DECA Retail Merchandising Practice Exam

What does 'cross shopping' typically involve?

1. Shopping exclusively online

2. Buying merchandise from a single price category

3. Buying both premium and low price merchandise

4. Shopping in various geographic locations

The correct answer is: Buying both premium and low price merchandise

Cross shopping typically involves a consumer's behavior where they purchase both premium and low-priced merchandise. This means that a shopper might visit different stores or brands to find products that suit varied price points, allowing them to balance quality and cost. For example, a consumer might buy a luxury handbag from a high-end store while also purchasing everyday clothing from a discount retailer. This behavior reflects a conscious decision to seek value across different price segments, often maximizing satisfaction based on personal budget constraints and perceived value. In contrast, shopping exclusively online would not encapsulate the essence of cross shopping since it does not denote the practice of mixing price categories. Similarly, buying merchandise from a single price category contradicts the idea of cross shopping, which is characterized by a mix of various price points. Lastly, shopping in various geographic locations pertains more to the physical act of traveling to different areas to shop, rather than the diverse pricing strategy that defines cross shopping.