Chapter 1 Flashcards
Retail Industry Overview
Retail is a business that sells
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Products and services to the consumer
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Retail Industry Overview
The method consumers acquire products and services is
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Retailing
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Retail Industry Overview: Product Distribution Channel
The four product distribution channels are:
Retailers are a link in the distribution channel,
connecting customers w
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1 ) Manufacturer - Wholesaler - Retailer - Customer
2) Manufacturer - Retail Distribution Center - Retailer - Customer
3) Retailer (Online Order) - Manufacturer- Customer
4) Manufacturer - Customer
Retailers are a link in the distribution channel,
connecting customers w
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Retail Industry Overview | Consumer Behavior: Why People Buy
A PHYSICAL CUE might be when a friend says, “I hear a new burger restaurant just opened downtown— let’s try it.” True or False”
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FALSE
Correct Answer: Social Cue
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Retail Industry Overview | Consumer Behavior: Why People Buy
Often a customer’s interest in a product is created by a ____ which is a cue (social or commercial) or a drive (personal) that motivates a person to act
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STIMULUS
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Retail Industry Overview | Consumer Behavior: Why People Buy
The data collected to help retailers better understand the customer needs _________________.
___________ is quantifiable information such as household size, income, education, occupation, and place of residence.
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Demographics
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Retail Industry Overview | Consumer Behavior: Why People Buy
A good retailer will not try to be
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All Things to all people
Retail Industry Overview | Consumer Behavior: Why People Buy
A retailer’s ability to sell products and services to customers depends largely on its
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1) Understanding of the customer needs
2) Customer habits
3) Customer purchase behavior
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Retail Industry Overview | No Two Customers Are Alike
Understanding the various types of customers will allow you to personalize your service, which will lead to a better ______
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Customer Experience
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Retail Industry Overview | The Customer Loyalty Cycle
Give the six steps in the CUSTOMER LOYALTY LIFE CYCLE
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1) Customer has a want or need
2) Customer considers different purchase options
3) Customer chooses a buying option
4) Customer likes or does not like the experience
5) Customer purchases from the retailer again
6) Customer tell others and becomes a LOYAL CUSTOMER
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Retail Industry Overview | Types of Customers
This customer is loyal to a specific store based on repeated and valued positive customer experience with the retailer or the products.
LOYAL CUSTOMER
Retail Industry Overview | Types of Customers
This customer finds out what is trendy before making a purchase
FOLLOWER
Retail Industry Overview | Types of Customers
This customer likes to be the first to purchase the newest technology, fashion, or car, as well as try the just opened restaurant and see the newest movie.
INNOVATIVE/TREND BUYER
Retail Industry Overview | Types of Customers
This customer makes quick purchase decisions, often for inexpensive items without high importance to the buyer
IMPULSE BUYER
Retail Industry Overview | Types of Customers
This customer views shopping as a fun occasion
RECREATIONAL SHOPPER
Retail Industry Overview | Types of Customers
This customer spends lots of time checking out products and prices through online sites, visiting different stores, comparing advertisements, etc.
COMPARISON SHOPPER
Retail Industry Overview | Diversity in the Retail Industry
Similar to multichannel retailing with the focus on creating a seamless consumer experience through any and all shopping channels: mobile, tablet, computer, brick-and-mortar stores, television, radio, direct mail, and catalog.
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OMNICHANNEL
Retail Industry Overview | Diversity in the Retail Industry
Retail operations offering customer transactions through multiple connected channels, including some or all of the following: brick-and-mortar stores, online store sites, mobile apps, and telephone.
MULTICHANNEL
Types of Ownership
The license granted to another party to market a company’s goods or services in a particular territory.
FRANCHISE
Types of Ownership
A company that operates multiple stores under common ownership
CORPORATE CHAIN
Types of Ownership
A single store or a small regional chain. These retailers are often able to tailor their offerings to meet the demand of the local consumer.
INDEPENDENT ESTABLISHMENT
Diversity in the Retail Industry
These stores sell a wide variety of goods including food, alcohol, and medicine.
SUPERMARKETS
Diversity in the Retail Industry
These stores offer an assortment of brand-name merchandise at a significant discount off the manufacturer’s price. They buy from manufacturers and retailers at roughly one-forth the original price.
CLOSEOUT STORES
Diversity in the Retails Industry
Wholesale Clubs sell products directly to the consumers. This places them in the unique role of both wholesaler and retailer. True or False?
TRUE
Diversity in the Retail Industry
Department Stores are classified as general merchandisers. They offer good service and a broad variety and assortment of products of mid-to-high quality. True or False?
TRUE
Diversity in the Retail Industry
These retailers offer brand-name merchandise at a discount.
OFF-PRICE RETAILERS
Diversity in the Retail Industry
These retailers offer a broad variety of merchandise, limited service, and low prices
DISCOUNT STORES
Diversity inthe Retail Industry
This segment focuses on deep but narrow assortments with a high level of customer service.
SPECIALTY STORES
Diversity in the Retail Industry
These stores typically combine a supermarket and a department store, resulting in a gigantic retail facility that carries an enormous range of products, from apparel to groceries to automotive supplies, all under one roof
SUPERCENTERS
Diversity in the Retail Industry
These stores sell secondhand clothes and other household goods, typically to raise funds for a charitable institution.
THRIFT STORES
Diversity in the Retail Industry
Salespeople contact customers directly in a convenient location often at a customer’s home and demonstrate product benefits, take orders, and deliver the products or perform the services (Amway, Mary Kay, Avon, Pampered Chef)
DIRECT SELLING
Diversity in the Retail Industry
These retailers started online and continue to do all their business that way (Amazon, eBay, Zappos)
PURE PLAY
Diversity in the Retail Industgry
These general merchandise stores are easily accessible and small in size, with quick shopping and easy checkout
CONVENIENCE STORES
The Distribution Channel
The Products are produced by the
MANUFACTURER
The Distribution Channel
The ____ buys large quantities of products directly from the manufacturer, breaks them into smaller units, and sells the smaller units to retailers
WHOLESALER
Consumer Behavior, Why we Buy
A COMMERCIAL CUE may be an ____ message from the restaurant telling consumers about the products
ADVERTISING
Exceptional Customer Service Means Extraordinary Business
A dissatisfied customer is more likely to tell friends and family about their experience than satisfied customers. True or False?
TRUE
What is Customer Service
The ability to provide good customer service is a result of learning and applying a combination of skills that include:
1) PLANNING
2) PROBLEM SOLVING
3) DECISION MAKING
4) CRITICAL THINKING
5) PROFESSIONALISM
6) RESPECT
7) AND MORE
What is Customer Service
Customer Service is not a ____
SKILL
Consumer Behavior, Why we Buy
What are the FIVE STAGE DECISION MAKING PROCESS
1) NEED RECOGNITION
2) INFORMATION SEARCH
3) EVALUATION OF ALTERNATIVES
4) PURCHASE
5) POST-PURCHASE EVALUATION
Consumer Behavior, Why we Buy
An individual may be motivated to engage in the purchase decision process after
EXPOSURE TO A CUE
Consumer Behavior, Why we Buy
A SOCIAL CUE is when a friend says, “I hear there is a new restaurant opened downtown — let’s try it.” True or False?
TRUE
The Distribution Channel
The __ receives, stores, displays, and sells the products to customers
RETAILER
Retail Industry Overview
What is the process of selling products and/or services to customers to earn a profit.
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Retail
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Retail Industry Overview
A business or person that sells products and/or services to customers. Merchandise or services are selected based on the needs of a specific store, region, or community.
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Retailer
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Retail Industry Overview
____________are people who purchase goods or services from a business.
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Customers
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Retail Industry Overview
____________ also called merchandise, are physical goods that are bought and sold, such as food, clothes, and household
items.
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Products
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Retail Industry Overview
_________ are intangible (they can’t be physically owned by the customer) transactions, such as lawn mowing, hair care services and personal training. Retailers sell products and services in stores, online and/or directly from individuals, such
in-home consultants.
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Services
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Retail Industry Overview
The ____________ is to provide customers with the merchandise and services they want—when, where, and how they
want to purchase them.
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goal of retailing
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