McKenna was shopping for a new electric mixer. Online she found the perfect one at williams-sonoma.com, but when she went to the Williams-Sonoma store, she found the same mixer for $15 more. The retailer has a problem with:

McKenna was shopping for a new electric mixer. Online she found the perfect one at williams-sonoma.com, but when she went to the Williams-Sonoma store, she found the same mixer for $15 more. The retailer has a problem with: 

A. depth of merchandise prices
B. a corporate problem between channels
C. price inconsistency across channels
D. product inconsistency
E. None of the above

Answer: C

Judy invites her friends over to her home for an evening of socializing along with everyone getting makeovers. Afterwards, the invited women were all shown the product that was used for their makeovers and they were given the opportunity to purchase the product and browse through a catalogue for additional products to purchase. This is an example of:

Judy invites her friends over to her home for an evening of socializing along with everyone getting makeovers. Afterwards, the invited women were all shown the product that was used for their makeovers and they were given the opportunity to purchase the product and browse through a catalogue for additional products to purchase. This is an example of: 

A. a party plan system.
B. a multilevel network.
C. an infomercial.
D. a pyramid scheme.

Answer: A

Catherine was interested in purchasing a digital camera so she went on Best Buy's website to learn more about the different features and capabilities of the device. Since she was going to Target to buy her groceries anyway, she decided to just buy the digital camera at Target. This is an example of:

Catherine was interested in purchasing a digital camera so she went on Best Buy's website to learn more about the different features and capabilities of the device. Since she was going to Target to buy her groceries anyway, she decided to just buy the digital camera at Target. This is an example of: 

A. channel migration
B. cross-shopping
C. multi-channel users
D. entrepreneurs
E. electronic agents

Answer: A

What is a way that retailers can reduce channel migration?

What is a way that retailers can reduce channel migration? 

A. Promote private-label merchandise that can be purchased only from that retailer.
B. Persuade suppliers to increase their sales forecasts.
C. Encourage vendors to deliver complete assortments.
D. Increase efficiencies of supply chain management.
E. None of the above

Answer: A

When consumers collect product information on a retailer's website but buy the product from another retailer's store it is referred to as ________.

When consumers collect product information on a retailer's website but buy the product from another retailer's store it is referred to as ________. 

A. channel migration
B. cross-shopping
C. multi-channel users
D. entrepreneurs
E. electronic agents

Answer: A

Which of the following is NOT true in describing issues in multichannel retailing?

Which of the following is NOT true in describing issues in multichannel retailing? 

A. Many retailers are struggling to integrate the shopping experience across all their channels.
B. Legacy systems along with disconnected customer and inventory databases hamper retailers' ability to maintain consistency across channels.
C. Technology upgrades are inexpensive for retailers to integrate all systems at once.
D. Multichannel retailers try to provide features and services that offer a good customer experience.

Answer: C

Which of the following assets can K-mart utilize to attract shoppers to its website?

Which of the following assets can K-mart 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 on signage, bags and in advertising.
E. Prime its sales associates to use its website.

Answer: D

JCPenney carries sizes for big and tall men, but all sizes are not available in all stores. What should JCPenney do in order to communicate this message to their customers?

JCPenney carries sizes for big and tall men, but all sizes are not available in all stores. What should JCPenney do in order to communicate this message to their customers? 

A. They should advertise big and tall men's merchandise on all of their newspaper supplements and commercials.
B. JCPenney should train their sales associates to mention this when closing sales with each customer.
C. JCPenney should advertise this by featuring big and tall men on its Holiday Catalog.
D. JCPenney should actively advertise these assortments to competitors.
E. A database should be developed of those who purchase merchandise for big and tall men. Then, JCPenney should market specifically to those shoppers.

Answer: E

If manufacturers begin to sell direct to consumers, they can be viewed by retailers as:

If manufacturers begin to sell direct to consumers, they can be viewed by retailers as: 

A. Competitors
B. Wholesalers
C. Multi-channel users
D. Entrepreneurs
E. Electronic agents

Answer: A

Why are retailers concerned about disintermediation?

Why are retailers concerned about disintermediation? 

A. Manufacturers can offer broader assortments.
B. Retailers believe that manufacturers know more about the consumer since they manufacture the products that the consumer demands.
C. Manufacturers have a lot of experience in distribution.
D. Retailers believe that manufacturers could take sales away from them by allowing customers to buy products through the manufacturer's web site.

Answer: D

Levi's sells its jeans through its website on the Internet and has received complaints from its retailers who were concerned about the negative effects of:

Levi's sells its jeans through its website on the Internet and has received complaints from its retailers who were concerned about the negative effects of: 

A. leapfrog marketing
B. a distribution detour
C. disintermediation
D. distribution disruption
E. customer circumvention

Answer: C

________ occurs when a manufacturer sells directly to consumers bypassing retailers.

________ occurs when a manufacturer sells directly to consumers bypassing retailers. 

A. Disintermediation
B. A distribution detour
C. Leapfrog marketing
D. Distribution disruption
E. Customer circumvention

Answer: A

Store channel information systems are typically product-centric while non-store channels are _________.

Store channel information systems are typically product-centric while non-store channels are _________. 

A. multicentric
B. customer-centric
C. variable
D. mass customized
E. segmented

Answer: B

Matt used to shop for electronics at the closest Best Buy store. But now that he has his iPad, he does his electronic shopping online at bestbuy.com instead of in a Best Buy store. This is an example of ___________.

Matt used to shop for electronics at the closest Best Buy store. But now that he has his iPad, he does his electronic shopping online at bestbuy.com instead of in a Best Buy store. This is an example of ___________. 

A. leveraging
B. efficient fulfillment
C. inconsistent execution of services
D. cannibalization
E. market presence

Answer: D

What are two constraints facing store retailers today?

What are two constraints facing store retailers today? 

A. leveraging existing assets and pricing
B. offering unique merchandise and efficient fulfillment
C. size of the store and inconsistent execution of services
D. inflation and sale inconsistency
E. supply chain management and market presence

Answer: C

_________ and personalized recommendations of complementary merchandise on Internet shopping sites imitates a well trained store salesperson.

_________ and personalized recommendations of complementary merchandise on Internet shopping sites imitates a well trained store salesperson. 

A. Live chats
B. Cookies
C. Magalogs
D. Tête-à-tête
E. Multi-level networks

Answer: A

Disintermediation occurs when ____________.

Disintermediation occurs when ____________. 

A. a manufacturer sells directly to a wholesaler who then sells to a retailer
B. a retailer purchases from a few wholesalers resulting in increased competition and price
C. a manufacturer sells directly to other manufacturers who distributes to an array of wholesalers
D. a manufacturer sells directly to consumers, bypassing retailers
E. wholesalers disagree about the agreements between the manufacturer and the retailer

Answer: D

If L'Oreal cosmetic products wanted to sell exclusively through the Internet channel, it would most likely have a difficult time because:

If L'Oreal cosmetic products wanted to sell exclusively through the Internet channel, it would most likely have a difficult time because: 

A. of the competition from other manufacturers.
B. it doesn't have name recognition.
C. the manufacturer doesn't own the rights to the brand name.
D. the manufacturer doesn't have the appropriate systems to fulfill individual orders.
E. the demand would overwhelm the supply.

Answer: D

A retailer that sells merchandise and/or services through more than one channel is called a/an:

A retailer that sells merchandise and/or services through more than one channel is called a/an: 

A. computerized retailer
B. direct seller
C. electronic retailer
D. single-channel retailer
E. multi-channel retailer

Answer: E

If a retailer plans to use the online channel synergistically with other channels, it can expect:

If a retailer plans to use the online channel synergistically with other channels, it can expect: 

A. its multichannel customers to make more purchases
B. massive cannibalization
C. a decrease in sales from all of its other channels
D. customers to research on the website and shop in competitive stores
E. sales to stabilize equally among the channels

Answer: A