chap 1 Flashcards
(26 cards)
retail
business that sells products/services to consumers
retailing
method by which consumers aquire products and services
The distribution channel
manufacturer —-> wholesaler—->retailer—> customer
Manufacturer
produces the products
wholesaler
buys large quantities of products directly from manufacturer, break down into smaller units and sells to retailers
retailer
receives items, stores, sells products to customers
Convenience stores
stores that aim to provide their customers convenient shopping, small, limited and high prices
Department stores
general merchandisers. They offer good service and broad variety and assortment or products of mid to high quality
Direct selling
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.
Discount stores
these retailers offer a broad variety of merchandise, limited services and low prices
Off price retailers
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.
Two categories of off price retailers:
- 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
- Outlet stores- off price stores that are owned by the manufacture or retailer
Pure play
retailers that started out online and continue to do all their business that way
Specialty stores
focuses on deep but narrow assortments with a high level of customer service
Supercenters
typically combines a supermarket with a department store. They carry an enormous range of products, apparel to groceries to auto supplies
Thrift stores
sell secondhand clothes/household goods, typically to raise funds for a charitable institution. The products are usually donated by individuals
Wholesale clubs
some wholesalers started selling products directly to consumers
Multichannel
offering customer transactions through multiple connected channels including some or all of the following: physical store, online stores, sites, mobile apps and telephone
Omni channel
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
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
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
Comparison shopper
spends time searching for the best price or deal on the item looking to purchase
Diverse shopper
this buyer is hard to predict or to understand. Shops in many places not obviously influenced by any on retail element
Follower
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
Impulse buyer
quick purchase decisions
