Retailers

Question 1

Assortment

Answer 1

Types of a particular product
E.g. low fat milk, full cream milk, oat milk

Question 2

Variety

Answer 2

Different products - how many different products are there?

Question 3

Category Killer / Category Specialist

Answer 3

A narrow variety but deep assortment of merchandise. Lower price and mass marketing

Question 4

Consignment Store

Answer 4

Selling second-hand for profit

Question 5

Thrift store

Answer 5

Non-profit second-hand

Question 6

Soft goods

Answer 6

Shoes, clothes, cosmetics (Department stores focus on soft goods because of location and comeptition)

Question 7

Hard goods

Answer 7

Hardware, furniture, computer systems etc.

Question 8

Exclusive brand

Answer 8

A brand made for and sold exclusively by the retailer

Question 9

Franchising

Answer 9

Franchisor sells rights to use business trademark to franchisee for a fee

Independent owner of store

Question 10

Locavore movement

Answer 10

Locally produced food, organic

Question 11

Power perimeter

Answer 11

The areas around the outside walls of a supermarket that have fresh merchandise categories

Question 12

Private-label brand

Answer 12

Store brands. E.g. Emart’s No Brand

Question 13

Retail chain

Answer 13

Retail chains operate multiple units under common ownership. They have centralised decision-making for defining and implementing strategy

Question 14

Specialty store

Answer 14

A deep selection (brands, styles, models). Higher (premium) price with quality product and image. Niche, loyal fanbase

Question 15

SKU

Answer 15

Stock-keeping unit
- smallest unit - single unit of merchandise
- measuring how much of a specific product there is

Question 16

Supermarket (and it’s challenges)

Answer 16

Conventional supermarkets: perishables are a majority of sales (GS the fresh)
Challenges: temperature (energy costs), display (energy costs, HR - stocking, resources, checking inventory)

Question 17

Warehouse club

(Inventory turnover calculation is used here)

Answer 17

Offer limited and irregular assortment of food and general merchandise. Limited - assortment. Irregular - price (selling big quantities with cheaper price)
Low inventory holding costs

Question 18

Inventory turnover calculation

Answer 18

Inventory turnover = COGS / Avereage inventory
Average inventory = initial inventory + final / 2
(Higher inventory turnover is better!!!)

Question 19

Department Stores

Answer 19

Broad variety always, deep assortment sometimes
Focused on soft goods due to inner-city location and competition

Question 20

Full-Line Discount Stores

Answer 20

Broad variety, limited service ? low prices
E.g. Kmart, Target, Walmart

Question 21

Drugstore

Answer 21

Concentrate on health and beauty care
Competition from pharmacies, some food retailers, and pressure to reduce costs

Question 22

Extreme-value retailers

Answer 22

Dollar stores
Broad variety, but shallow assortment
Targets low-income consumers
Store experience is negative and STP is narrow

Question 23

Off-Price retailers

Answer 23

inconsistent assortment of brand-name merch, significant price discounts. closeouts and irregulars. outlets and factory outlets

Question 24

Service characteristics

Answer 24

Intangibility, insperability, perishability, variability

Question 25

Intangibility

Answer 25

Visualisation prior to purchase

Question 26

Inseperability

Answer 26

Simultaneous production and consumption -> participation E.g. a hotel bar has a dress code, so you are part of the service. A singer has a performance, the audience should participate

Question 27

Perishability | What is perishable? Examples?

Answer 27

Services are perishable. Demand (guest/customer) = Supply (employee) E.g. reservation, holding inventory. usually not equal but reservation tries to equalise it

Question 28

Variability

Answer 28

Inconsistency of offerings to customers --> HR training to be as consistent as possible in service

Question 29

Independent, single-store

Answer 29

One single owner/manager to rely on for retail decisions

Question 30

Corporate Retail Chains

Answer 30

Operate multiple units under common ownership. Has centralised decision-making for defining and implementing strategy

Question 31

Franchising

Answer 31

Franchisor sells rights to use business trademark to franchisee for a fee - There are start-up costs, and they must adhere to frachisor's rules/guidelines