Ch. 9

Question 1

Retail Strategy

Answer 1

overall plan or framework of action that guides a retailer

Question 2

Situation Analysis

Answer 2

candid evaluation of the opportunities and threats facing a prospective or existing retailer

Question 3

Opportunities

Answer 3

marketplace openings that exist because other retailers have not yet capitalized on them

Question 4

Threats

Answer 4

environmental and marketplace factors that can adversely affect retailers if they do not react to them (and sometimes, even if they do)

Question 5

Organizational Mission

Answer 5

retailer’s commitment to a type of business and a distinctive marketplace role

Question 6

Sole Proprietorship

Answer 6

unincorporated retail firm owned by one person

Question 7

Partnership

Answer 7

unincorporated retail firm owned by two or more persons, each with a financial interest

Question 8

Corporation

Answer 8

retail form that if formally incorporated under state law. It is a legal entity apart from individual officers (or stockholders)

Question 9

Goods/Service Category

Answer 9

retail firm’s line of business

Question 10

Objectives

Answer 10

long-term and short-term performance targets that a retailer hopes to attain

Question 11

Image

Answer 11

represents how a given retailer is perceived by consumers and others

Question 12

Positioning

Answer 12

enables a retailer to devise its strategy in a way that projects an image relative to its retail category and its competitors, and elicits consumer responses to that image

Question 13

Mass Merchandising

Answer 13

positioning approach whereby retailers offer a discount or value-oriented image, a wide and/or deep merchandise selection, and large store facilities

Question 14

Niche Retailing

Answer 14

enables retailers to identify customer segments and deploy unique strategies to address the desires of those segments

Question 15

Bifurcated Retailing

Answer 15

denotes the decline of middle-of-the-market retailing due to the popularity of both mass merchandising and niche retailing

Question 16

Target Market

Answer 16

customer group that a retailer seeks to attract and satisfy

Question 17

Mass Marketing

Answer 17

selling goods and services to a broad spectrum of consumers

Question 18

Concentrated Marketing

Answer 18

selling goods and services to one specific group

Question 19

Differentiated Marketing

Answer 19

aims at two or more distinct consumer groups, with different retailing approaches for each group

Question 20

Competitive Advantages

Answer 20

distinct competencies of a retailer relative to competitors

Question 21

Controllable Variables

Answer 21

aspects of business that the retailer can directly affect (such as hours of operation and sales personnel)

Question 22

Uncontrollable Variables

Answer 22

aspects of business to which the retailer must adapt (such as competition, the economy, and laws)

Question 23

Tactics

Answer 23

actions that encompass a retailer’s daily and short-term operations

Question 24

Control

Answer 24

phase in the evaluation of a firm’s strategy and tactics in which a semiannual or annual review of the retailer takes place

Question 25

Feedback

Answer 25

signals or cues as to the success or failure of part of a retail strategy