Chapter 15: Retailing

Question 1

Retail

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

The market intermediary that sells goods and services to the final consumer.

Question 3

Independent retailers

Answer 3

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

Question 4

Chain stores

Answer 4

Stores owned and operated as a group by a single organization. This includes franchises which combine independent retailer operations with chain store operations.

Question 5

Gross margin

Answer 5

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

Question 6

Department store

Answer 6

A store housing several departments under one roof.

Question 7

Specialty store

Answer 7

A retail store specializing in a given type of merchandise.

Question 8

Supermarkets

Answer 8

Large, departmentalized, self-service retailers that specialize in food and some nonfood items.

Question 9

Scrambled merchandising

Answer 9

The tendency to offer a wide variety of nontraditional goods and services as their main draw.

Question 10

Drugstores

Answer 10

Retail stores that stock pharmacy-related products and services as their main draw.

Question 11

Convenience store

Answer 11

A miniature supermarket, carrying only a limited line of high-turnover convenience goods.

Question 12

Discount store

Answer 12

A retailer that competes on the basis of low prices, high turnover, and high volume.

Question 13

Full-line discount stores

Answer 13

Retailers that offer consumers very limited service and carry a broad assortment of well-known, nationally branded hard goods.

Question 14

Mass merchandising

Answer 14

A retailing strategy using moderate to low prices on large quantities of merchandise and lower levels of service to stimulate high turnover of products.

Question 15

Supercentres

Answer 15

Retail stores that combine groceries and general merchandise goods with a wide range of services.

Question 16

Specialty discount stores

Answer 16

Retail stores that offer a nearly complete selection of single-line merchandise and use self-service, discount prices, high volume, and high turnover.

Question 17

Category killers

Answer 17

Specialty discount stores that heavily dominate their narrow merchandise segment.

Question 18

Warehouse membership clubs

Answer 18

Limited-service merchant wholesalers that sell a limited selection of brand-name appliances, household items, and groceries to members, small businesses, and groups.

Question 19

Off-price retailer

Answer 19

A retailer that sells brand-name merchandise at considerable discounts.

Question 20

Factory outlet

Answer 20

An off-price realtor that is owned and operated by a manufacturer.

Question 21

Nonstore retailing

Answer 21

Provides shopping without visiting a store.

Question 22

Automatic vending

Answer 22

The use of machines to offer goods for sale.

Question 23

Self-service technologies (SST)

Answer 23

Technological interfaces that allow customers to provide themselves with products and/or services without the intervention of a service employee, like a pay at the pump gasoline station.

Question 24

Direct retailing

Answer 24

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

Question 25

Direct marketing (direct response marketing)

Answer 25

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

Question 26

Direct mail

Answer 26

A printed form of direct-response communication that is delivered directly to consumers' homes.

Question 27

Telemarketing

Answer 27

The use of telecommunications to sell a product or service; involves both outbound (unsolicited) and inbound (consumer orders being placed) calls.

Question 28

Shop-at-home television network

Answer 28

A specialized form of direct-response marketing whereby television shows display merchandise, with the retail price, to home viewers.

Question 29

Online retailing (e-tailing)

Answer 29

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

Question 30

Omni channel retailing

Answer 30

An approach that combines the advantages of the physical store experience with the information-rich experience of online shopping, providing the consumer with a seamless experience through all available shopping channels.

Question 31

Webrooming

Answer 31

Researching a product online and then going to a store to buy it.

Question 32

Showrooming

Answer 32

Searching for a product in a store and then going online to try to find it at a better price.

Question 33

Franchise

Answer 33

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

Question 34

Franchiser

Answer 34

The originator of a trade name, product, methods of operation, and so on, that grants operating rights to another party to sell its product.

Question 35

Franchisee

Answer 35

An individual or a business that is granted the right to sell a franchiser's product.

Question 36

Retailing mix

Answer 36

A combination of the six Ps - product, place, promotion, price, presentation, and personnel - to sell goods and service to the ultimate consumer.

Question 37

Product offering

Answer 37

The mix of products offered to the consumer by the retailer; also called the product assortment or merchandise mix.

Question 38

Brand cannibalization

Answer 38

The reduction of sales for one brand as the result of the introduction of a new product or promotion of a current product or brand. Essentially your new brand is taking sales from your other brands.

Question 39

Destination stores

Answer 39

Stores that consumers purposely plan to visit.

Question 40

Pop-up shop

Answer 40

Temporary retail space that sells merchandise of any kind.

Question 41

Atmosphere

Answer 41

The overall impression conveyed by a store's physical layout, decor, and surroundings.

Question 42

Shopper marketing

Answer 42

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

Question 43

Shopper analytics

Answer 43

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

Question 44

Big data analytics

Answer 44

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

Question 45

Click-and-collect

Answer 45

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