Chapter 16 Flashcards
Consumer Utlities
The utilities provided by retailers create value for consumers
Form of Ownership
Distinguishes retail outlets based on wheater independent retailers, corporate chains, or contractual systems own the outlet
Level of Service
Describes the degree of service provided to the customer from three types of retailers: self-limited, and full-service
Merchandise Line
Describes how many different types of products a store carries and in what assortment
Independent Retailer
Most common forms of retail ownership - the owner is the boss
Corporate Chain
Involved multiple outlets under common ownership
Franchising
An individual or firm contracts with a parent company to set up a business or retail outlet
Self Service
Requires that customers perform many functions during the purchase process
Limited Service
Provide some service, such as credit/merchandise return, but not others, such as clothing alterations
Full Service
Provide many services to customers
Depth of Product Line
The store carries a large assortment of each product item
Supercenter
Combines a typical merchandise store with a full sized grocery store
Automatic Vending
Nonstore retailing - vending machines or v-commerce
Direct Mail and Catalogs
The store that comes to the door
Television Home Shopping
When shopping channels display products and orders are placed over the phone or the internet
Online Retailing
Allows consumers to search for, evaluate, and order products through the internet
Telemarketing
Using the telephone to interact with and sell directly to consumers
Direct Selling
Door-to-door, direct sales of products and services to consumers through personal interactions and demonstrations in their home/office
Retail Positioning matrix
A matrix that positions retail outlet on two dimensions: breadth or product line and value-added, such as location, product reliability, or prestige
Retailing Mix
The activities related to managing the store and the merchandise in the store, which include retail pricing, store location, retail communication, and merchandise
Markup
Refers to how much should be added to the cost the retailer paid for a product to reach the final selling price
Markdown
Occurs when the product does not sell at the original price and an adjustment is necessary
Everyday Low Pricing (ELP)
Consistently low prices and eliminates most markdowns
Off Price Retailing
Selling brand-name merchandise at lower than regular prices
Retail Image
The way in which the store is defined in the shopper’s mind
Shopper Marketing
The use of displays, coupons, product samples, and other brand communications to influence shopping behavior in a store
Category Management
An approach to managing the assortment of merchandise in which the manager is assigned the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category
Retail Life Cycle
The process of growth and decline that retail outlets, like products, experience, consists of the early growth, accelerated development, maturity, and decline stages
