Chapter 1 Flashcards
1
Q
- Is a business that sells products and/or services to consumers for personal or family use
A
RETAILING
2
Q
- A person or organization that buys goods or services from a store or business
A
CUSTOMER
3
Q
- Buys products with the objective of selling them later at a high price
A
RESELLER
4
Q
- Is the path used to get a product from the manufacturer or creator to the end user. It is how the customer gets their product after purchase, which often include intermediaries
A
DISTRIBUTION CHANNEL
5
Q
Four Distribution Channel
A
- Manufacturing
- Wholesaler
- Retailer
- Consumer
6
Q
- Is the creation or production of goods with the help of equipment, labor, machines, tools, and chemical or biological processing or formulation
A
- Manufacturing
7
Q
- A person or company that sells large quantities of goods, often at low prices, to retailers
A
Wholesaler
8
Q
- A person or business that sells goods to the public in small quantities for immediate use or consumption
A
Retailer
9
Q
- A person who buys a product or
service for personal or family use
A
Consumer
10
Q
TYPES OF DISTRIBUTION CHANNELS
A
Direct
Indirect
Hybrid
11
Q
- Allows the consumer to make purchases from the manufacturer. This direct, or short channel, may mean lower costs for consumer because they are buying directly from the manufacturer
A
Direct
12
Q
- Allows the consumer to buy the goods from a wholesaler or retailer. That are typical for goods that are sold in traditional brick-and-mortar stores
A
Indirect
13
Q
- It uses both direct and indirect channels. A product or service manufacturer may use both a retailer to distribute a product or service and may also make sales directly with the consumer. A manufacturer might sell an item on its ecommerce website, but then an intermediary delivers the physical product to the customer
A
Hybrid
14
Q
HOW RETAILERS ADD VALUE
A
- Breaking Bulk
- Holding Inventory
- Providing Assortment
- Offering Services
15
Q
Buy in large quantities then offer to consumer in smaller quantities
A
Breaking Bulk
16
Q
Keep inventory so that products will be available when consumers want them
A
Holding Inventory
17
Q
Enables customer to choose from a wide selection of brands, designs, sizes, colors and prices in one location
A
Providing Assortment
18
Q
- Provide services that make it easier to buy and use products RETAIL MIX
A
Offering Services
19
Q
ELEMENTS OF RETAIL MIX
A
Merchandise Assortment
Store Design and Display
Communication Mix
Customer Service
Pricing
Location
20
Q
- Is the different types of product lines and products that the retailer offers for sale. Decisions regarding to the assortment of products include its width and depth
A
Merchandise Assortment
21
Q
- Is another important consideration for a retailer. The store’s physical layout and atmosphere should be properly planned to suit the target market and induce customers to buy
A
Store Design and Display
22
Q
- All the tools you use to communicate with your customers or potential customers. This could be through advertising, social media, product packaging, direct marketing, websites, events, exhibitions
A
Communication Mix
23
Q
- Besides typical customer services, modern retailers may offer such services as home delivery, credit, and conversation. A retailer can use services mix as a key tool of non-price competition for differentiating him from others
A
Customer Service
24
Q
- A retailer’s price policy plays an important role in positioning. In formulating price policies, retailers must consider their target market, product, service assortment, and competition. Although all retailers would like to charge high markups and achieve high volume, they are rarely achievable simultaneously
A
Pricing
25
Q
- A retailer’s location is the key to its ability to attract customers and succeed in business. The costs of building or leasing store premises have a significant bearing on the
retailer’s profits
A
Location
