chap 1

Question 1

retail

Answer 1

business that sells products/services to consumers

Question 2

retailing

Answer 2

method by which consumers aquire products and services

Question 3

The distribution channel

Answer 3

manufacturer —-> wholesaler—->retailer—> customer

Question 4

Manufacturer

Answer 4

produces the products

Question 5

wholesaler

Answer 5

buys large quantities of products directly from manufacturer, break down into smaller units and sells to retailers

Question 6

retailer

Answer 6

receives items, stores, sells products to customers

Question 7

Convenience stores

Answer 7

stores that aim to provide their customers convenient shopping, small, limited and high prices

Question 8

Department stores

Answer 8

general merchandisers. They offer good service and broad variety and assortment or products of mid to high quality

Question 9

Direct selling

Answer 9

involves salespeople contact customers directly in a convenient location, usually the customers home. Demonstrates products, takes orders, and delivers the product or performs the service.

Question 10

Discount stores

Answer 10

these retailers offer a broad variety of merchandise, limited services and low prices

Question 11

Off price retailers

Answer 11

these retailers offer brand name merch at a discount. The merch consist of excess inventory, closeouts, and irregulars. Typically does not have online sales due to the inconsistent nature of their inventory.

Question 12

Two categories of off price retailers:

Answer 12

1. Closeout stores- these stores offer a variety of brand name merch at a significant discount off the manufacturer’s price. They buy from manufactures and retailers at roughly one fourth of original price
2. Outlet stores- off price stores that are owned by the manufacture or retailer

Question 13

Pure play

Answer 13

retailers that started out online and continue to do all their business that way

Question 14

Specialty stores

Answer 14

focuses on deep but narrow assortments with a high level of customer service

Question 15

Supercenters

Answer 15

typically combines a supermarket with a department store. They carry an enormous range of products, apparel to groceries to auto supplies

Question 16

Thrift stores

Answer 16

sell secondhand clothes/household goods, typically to raise funds for a charitable institution. The products are usually donated by individuals

Question 17

Wholesale clubs

Answer 17

some wholesalers started selling products directly to consumers

Question 18

Multichannel

Answer 18

offering customer transactions through multiple connected channels including some or all of the following: physical store, online stores, sites, mobile apps and telephone

Question 19

Omni channel

Answer 19

similar to multichannel retailing with the focus on creating a seamless consumer experience through any and all shopping channels- mobile, table, computer, physical store, TV, radio, mail, and catalog

Question 20

Online sales increased from 15$ billion in 1999 to 27$ billion in sales in 2000. By 2002 e-commerce sales were up to 44 billion. Today e-commerce sales are up to 260$ billion in the us

Answer 20

Online sales increased from 15$ billion in 1999 to 27$ billion in sales in 2000. By 2002 e-commerce sales were up to 44 billion. Today e-commerce sales are up to 260$ billion in the us

Question 21

Comparison shopper

Answer 21

spends time searching for the best price or deal on the item looking to purchase

Question 22

Diverse shopper

Answer 22

this buyer is hard to predict or to understand. Shops in many places not obviously influenced by any on retail element

Question 23

Follower

Answer 23

this customer usually waits to see what the latest trends will be and is reluctant to try new products until friends have done so and reported on them

Question 24

Impulse buyer

Answer 24

quick purchase decisions

Question 25

Innovative customer

Answer 25

the buyer who wants to be the first to purchase and own the latest merch

Question 26

Recreational shopper

Answer 26

this customer shops for fun and therefore shopping does not necessarily mean always making a purchase