags, credit card billing statements, point-of-sale (POS) receipts, and the print or broadcast advertising used to promote the store. The physical stores and catalogs are also advertisements for a retailer's other channels.

Question 6

Which of the following is a benefit of only store channel shopping?
A) Convenience
B) Extensive information
C) Personalization
D) Immediate gratification
E) Broad and deep assortments

Accepted Answer

Immediate gratification is a benefit of store channel shopping; all of the other choices are benefits of other channels. Customers can use merchandise immediately after they buy it in stores.

Question 7

Redbox, a DVD rental service, utilizes machines to dispense DVDs to customers. Which form of retailing is Redbox using?
A) Internet retailing
B) Store Channel
C) Direct Selling
D) Automated retailing
E) Catalog retailing

Accepted Answer

Redbox uses automated retailing machines, also known as vending machines, to rent out DVDs. Automated retailing 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.

Question 8

Which of the following is not a benefit of a store channel shopping experience? 
A) Browsing
B) Immediate gratification
C) Risk reduction
D) Personal service
E) Expanded assortments

Accepted Answer

Shopping in a store offers benefits such as immediate gratification, personal service, browsing, touching and feeling merchandise, risk reduction, and cash payment; however, a store cannot physically offer as much expanded assortment as the assortment offered online.

Question 9

A retailer that sells product online through their website but does not accept that product to be returned to their store if the customer is not satisfied with it is not yet fulfilling a(n) ________ strategy.
A) multichannel
B) multilevel network
C) omnichannel
D) cross migration
E) single channel

Accepted Answer

Retailers that can devise an effective omnichannel strategy by providing consumers a seamless experience will cause less frustration to the customer and be most successful.

Question 10

Internet retailers offer ________, where customers can click a button at any time and have an instant messaging e-mail or voice conversation with a customer service representative.
A) live chats
B) cookies
C) showrooming
D) contact scraping
E) intranet portals

Accepted Answer

The retailer can play a more proactive role in personalizing merchandise and information through the Internet channels. For example, many retailers offer live chats: Customers can click a button at any time and have an instant messaging e-mail or voice conversation with a customer service representative. This technology also enables retailers to send a proactive chat invitation automatically to customers on the site.

Question 11

Brett has a headache and needs a pain reliever. He goes to the nearby drugstore, buys some Tylenol, and uses it. Which of the following benefits offered by stores can be seen in the given example?
A) Risk reduction
B) Immediate gratification
C) Personal service
D) Entertainment and Social experience
E) Browsing

Accepted Answer

Customers can use merchandise immediately after they buy it in stores, unlike ordering something online and waiting for the shipment to arrive.

Question 12

Which of the following benefits is offered by the Internet channel? 
A) Deeper assortments
B) Immediate gratification
C) Social interaction
D) Personal service
E) Less perceived risk

Accepted Answer

Individual retailers' websites typically offer deeper assortments of merchandise (more colors, brands, and sizes) than are available in stores or catalogs. This expanded offering enables them to satisfy consumer demand for less popular styles, colors, or sizes. Many retailers also offer a broader assortment (more categories) on their websites.

Question 13

Compared to other retail formats, the greatest benefit that store shopping offers is
A) the ability to touch and feel the products.
B) personal safety.
C) easy availability of information for product comparison.
D) broader and deeper assortments.
E) availability of detailed information for evaluating a product.

Accepted Answer

Perhaps the greatest benefit offered by stores is the opportunity for customers to use all five senses-touching, smelling, tasting, seeing, and hearing-when examining and evaluating products. Although new technologies such as three-dimensional and 360-degree projections can enhance representations of products on a computer or mobile phone screen, these visual improvements do not provide the same level of information customers get when they actually try on a swimsuit or smell the fragrance of a candle.

Question 14

Which of the following is not a method for devising an effective omnichannel strategy?
A) Offering varying prices for each channel depending on which channel is most costly to manage
B) Using each channel to promote the others, such as highlighting their web address on bags that customers carry from their stores
C) Fulfilling orders placed online through the website from stores to increase shipping speed
D) Offering coupons through e-mail for customers to use in store
E) Having private events in stores for customers that RSVP through a social media invite

Accepted Answer

Retailers that can devise an effective omnichannel strategy by providing consumers a seamless experience will cause less frustration to the customer and be most successful. Having different prices in different channels causes frustration for customers.

Question 15

Margaret went to the mall to meet her sister, Val. While at the mall, they witnessed a back-to-school fashion show in a store. They took a walk and watched the children play in the center arena. Which benefit of store shopping did Margaret and Val enjoy?
A) Immediate Gratification
B) Entertainment and social interaction
C) Convenience
D) Personal service
E) Touch and feel products

Accepted Answer

In-store shopping can be a stimulating experience for some people, providing a break in their daily routine and enabling them to interact with friends.

Question 16

Which retail channel has the ability to economically provide the most product information for the consumer purchasing products?
A) Internet
B) Stores
C) Direct Selling
D) Automated
E) All of these

Accepted Answer

Retail channels differ in terms of how much information customers can access. The amount of information available through the store channel is limited by the number and training of sales associates and the space allocated to informative signage. Similarly, the information available through a catalog channel is limited by the number of pages in the catalog. In contrast, the information provided through the Internet channels is unlimited.

Question 17

Which of the following statements about Internet retailing is True? 
A) Internet retailing gives customers an opportunity to use all five senses.
B) Customers can have more personalized information on products.
C) Customers do not receive sufficient information to evaluate products.
D) The electronic channel offers a less satisfying shopping experience than catalogs.
E) Online stores offer limited assortments compared to store channels.

Accepted Answer

The addition of the Internet channels has the potential to offer a greater selection of products. They allow retailers to provide more information. They enable retailers to provide customers with more personalized information about products and services.

Question 18

Which of the following is not a method for devising an effective omnichannel strategy?
A) allowing returns of merchandise to any channel regardless of channel of purchase
B) having the same pricing strategies and promotions for all channels
C) splitting buying responsibilities up at the corporate office to specialize in either stores or e-commerce to better understand the different customers' buying behaviors
D) having a consistent image across all channels
E) advertising in-store that additional sizes and colors are available online

Accepted Answer

Retailers wanting to devise an effective omnichannel strategy have been merging the buyer positions to oversee both store and online channels to offer more of a consistent offering for customers shopping more than one channel. All other options are also ways retailers are working to offer more of a seamless experience for customers.

Question 19

Which channel allows the customer the most ease and unbiased information about products? 
A) Internet
B) Stores
C) Catalog
D) Showrooming
E) Automated retailing

Accepted Answer

The availability of Internet and mobile channels enables customers to search easily for information about products and their prices along with seeing real customer reviews about their experience with the product (as opposed to the brand or retailer just providing a marketing spin on the benefits of the product).

Question 20

Automated retailing
A) is most effective in high-traffic areas.
B) is based on the idea that social relationships influence buying habits.
C) uses a master distributor as lead salesperson.
D) is a recruiting tool for multilevel networks.
E) promotes products through infomercials.

Accepted Answer

Automated retailing 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 machines, also known as vending machines, are typically placed at convenient, high-traffic locations.

Quiz 3: Multichannel and Omnichannel Retailing

Which of the following is True of the benefits offered by Internet shopping?

Retailers can use multiple channels synergistically by

Which retail channel has the least perceived risk when purchasing products?

By obtaining information about customer preferences and past purchase behavior, retailers operating an electronic channel are able to:

Which of the following strategies can a retailer utilize to attract shoppers to its website?

Which of the following is a benefit of only store channel shopping?

Redbox, a DVD rental service, utilizes machines to dispense DVDs to customers. Which form of retailing is Redbox using?

Which of the following is not a benefit of a store channel shopping experience?

A retailer that sells product online through their website but does not accept that product to be returned to their store if the customer is not satisfied with it is not yet fulfilling a(n) ________ strategy.

Internet retailers offer ________, where customers can click a button at any time and have an instant messaging e-mail or voice conversation with a customer service representative.

Brett has a headache and needs a pain reliever. He goes to the nearby drugstore, buys some Tylenol, and uses it. Which of the following benefits offered by stores can be seen in the given example?

Which of the following benefits is offered by the Internet channel?

Compared to other retail formats, the greatest benefit that store shopping offers is

Which of the following is not a method for devising an effective omnichannel strategy?

Margaret went to the mall to meet her sister, Val. While at the mall, they witnessed a back-to-school fashion show in a store. They took a walk and watched the children play in the center arena. Which benefit of store shopping did Margaret and Val enjoy?

Which retail channel has the ability to economically provide the most product information for the consumer purchasing products?

Which of the following statements about Internet retailing is True?

Which of the following is not a method for devising an effective omnichannel strategy?

Which channel allows the customer the most ease and unbiased information about products?

Automated retailing