Retailing Management Exam 1 Flashcards

Terms Definitions
backward integration
a form of vertical integration in which a retailer owns some or all of its suppliers
breaking bulk
a function performed by retailers or wholesalers in which they receive large quantities of merchandise and sell them in smaller quantities
corporate social responsibility
voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders
ethics
a system or code of conduct based on universal moral duties and obligations that indicate how one should behave
forward integration
a form of vertical integration in which a manufacturer owns wholesalers or retailers
intertype competition
competition between retailers that sell similar merchandise using different formats, such as discount and department stores
intratype competition
competition between the same type of retailers (e.g. kroger vs safeway)
retailer
a business that sells products and services to consumers for their personal or family use
retailing
a set of business activities that adds value to the products and services sold to consumers for their personal or family use
retail mix
the combination of factors used by a retailer to satisfy customer needs and influence their purchase decisions; includes merchandise and services offered, pricing, advertising, and promotions, store design and location, and visual merchandising
retail strategy
a statement the indicates (1) the target market toward which a retailer plans to commit its resources, (2) the nature of the retail offering that the retailer plans to use to satisfy the needs of the target market, and (3) the bases upon which the retailer will attempt to build a sustainable competitive advantage over competitors
scrambled merchandising
an offering of merchandise not typically associated with the store type, such as clothing in a drugstore
supply chain
a set of firms that make and deliver a given set of goods and services to the ultimate consumer
variety
the number of different merchandise categories within a store or department
vertical integration
an example of diversification by retailers involving investments by retailers in wholesaling or manufacturing merchandise
wholesalers
by a concern that is primarily engaged in buying, taking title to, usually storing, and physically handling goods in large quantities, and reselling the goods, usually in smaller quantities, to retailers or industrial/business use.
Functions which add value
providing assortment(one-stop shopping), breaking bulk(consumer purchases in quantity desired), holding inventory(convenience), offering services
evolution of retailing
dialect process, retail accordion, wheel of retailing
wheel of retailing
price sensitive shoppers will trade price for service, price sensitive shoppers are normally not loyal and will switch for low prices, new institutions often are able to enter the market with lower prices, as retailers trade up they open the field for new innovators
benefits of breaking bulk
it provides cost efficiencies for manufacturers, it gives consumers the chance to purchase items in the smaller quantities, one of the value-creating functions provided by a retailer, it provides cost efficiencies for manufacturers that can package and ship merchandise in larger quantities
assortment
the number of SKUs within a merchandise category. also called depth of merchandise
breadth of merchandise
the number of different merchandise categories within a store or department
catalog retailing
nonstore retail format in which the retail offering is communicated to a customer through a catalog
category killers
a discount retailer that offers a narrow but deep assortment of merchandise in a category and thus dominates the category form the customers' perspective. also called a category specialist
category specialist
a discount retailer that offers a narrow but deep assortment of merchandise in a category and thus dominates the category form the customers' perspective. also called a category killer
close-out retailers
off-price retailer that sells a broad but inconsistent assortment of general merchandise as well as apparel and soft home goods, obtained through retail liquidations and bankruptcy proceedings
close outs
(1) an offer at a reduced price to sell a group of slow moving or incomplete stock; (2) an incomplete assortment, the remainder of a line of merchandise that is to be discontinued and so is offered at a low price to ensure immediate sale.
convenience store
a store that provides a limited variety and assortment of merchandise at a convenient location in a 2,000-3,000 sq ft store with speedy check out
conventional supermarket
a self service food store that offers groceries, meat, and produce with limited sales of nonfood items, such as health and beauty aids and general merchandise
department store
a retailer that carries a wide variety and deep assortment, offers considerable customer services, and is organized into separate departments for displaying merchandise
depth of merchandise
the number of SKUs within a merchandise category, also called assortment
direct-mail retailer
a nonstore retailer that communicates directly with customers using mail brochures and pamphlets to sell a specific product or service to customers at one point in time
direct response advertising
advertisements on TV and radio that describe products and provide an opportunity for customers to order them
direct selling
independent distributor, contacts a customer directly in a convenient location, demonstrates merchandise benefits, takes an order, and delivers the merchandise to the customer
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