Question 1

In a retail attraction model:

Accepted Answer

The retail attraction model assumes that the effect of distance can vary by product, as some products may be more sensitive to distance than others. Travel time is not raised to a power in this model, and the attraction factor is not solely based on breadth of merchandise.

Question 2

Which are the major dimensions of store image? Illustrate your answer by using examples.

Accepted Answer

The answer of Which are the major dimensions of store...

Question 3

The risk that consumers face when purchasing a product is classified as:

Accepted Answer

Consumers face multiple types of risks when purchasing a product, including financial risk if the product is expensive, social risk if the purchase decision affects their image or reputation, and performance and psychological risk if the product doesn't fulfill their expectations or has negative effects on their well-being. Therefore, the best choice is D because it includes all of the given answers.

Question 4

Which of the following is not a source of sales increases in response to price reductions?

Accepted Answer

Increased competition would actually lead to a decrease in sales due to price reductions, as competitors are also likely to reduce their prices in response. A, B, and D all describe ways in which price reductions can lead to increased sales.

Question 5

Which of the following is not a decision retailers face when using price advertising?

Accepted Answer

All of the given answers are decisions that retailers face when using price advertising.

Question 6

A retail attraction model would predict that:

Accepted Answer

The retail attraction model suggests that consumers are more willing to travel to distant trading areas for high-involvement purchases, whereas low-involvement purchases are more likely to be made locally. Therefore, option C is the correct answer as it aligns with the predictions of the retail attraction model. Option B is incorrect as larger stores are often located on the outskirts of a city or town, rather than closer to the consumer. Option A is also incorrect as high-involvement purchases may involve significant research and may not necessarily be made locally.

Question 7

Rachel's House of Beauty, a hairdressing and beauty salon aimed at the under-30 market, has the latest music playing, air-conditioning, comfortable lounges and mocktails in the waiting area. These are all examples of:

Accepted Answer

Both atmospherics and servicescape refer to the physical elements and environment of a retail or service setting that contribute to the overall customer experience. Therefore, both terms can apply to the examples given in the scenario.

Question 8

In terms of retailing strategy:

Accepted Answer

Discount stores can attract customers by offering brand-name merchandise in categories with high perceived risk, as consumers may feel more secure purchasing well-known brands.

Question 9

Purchases that are made as a result of the consumer seeing a product, which acts as a reminder that they need it, are called:

Accepted Answer

Reminder purchases are made when a consumer sees a product and is reminded that they need it. This is different from impulse purchases, which are made on a whim without any prior planning, and planned purchases, which are made with prior intent and research.

Question 10

Which are the two most common types of unplanned purchases and how can retailers increase them?

Accepted Answer

The answer of Which are the two most common types...

Question 11

Define shopping orientation and illustrate how this may affect consumer behaviour.

Accepted Answer

The answer of Define shopping orientation and illustrate how this...

Question 12

A retail attraction model involves all of the following variables except:

Accepted Answer

The retail attraction model typically involves variables that affect a customer's decision to visit a store, such as the attraction factor for a particular product category, travel time to the store, and store dimensions. It does not usually consider the time spent in store as a variable in the model.

Quiz 6: Outlet Selection and Product Purchase