Part 1 Flashcards
Heterogeneity
Refers to the aspects of services being less standardized and more difficult to compare than physical products
Inseparability
A major characteristic of services - they are produced and consumed at the same time and cannot be separated from their providers
Intangibility
A major characteristic of services - they cannot be seen, tasted, felt, heard, or smelled before they are purchased.
Perishibility
A major characteristic of services - they must be used in a certain time period and cannot be saved for later use.
Service
Any activity or benefit that one entity can offer another that is essentially intangible and does not result in any ownership.
Variability
A major characteristic of services - their quality may vary greatly, depending on who when, where, and how they are provided.
Convenience Store
A small retail store that is open long hours seven days a week and carries a limited number of high-turnover convenience goods.
Department store
A type of retail store that carries a wide variety of product lines and each line is operated as a separate department managed by specialist buyers or merchandisers.
Discount store
A retail store that sells standard merchandise at lower prices by accepting lower margins in anticipation of higher volume.
Factory outlet
An off-price retail entity that is owned and operated by a manufacturer and normally carries the manufacturer’s surplus, discontinued, or irregular goods.
Inventory turnover
The average number of times a year a retailer expects to sell its entire inventory.
Margin
The difference between the selling price and cost expressed as a per cent of theselling price.
Markdown
A reduction from the original selling price expressed as a per cent.
Markup
The difference between the selling price and cost expressed as a per cent of cost.
Off-price retailer
A retail entity that buys at less-than-regular wholesale prices and sells at less than retail. Examples are factory outlets, independents, and warehouse clubs.
