Chapter 14

Question 1

Retailing:

Answer 1

All the activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use

Question 2

Retailer:

Answer 2

A channel intermediary that sells mainly to consumers

Question 3

Independent Retailer:

Answer 3

A retailer owned by a single person or partnership and not operated as part of a larger retail institution

Question 4

Chain Store:

Answer 4

A store that is part of a group of the same stores owned and operated by a single organization

Question 5

Franchise:

Answer 5

A relationship in which the business rights to operate and sell a product or a granted by the franchisor to the franchisee

Question 6

Franchisor:

Answer 6

The originator of the trade-name, product, methods of operation, and the like that grants operating rights to another party to sell its product

Question 7

Franchisee:

Answer 7

An individual or business that is granted the right to sell another party’s product

Question 8

Gross Margin:

Answer 8

The amount of money the retailer makes as a percentage of sales after the cost of goods is subtracted

Question 9

Department Store:

Answer 9

A store housing several departments under one roof

Question 10

Specialty Store:

Answer 10

A retail store specializing in a given type of merchandise

Question 11

Supermarket:

Answer 11

A large departmentalized, self service retailer that specializes in food and some non-food items

Question 12

Drugstore:

Answer 12

A retail store that stocks pharmacy related products and services as its main draw

Question 13

Convenience Store:

Answer 13

A miniature supermarket, caring only a limited line of high turnover convenience goods

Question 14

Discount Store:

Answer 14

Retailer the competes on the basis of low prices, high turnover, and high-volume

Question 15

Full line Discount Store:

Answer 15

A discount store that carries a vast depth and breadth of product within a single product category

Question 16

Supercenter:

Answer 16

A large retailer that stocks and sells a wide variety of merchandise including groceries, clothing, household goods, and other general merchandise

Question 17

Speciality Discount Store:

Answer 17

A retail store that offers a nearly complete selection of single line merchandise and uses self service, discount prices, high volume, and high turnover

Question 18

Category Killer:

Answer 18

A large discount store that specializes in a single line of merchandise and becomes the dominant retailer in its category

Question 19

Warehouse Club:

Answer 19

A large, no frills retailer that sells bulk quantities of merchandise to customers at volume discount prices in exchange for periodic membership fee

Question 20

Off-price Retailer:

Answer 20

A retailer that sells at prices 25% or more below traditional department store prices because it pays cash for its stock and usually doesn’t ask for return privileges

Question 21

Factory Outlet:

Answer 21

An off price retailer that is owned and operated by a manufacture

Question 22

Used Good Retailer:

Answer 22

A retailer whereby items purchased from one of the other types of retailers are resold to different customers

Question 23

Restaurant:

Answer 23

A retailer that provides both tangible products food and drink and valuable services food preparation and presentation

Question 24

Nonstore Retailing:

Answer 24

Shopping without visiting a store

Question 25

Automatic Vending:

Answer 25

The use of machines to offer goods for sale

Question 26

Self-Service Technologies (SST):

Answer 26

Technological interfaces that allow customers to provide themselves with products and or services without the intervention of a service employee

Question 27

Direct Retailing:

Answer 27

The selling of products by representatives who work door-to-door, office to office, or at home sales parties

Question 28

Direct Marketing (DM):

Answer 28

Techniques used to get consumers to make a purchase from their home, office, or other non-retail setting

Question 29

Telemarketing:

Answer 29

The use of the telephone to sell directly to consumers

Question 30

Direct Mail:

Answer 30

The delivery of advertising or marketing material to recipients of postal or electronic mail

Question 31

Microtargeting:

Answer 31

The use of direct marketing techniques that employ highly detailed data analytics in order to isolate potential customers with great precision

Question 32

Shop at home Television Network:

Answer 32

Specialized form of direct response marketing whereby television shows display merchandise, within the retail price, to home viewers

Question 33

Online Retailing (E-tailing):

Answer 33

A type of shopping available to consumers with personal computers and access to the Internet

Question 34

Floor Stock:

Answer 34

Inventory displayed for sale to customers

Question 35

Back Stock:

Answer 35

Inventory held in reserve for potential future sale in the retailer store room or stockroom

Question 36

Retailing Mix:

Answer 36

They combination of the six Ps -product, promotion, place, price, presentation, and personnel to sell goods and services to the ultimate customer

Question 37

Brand Cannibalization:

Answer 37

The reduction of sales for one brand as the result of the introduction of a new product or promotion of a current product by another brand

Question 38

Destination Store:

Answer 38

A store that consumers purposely planned to visit prior to shopping

Question 39

Atmosphere:

Answer 39

The overall impression conveyed by stores physical layout, decor, and surroundings

Question 40

Layout:

Answer 40

The internal design and configuration of a store’s fixtures and products

Question 41

Big Data Analytics:

Answer 41

The process of discovering patterns in large data sets for the purposes of extracting knowledge and understanding human behavior

Question 42

Beacon:

Answer 42

A device that sends out connecting signals to customers’ smartphones and tablets in order to bring them into a retail store or improve their shopping experience

Question 43

Shopper Marketing:

Answer 43

Understanding how ones target consumers behave as shoppers, in different channels and formats, and leveraging this intelligence to generate sales or other positive outcomes

Question 44

Shopper analytics:

Answer 44

Searching for and discovering meaningful patterns and shopper data for the purpose of fine-tuning, developing, or changing market offerings

Question 45

Retail Channel Omnification:

Answer 45

The reduction of multiple retail channel systems into a single, unified system for the purpose of creating efficiencies for saving costs

Question 46

Click and collect:

Answer 46

The practice of buying something online and then traveling to a physical store location to take delivery of the merchandise