Retailing 1-4 Flashcards
backward integration
a form of vertical integration in which a retailer owns some or all of its suppliers
base of the pyramid
the 25% of the world’s population at the lowest end of the global income distribution, with combined spending power of approximately US $5 trillion
breaking bulk
a function preformed by retailers or wholesalers in which they receive large quantities of merchandise and sell them in smaller quantities
conscious retailing
entails a sense of purpose for the firm higher than simply making a profit by selling products and services
corporate social responsibility (CSR)
voluntary actions taken by a company to address the ethical. social. and environmental impacts of its business operations and the concerns of its stakeholders
ethics
a system or code of conduct based on universal moral duties and obligations that indicate how one should behave
forward integration
a form of vertical integration in which a manufacturer owns wholesalers or retailers
holding inventory
a major value-providing activity preformed by retailers whereby products will be available when consumers want them
intertype competition
competition between retailers that sell similar merchandise using different formats, such as discount and department stores
intratype competition
competition between retailers that are the same type (ex. kroger vs safeway)
retailer
a business that sells products and services to consumers for their personal or family use
retailing
a set of business activities that adds value to the products or services sold to consumers for their personal or family use
retail mix
the combination of factors used by a retailer to satisfy customers needs and influence their purchase decisions
retail strategy
a statement that indicates:
1) the target market tow arch which a retailer plans to commit its resources
2) the nature of the retail offering that the retailer plans to use to satisfy the needs of the target market
3) the bases on which the retailer will attempt to build a sustainable competitive advantage over competitions
scrambled merchandising
an offering of merchandise not typically associated with the store type, such as clothing in a drugstore
stakeholders
the broad set of people who might be affected by a firm’s actions, from current and prospective customer’s, top supply chain partners, to employees, to shareholders, to government agencies, to members of the communities in which the firm operates, to a general view of society
supply chain
a set of firms that make and deliver a given set o goods and services to the ultimate consumers
vertical integration
an example of diversification by retailers involving investments by retailers in wholesaling or manufacturing merchandise
wholesaler
firms that buy products from manufacturers and resell them to retailers
assortment
the number of SKUS with a merchandise category; also called depth of merchandise
breadth
the number of different merchandise categories within a store or department
category specialist
a discount retailer that offers a narrow but deep assortment of merchandise in a category and this dominates the category from the customers perspective
closeout
an offer at a reduced price to sell a group of slow-moving or incomplete stock
consignment shop
a store that sells used merchandise and reimburses the individual customers who provide the items only after they sell
convenience store
store that provides a limited variety and assortment of merchandise at a convenient location in a 2,000 to 3,000 square foot store with speedy check out
conventional supermarket
self-service food store and offers groceries, meat, and produce with limited sales of nonfood items, such as health and beauty aids and general merchandise
department store
retailer that carries a wide variety and deep assortment, offers considerable customer services, and is organized into separate departments for displaying merchandise
depth
the number of SKUs within a merchandise category, also called depth of merchandise
dollar store
small, full-line discount store that offers a limited merchandise assortment at very low prices; also called extreme value retailer
drugstore
specialty retail store that concentrates on pharmaceuticals and health and personal growing merchandise
durable goods
merchandise expected to last for several years, such as appliances and furniture; also known as hard goods
edge computing
a marketing analysis method that gathers and applies data precisely where they are most beneficial
exclusive brand
a brand developed by a national brand vendor, often in conjunction with a retailer, and sold exclusively by the retailer
extreme value food retailer
a supermarket offering a limited number of SKUs
extreme value retailer
small, full-line discount store that offers a limited merchandise assortment at very low prices; also called a dollar store
factory outlet
outlet store owned by a manufacturer
flash sale sites
a site which emails to registered members announcing the unique deals available for a specific limited time
franchising
a contractual agreement between a franchisor and a franchise that allows the franchisee to operate a retail outlet using a name and format developed by the franchisor
full-line discount store
retailers that offer a broad variety of merchandise, limited service, and low prices
hard goods
merchandise expected to last for several years, such as appliances and furniture; also known as durable goods
hypermarket
large (100,000-300,000 square feet) combination food (60%-70%) and general merchandise (30%-40%) retailer