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2nd yr | 1st Sem | Retail Management > Module 2: TYPES OF RETAILERS > Flashcards

Module 2: TYPES OF RETAILERS Flashcards

1
Q

*The most basic
characteristic used to describe the different types of retailers

*The elements that retailers use to satisfy their customers’ needs.

A

Retail mix

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2
Q

What are used
to classify retailers ?

A
  1. Type of Merchandise and/or service sold
  2. Variety and Assortment of merchandise sold
  3. Level of customer service.
  4. Price of the merchandise
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3
Q

the number of merchandise CATEGORIES a retailer offers
- Also known as the “Breadth of Merchandise”

A

Variety

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4
Q

– the number of DIFFERENT ITEMS in a merchandise category
like assorted sizes and colors
- Or also known as the “Depth of Merchandise”

A

Assortment

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5
Q

SKU

A

Stockkeeping Unit

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6
Q

each different item of merchandise

A

Stockkeeping Unit (SKU)

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7
Q

Types of Retailers

A

A. FOOD RETAILERS
B. GENERAL MERCHANDISE RETAILERS
C. NONSTORE RETAILERS
D. SERVICE RETAILERS

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8
Q

Types of Food retailers

A
  1. Supermarkets
  2. Supercenters
  3. Hypermarkets
  4. Warehouse Clubs
  5. Convenience Stores
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9
Q

Types of supermarket

A
  1. Conventional Supermarket
  2. Limited Assortment Supermarkets or Extreme value food retailers
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10
Q

– a SELF-SERVICE FOOD STORE offering groceries, meat, and produce with
limited sales of nonfood items, such as health and beauty aids
and general merchandise.
- Carries about 30,000 SKUs

A

Supermarket

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11
Q

Nature of offering of SUPERMARKET that differentiate their offerings from the other
retail formats:

A

▪ Emphasize fresh perishables
▪ Targeting health-conscious and ethnic consumers
▪ Providing a better in-store experience
▪ Offering more private-label brands

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12
Q

Benefits of offering more private-label brands:

A

o Increases store loyalty
o Ability to differentiate themselves from competition
o Lowers promotional cost
o High gross margin

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13
Q

means purchasing from factories
that pay workers a living wage, more than the prevailing minimum wage, and offer other benefits, like onsite medical treatment.

A

Fair Trade

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14
Q

o Only stock about 2,000 SKUs

A

Limited Assortment Supermarkets or Extreme value food retailers

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15
Q

are large stores (about 150,000-200,000 sq. feet) that combine a SUPERMARKET (a
food retailer) with a FULL-LINE DISCOUNT STORE(a general merchandise retailer)

  • very large that some customers find it inconvenient to shop because it can take a long time to find the items they want.
A

Supercenters

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16
Q

are also large stores (about 100,000-300,000) and is a combination of food (60-70%)
and general merchandise (30-40%) stores.
- they stock fewer SKUs than supercenters- between 40,000-60,000 SKUs.\

A

Hypermarkets

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17
Q

are similar with supercenters.

The only difference is that hypermarkets HAVE LARGER PERCENTAGE ON FOOD ITEMS and have more emphasis on FRESH PERISHABLES while SUPERCENTERS hold more non-food items and emphasize DRY GOODS such as cereals and canned goods.

A

Hypermarkets

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18
Q

– are retailers that offer a LIMITED AND IRREGULAR ASSORTMENT of food and general merchandise with little service at low prices for ultimate consumers and
small businesses.
- is 100,000-150,000 sq.feet in area and typically located in low-rent
districts.

A

Warehouse clubs

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19
Q

Offer low prices because they use low-cost locations, inexpensive store
designs and little customer services
- They keep inventory holding costs low by carrying a limited assortment
of fast selling items.

A

Warehouse Clubs

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20
Q

two types of members of Warehouse Clubs

A

Wholesale members
Individual Members

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21
Q

those who own small businesses

A

Wholesale members

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22
Q

those who purchase for their own use.

A

Individual Members

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23
Q

provide a limited variety and assortment of merchandise at a convenient location in 2000-3,000square foot stores with speedy checkout.
- offer limited assortment and variety and charge higher prices
- this type of retailer enables to make purchases quickly without having to search through a large store and wait in a long checkout line.

A

Convenience stores

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24
Q

Types of General Merchandise Retailers

A
  1. Department Stores
  2. Full-line Discount Stores
  3. Specialty Stores
  4. Drugstores
  5. Category Specialists
  6. Extreme Value Retailers
  7. Off-Price Retailers
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25
Q

are retailers that carry a broad variety and deep assortments, offer customer services,
and organize their stores into distinct departments for displaying merchandise.
- attract customers by providing pleasing ambiance, attentive service, and a wide variety of merchandise under one roof.
- offer both soft and hard goods, but now most department stores offer soft goods.
- the major departments are women’s, men’s, and children’s apparel; cosmetics; home
furnishing; kitchenware; and small appliances.

A

Department Stores

26
Q

are retailers that offer a broad variety of merchandise, limited service and low
prices.
- usually offers both private label and national brands
- provide low service, about 30,000SKUs

A

Full-line discount stores

27
Q

concentrate on a limited number of complementary merchandise categories and
provide a high level of service in relatively small stores.
- provides deep assortment, high service and high prices with only 5,000 SKUs

A

Specialty Stores

28
Q

are specialty stores that concentrate on health and personal grooming merchandise.

A

Drugstores

29
Q

are big box discount stores that offer a narrow but deep assortment of merchandise
- are also called CATEGORY KILLERS – dominates in their product category and that they
exploit their buying power to negotiate low prices and are assured of supply when
items are scarce

A

Category specialists

30
Q

A category specialist offering equipment and material used by do-it yourselfers and contractors to make your home improvement.

A

*Home Improvement Center

31
Q

are small, full-line discount stores that offer a limited merchandise assortment at
very low prices.
-offers limited assortment and operating in low-rent locations.
- offer broad but shallow assortment of household goods, health and beauty aids and
groceries.

A

Extreme Value Retailers

32
Q

are also known as close-out retailers
- offer inconsistent assortment of brand name merchandise at low prices

A

Off-price retailers

33
Q

end-of-season merchandise that will not be used in following seasons

A

*Close-outs

34
Q

– merchandise that has minor mistakes in construction

A

Irregulars

35
Q

are special type of off-price retailers which are outlets
of manufacturing companies that sell irregulars and close-outs on a limited stock at
a lower price

A

Outlet stores or Factory outlets

36
Q

Types of Non-store retailers

A
  1. Electronic Retailers (E-tailing, Online Retailing, and Internet Retailing)
  2. Catalog and Direct-Mail Retailers
  3. Direct Selling
  4. Television Home Shopping
  5. Vending Machine Retailing
37
Q

retail format in which the retailers communicate with customers and offer products
and services for sale over the INTERNET.

A

Electronic Retailers

38
Q
  • a nonstore retail format in which the retail offering is communicated to a customer through a catalog
A

Catalog retailers

39
Q

*communicate with their customers using letters and
brochures.

A

Direct-Mail Retailers

40
Q

Types of Firms Selling Products through Catalogs:

A

a) General Merchandise Catalog Retailers
b) Specialty Catalog retailers

41
Q

offer a broad variety of merchandise in catalogs that
are PERIODICALLY MAILED to their customers.

A

General Merchandise Catalog Retailers

42
Q

focus on specific categories of merchandise.

A

Specialty Catalog retailers

43
Q

Difference between catalog amd brochure

A

Catalog - all items
Brochure - specific items

44
Q

a retail format in which salespeople, frequently independent businesspeople,
contact customers directly in a convenient location, either at the customer’s home or at work;
demonstrate merchandise benfits and/or explain a service; take an order and deliver the merchandise
or perform the service.

A

Direct Selling

45
Q

Types of direct selling

A

a) Party Plan System
b) Multilevel Selling

46
Q

where salespeople encourage customers to act as hosts
and invite friends or coworkers to a “party” at which the merchandise is
demonstrated.

A

Party plan system

47
Q

where people serve as master distributors, recruiting
other people to become distributors in their network.

A

Multilevel selling

48
Q

develops when the firm and its programs are
designed to sell merchandise and services to other distributors rather than to
end users.

A

Pyramid scheme

49
Q

(known as T-commerce or teleshopping)
- a retail format in which customers watch a television program that demonstrates
merchandise and then place orders for that merchandise, usually by telephone.

A

Television Home Shopping

50
Q

Three forms of electronic home shopping retailing:

A

A.) Cable Channels
b) Infomercials
c) Direct-Response Advertising

51
Q

dedicated to television shopping

A

Cable channels

52
Q

are programs, typically 30 minutes long that mix
entertainment with product demonstrations and then solicit orders placed by
telephone.

A

Infomercials

53
Q

includes advertisements on television and
radio that describe products and provide an opportunity for consumers to
order them.

A

Direct-Response Advertising

54
Q

–a nonstore format in which merchandise or services are stored in a
machine and dispense to the consumers when they deposit cash.

A

Vending Machine Retailing

55
Q

firms that primarily sell services rather than merchandise.

A

SERVICE RETAILERS

56
Q

Characteristics of a Service that make it different from goods:

A
  1. Intangibility
  2. Simultaneous Production and Consumption
  3. Perishability
  4. Inconsistency
57
Q

TYPES OF RETAIL OWNERSHIP

A
  1. Independent, Single-Store Establishments
  2. Corporate Retail Chains
  3. Franchising
58
Q

These are owner-managed stores in which the management has direct contact with customers and can respond quickly to needs

A

Independent, Single-Store Establishments

59
Q

is an organization operated by wholesaler offering a
merchandise program to small, independent retailers on a voluntary basis.

A

Wholesale sponsored
voluntary cooperative groups

60
Q

a company that operates multiple retail units under common ownership and usually
has centralized decision making for defining and implementing its strategy.

A

Retail chain

61
Q

a contractual agreement between a franchisor and a franchisee that allows the
franchisee to operate a retail outlet using a name and format developed and supported by the
franchisor.

A

Franchising

2nd yr | 1st Sem | Retail Management (9 decks)

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