Chapter #1 Flashcards
Define Retailing.
set of business activities that adds value to the goods/services sold to consumers for personal/family use.
Define Retailer.
the business that does the selling of retailing.
Difference between retailing and retailer.
Retailing: is the set of business activities
Retailer: is the place that sells
Easier to eliminate middle man and buy from manufacturer?
No because retailers add value.
4 ways retailers add value.
- Provide assortment.
- Break bulk
- Hold inventory
- Provide services
Define supply chain.
set of firms that make and deliver a set of goods and services to the ultimate consumer.
4 types of firms/people involved in a supply chain and explain their role.
Manufacturing: makes merch
Wholesaler: buys and stores merch
Retailer: sells merch
Consumer: owns much
Vertical Integration
firm does 1+ of the channel activities (manufacture, wholesale, retail)
Backwards Integration
Store goes from being a retailer to manufacturing a product. In the channel they go backwards.
Forward Integration
Firm goes from manufacturer to retailer. In the channel they go forward.
Social Responsibility
Voluntary actions company takes to address ethical, social, and environmental impact of how IT operates.
Ex: Nike making sustainable shoes
Disintermediation
Getting rid of the middle man
Infratype Competition
Competition between the same type of retailers.
example: Walmart and Target
Intertype Competition
Competition between retailers that sell similar merch using different formats. (Like discount vs department store. example: JcPenny and Macy’s)
3 components of a retail strategy.
- Target Market
- Product/Service Mix
- Long Term comparative advantage
