TB 7 8 Retailing PDF

Retail Management: A Strategic Approach, 13e (Berman/Evans/Chatterjee)
Chapter 7 Identifying and Understanding Consumers
1) Objective and quantifiable population data that are easily identifiable and measurable
population are ________.
A) lifestyle measures
B) an AIO inventory
C) demographic statistics
D) reference group measures
Answer: C
Difficulty: Moderate
Skill: Terminology/Concept
2) The manner in which individual consumers and families (households) live and spend time and
money is their ________.
A) social-class structure
B) reference group behavior
C) lifestyle
D) demographic statistic
Answer: C
3) Which is not a consumer demographic?

A) population mobility
B) social mobility
C) education level
D) place of residence
Answer: B
4) The typical U.S. household has an annual income of ________.

A) $24,000
B) $34,000
C) $54,000
D) $64,000
Answer: C
5) Discretionary income can be defined as ________.
A) take-home pay
B) take-home pay that is adjusted to reflect inflation
C) take-home pay that is adjusted to reflect a base year
D) money left over after paying taxes and buying necessities
Answer: D
6) What fraction of the U.S. population moves each year?

A) one-tenth
B) one-eighth
C) one-fourth
D) one-third
Answer: B
7) Most U.S. employment is in ________.

A) production
B) distribution
C) services
D) retailing
Answer: C
8) A group of people sharing a distinctive heritage is a(n) ________.

A) social class system
B) culture
C) AIO group
D) reference group
Answer: B
9) Which of the following classifies consumers on the basis of income, occupation, and
education?
A) reference group affiliation
B) family life cycle grouping
C) social class
D) subculture
Answer: C
10) ________ can be classified as aspirational, membership, or dissociative.
A) Cultures
B) Subcultures
C) Reference groups
D) Life cycle stages
Answer: C
11) Which reference group has the greatest impact on consumers?

A) aspirational
B) face-to-face
C) membership
D) dissociative
Answer: B
12) The family life cycle shows ________.

A) the extent to which groups influence a person's thoughts and actions
B) the ranking of people within a culture
C) families which share a distinctive heritage
D) how a typical family evolves from bachelorhood to children to solitary retirement
Answer: D
Difficulty: Challenging
13) Which group is not reflected in the traditional family life cycle?
A) solitary retired
B) divorced adults
C) single-person households
D) bachelors
Answer: B
14) The family life cycle has been updated in which version?
A) updated family life cycle
B) family life cycle II
C) VALS 2
D) household life cycle
Answer: D
15) The household life cycle ________.
A) describes how a family moves from bachelorhood to children to solitary retirement
B) includes data on time utilization
C) includes life stages only for family households
D) includes life stages for family and nonfamily households
Answer: D
16) A person who values the status of goods, services, and retailers ________.
A) has high self-confidence
B) has low perceived risk
C) is class conscious
D) is sociable
Answer: C
17) The level of risk a consumer believes exists regarding the purchase of a good or service from
a specific retailer is his or her ________.
A) real risk
B) purchase risk
C) perceived risk
D) cognitive dissonance
Answer: C
18) Social perceived risk relates to ________.

A) whether the good or service will perform as expected
B) whether the good will hurt the purchaser
C) peer opinion of the good or service
D) the amount of effort needed to make a purchase
Answer: C
19) The increased tendency of men to do laundry, cook for the family, and vacuum the house
illustrates which lifestyle?
A) component lifestyle
B) gender roles
C) poverty of time
D) self-fulfillment
Answer: B
20) A retailer that adds mail order and Web operations, is open longer hours, and seeks to reduce
checkout time is responsive to which of the following lifestyle trends?
A) component
B) blurring of gender
C) poverty of time
D) self-fulfillment
Answer: C
21) Which lifestyle focuses on the difficulty in classifying consumers into lifestyle groupings?
A) component lifestyle
B) consumer sophistication and confidence
C) poverty of time
D) self-fulfillment
Answer: A
22) Outshopping refers to ________.

A) consumers who travel long distances to stores
B) in-home shopping by catalog, mail, and phone
C) consumers who spend longer-than-average times in shopping centers/districts
D) consumers with large budgets
Answer: A
23) Which statement concerning cross-shopping is correct?

A) Cross-shopping refers to consumers purchasing related items on the same shopping trip.
B) Cross-shopping refers to shoppers visiting multiple retail formats for a product category.
C) Cross-shopping refers to consumers visiting multiple retailers on the same shopping trip.
D) Cross-shopping refers to shoppers visiting either multiple retail formats for a product
category or visiting multiple retailers on the same shopping trip.
Answer: D
24) The process in which people determine whether, what, when, where, how, from whom, and
how often to purchase goods and services is ________.
A) consumer behavior
B) consumer motivation
C) outshopping
D) a commercial cue
Answer: A
25) A consumer's decision process is comprised of two parts: ________ and ________.
A) purchase; post-purchase behavior
B) the process itself; the factors affecting the process
C) need recognition; stimuli
D) demographics; psychographics
Answer: B
26) A cue or drive meant to motivate or arouse a person to act is a ________.

A) want
B) commercial cue
C) stimulus
D) social cue
Answer: C
27) A message sponsored by a retailer or some other seller is a(n) ________.

A) commercial cue
B) noncommercial cue
C) social cue
D) advertisement
Answer: A
28) Recognition of shortage and recognition of unfulfilled desire are components of which stage
of the consumer decision process?
A) information search
B) purchase behavior
C) problem awareness
D) evaluation of alternatives
Answer: C
29) Compiling a list of various goods and services and ascertaining the characteristics of each
alternative are parts of which stage of the consumer decision process?
B) purchase behavior
Answer: A
30) Further purchase and re-evaluation are components of which stage of the consumer decision
process?
B) post-purchase behavior
Answer: B
31) Doubt that the correct purchase decision has been made is known as ________.
A) information re-evaluation
B) perceived risk
C) psychological risk
D) cognitive dissonance
Answer: D
32) A consumer makes full use of the decision process in ________.

A) impulse purchases
B) extended decision making
C) limited decision making
D) routine decision making
Answer: B
33) In limited decision making, consumers ________.

A) use each purchase process step, but do not spend a great deal of time on each step
B) view products to have high perceived risk
C) are unwilling to spend much time on shopping
D) spend much time on information search
Answer: A
34) Moderate-risk items, which have been purchased before but not on a regular basis, involve
which decision process?
A) routine decision making
B) limited decision making
C) extended decision making
D) impulse purchasing
Answer: B
35) An impulse purchase is an example of ________ decision making.

A) extended
B) limited
C) routine
D) optimal
Answer: C
36) In comparison to demographics, lifestyles are ________.

A) more likely to be profiles
B) more difficult to measure
C) easier to measure
D) growing at a faster rate
Answer: B
Skill: Applied/Comprehensive/Integrative
37) Home gardeners have been classified into groups such as "ecologists," "perfectionists," "neat
and green," and "let nature run its course." This classification system divides consumers by
________.
A) demographics
B) perceived risk
C) reference groups
D) lifestyles
Answer: D
38) Which demographic statement is not correct?

A) The typical U.S. household has an annual income of $54,000.
B) There are more males in the United States than females.
C) Two-thirds of all moves are within the same county.
D) Most U.S. employment is in services.
Answer: B
39) A retailer seeking to sell luxury goods needs to evaluate which demographic statistic?
A) discretionary income
B) disposable income
C) money income
D) social class
Answer: A
40) A dissociative group for the working class is the ________ social class.
A) upper-middle
B) upper-lower
C) middle class
D) lower-upper
Answer: B
41) Family, friends, and colleagues represent which form of reference group?
A) subcultural
B) aspirational
C) dissociative
D) face-to-face
Answer: D
42) A retailer observed that the traditional question dealing with a respondent's age told little
about the consumer's family size, presence of a spouse, or household size. The retailer should
consider using ________ as an alternative to age.
A) reference group membership
B) the family life cycle
C) the social class structure
D) social performance
Answer: B
43) The major difference between the family life cycle and the household life cycle is based on
________.
A) the size of the family
B) whether single-person households are included
C) whether nonfamily households are included
D) whether retired individuals are included
Answer: C
44) A group of consumers has high class consciousness. What form of perceived risk is most
important to this group?
A) time perceived risk
B) physical perceived risk
C) financial perceived risk
D) social perceived risk
Answer: D
45) Consumers who engage in extensive cross-shopping to "get the best price" have what form
of perceived risk?
A) time perceived risk
B) physical perceived risk
C) financial perceived risk
D) social perceived risk
Answer: C
46) Which lifestyle emphasizes nonconforming behavior?

A) blurring of gender
B) poverty of time
C) component lifestyles
D) consumer sophistication and confidence
Answer: D
47) To which lifestyle does the use of pre-packaged products, mail order, and home delivery best
appeal?
B) poverty of time
Answer: B
48) Which lifestyle emphasizes the situation-basis for much of consumer decision making?
B) poverty of time
Answer: C
49) A shopper profile should ideally be based upon ________.
A) both demographic and lifestyle data
B) data developed on the basis of telephone interviews
C) data developed from personal interviews
D) data developed from observational-based studies
Answer: A
50) Which type of retailer has a high proportion of outshoppers?

A) traditional department store
B) specialty store
C) convenience store
D) category killer retailer
Answer: D
51) Trading areas reflect the distance shoppers will customarily travel to visit a retail store.
Which type of shopper is most likely to travel great distances to shop at a given retailer?
A) agreeable shopper
B) outshopper
C) value shopper
D) top-of-the-line shopper
Answer: B
52) A mapping analysis for a specialty apparel store shows that 30 percent of its customers drive
over 45 minutes to visit the retailer. This high proportion of shoppers from a relatively far
distance indicates what form of consumer behavior?
A) outshopping
B) cognitive dissonance
C) limited decision making
D) active shoppers
Answer: A
53) Many Web shoppers also buy from catalog retailers, department stores, and specialty stores.
This illustrates ________.
A) diversified shopping
B) routine decision making
C) cross-shopping
D) cross-selling
Answer: C
54) A major advantage of the use of commercial versus social cues to consumers is based upon
________.
A) the extent to which the message is tailored to the needs of the target market
B) message credibility
C) control over the source
D) total cost
Answer: C
55) A difficulty in the study of motives is that ________.

A) motives cannot be observed; they must be inferred
B) a researcher needs to distinguish between rational and irrational motives
C) motives are based on perceived risk
D) a consumer's motives may be related to lifestyle
Answer: A
56) A ________ seeks to convert a ________ into a purchase of a specific brand.

A) social cue; commercial cue
B) physical drive; social cue
C) physical drive; commercial cue
D) commercial cue; physical drive
Answer: D
57) An example of recognition of shortage is a consumer ________.

A) hearing from a friend about his or her satisfaction with Michelin tires
B) seeing an advertisement for Michelin tires that stresses their safety
C) visiting several tire retailers to determine salesperson opinion as to tire brand longevity
D) recognizing that his or her tire needs replacement
Answer: D
58) A high degree of information search generally occurs when ________.

A) a purchase is viewed as unimportant
B) perceived risk is high
C) cognitive dissonance is high
D) a consumer is store loyal
Answer: B
59) Price, brand name, or store name are often used as cues in the ________ stage of the
consumer decision process.
B) purchase
C) evaluation of alternatives
D) problem awareness
Answer: C
60) To reduce potential cognitive dissonance, a retailer should ________.

A) offer consumers money-back guarantee privileges
B) train salespeople to overstate a product's relative attributes in their sales presentation
C) price each service as a separate component; this allows consumers to pay for only the services
they desire
D) pay careful attention to store atmosphere
Answer: A
61) After-sales service and exchange privileges aid in ________.

A) store atmosphere
B) changing extended decision making into routine decision making
C) reducing cognitive dissonance
D) specifying core services
Answer: C
62) A consumer reading more about a product after it was purchased than before illustrates
activity seeking to reduce ________.
A) evaluation of alternatives
B) purchase activity
C) cognitive dissonance
D) information search
Answer: C
63) Perceived risk is high since a consumer is purchasing a complex good in which he or she has
had little experience. What type of consumer decision making accompanies this situation?
A) extended decision making
C) routine decision making
D) brand loyalty
Answer: A
64) What type of consumer decision making accompanies a situation where consumers have
purchased the product before, but do not purchase the product on a regular basis?
A) extended decision making
D) brand loyalty
Answer: B
65) Low perceived risk, high experience with a retailer, and high satisfaction with past purchases
generally are characteristics of ________.
D) brand loyalty
Answer: A
66) What type of consumer decision making is most likely to be used when the consumer
regularly repurchases the same brands?
D) intensive decision making
Answer: A
67) Impulse purchases, brand loyalty, and customer loyalty are examples of ________.
A) limited decision making
B) extended decision making
D) problem awareness
Answer: C
68) Which type of target market strategy is most likely to be used by a retailer that seeks
efficiencies associated with economies of scale?
A) niche strategy
B) mass market
C) differentiated marketing
D) concentrated marketing
Answer: B
69) Which type of target market strategy is most likely to suffer from a blurred image and/or
high marketing expenditures due to having multiple marketing plans?
A) niche strategy
B) mass market
Answer: C
70) Which type of target market strategy is most likely to be used by a diversified retailer?
A) niche strategy
B) mass market
Answer: C
71) Demographics are easily identifiable and measurable population statistics.

Answer: TRUE
72) Nationwide, there are about six million more males than females.
Answer: FALSE
73) Over half of U.S. adults have a 4-year college degree.
Answer: FALSE
74) The term "mass market" is based on social class.

Answer: FALSE
75) Face-to-face reference groups have the greatest impact on consumers.

Answer: TRUE
76) Perceived risk is based on actual versus judged risk levels.

Answer: FALSE
77) It is relatively easy to predict the behavior of a component lifestyle shopper.

Answer: FALSE
78) The consumer decision process consists of two parts: the process itself and the factors
affecting the process.
Answer: TRUE
79) The information search process involves the use of only commercial sources.
Answer: FALSE
80) Cognitive dissonance results from doubt that the correct decision has been made.
Answer: TRUE
81) Cognitive dissonance can occur both before and after a purchase.
Answer: FALSE
82) Brand and store loyalty are examples of limited decision making.
Answer: TRUE
83) Routine decision making occurs when a consumer uses each of the steps in the purchase
process but does not need to spend a great deal of time on each of them.
Answer: FALSE
84) There are three types of impulse purchases: completely unplanned, partially unplanned, and
unplanned substitution.
Answer: TRUE
85) A membership club has a differentiated marketing approach: final consumers and
organizational consumers.
Answer: TRUE
86) The family life cycle is an updated version of the household life cycle.
Answer: FALSE
87) Class conscious consumers generally have high social perceived risk.
Answer: TRUE
88) If a consumer perceives a purchase to be important, the purchase has a high degree of
perceived risk.
Answer: TRUE
89) Shopper profiles should ideally be comprised of both demographic and lifestyle factors.
Answer: TRUE
90) Online shoppers can also be in-home shoppers.
Answer: TRUE
91) Outshoppers are often consumers who live in rural areas that shop in larger cities for
important purchases.
Answer: TRUE
92) Retailers have more control of commercial cues than of noncommercial or social cues.
Answer: TRUE
93) The study of motivation is easy since consumers may buy the same product for different
reasons, may have subconscious motivations, and may not tell the retailer their real reasons for
product/service purchases.
Answer: FALSE
94) The use of word-of-mouth influence as sources of information comprises a social source of
information.
Answer: TRUE
95) A consumer's degree of information search is not based upon his/her perceived risk.
Answer: FALSE
96) Consumers can evaluate alternatives on the basis of specific criteria and the importance of
criteria and on the basis of such cues as price, brand name, and store name.
Answer: TRUE
97) Retailers desiring to minimize consumer cognitive dissonance should focus on consumer
after-purchase service, on realistic sales presentations, and on exchange privileges.
Answer: TRUE
98) Consumers with high levels of satisfactory experience with a given brand or store may
change their behavior from extended decision making in early purchases to routine decision
making in subsequent purchases.
Answer: TRUE
99) The decision process is always used consciously by consumers.

Answer: FALSE
100) Concentrated marketing is a more difficult strategy for a retailer to implement than
differentiated marketing.
Answer: FALSE
101) a. Provide a demographic snapshot of the United States.

b. Identify its implications for an independent bookstore.
102) Contrast the study of consumer behavior from the perspective of consumer demographics
and consumer lifestyles.
103) a. What are the advantages of studying consumer behavior from the perspective of the
family life cycle versus age?
b. What are the advantages of studying consumer behavior from the perspective of the household
life cycle versus the family life cycle?
104) a. Outline the components of perceived risk as they relate to a consumer's purchase of a suit
for an important job interview.
b. How can a carpet retailer reduce consumers' perceived risk levels? Refer to each risk on an
individual basis in your answer.
105) Explain the relationship between perceived risk, information search, and type of consumer
decision process (extended, limited, and routine).
106) a. How can an auto tire dealer best appeal to the gender roles lifestyle?
b. How can a department store best appeal to the poverty-of-time lifestyle?
107) A retailer, in studying its sales data, has found that 30 percent of its shoppers are
outshoppers. These outshoppers account for 40 percent of total retail sales and 50 percent of the
store's gross profits. What are the retail strategy implications of this finding?
108) a. Differentiate among social cues, commercial cues, and physical cues as stimuli.
b. Evaluate the level of retailer control for each type of stimulus.
109) Distinguish between "determining the alternative goods or services" and "ascertaining the
characteristics of each alternative" stage in the information search stage of the consumer decision
process.
110) "Some consumers use price, brand name, or store name as an indicator of quality and
choose an alternative based on this criterion." Explain the ramifications of this statement.
111) a. Define cognitive dissonance from a retailer's perspective.

b. How can a retailer minimize a consumer's cognitive dissonance?
112) a. Differentiate among the three types of impulse purchasing.

b. Evaluate the retail opportunities from each type of impulse purchasing.
Retail Management: A Strategic Approach, 13e (Berman/Evans/Chatterjee)
Chapter 8 Information Gathering and Processing in Retailing
1) Using intuition, continuing what was done before, and copying a successful competitor's
strategy are examples of ________.
A) retail strategies based on nonsystematic research
B) creative problem solving
C) the marketing concept applied to retailing
D) executive judgment
Answer: A
2) An example of nonsystematic research in retailing, relating to the effect of a price rise on

projected sales, is ________.
A) evaluating sales of sweaters at different price levels in prior years
B) developing an educated "guess" as to demand for sweaters based on current weather
conditions
C) interviewing consumers to determine their probability of purchasing sweaters at different
prices
D) experimentation with different price levels in matched-pairs of stores
Answer: B
3) The information needs of retail managers are anticipated, collected, organized, and stored on a
continuous basis in ________.
A) a retail information system
B) observation
C) an experiment
D) retail research
Answer: A
4) Which of these is not a benefit of the use of a retail information system?

A) Opportunities can be foreseen.
B) The initial time and labor investment is low.
C) Crises can be avoided.
D) The elements of a retail strategy can be coordinated.
Answer: B
5) The procedure to gather, integrate, apply, and store information related to specific subject
areas is referred to as ________.
A) data warehousing
B) data mining
C) database management
D) a retail information system
Answer: C
6) A major benefit to data warehousing is its ________.

A) ability for data access and retrieval at multiple locations
B) low cost
C) continuously being updated
D) ease of use
Answer: A
7) An application of data mining is ________.

A) pilferage control
B) sales forecasting
C) micromarketing
D) mass marketing
Answer: C
8) The use of micromarketing is an example of which target marketing strategy?

A) undifferentiated marketing
B) mass marketing
C) concentrated marketing
D) differentiated marketing
Answer: D
9) Which statement concerning the Universal Product Code (UPC) is not correct?
A) The UPC is not readable by humans.
B) The UPC is now the accepted industry standard by food and general merchandise retailers.
C) The UPC symbol also includes price information.
D) With the UPC, cashiers no longer have to enter transactions manually.
Answer: C
10) The Universal Product Code (UPC) system allows a retailer to ________.
A) develop a personnel performance system
B) evaluate store managers based on profitability
C) read price information based on the code
D) store and monitor product sales data on an item-by-item basis
Answer: D
11) Retailers and their suppliers regularly exchange information via their computers through the
use of ________.
A) retail information systems
B) electronic data interchange
C) data-base management
D) customer relationship marketing programs
Answer: B
12) Marketing research in retailing involves ________.

A) primary data collection and analysis
B) secondary data collection and analysis
C) the collection and analysis of information relating to specific issues or problems facing a
retailer
D) the gathering, storing, and retrieval of data in an orderly manner
Answer: C
13) Which stage of the marketing research process in retailing is concerned with the
development of a clear statement of the topic to be examined?
A) recommendations
B) primary data collection
C) issue (problem) definition
D) implementation
Answer: C
14) Data that have already been gathered for purposes other than the problem or issue under
study are ________.
A) secondary data
B) primary data
C) marketing research data
D) marketing information systems data
Answer: A
15) Secondary data can be further broken down into ________ and ________ data.
A) probability; nonprobability
B) internal; external
C) survey; experiments
D) primary; tertiary
Answer: B
16) Data generated through surveys, observation, experiments, and simulation to address the
specific problem or issue under study are ________ data.
A) primary
B) secondary
C) marketing information systems
D) marketing research
Answer: A
17) A major advantage of secondary data is the ________.

A) fit with the research topic to be studied
B) immediate availability of data for analysis
C) ability to control the use of questions and the sequence of questions
D) known source and control over data collection
Answer: B
18) A major disadvantage of the use of secondary data is ________.

A) its high cost of data collection
B) its lack of a representative sample
C) that data may be categorized in an unusable fashion
D) its difficulty in tabulation
Answer: C
19) An example of internal secondary data is ________.

A) a new market research study conducted by an independent market research company
B) a new market research study conducted by the firm's market research department
C) a retailer's profit-and-loss statements
D) annual reports of competitors
Answer: C
20) An example of external secondary data is ________.

A) a new market research study conducted by an independent market research company
B) a new market research study conducted by the firm's market research department
C) company-based inventory records
D) annual reports of competitors
Answer: D
21) Ongoing studies are made available to many clients for a fee from ________.
A) channel members
B) the U.S. federal government
C) the Business Periodicals Index
D) commercial research houses
Answer: D
22) A major advantage of primary data is that the ________.

A) study is inexpensive
B) methodology is conducted for the current study
C) data are readily available
D) data can always be collected by a single retailer
Answer: B
23) Sampling of stores, products, or customers in a nonprobability sample is conducted on the

basis of ________.
A) judgment or convenience
B) an equal chance of being chosen
C) a known chance of being chosen
D) a table of random digits
Answer: A
24) Information is systematically gathered from respondents by communicating with them in
a(n) ________.
A) observation
B) simulation
C) survey
D) experiment
Answer: C
25) Which of the following is not a survey?

A) personal interviewing
B) customer traffic counts
C) a mail-based questionnaire
D) a telephone-based questionnaire
Answer: B
26) The potential for interviewer bias is greatest in which survey technique?
A) mail survey
B) observation
C) telephone survey
D) personal survey
Answer: D
27) In a nondisguised survey, a respondent is told the ________.

A) actual stores being investigated
B) sponsor of the survey
C) actual intent of the study
D) actual name of the market research company conducting the survey
Answer: C
28) Disguised surveys are typically used to study consumer ________.

A) demographics
B) lifestyles
C) attitudes
D) reactions to price changes
Answer: C
29) The semantic differential technique uses ________.
A) demographic data
B) nominal scales
C) ratio scales
D) bipolar adjective scales
Answer: D
30) An appliance retailer is classified by consumers as friendly, reliable, moderately attractive,

and as providing a relatively good value for the money. The research technique used by the
retailer is ________.
A) observation
B) a semantic differential
C) experimentation
D) an online survey
Answer: B
31) A form of research in which present behavior or the results of past behavior are noted and
recorded is ________.
A) observation
B) survey
C) simulation
D) experimentation
Answer: A
32) The major disadvantage of observation is that ________.

A) the sampling is not probability-based
B) attitudes cannot be studied
C) the experiment is contrived
D) the respondent knows that he or she is being measured
Answer: B
33) One or more elements of a retail strategy mix are manipulated under controlled conditions in
which research technique?
A) observation
B) simulation
C) survey
D) experiment
Answer: D
34) Which research technique is able to show cause and effect?

A) survey
B) experiment
C) observation
D) simulation
Answer: B
35) A mathematical model is constructed to explain the environment facing a retailer in which
research technique?
A) survey
B) experiment
C) observation
D) simulation
Answer: D
36) A small movie theater plans to build a coffee and snack bar that features espresso based on
the success of a much larger competitor that features six screens. This strategy represents
________.
A) systematic research
B) nonsystematic research
C) a retail information system
D) single-source data
Answer: B
37) Which does not represent a systematic method of research?
A) pre-testing of a survey to determine potential biases in wording
B) verifying that interviews were actually conducted with selected respondents by use of a
telephone
C) use of a nonprobability sample in a legal case involving retail pricing
D) removing potential respondents, who have moved prior to a store being renovated, from a
store image survey
Answer: C
38) A major characteristic of a retail information system is ________.

A) its low cost
B) the use of competitor data
C) the use of verified data from government sources
D) its continuous nature
Answer: D
39) A hotel chain found the following profile to exist for its guests: average stay is 2.7 nights, 55
percent had a car with them, 8 percent watched a pay-per-view television program, and 15
percent purchased a snack item from the in-room refrigerator. Which form of marketing research
was the retailer utilizing?
A) a retail information system
B) an experiment
C) simulation
D) observation
Answer: A
40) The difference between regular reports and exception reports is based on ________.
A) length
B) the handling of deviations from expected performance
C) cost
D) types of accounts covered
Answer: B
41) A retailer with 1,000 credit accounts has 50 with balances that are past due for over 45 days.
How many accounts would be listed in the exception report?
A) 25
B) 45
C) 50
D) The answer cannot be determined based on the information provided.
Answer: B
42) An example of an exception report is ________.

A) a report listing customers with overdue credit card balances
B) a quarterly profit-and-loss statement
C) an inventory turnover report by merchandise classification
D) an analysis of profitability by merchandise classification
Answer: A
43) A frequent-shopper program is an example of ________.

A) electronic data interchange
B) market research
C) database management
D) data mining
Answer: C
44) A retailer uses sophisticated software to evaluate large quantities to uncover emerging trends.
This illustrates ________.
A) data warehousing
B) data mining
C) experimentation
D) simulation
Answer: B
45) The data collection role of retailers in a distribution channel has been facilitated by
________.
A) the use of UPC and scanners
B) simulation-based studies
C) personal surveys
D) observation
Answer: A
46) The Universal Product Code (UPC) is most widely used in conjunction with ________.
A) inventory management
B) consumer credit-card purchases
C) merchandise returns
D) accounting recordkeeping
Answer: A
47) An advantage of electronic data interchange (EDI) is ________.

A) increased communication between retailers and their suppliers
B) increased communication between retailers and their customers
C) increased speed of data transmission on sales by employee
D) more accurate data due to the modular nature of the transmission process
Answer: A
48) Paperless communication between a retailer and its suppliers has been facilitated by
________.
A) retail information systems
B) UPC-based technology and EDI
C) exception reports
D) database management
Answer: B
49) The major difference between marketing research in retailing and a retail information system
is that ________.
A) the retail information system stores data
B) the retail information system is continuous
C) marketing research in retailing includes the retail information system process
D) marketing research in retailing does not include inventory-related data
Answer: B
50) A retailer determined that its monthly sales were 22 percent below expectations on the basis
of its retail plan. Which stage of the marketing research process should the retailer be concerned
with?
A) making recommendations
B) defining the problem
C) analyzing primary data exception reports
D) implementing findings
Answer: B
51) An example of secondary data relating to inventory levels held at each store is information
gathered from ________.
A) a physical count of each store's inventory developed especially for the current study
B) a questionnaire sent to store managers on inventory adequacy
C) an experiment conducted to determine what percent of consumers switch brands when their
preferred brand is out of stock
D) past management reports developed on the basis of point-of-sale equipment
Answer: D
52) A chain shoe retailer with 100 stores determined that its monthly sales were 12 percent
below expectations on the basis of its retail plan. Which represents a clear statement of a topic to
be studied in the problem (issue) definition stage of the marketing research process in retailing?
A) Why has overall sales volume declined 12 percent in comparison to the projected sales level?
B) Why has sales volume declined by at least 25 percent over projected levels in some
geographic areas versus a gain of 10 percent in others?
C) Have competitors also had lower than anticipated sales?
D) What is actual versus planned sales on each major merchandise classification (men's, ladies,
and children's; slipper, dress shoe, casual shoe, and sneaker line) by store?
Answer: D
53) The major distinction between primary and secondary data is that primary data are
________.
A) less costly
B) generated by the affected retailer
C) generated specifically for the research project under study
D) conducted at continuous time intervals
Answer: C
54) An example of primary data to determine the effect of a 10 percent price increase in sales is
information gathered from ________.
A) trade association unpublished research
B) public data which is filed by competitors for federal agencies
C) company sales reports that list sales at different price intervals over time
D) an experiment in which company personnel monitor sales in matched pairs of stores where
prices differ by 10 percent on a systematic basis
Answer: D
55) Which problem definition is most likely to require primary data collection?
A) to determine the average household income level in a county
B) to analyze the percent of high school graduates that plan to go immediately to college
C) to determine the average supermarket purchase by consumers on the basis of family size
D) to determine the percent of households that move in a given year
Answer: C
56) A major concern with a retailer's using internal secondary data as a source of information is
the ________.
A) high cost of permissions
B) credibility of the data source
C) data being misleading since it may focus on one time period
D) high cost of data collection
Answer: C
57) The use of point-of-sale cash registers to study the number of products purchased in the
average transaction illustrates ________.
A) internal secondary data
B) external secondary data
C) a survey
D) observation
Answer: A
58) A retailer has a database of past sales by season, by store, and by merchandise classification.
This database is used as a guide in planning and control. The database is an example of
________.
A) internal secondary data
B) external secondary data
C) a survey
D) observation
Answer: A
59) The distinction between internal and external secondary data is based on the ________.
A) purpose of the data collection process (past research or new research project)
B) focus of the data (company or industry)
C) firm collecting the data (government or commercial research house)
D) source of the data (within or outside the firm)
Answer: D
60) A retailer can generate data on sales by cash versus credit, the average sale, and number of
items purchased on the average shopping trip by examining ________.
A) inventory records
B) purchase orders
C) merchandise purchases
D) sales invoices
Answer: D
61) A drug store chain customarily sells items, such as nationally advertised film, batteries, and
shampoo, at low cost in an attempt to increase store traffic and sales of other merchandise. It
seeks to determine the percentage of shoppers that purchased any of these three goods who also
bought at least $10 in additional goods on the same shopping trip. This can be determined
through an analysis of ________.
A) telephone survey
B) personal survey
C) observation
D) sales invoices
Answer: D
62) A franchisee needs to determine its sales in a specific geographic area in conjunction with a
major legal court case against a franchisor. The retailer should utilize ________.
A) a probability sample
B) a nonprobability sample
C) simulation
D) an experiment
Answer: A
63) A retailer seeks to conduct a survey. It is important that interviewer bias be minimized. The
retailer should utilize which survey technique?
A) observation
B) mail survey
C) telephone survey
D) personal survey
Answer: B
64) A retailer plans to study store loyalty among a group of respondents that live within normal
driving time of its store. The retailer seeks to terminate the data collection process in the early
stage of data collection if the store-loyal group of customers approximates 30 percent of
respondents. Which survey technique should the retailer utilize?
A) mail survey
B) telephone survey
C) simulation
D) observation
Answer: B
65) A retailer wants to study the effect of store brand on customer perception of quality. While
the same exact knit shirts are shown to respondents, one-half are labeled with the store's dealer
brand and the other half with a nationally advertised manufacturer's brand. Respondents are told
to rate the quality of each shirt. They are told that the purpose of the study is to refine the store's
quality measurement scale. This illustrates ________.
A) a simulation
B) a disguised survey
C) a nondisguised survey
D) observation
Answer: B
66) In studying its image, a retailer discovers that it is, on average, described as being expensive,
as having very good service, as stocking conventional "me-too" goods, and as having a
conservative fashion orientation. The retailer used which primary research technique?
A) observation
B) sampling
C) semantic differential
D) multi-dimensional scaling
Answer: C
67) Stores with very similar images on a semantic differential have average scores ________.
A) near each other
B) on different scales
C) far from each other
D) on opposite scales
Answer: A
68) A shopping center developer seeks to determine the average turnover of cars in the shopping
center. The developer is concerned about whether he or she should impose a parking fee. A
sample of cars is monitored in terms of entry and exit times. Which primary research technique
was used?
A) survey
B) experimentation
C) observation
D) simulation
Answer: C
69) Which type of consumer behavior can best be studied using observation?
A) the average distance shoppers will travel to shop at a new regional shopping center
B) the average length of time a consumer spends in the cereal aisle of a supermarket
C) the degree of store loyalty
D) the store image of a specialty retailer
Answer: B
70) A retailer wishes to determine how many of its salespeople cross-sell related items. The
optimal methodology should utilize ________.
A) an experiment
B) a survey
C) mystery shoppers
D) secondary data
Answer: C
71) In an effective retail distribution channel, information flows freely among suppliers, retailers,
and final consumers.
Answer: TRUE
72) The assumption that past trends will continue in the future represents a retail strategy based
on systematic research.
Answer: FALSE
73) Retail information systems can be used by small and large retailers for customer, location,
and promotional research purposes.
Answer: TRUE
74) Both small and large retailers can outsource their retail information system.
Answer: TRUE
75) Retail information systems have evolved from improving inventory control to be more
involved with merchandise ordering, transferring merchandise among stores, and in surveys.
Answer: TRUE
76) Databases can be generated by customer, vendor, and product category.

Answer: TRUE
77) Database information can come from both internal and external sources.
Answer: TRUE
78) Micromarketing is an application of data mining.

Answer: TRUE
79) The issue (problem) definition stage of the marketing research process in retailing seeks to
clearly describe the research question.
Answer: TRUE
80) Sources of internal secondary data include budgets, sales figures, inventory records, and
prior company research.
Answer: TRUE
81) A nonprobability sample is generally more costly and difficult to implement than a
probability sample.
Answer: FALSE
82) A survey would not be considered as an experiment even if it is administered under closely
controlled conditions.
Answer: FALSE
83) Disguised surveys are frequently used in image research.

Answer: TRUE
84) The major advantage of observation is that respondent cooperation is not required.
Answer: TRUE
85) In a simulation, only the factor under investigation is manipulated; all other factors remain
constant.
Answer: FALSE
86) An effective retail information system should contain both continuous data and market
research.
Answer: TRUE
87) An effective retail information system allows a retailer to foresee opportunities and to avoid
crises.
Answer: TRUE
88) Channel cooperation has been impeded through electronic data interchange.
Answer: FALSE
89) Examples of the effective use of retail research are the use of focus groups to test hypotheses
and the use of nonprobability samples.
Answer: FALSE
90) The issue (problem) definition stage of the marketing research process seeks to isolate
specific problem/opportunity areas for further study.
Answer: TRUE
91) In general, primary data collection is faster than secondary data collection.
Answer: FALSE
92) Much internal secondary data relating to sales are now computer-based due to the
widespread acceptance of the Universal Product Code.
Answer: TRUE
93) The findings in nonprobability samples are more generalizable than those from probability
samples.
Answer: FALSE
94) All surveys involve some form of interviewing procedure.

Answer: FALSE
95) Large surveys to geographically scattered consumers can be handled most economically by
mail.
Answer: TRUE
96) A disguised observation study closely resembles an experiment if it takes place under
controlled conditions.
Answer: TRUE
97) A mystery shopper is a form of undisguised observation.

Answer: FALSE
98) Observation is an appropriate data collection technique to determine customer motivations

and attitudes.
Answer: FALSE
99) Experiments can take place only in contrived settings.

Answer: FALSE
100) In a simulation, the manipulation is done on a mathematical model.

Answer: TRUE
101) a. Illustrate how a Web-based retailer can base its retail strategy on nonsystematic research.
b. How can the strategy be improved through effective problem definition and relevant
information?
102) a. Explain the components of a retail information system.

b. How does a retail information system differ from marketing research in retailing?
103) a. Explain how the UPC has facilitated the data collection process for retailers.
b. How has electronic data interchange improved channel cooperation among retailers and their
suppliers?
104) Apply the marketing research process in retailing to the question of how an antiques shop
specializing in costly Tiffany lamps can increase its sales. Utilize each stage of the process in
terms of information sought, evaluation of information, and interpretation of information.
105) a. Describe the importance of the problem definition process in retail research.
b. Apply the problem definition process to the question of whether a new product has added to a
supermarket's overall sales.
106) a. Under what conditions could secondary data sources be insufficient/inadequate for use in
a retail research study?
b. Under what conditions could secondary data sources be sufficient/adequate for use in a retail
research study?
107) A food-oriented retailer wishes to compile a list of 50 key frozen food items (in terms of
sales, inventory turnover, and profitability). Outline internal secondary data sources for this
problem.
108) Under what conditions should a retailer utilize a personal survey? ... a telephone survey? …
a mail survey?
109) Develop a semantic differential scale to determine Starbuck's retail image.

110) a. Under what conditions should a retailer use observation as a primary data source?
b. What are the major advantages to the use of observation versus surveys as a retail research
technique?
c. What are the major disadvantages to the use of observation versus surveys as a retail research
technique?
111) Design a survey instrument to be completed by a mystery shopper investigating the quality
of an appliance retailer's sales force.
112) a. Under what conditions should a retailer use experimentation as a primary data source?
b. What are major advantages to the use of experimentation in retail research?
c. What are major disadvantages to the use of experimentation in retail research?

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Retail Management: A Strategic Approach, 13e (Berman/Evans/Chatterjee)

Chapter 7 Identifying and Understanding Consumers

3) Which is not a consumer demographic?

4) The typical U.S. household has an annual income of ________.

6) What fraction of the U.S. population moves each year?

7) Most U.S. employment is in ________.

8) A group of people sharing a distinctive heritage is a(n) ________.

11) Which reference group has the greatest impact on consumers?

12) The family life cycle shows ________.

18) Social perceived risk relates to ________.

22) Outshopping refers to ________.

23) Which statement concerning cross-shopping is correct?

26) A cue or drive meant to motivate or arouse a person to act is a ________.

27) A message sponsored by a retailer or some other seller is a(n) ________.

32) A consumer makes full use of the decision process in ________.

33) In limited decision making, consumers ________.

35) An impulse purchase is an example of ________ decision making.

36) In comparison to demographics, lifestyles are ________.

38) Which demographic statement is not correct?

46) Which lifestyle emphasizes nonconforming behavior?

50) Which type of retailer has a high proportion of outshoppers?

55) A difficulty in the study of motives is that ________.

56) A ________ seeks to convert a ________ into a purchase of a specific brand.

57) An example of recognition of shortage is a consumer ________.

58) A high degree of information search generally occurs when ________.

60) To reduce potential cognitive dissonance, a retailer should ________.

61) After-sales service and exchange privileges aid in ________.

71) Demographics are easily identifiable and measurable population statistics.

74) The term "mass market" is based on social class.

75) Face-to-face reference groups have the greatest impact on consumers.

76) Perceived risk is based on actual versus judged risk levels.

77) It is relatively easy to predict the behavior of a component lifestyle shopper.

99) The decision process is always used consciously by consumers.

101) a. Provide a demographic snapshot of the United States.

111) a. Define cognitive dissonance from a retailer's perspective.

112) a. Differentiate among the three types of impulse purchasing.

2) An example of nonsystematic research in retailing, relating to the effect of a price rise on

4) Which of these is not a benefit of the use of a retail information system?

6) A major benefit to data warehousing is its ________.

7) An application of data mining is ________.

8) The use of micromarketing is an example of which target marketing strategy?

12) Marketing research in retailing involves ________.

17) A major advantage of secondary data is the ________.

18) A major disadvantage of the use of secondary data is ________.

19) An example of internal secondary data is ________.

20) An example of external secondary data is ________.

22) A major advantage of primary data is that the ________.

23) Sampling of stores, products, or customers in a nonprobability sample is conducted on the

25) Which of the following is not a survey?

27) In a nondisguised survey, a respondent is told the ________.

28) Disguised surveys are typically used to study consumer ________.

30) An appliance retailer is classified by consumers as friendly, reliable, moderately attractive,

32) The major disadvantage of observation is that ________.

34) Which research technique is able to show cause and effect?

38) A major characteristic of a retail information system is ________.

42) An example of an exception report is ________.

43) A frequent-shopper program is an example of ________.

47) An advantage of electronic data interchange (EDI) is ________.

76) Databases can be generated by customer, vendor, and product category.

78) Micromarketing is an application of data mining.

83) Disguised surveys are frequently used in image research.

94) All surveys involve some form of interviewing procedure.

97) A mystery shopper is a form of undisguised observation.

56) A seeks to convert a into a purchase of a specific brand.