17-21
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of McGraw-Hill Education.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Gradable: automatic
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection.
Topic: Retailer Brands
51. Kelly likes to shop at Target. She really likes the Archer Farms brands with the rooster on the label, which is one
of Target’s own brands and can only be purchased there. These types of brands are known as
A. primary brands.
B. secondary brands.
C. store brands.
D. internal brands.
E. limited distribution brands.
52. What is the key to success of store brands?
A. low price
B. low quality, but at a low price
C. high quality at a high price
D. high quality at a reasonable price
E. attractive packaging
53. Sales of additional items to customers who came to purchase an advertised item are referred to as
A. incremental sales.
B. spillover sales.
C. marginal sales.
D. sales plus.
E. impulse sales.
54. Harriet is very frugal, so she regularly combs the grocery ads looking for bargains. Usually she’ll go to a
particular store just to buy an advertised item, but sometimes she purchases other items that were not advertised as
well. The purchase of the unadvertised items represent which type of sales?
A. incremental sales
B. spillover sales
C. marginal sales
D. sales plus
E. impulse sales
55. Which of the following is not a key decision for retailers considering price advertising?
A. How large a discount should be used?
B. Should a reference price be used?
C. What verbal statements should be used?
D. What is the cost of the item compared to the total media cost?
E. None of these choices are key decisions.
17-23
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent
of McGraw-Hill Education.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Gradable: automatic
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection.
Topic: Retail Advertising
56. A price with which other prices are compared is known as a(n)
A. reference price.
B. comparison price.
C. base price.
D. starting price.
E. internal price.
57. When a retailer represents a price as “regularly $15.99, now $9.99,” the $15.99 is called the
A. starting price.
B. base price.
C. reference price.
D. comparison price.
E. markup.
58. Leslie loves to shop at T.J. Maxx and feels she is saving a lot of money because the price tags usually have the
manufacturer’s suggested retail price (MSRP) listed and crossed off and the T.J. Maxx price below much lower. The
MSRP is being used as a
A. markup.
B. base price.
C. reference price.
D. deceptive price.
E. perceptual price.
59. Which of the following are types of reference prices?
A. primary and secondary
B. direct and indirect
C. latent and manifest
D. internal and external
E. high and low
60. Which type of reference price is presented by a marketer for the consumer to use to compare with the current
price?
A. base reference price
B. external reference price
C. private reference price
D. outlet reference price
E. public reference price
17-25
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent
of McGraw-Hill Education.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Gradable: automatic
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection.
Topic: Retail Advertising
61. Todd owns a discount sporting goods store, and several of the items in his store have a manufacturer’s suggested
retail price (MSRP) above Todd’s lower price. Todd is using the MSRP as a(n)
A. base reference price.
B. external reference price.
C. perceptual reference price.
D. internal reference price.
E. disclosed reference price.
62. Which type of reference price or price range does a consumer retrieve from memory to compare with a price in
the market?
A. base reference price
B. historical reference price
C. private reference price
D. internal reference price
E. repeat reference price
63. Neil is considering the purchase of a 4-wheeler ATV. He visited a distributor to look at different models, and
when he looked at prices he compared them with a price his brother told him he paid for an ATV. The price Neil
retrieves from memory is known as a(n)
A. base reference price.
B. external reference price.
C. internal reference price.
D. private reference price.
E. personal reference price.
64. A $10 savings on a $200 item should
A. not show the regular price.
B. show the dollar savings but not the percentage savings.
C. show the percentage savings but not the dollar savings.
D. show both the dollar savings and the percentage savings.
E. show neither the dollar savings nor the percentage savings.
65. All other things being equal, consumers tend to prefer
A. external reference prices over internal reference prices.
B. dollar savings over percentage savings.
C. percentage savings over dollar savings.
D. larger retail outlets over smaller outlets.
E. smaller retail outlets over larger outlets.
17-27
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent
of McGraw-Hill Education.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Hard
Gradable: automatic
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection.
Topic: Outlet Location and Size
66. The retail attraction model is also called the
A. retail gravitation model.
B. retail dispersion model.
C. retail composition model.
D. retail network model.
E. retail concentration model.
67. Which model is used to calculate the level of store attraction based on store size and distance from the
consumer?
A. retail multiattribute model
B. retail attraction model
C. retail attribution model
D. retail geographic model
E. retail distribution model
68. Jim is trying to determine the level of his store’s attraction by using the square footage as a measure of breadth of
merchandise and the distance to the store from different geographic areas. Which model is he using?
A. retail multiattribute model
B. retail gravitation model
C. retail attribution model
D. retail geographic model
E. retail distribution model
69. For which product are consumers more willing to travel longer distances to shop for?
A. toothpaste
B. wedding dress
C. beer
D. laundry detergent
E. soft drinks
70. The purchase of products involves the risk that they may not perform as expected, causing which of the
following to be high?
A. social cost
B. time cost
C. effort cost
D. physical cost
E. All of these choices are correct.
17-29
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent
of McGraw-Hill Education.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Gradable: automatic
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection.
Topic: Perceived Risk
71. Which of the following is not a type of cost associated with perceived risk?
A. social cost
B. time cost
C. effort cost
D. physical cost
E. spatial cost
72. Tylenol, which is an analgesic known as acetaminophen, warns in some of its advertising that consumers should
read labels carefully because several other types of medications include acetaminophen (e.g., Tylenol Sinus) and
consumers could overdose on this medicine and potentially suffer liver damage. Which type of cost is associated
with this risk?
A. social cost
B. time cost
C. effort cost
D. physical cost
E. mental cost
73. Lori purchased new tires for her car, and she can bring it back every 5,000 miles to have the tires rotated free of
charge. However, Lori doesn’t do it because that would require that she take her car to the shop and either leave it
and have someone get her and take her back later or sit and wait for the tires to be rotated. Which type of cost does
this represent?
A. social cost
B. time cost
C. effort cost
D. physical cost
E. mental cost
74. Purchase of which product typically represents low social risk and low economic risk for consumers?
A. deodorant
B. automobile
C. socks
D. auto repairs
E. hair cut/style
75. A shopping style that puts particular emphasis on certain activities or shopping motivations is called a
A. shopping segment.
B. shopping typology.
C. shopping orientation.
D. shopping perspective.
E. store atmosphere.
17-31
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent
of McGraw-Hill Education.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Gradable: automatic
Learning Objective: 17-03 Explain the retail and consumer attributes that affect outlet selection.
Topic: Shopping Orientation
76. Which of the following is a segment of consumers who follow a strict budget and often put their family’s needs
ahead of their own?
A. Bargain Hunter
B. Knowledge Seeker
C. Practical Player
D. Brand Desirer
E. Mobile Warrior
77. Thelma and Louise look forward to Saturday morning when they can drive to their local mall and walk into the
various stores. They enjoy being able to feel products in the store so that they are more confident they are buying the
right thing. To which shopping orientation do Thelma and Louise belong?
A. Store Reassurer
B. Knowledge Seeker
C. Practical Player
D. Brand Desirer
E. Mobile Warrior
78. Which of the following is a description of the shopping orientation known as a Store Reassurer?
A. These shoppers are known as “precision shoppers.”
B. These shoppers do their homework online before making a purchase.
C. These shoppers heavily rely on their smartphones when shopping.
D. These shoppers prefer to shop at a store rather than online.
E. These shoppers like to buy the very latest, and quality is a priority for them.
79. Which of the following is a variable that influences brand decisions inside a retail outlet?
A. point-of-purchase materials
B. price reductions
C. outlet atmosphere
D. stockout situations
E. All of these choices are correct.
80. Purchases made in a retail outlet that are different from those the consumer planned to make prior to entering
that retail outlet are called
A. incremental purchases.
B. irrational purchases.
C. unplanned purchases.
D. emotional purchases.
E. deviant purchases.