Chapters 15-18 of Retailing Mgt. by Levy/Weitz Flashcards

Terms Definitions
A method for setting merchandise prices for the purpose of driving competition from the marketplace.
Predatory Pricing
An agreement between retailers in direct competition with each other to charge the same prices.
Horizontal Price Fixing
Enticing a customer into a store through advertising products at very low prices then talking the customer into switching to a higher price item.
Bait & Switch
Charging different prices in different stores, markets or zones.
Variable Pricing
Offering two or more different products or services for sale at one price. (i.e. Value Meal)
Price Bundling
Charging customers different prices on the basis of their eagerness to pay. (i.e. eBay)
1st Degree Price Discrimination
Charging different prices to different people on the basis of the nature of the offering. (Rebates, coupons, multi-unit pricint, bundling)
2nd Degree Price Discrimination
A measure of the result a price change has on consumer demand.
Price Elasticity
Includes markdowns, discounts to employees & customers and shoplifing.
Reductions
A method of setting prices where the retailer simply doubles the cost of the merchandise to obtain the retail selling price.
Keystone Markup
The retail selling price initially placed on the merchandise less the cost of goods sold.
Initial Markup
Retail price x (1 - initial markup) =
Cost
Using paid, unpaid, personal and impersonal strategies to get consumers to your store. (Advertising, personal salespeople, publicity, promotions etc...)
Communication Program
Paid, personal communication (Most expensive form of communication)
Salespeople
Portraying the same message over all elements of the communication program.
Integrated Marketing
Paid, impersonal communication (Newspaper, TV, magazine, billboard ads etc...)
Advertising
The associations consumers have about a brand that are usually organized around a meaningful theme. (Just Do It - Nike)
Brand Image
Highest level of brand awareness. Developed through constant exposure through mass media.
Top-of-mind Awareness
Customers visiting a store and buying only merchandise sold at big discounts.
Cherry Picking
Non-paid, impersonal communication (usually a news story)
Publicity
This communication budget is set as a percentage of the forecasted sales of the coming year.
Percentage of Sales Method
Paid, impersonal communication activities that offer extra value and incentives to buy during a specific period. (Labor Day Sale)
Sales Promotion
A measurement that divides an ad's cost by its reach.
CPM (Cost Per Thousand)
Observing and identifying essential activies performed by an employee.
Job Analysis
Activities store managers undertake to make sure employees are satisfied and work well together.
Group Maintenance Behaviors
A leader who seeks information and opinions from emloyees.
Democratic Leader
A leader who makes all decisions on their own and then tells them to employees.
Autocratic Leader
A leader who can get people to put their own personal needs aside for the sake of the group.
Transformational Leader
A list of activities the employee needs to perform and performance expectations.
Job Description
The steps taken to transform new employees into effective, committed members of the business.
Socialization Training
Communicating to prospective employees the attractive and unattractive aspects of the job.
Job Preview
Where new employees learn basic skills and knowledge they will need to do their job.
Structured Training Program
A law which prohibits discrimination on the basis of race, national origin, sex or religion.
Title VII of Civil Rights Act
A law which makes it illegal to discriminate in hiring and firing people over the age of 40 years.
Age Discrimination & Employment Act
A security device placed on merchandise that deters shoplifters from stealing the merchandise.
EAS System
Rewards employees get internally or personally from doing their job well.
Intrinsic Reward
Rewards provided by either the employee's manager or business. (i.e. money, recognition)
Extrinsic Reward
Law which opens job opportunitites for the disabled by requiring employers to provide accomodating working conditions.
American's with Disabilities Act
Signs whose visual content is delivered through a centrally managaed network of flat panel screens or television monitors.
Digital Signage
Offering a small number of set price points or categories.
Price Lining
A commonly used measurement for space productivity.
Sales per Square Foot
Store Layout: Arranges fixtures and aisles in a spacious, asymmetric pattern. (Also called Boutique)
Free-form Layout
Store Layout: Provides a major aisle that loops around the store to different departments.
Racetrack Layout
Store Layout: Parallel aisles with merchandise on shelves on both sides of the aisles.
Grid Layout
A diagram that illustrates how and where specific merchandise should be placed on shelves or displays.
Planograms
The most important piece of real estate in the store where customers can purchase merchandise.
Point of Sale Area
The type of display which can attract and draw the customer into the store.
Window Displays
A highly visible display located at the end of an aisle.
End Caps
A space used to display seasonal or holiday merchandise that is being featured.
Promotional Areas
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