Ch. 15 - Retailing

Question 1

Retailing

Answer 1

All the activities directly related to the sale of goods and services to the ultimate consumer for person, nonbusiness use

Question 2

Independent Retailer

Answer 2

A retailer owned by a single person or partnership and not operated as part of a larger retail institution

Question 3

Chain Store

Answer 3

A store that is part of a group of the same stores owned and operated by a single organization

Question 4

Franchise

Answer 4

A relationship in which the business rights to operate and sell a product are granted by the franchisor to the franchisee

Question 5

Franchisor

Answer 5

The originator of a trade name, product, methods of operation, and the like that grants operating rights to another party to sell its product

Question 6

Franchisee

Answer 6

An individual or business that is granted the right to sell another party’s product

Question 7

Gross Margin

Answer 7

The amount of money the retailer makes as a percentage of sales after the cost of goods sold is subtracted

Question 8

Department Store

Answer 8

A store housing several departments under one roof

Question 9

Specialty Store

Answer 9

A retail store specializing in a given type of merchandise

Question 10

Drugstore

Answer 10

A retail store that stocks pharmacy-related products and services as its main draw

Question 11

Convenience Store

Answer 11

A miniature supermarket, carrying only a limited line of high-turnover convenience goods

Question 12

Discount Store

Answer 12

A retailer that competes on the basis of low prices, high turnover, and high volume

Question 13

Full-Line Discount Store

Answer 13

A discount store that carries a vast depth and breadth of product within a single product category

Question 14

Supercenter

Answer 14

A large retailer that stocks and sells a wide variety of merchandise including groceries, clothing, household goods, and other general merchandise

Question 15

Specialty Discount Store

Answer 15

A retail store that offers a nearly complete selection of single-line merchandise and uses self-service, discount prices, high volume, and high turnover

Question 16

Category Killer

Answer 16

A large discount store that specialize in a single line of merchandise and becomes the dominant retailer in its category

Question 17

Warehouse Club

Answer 17

A large, no-frills retailer that sells bulk quantities of merchandise to customers at volume discount prices in exchange for a periodic membership fee

Question 18

Off-Price Retailer

Answer 18

A retailer that sells at prices 25 percent or more below traditional department store prices because it pays cash for its stock and usually doesn’t ask for return privileges

Question 19

Factory Outlet

Answer 19

An off-price retailer that is owned and operated by a manufacturer

Question 20

Used Goods Retailer

Answer 20

A retailer whereby items purchased from one of the other types of retailers are resold to different customers

Question 21

Nonstore Retailing

Answer 21

Shopping without visiting a store

Question 22

Automatic Vending

Answer 22

The use of machines to offer goods for sale

Question 23

Self-Service Technologies (SST)

Answer 23

Technological interfaces that allow customers to provide themselves with products and/or services without the intervention of a service employee

Question 24

Direct Retailing

Answer 24

The selling of products by representatives who work door-to-door, office-to-office, or at home sales parties

Question 25

Direct Marketing (DM)

Answer 25

Techniques used to get consumer to make a purchase from their home, office, or other nonretail setting

Question 26

Telemarketing

Answer 26

The use of the telephone to sell directly to consumers

Question 27

Direct Mail

Answer 27

The delivery of advertising or marketing material to recipients of postal or electronic mail

Question 28

Microtargeting

Answer 28

The use of direct marketing techniques that employ highly detailed data analytics in order to isolate potential customers with great precision

Question 29

Shop-at-home Television Network

Answer 29

A specialized form of direct response marketing whereby television shows display merchandise, with the retail price, to home viewers

Question 30

Online Retailing (e-tailing)

Answer 30

A type of shopping available to consumers with personal computers and access to the Internet

Question 31

Floor Stock

Answer 31

Inventory displayed for sale to customers

Question 32

Retailing Mix

Answer 32

A combination of the six Ps - product, price, promotion, place, price, presentation, and personnel - to sell goods and services to the ultimate consumer

Question 33

Brand Cannibalization

Answer 33

The reduction of sales for one brand as the result of the introduction of a new product or promotion of a current product by another brand

Question 34

Destination Store

Answer 34

A store that consumers purposely plan to visit prior to shopping

Question 35

Atmosphere

Answer 35

The overall impression conveyed by a store's physical layout, décor, and surroundings

Question 36

Layout

Answer 36

The internal design and configuration of a store's fixtures and products

Question 37

Big Data Analytics

Answer 37

The process of discovering patterns in large data sets for the purposes of extracting knowledge and understanding human behavior

Question 38

Shopper Marketing

Answer 38

Understanding how one's target consumers behave as shoppers, in different channels and formats, and leveraging this intelligence to generate sales or other positive outcomes

Question 39

Shopper Analytics

Answer 39

Searching for and discovering meaningful patterns in shopper data for the purpose of fine-tuning, developing or changing market offerings

Question 40

Channel Omnification

Answer 40

The reduction of multiple retail channel systems into a single, unified system for the purpose of creating efficiencies or saving costs

Question 41

Click-and-collect

Answer 41

The practice of buying something online and then traveling to a physical store location to take delivery of the merchandise