Chapter 13 Vocab

Question 1

retailing

Answer 1

all the activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use

Question 2

retailer

Answer 2

a business whose sales come primarily from retailing

Question 3

shopper marketing

Answer 3

using in-store promotions and advertising to extend brand equity to the last mile and encourage favorable point of purchase decisions

Question 4

self service retailers

Answer 4

serve customers who are willing to perform their own locate-compare-select process to save time and money

Question 5

full service retailers

Answer 5

assist customers in every phase of the shopping process

Question 6

specialty stores

Answer 6

a retail store that carries a narrow product line with a deep assortment within that line

Question 7

department store

Answer 7

a retail store that carries a wide variety of product lines, each operated as a separate department managed by specialist buyers or merchandisers

Question 8

supermarkets

Answer 8

large, low cost, low margin, high volume, self service store that carries a wide variety of grocery and household products

Question 9

convenience store

Answer 9

a small store, located near a residential area, that is open long hours seven days a week and carries a limited line of high turnover convenience goods

Question 10

superstores

Answer 10

a store much larger than a regular supermarket that offers a large assortment of routinely purchased food products, nonfood items, and services

Question 11

category killers

Answer 11

a giant specialty store that carries a very deep assortment of a particular line

Question 12

service retailer

Answer 12

a retailer whose product line is actually a service; examples include hotels, airlines, banks, colleges and many others

Question 13

discount store

Answer 13

a retail operation that sells standard merchandise at lower prices by accepting lower margins and selling at higher volume

Question 14

off-price retailer

Answer 14

a retailer that buys at less than regular wholesale prices and sells at less than retail

Question 15

independent off-price retailer

Answer 15

an off-price retailer that is either independently owned and run or is a division of a larger retail corporation

Question 16

factory outlets

Answer 16

off-price retailing operation that is owned and operated by a manufacturer and normally carries the manufacturer’s surplus, discontinued, or irregular goods

Question 17

warehouse clubs

Answer 17

off-price retailer that sells a limited selection of brand-name grocery items, appliances, clothing, and other goods at deep discounts to members who pay annual membership fees

Question 18

corporate chains

Answer 18

two or more outlets that are commonly owned and controlled

Question 19

voluntary chain

Answer 19

a wholesaler sponsored group of independent retailers that engages in group buying and common merchandising

Question 20

retailer cooperative

Answer 20

a group of independent retailers that bands together to set up a jointly owned, central wholesale operation and conduct joint merchandising and promotion efforts

Question 21

franchise

Answer 21

a contractual association between a manufacturer, wholesaler, or service organization (a franchisor) and independent businesspeople (franchisees) who buy the right to own and operate one or more units in the franchise system

Question 22

retailer marketing decisions (3)

Answer 22

segmentation and targeting
store differentiation and positioning
retail marketing mix

Question 23

3 major product variables

Answer 23

product assortment
services mix
store atmosphere

Question 24

shopping center

Answer 24

a group of retail businesses built on a site that is planned, developed, owned, and managed as a unit

Question 25

regional shopping center (mall)

Answer 25

shopping center of 50-100 stores or more

Question 26

community shopping center

Answer 26

15-50 retail stores

Question 27

neighborhood shopping centers or strip malls

Answer 27

5-15 stores

Question 28

power centers

Answer 28

huge unenclosed shopping centers consisting of a long strip of retail stores

Question 29

lifestyle centers

Answer 29

smaller, open air malls with upscale stores, convenient locations and nonretail activities (playground, skating rink, hotel, dining, movies)

Question 30

wheel of retailing concept

Answer 30

suggests that new types of retailers usually begin as low-margin, low-price, low-status operations but later evolve into higher price, higher service operations, eventually becoming like the conventional retailers they replaced

Question 31

pop up stores

Answer 31

promote brands to seasonal shoppers, create buzz in busy areas

Question 32

showrooming

Answer 32

check out merchandise in brick and mortar store showrooms before buying it online

Question 33

wholesaling

Answer 33

all the activities involved in selling goods and services to those buying for resale or business use

Question 34

wholesaler

Answer 34

a firm engaged primarily in wholesaling activities

Question 35

wholesaling channel functions (9)

Answer 35

selling and promoting
buying and assortment building
bulk breaking
warehousing
transportation
financing
risk bearing
market information
management services and advice

Question 36

merchant wholesaler

Answer 36

an independently owned wholesale business that takes title to the merchandise it handles

Question 37

broker

Answer 37

a wholesaler who does not take title to goods and whose function is to bring buyers and sellers together and assist in negotiation

Question 38

agent

Answer 38

a wholesaler who represents buyers or sales on a relatively permanent basis, performs only a few functions, and does not take title to goods

Question 39

manufacturers’ sales branches and offices

Answer 39

wholesaling by sellers or buyers themselves rather than through independent wholesalers