RIF Flashcards
1
Q
Accountable
A
This means that you’re expected to be responsible for your actions or decisions.
2
Q
Account takeover
A
A type of e-commerce fraud in which thieves steal customer login information and then use it to access their retailer loyalty accounts. Once they have account access, thieves can often use customers’ loyalty points to make purchases for themselves. This type of fraud is also referred to as loyalty fraud.
3
Q
Active listening
A
A structured form of listening and responding that focuses the attention on the speaker. The listener must take care to attend to the speaker fully and understand any messages suggested behind the words.
4
Q
Advertising
A
The activity of producing paid advertisements for commercial products and services.
5
Q
Add-on services
A
Available services for specific product purchases that costumers can opt for (e.g., payment options, product modifications, ways that customers can protect their purchases, and others).
6
Q
Alterations
A
Modifications to products that help them best meet the needs of customers (e.g., the tailoring of clothing items or installing additional memory in a laptop).
7
Q
Allocation
A
This is the term for distributing merchandise from the manufacturer to a retailer’s locations, which may include stores, distribution centers and other locations.
8
Q
Americans with Disabilities Act
A
This act prohibits employers from discriminating against qualified individuals with disabilities in job application procedures, hiring, firing, advancement, compensation, training and other terms, conditions and privileges of employment.
9
Q
Analytical communication style
A
A communication style refers to the way a person interacts with others. Someone who has an analytical communication style typically wants the important data, facts and logic.
10
Q
Anti-theft methods
A
Practices and devices used to manage and minimize deliberate preventable losses. Examples include: non-electronic ink tags, mirrors, closed-circuit cameras, display or fixture locks, cables, chains and alarms and uniformed security guards.
11
Q
Artificial intelligence (Al)
A
Technology that enables computers to do things that have traditionally been done only by humans.
12
Q
Asset protection (sometimes referred to as loss prevention)
A
The branch of retail in charge of implementing action plans to reduce waste, breakage or theft and increase safety.
13
Q
Attitude
A
A way of thinking or feeling about something that is usually reflected in behavior.
14
Q
At-will employment
A
Employment subject to termination by an employer at any time for any reason, except for an illegal reason such as discrimination. An employee is also free to leave a job at any time, for any reason.
15
Q
Automated fraud
A
A type of ecommerce fraud in which cyber-criminals either steal credit card information from customers or create programs to test randomly generated card numbers and CVV codes until they find a combination that works; then bots place multiple transactions very quickly using the stolen credit card number.
16
Q
Audio ads on podcasts
A
An advertising strategy in which retailers use podcast-digital audio- messages to advertise their merchandise.
17
Q
Available inventory (or on-hand)
A
The number of units within the total inventory that are available to sell.
18
Q
Average customer spend
A
This refers to the average amount that a customer spends during a store visit. This information might help a store plan their sales and marketing approaches.
19
Q
Average sale
A
The total of all sales divided by the number of transactions.
20
Q
Barcode
A
A machine-readable series of parallel lines, used in retail to create a unique item identifier.
21
Q
Body language cues
A
Conscious or unconscious gestures and movements that express intentions. These are a key form of nonverbal communication.
22
Q
Bonuses
A
Monetary incentives given to employees for great performance. Retailers often give bonuses to employees, teams, or departments, or even the entire company.
23
Q
Brand promise
A
An extension of the company brand that reflects the benefit of doing business with them-for example, providing quality customer service.
24
Q
Breakaway statements
A
Phrases used to smooth the transition between one customer and the next one (e.g., “Would it be OK if I grab a few items for another customer?”).
25
Brick-and-mortar
A traditional business model where a business has a physical location.
26
Broadcast advertising
Commercials produced for television and radio. This terms also includes on-screen movie theater advertising.
27
Bundle pricing
A pricing model in which retailers sell multiple products and/or services together for a lower retail price than if all of the items were purchased individually. This approach helps increase the perception of value with customers.
28
Buying
The branch of retail responsible for selecting and purchasing merchandise.
29
Buy Online, Pick Up in Store (BOPIS)
Method of shopping that allows customers to buy online from a website or mobile phone, then pick up their purchase at a designated location in a store or curbside.
30
Buy Online, Return in Store (BORIS)
A policy that allows customers to buy items online and then return them in-store.
31
Cash transaction
When a customer purchases something and pays in cash.
32
Cashier
An employee role responsible for accurate and rapid processing of member purchases in a courteous manner.
33
Clientele
The collective group of customers that are served by a specific retailer, when considered in total.
34
Closed-circuit cameras
Security cameras that are used to watch areas of the store, on the sales floor and in other locations. Certain store employees can view the cameras' video from a private office or control room.
35
Closed-ended questions
Questions that aim to get you a short or yes/no answer. These are useful to limit the scope of a conversation, confirm a specific response, or to close the sale. Closed-ended questions often begin with words such as: will, can, may, are, and do.
36
Commission
A form of compensation in which a percentage of their sales is given to sales associates as a part of their wages.
37
Communication
The exchange of information.
38
Company brand
The overall impression gathered from information that is seen, heard and experienced by customers who encounter a business, its products and its services.
39
Company culture
The unique way that an organization's employees interact with each other and with customers. The culture defines the personality of a company, and typically includes a variety of elements, such as work environment, company mission, value, ethics, expectations, and goals. A company's culture can provide additional expectations for employees to deliver on the company's brand promises.
40
Company discounts
A form of compensation that offers employees product discounts and discounts at partners' businesses as a benefit to facilitate employee engagement.
41
Company website
A website that represents a retailer on the Internet. Retailer websites typically provide customers with a way to browse and purchase products and services that the company offers along with information about store locations and hours, career opportunities and general information about the company.
42
Comparison shopper
A shopper who spends a lot of time checking out products and prices through online sites, visiting different stores, comparing retailer ads and/or getting the opinions of others either personally or through social media.
43
Compensation
The term used for what a company gives its employees in exchange for their work. Forms of compensation include hourly pay, bonuses, commission and company discounts.
44
Competitive pricing
A pricing strategy in which retailers set their prices taking into account the competition. Prices can be set below or above those of the competition.
45
Competitors
Businesses with similar products and/or services that compete for the same customers. These can be classified as direct, indirect or replacement competitors.
46
Corporation
A business that has shareholders through publicly-traded stock, and usually has centralized decision-making for its multiple store locations. Corporate-owned retailers include large chains such as Walmart, Kroger, and Target.
47
Cost
In retail, this term usually refers to the amount of money paid by a retailer to the manufacturer or supplier for an item.
48
Cost of goods sold (COGS)
Direct costs associated with production of a product, including the raw materials used to make it and any labor costs.
49
CRAVED model
The CRAVED model suggests that some "hot products" are more likely to be stolen than others. CRAVED is an acronym that refers to items that are Concealable, Removable, Available, Valuable, Enjoyable, and/or Disposable.
50
Credit
In finance, this refers to an agreement between a consumer and a financial institution that allow him/her to obtain products and services without payment, but with the promise of paying back within certain timeframe. The retail term "store credit" refers to money that can only be used at that particular store or retailer. Customers usually get store credit when they return an item and do not choose, or are not eligible for, a cash refund. Store credit comes in the form of a physical card or an account balance and can be used by the customer to purchase items at that store or retailer only.
51
Credit and debit card fraud
Fraud involving stolen or falsified credit or debit card numbers. Credit and debit card fraud are common and are often automatically detected as a payment is processed through the POS system, which will then decline the transaction.
52
Cross-selling
The practice of recommending additional products that complement a customer's purchase. These can be operational necessities, such as batteries, or items that may contribute to a better or more complete experience for the customer.
53
Customers (or consumers)
People who purchase goods or services from a business.
54
Customer satisfaction
The measure of how happy a customer is with a specific transaction and with their overall experience with the retailer.
55
Customer service
The help, information and recommendations that company representatives give to people who explore or buy its products and/or services.
56
Data privacy
The processes involved to ensure that customers' personal data that they have shared with a retailer or its employees is kept private, and not shared with others or with public.
57
Demand
Customers' need and/or willingness to buy a certain product or service.
58
Demographic data
Quantifiable information used to help retailers determine customer behavior (e.g., household size, gender, age, income, education, occupation and place of residence.)
59
Digital signage
Technology used to electronically display digital images, video, web pages and text. Retailers use digital signs to attract in-store customers to merchandise, provide price and product information and share brand content and messaging with customers to enhance their shopping experience.
60
Direct competitors
Retailers that offer the same product or service with the goal of selling it to the same audience. An example is Apple's iPhone vs. Samsung's Galaxy: they are similar phones from different companies, aimed at the same audience.
61
Direct marketing
Marketing strategies aimed at specific customers and its goal is to get the customer to take action-order a product online, buy an item via a social media site, visit a store or clip a coupon. Catalogs, loyalty program offerings and targeted emails are examples of direct marketing.
62
Discount pricing
A pricing strategy in which coupons, rebates and other promotional markdowns are used to get customers to buy and attract additional customer traffic to the store.
63
Discrimination
The unfair treatment of someone less favorably than others based on race, color, religion, gender, gender identity, sexual orientation, pregnancy, national origin, age, disability, genetic information and retaliation.
64
Display or fixture locks, cables, chains and alarms
Devices used to prevent theft of high-priced items.
65
Distribution center
A large warehouse where a retailer keeps merchandise until it's needed in a store.
66
Distribution channel
A path through which a product travels from its creation to when it reaches the customer.
67
Ecommerce fraud
A type of that is committed in the context of online shopping or ecommerce retailing. Examples of ecommerce fraud are: identity frauds, account takeovers or loyalty frauds, return frauds and automated frauds.
68
Economy pricing
A pricing strategy that targets the most price-conscious shoppers. Under economy pricing, retailers minimize all costs associated with certain items in order to keep their prices low.
69
Electronic article surveillance (EAS)
Devices to prevent item theft that are embedded in tags that are attached, sewn in or inserted into packaging by the manufacturer or store employee.
70
Elevator pitch
A succinct and persuasive sales pitch that can be delivered in the timespan of a typical elevator ride. At about 30 seconds, or 100-150 words, it's only about four to seven sentences long, depending on the number of words in each sentence.
71
Employee discount abuse
A type of employee fraud in which unauthorized people (usually friends and family) use or gain from a discount that the retailer provides to its employees as a benefit.
72
Employee fraud
Criminal deception in some form by an employee, generally resulting in personal gain and a loss to the retailer.
73
Entrepreneur
An individual who starts their own business based on an idea they had and subsequently takes on more responsibilities and financial risks, but also can reap more rewards.
74
Excess inventory
When a retailer has too much merchandise in stock as a result of inaccurately estimating product demand.
75
Exchange
The action of swapping one purchased item for another one.
76
Experiential retail
A strategy focused on creating engaging customer experiences rather than simply selling products. The goal is to provide memorable interactive and immersive shopping experiences that allow customers to build a relationship with a brand. These experiences can be online or in-store. Examples of experiential retail include augmented reality, virtual try-on and in- store classes and events.
77
External theft
Theft that's committed by someone outside the business, such as shoplifting or customer fraud.
78
Facilities and Maintenance Team
This team maintains all of the distribution center's equipment and keeps the center and grounds safe and clean.
79
Fair Labor Standards Act (FLSA)
The FLSA establishes employment standards that companies are required to follow, such as giving breaks and meal periods to employees.
80
Family and Medical Leave Act (FMLA)
This act allows employees to take unpaid, job-protected leave for specified family and medical reasons.
81
FIFO (first in, first out)
The technique of rotating any perishable items that expire (such as food or medicine) so that the newest items are behind older products. That way, inventory received first-and therefore the first to expire-will be the first merchandise to be sold.
82
Finance
The branch of retail in charge of managing budget generation, administration, reconciliation and reporting for revenue, expenses and profit. This area is also known as accounting.
83
Fixed mindset
The belief that one's skills and knowledge are fixed traits that cannot be developed.
84
Follower
A shopper who wants to find out what's trendy before making a purchase. Followers have a more cautious mindset and are reluctant to be the first to try new products. They often look to established brands that they have previously purchased and trust for guidance before making a buying decision.
85
Franchise
A business that results when license is granted to another entity to retail a company's products or services in a particular area.
86
Fraud
The term for the type of theft that occurs when someone steals from a retailer by engaging in any of the following activities: paying with stolen checks, debit or credit cards; writing checks from an account that has insufficient funds; switching packaging and price tags; paying with counterfeit money; and fraudulently requesting a refund.
87
Full-time work
Work that requires a specific number of hours per week and is eligible for benefits.
88
Functional communication style
A communication style refers to the way a person interacts with others. Someone who has a functional communication style typically wants process, detail, timelines and well-thought-out plans.
89
Geotargeting
Using customers' location information, such as their ZIP code or IP address, to provide personalized, customized product and service offer.
90
Gross profit
The difference between revenue and the costs of buying or producing the items sold.
91
Growth mindset
The belief that one's abilities can continuously improve through learning, focus and determination.
92
Hourly pay
A form of compensation in which employees are paid based on the number of hours they worked.
93
Human resources
The branch of retail that oversees various aspects of employment, including recruitment, training, ensuring compliance with labor laws, processing employee benefits, payroll, and performance management, along with the regular maintenance of personnel files and databases.
94
Identity fraud
A type of ecommerce fraud in which an individual's personal information is stolen and the thieves use it to purchase merchandise.
95
Impulse buyer
A customer who makes quick purchase decisions, often for inexpensive items that do not have a high importance to the buyer.
96
Inbound
These associates unload the incoming pallets of product from manufacturers and then either send them to the Outbound team to go directly on a store's trailer, or place them in a warehouse location.
97
Independent retailer
A retail business owned by an individual. Typically a single store or a small, regional chain.
98
Indirect competitors
Retailers that offer different products or services but seek to meet the same customer need. For example, Smashburger and KFC sell very different products-Smashburger primarily sells burgers and KFC primarily sells chicken-but both strive to meet the same need: satisfy hunger.
99
Information Technology (IT)
The branch of retail in which employees collect, store, and process data from Point-of-Sale devices; create and maintain systems for inventory management, customer service management, and communication; maintain the organization's technological infrastructure; and more.
100
Innovation buyer
A customer who is motivated to be one of the first to purchase the newest technology, fashion, or car, eat at the just-opened restaurant, or see the latest movie. This type of person has an early adopter mindset and wants to be recognized as a trendsetter by others.
101
Installment financing
A financing model in which the retailer loans a customer money-which comes from an internal lending department or a third-party bank-to buy the product as a part of the sale. Borrowers typically pay the retailer in monthly installments.
102
Intuitive communication style
A communication style refers to the way a person interacts with others. Someone who has an intuitive communication style typically wants big-picture ideas to determine what is important and will lose interest in the conversation if there is too much structure or a deep dive into product features.
103
Inventory
All of the items in a store, including in the stockroom.
104
Inventory allocation system
A system that uses historical sales data and customer feedback to determine how merchandise is allocated throughout the retailer's ecosystem-to stores, to DCs, etc.
105
Inventory replenishment
The process of automatic or manual ordering to meet product demands.
106
Inventory life cycle
The process that starts when inventory arrives to the store and ends when it leaves the store with a customer.
107
Inventory shrinkage or shrink
The term used when there are fewer items in stock than in the total inventory record resulting from expired products, damage, theft and/or paperwork errors.
108
Inventory tracking systems
Systems that specity the amount of inventory in a store or distribution center, identity how much inventory was sold, track the price that each item was sold for, pass information to ordering systems, record product price reductions, and more.
109
Invoice
A written statement that contains information about a sale transaction. Invoices typically include information such as the price, number of products purchased, etc.
110
Job description
A written statement about a job, posted by a company to define and explain the job and its requirements and responsibilities.
111
Key Performance Indicators (KPIs)
Values used to measure performance, such as overall sales and customer retention levels. Examples of KPIs that are often used in retail stores include: sales per square foot, average customer spend, and stock turnover rate.
112
Keystone pricing
A pricing method in which a retailer simply doubles the cost of an item in order to determine its retail price.
113
Layaway
A type of add-on service that allows customers to make an initial deposit on merchandise and then pay for the rest over time.
114
Logistics
Employees in this department schedule the arrival of trucks in partnership with the buyers, allocation analysts, drivers, parcel delivery services and/or manufacturers. This area serves a workload planning function for the distribution center.
115
Loitering
Being in a public place with no specific purpose-for example, wandering aimlessly around a store for an hour with no intention of buying anything.
116
Loss leaders
A pricing strategy in which items are sold at prices below the retailer's cost, with the goal of encouraging customers to visit the retailer to get the "loss leader" products and then end up buying other items, too.
117
Loss prevention (sometimes referred to as asset protection)
The branch of retail in charge of implementing action plans to reduce waste, breakage or theft and increase safety.
118
Loyal customer
A shopper who repeatedly chooses to shop at the same retailer over others, usually because of positive customer experiences with the retailer and their products and/or services.
119
Loyalty and rewards programs
Marketing programs that provide incentives to repeat customers who are loyal company brand shoppers. These programs generally use customers' personal information, purchase history and preferences to refine their product and service assortment, target promotions to consumer groups or individual customers and reward loyal shoppers.
120
Loyalty fraud
A type of ecommerce fraud in which thieves steal customer login information and then use it to access their retailer loyalty accounts. Once they have account access, thieves can often use customers' loyalty points to make purchases for themselves. This type of fraud is also referred to as an account takeover.
121
Manufacturer
Any entity that produces finished products.
122
Marketing
The branch of retail in charge of developing strategies to promote a company's brand and its specific products and services.
123
Marketing mix
A combination of marketing tools and strategies that a retailer uses to influence customers to purchase its products.
124
Markdowns
Reductions to the original selling price of items, done to encourage rapid sales.
125
Markup
The amount of money that a retailer adds to its cost of a product to cover expenses and provide a profit.
126
Markup pricing
A pricing strategy that involves applying a predetermined margin rate to the costs of all items in order to arrive at the price.
127
Material Handling
Associates performing this function may work in the Inbound dock area unloading and labeling cartons and pallets received from manufacturers or other suppliers. They may also work in the Outbound dock area loading cartons and pallets onto trailers that are sent to stores or other locations. They may also move freight to other places within the building.
128
Merchandise (or product)
Physical goods that are bought and sold, such as food, clothes and household items.
129
Merchandising
The activity of promoting the sale of goods, especially by their presentation in retail outlets.
130
Mindset
Customers' attitudes and expectations about retailers, customer service and their shopping experiences.
131
Mission-driven shopper
This customer is driven by their needs and nothing more. The mission-driven shopper makes a list of the things they need, and shops according to their list.
132
Mobile apps
Software applications designed to run on small wireless devices such as smartphones, tablets, or smartwatches. Retailer apps enable customers to purchase merchandise, view promotions and e-coupons, track loyalty or reward program activity and experience other retailer content.
133
Motivation
The reason someone behaves a certain way and that influences the way consumers make purchase decisions. Motivation can be swayed by both external and internal signals.
134
Multichannel retailing
A retail model that offers customers the opportunity to interact with the multiple options in their ecosystem. These can or cannot be systemically connected to each other.
135
Multiple pricing
A pricing method that involves selling a group or set of items for a single price, such as three for $5.00. Customers often purchase larger quantities when multiple pricing is used.
136
Near Field Communication (NFC)
Contactless payments between two devices, like a terminal and a smartphone. The connection is made when the two devices are about 1.6 inches (4 cm) from each other.
137
Net profit
The difference between revenue and all expenses, including buying, producing and operations. This amount is the total that a company gains financially.
138
Network
An interconnected group of people.
139
Non-electronic ink tags
A type of anti-theft device that's attached directly to clothing items. When they are removed without the proper tool, ink is released and can ruin the clothing.
140
Non-perishable
This refers to items that are able to be stored for a long time before being eaten or used.
141
Nonverbal communication
Interaction between individuals that focuses on visual, auditory, tactile and kinesthetic (physical) methods of communication.
142
Occupational Safety and Health Administration (OSHA)
A part of the U.S. Department of Labor that gives federal- and state-level protection to employees against hazards in the workplace. It ensures that companies must provide a safe workplace with an environment free of physical danger.
143
Odd pricing
A psychological pricing strategy that involves prices that end in odd numbers that are a little less than a round number-typically, prices using this model end in 7 or 9.
144
Off-the-clock work
Work that an employee does without recording their time, and therefore without being paid. According to U.S. federal law, hourly employees are not allowed to work without being paid.
145
Omnichannel retailing
A retail model that integrates multiple channels of a retail ecosystem to create a seamless consumer experience through the use of technology.
146
On-hand (or available inventory)
The number of units within the total inventory that are available to sell.
147
Open-ended questions
Questions that cannot be answered with yes or no, and that are used to get customers to provide details about what they want or need. Open-ended questions begin with the words who, what, when, where, why and how.
148
Operational expenses
All of the overhead expenditures, or indirect costs, incurred by a business. These include the physical space-mortgage or rent for anything you own or lease, such as a store, a warehouse/distribution center/fulfillment center, or office space plus utilities-plus labor and staff expenses for maintaining and selling the products, advertising costs, insurance, taxes and other expenses.
149
Operations
In retail, this is a term that describes the daily tasks of employees within a retail store or chain.
150
Organized retail crime
Criminal acts that are performed by organized criminal rings that steal property with the intent to sell and distribute, or return stolen merchandise for value.
151
Outbound
Associates in this area load trailers with full pallets, boxes and other merchandise or non-retail items, such as fixtures, to be sent to a store. The trailers are known as location-specific trailers since they have a single destination-a particular store-and therefore everything that goes into this trailer is intended for that store.
152
Out-of-stock
The term used when there is not enough merchandise to satisfy a product demand.
153
Package switching
This fraudulent activity occurs when a thief takes a lower-priced item out of a package and replaces it with a higher-priced item.
154
Packing
Small items, items that need additional handling before being sent to stores or other items that are not sent in full-case quantities need to be re-packed, and will then be sent to stores in this area of the distribution center. That's the role of a packer. People working in this area also pack some items that will be sent directly to customers.
155
Partnership
In retail, an agreement with another company that allows a retailer to extend its brand.
156
Part-time work
Work that requires fewer hours than a full-time position. The number of hours a part-time employee works may vary from week to week. Part-time employees may be eligible for some benefits.
157
Periodic inventory
Using a predetermined schedule, the total value of the inventory is counted and compared to the inventory value from the beginning of the period.
158
Perishable
A food item with a limited shelf life if it's not refrigerated.
159
Perpetual inventory
Inventory is tracked in real time, as items enter and exit total inventory.
160
Personal selling
This process involves the face-to-face interaction between the customer and a sales associate. These relationship-based activities between people are the cornerstone of retail.
161
Phone scam
When someone calls, pretending to be someone with authority, and tries to coerce an employee into taking money from the store and providing it to the caller, usually in the form of gift cards.
162
Physical inventory
The process of counting every piece of merchandise in the store and creating a record of the store's inventory on hand at a specific point in time. The goal is to compare this record to the expected inventory level in order to ensure that the store's inventory systems are reliable.
163
Picking
These team members use replenishment reports and systems to retrieve, or pick, case quantities of items that will be sent to the Outbound team and placed on a store's trailer. Team members in this area also pick some items that will be shipped directly to customers.
164
Planograms (POGs)
Schematic diagrams that visually represent the way in which merchandise should be displayed on the sales floor. They may contain drawings, images, measurements, and/or words describing precisely which products, signs and labels should be placed in specific locations on shelves, racks, tables, bins, cases, peg hooks, endcaps-displays placed at the end of aisles-and other displays.
165
Point-of-sale (POS) system
Part of the inventory tracking system that assists in tracking the reduction of on-hand inventory as it is sold. It includes barcode scanners, registers, card readers, receipt printers, tablet devices, online and in-app checkouts and may include self-service kiosks in stores.
166
Prestige (or premium) pricing
A competitive pricing strategy in which prices are set higher than the competition based on the promise of exclusive, high-quality and unique products. For example, Nike is a retailer that uses this pricing strategy.
167
Preventable loss
The cost caused by either deliberate or unintentional human actions. Examples include shoplifting, employee theft, operational errors, and vendor fraud.
168
Price Look-Up (PLU)
A system of numbers that is used to uniquely identify bulk produce items or, occasionally, other types of items.
169
Price skimming
A pricing strategy that involves a retailer setting a high price on a new product in order to make a higher profit margin on the "innovation buyers" who will be the first to purchase the product. The price is then lowered later to attract more price-conscious customers.
170
Print advertising
This includes advertising in newspapers, magazines, newsletters, signs, weekly retailer ads, coupons and other printed materials that are intended to reach a wide audience and encourage purchases.
171
Private company
A company whose stock is not traded on the stock market. In retail, this term typically refers to large companies with many retail locations and centralized business operations. Privately-owned retailers include large chains such as Albertsons, Ashley Stewart and Belk.
172
Private-label products
Also called store brands or in-house brands, are developed by national or international manufacturers and then sold under another brand.
173
Products (or merchandise)
Physical goods that are bought and sold, such as food, clothes and household items.
174
Product benefits
The advantages that make a certain product a good choice for the consumer.
175
Product features
A product's characteristics. They can be touched, tasted, seen, smelled, and/or heard and include things like color, size, flavor, scent, sound, and texture.
176
Product and/or service knowledge
Information learned and used to help customers understand how a product or service will meet their needs. It includes knowing the features, benefits, functions, uses, and required support for products and/or services.
177
Product return
The process of the customer taking previously purchased merchandise back to the retailer to receive a refund in the original form of payment, an exchange for another item or a store credit.
178
Profit
The amount of money the retailer keeps for itself. This is defined as revenue-the amount of money that comes in-minus expenses-the amount of money that the retailer spends.
179
Profit margin (or retail margin)
The difference between an item's retail price-the amount that the item is sold for-and the Cost of Goods Sold, or how much the retailer paid for the item.
180
Profit margin percentage (or retail margin percentage)
The percentage by which profits from sales exceed the revenues.
181
Psychological pricing
This technique involves choosing specific pricing numbers that appeal to customers. Odd pricing is a psychological pricing strategy that involves prices that end in odd numbers that are a little less than a round number-typically, prices using this model end in 7 or 9.
182
Publicity
Attention given to something or someone by the media. Retailers may supply the media with newsworthy information about the company, products or services to build or enhance their brand image.
183
Quality customer service
The delivery of a positive, memorable experience that is more than what the customer expected.
184
Quick change artists
Individuals who often pay for a low-cost item with a $50 or $100 bill and ask for change. During the exchange, they attempt to confuse the cashier while providing change, attempting to obtain more change than expected.
185
QR (quick response) codes
Barcodes that contain product or website information. In stores, a customer scans the QR code with a smartphone to access the data.
186
Radio-frequency identification (RFID) tag
A tag containing electronically-stored information that identifies objects using a radio wave reader; the system can recognize either individual items or objects containing many products, such as pallets.
187
Receipt fraud
A type of refund fraud in which the thief finds discarded receipts, then look for items that match the items on the receipt from the store and attempt to return them.
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Receiving
The process of matching the invoiced quantity to the actual products delivered.
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Recreational shopper
A customer who views shopping as a fun occasion, rather than looking for specific merchandise or services. This customer's mindset focuses on adventure and leisure.
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Referral
The term used when a person recommends a store or salesperson based on their quality experiences.
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Refund fraud
Includes a variety of ways that dishonest people use the retailer's return system and processes for personal gain. Some common practices are: returning stolen merchandise, receipt fraud and switch fraud. In the context of e-commerce, customers order merchandise online and then claim they did not receive it or that their identity was stolen.
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Renting
Also known as "wardrobing," this is when someone purchases an item-usually a clothing item-for a special event, using it but keeping the tag on, and then returns it after the event.
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Replacement competitors
Retailers that compete for customers' financial resources but offer products to meet different needs. For example, The Home Depot and Kay Jewelers provide completely different products but may compete for the same customer dollars.
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Replenishment
To fill in a store's supply of a product as it runs low.
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Respect for diversity
The disposition to be respectful of differing opinions, lifestyles, background, customs, and individual differences.
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Retail
The process of selling products and/or services to customers to earn a profit.
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Retail ecosystem
An interconnected system of approaches for providing customers with the merchandise and services they want - when, where and how they want to experience and purchase it. A retailer's reimagined ecosystem may offer a network of physical store formats, direct or phone sales options, ecommerce site(s), app(s), targeted marketing, experiences, services, amenities and interactions.
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Retailer
A business or person that sells products and/or services to customers. Each retailer selects merchandise or services based on the needs of a specific store, region or community.
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Retail margin (or profit margin)
The difference between an item's retail price-the amount that the item is sold for-and the Cost of Goods Sold, or how much the retailer paid for the item.
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Retail margin percentage (or profit margin percentage)
The percentage by which profits from sales exceed the revenues.
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Retail operations
Operational functions and activities needed
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Retailer
A business or person that sells products and/or services to customers. Each retailer selects merchandise or services based on the needs of a specific store, region or community.
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Retail price
The amount of money that a customer pays the retailer for a product.
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Retargeting ads
A form of marketing that allows retailers to send personalized ads to potential customers, based website cookies. Retailers use website cookies agreement to track users' activity and then send them ads across a number of platforms, such as Facebook and Google.
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Return fraud
Dishonest customers order merchandise online and then falsely claim that they did not receive it or that their identity had been stolen.
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Return policy
A retailer's rules that govern customers' ability to return or exchange merchandise.
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Returning stolen merchandise
A type of refund fraud in which stolen items are returned for a refund, exchange or store credit.
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Revenue
Income generated from the sale of goods and services. Revenue is calculated by multiplying the total number of products or services sold by their selling prices.
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Revolving credit
A financing model in which the retailer offers a credit card to costumers-usually connected to loyalty programs-so they can make purchases and pay the card balance over time.
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RFID devices
RFID (radio frequency identification) devices are used to identify and track inventory items.
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Safety stock
Extra inventory kept on hand in case customers buy more than the amount estimated before the next shipment arrives.
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Sales per square foot
The average amount sold per square foot of space in the store. This information helps a store's employees understand if the store is performing well overall and if the store's layout is effective.
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Sales
In retail, usually refers to either an individual transaction with a customer or to "total sales," the total amount of money a store or company made, not accounting for expenses.
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Sales per hour (SPH)
This measures productivity and provides a measurement for comparing sales volume. Sales per hour = Total sales dollars/Total hours worked.
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Sales promotion
This term refers primarily to shorter-term activities that offer an incentive for customers to make a purchase, such as a weekly ad with featured sale items, visual merchandising and offering product samples. Sales associate commissions are also considered a form of sales promotion.
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Search Engine Marketing (SEM)
A form of marketing-also called keyword advertising or pay-per-click-in which retailers pay to increase their visibility in search engine result pages. For example, Google Ads allows retailers to bid at auction for specific advertising keywords.
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Search Engine Optimization (SEO)
The process of improve a website's position in search engines' results so that it should attract more site visitors.
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Selection
Getting the right products and services that customers want.
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Self-checkouts
Checkout lanes that allow customers to scan, pack and pay for their merchandise without the assistance of a store cashier, although an employee is always close by in case the customer needs help.
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Self-service kiosks/tablet kiosks
Interactive computers with customized software that provides access to information and applications like ordering food and drink items, locating merchandise in a store, accessing product information, finding gift registries or recipes, requesting employee assistance, buying merchandise online and more.
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Selling
In retail, this refers to the sale of consumer goods, or final goods, by businesses to end consumers.
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Services
Intangible (meaning that they can't be physically owned by the customer) transactions, such as lawn mowing, hair care services, personal training, ride sharing and video streaming.
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Service benefits
The advantages that make a certain service a good choice for the consumer.
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Service recovery
The action a retailer provides to address a service failure. It includes activities to turn the negative experience into a positive one. It can occur during the same visit or at a time in the future.
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Shelf life
The time an item remains usable, salable or fit for consumption.
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Shoplifting
The action of taking an item from a store without paying for it.
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Shoppers
People who purchase goods or services from a business. Also known as customers.
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Short-change artist
Dishonest shoppers who try to scheme salespeople by arguing that they paid with a bigger bill to get more change than they are owed.
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Shrinkage
The loss of inventory from causes other than sales, or when a retailer has fewer items than they should for reasons other than sales. Shrinkage (or shrink) is a measurement of inventory loss as a percentage of sales during a specific inventory period. It is used to forecast or account for losses in a retail balance sheet. Shrink calculations include losses stemming from theft (by employees and non-employees), administrative or operational errors, mistakes and other identified inventory loss. It is the most common form of measurement and benchmarking regarding retail loss.
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Sick leave
A policy that allows employees to take time off from work to stay home and address health and safety needs while still being paid.
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SMART goal system
A process used to help people develop quality goals. The acronym SMART stands for: specific (make the outcome or result clear), measurable (include quantitative and/or qualitative measures that accurately determine success), achievable (ensure the measure, result and timeframe are reasonable), results-oriented (identify a concise and valuable accomplishment, outcome, or end product) and time-based (establish a definite date and/or time for achieving the result).
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Social media influencer
A social media user who has established credibility in a specific industry or content area, has access to a huge audience through his/her follower network and can persuade others to act based on their recommendations.
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STAR method
A method that is used to organize and present job tasks as accomplishments when applying for jobs. The acronym stands for situation, task, action, result.
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Stocker
A stocker is an employee whose role involves helping to create a great store shopping environment for customers by using technology to determine items to pull from the stockroom, loading cartons and items onto carts, replenishing products on the sales floor, "facing" and straightening products, maintaining accuracy in product shelf placement, tracking out-of-stock products, building displays and maintaining a clean work area.
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Stock-keeping unit (SKU) number
A unique number assigned to a product by the retailer.
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Stock turnover rate
The rate at which a store is able to sell its inventory. If a store's stock turnover rate goes down, it means the store is not selling its items as quickly.
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Stocking
The process of placing inventory on sales floor shelves, racks or other displays to be sold.
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Stockroom
A behind-the-scenes area where inventory is kept either because it does not fit on the sales floor or is awaiting a specific release date to be sold.
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Store credit
This term refers to money that can only be used at that particular store or retailer. Customers usually get store credit when they return an item and do not choose, or are not eligible for, a cash refund. Store credit comes in the form of a physical card or an account balance and can be used by the customer to purchase items at that store or retailer only.
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Store walkthrough
A method used in-store to keep the sales floor appearance at its peak. Walkthroughs involve employees physically walking through all areas of the store to look for potential problems such as missing signs or shelf labels, empty fixtures and displays, broken items, merchandise that is in the wrong location or visual elements that are not in place.
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Struck against
Also called "struck by," this refers to result from something striking an individual, such as a product falling off a shelf onto a person.
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Struck by
Also called "struck against," this refers to result from something striking an individual, such as a product falling off a shelf onto a person.
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Supply
The total merchandise that retailers order and have in their possession.
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Supply chain
The logistics involved in the production and distribution of products.
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Sustainability
Following a commitment to create net positive environmental, social and ind community benefits.
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Sweethearting merchandise
A type of employee fraud in which store employees give products away by passing them at the POS without actually scanning them, scanning only a portion of the items or ringing up an incorrect lower-cost item or price.
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Switch fraud
A type of refund fraud in which a customer purchases a new item and then returns a damaged or broken identical item.
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Target customers
The customers that are most likely to buy from a particular retailer.
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Team
A group of people that work toward the achievement of a common goal.
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Teamwork
The combined actions of a group of people, especially when effective and efficient, to achieve a common goal.
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Telemarketing
This form of advertising includes both requested callbacks and cold calls (both from people and automated) to customers over the phone to encourage them to buy products and services.
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Temporary employment
Employment that is meant to last only for a designated period of time rather than indefinitely. Temporary employees are sometimes referred to as "contractual" or "seasonal" employees.
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Ticket switching
A method of theft where thieves change the ticket, or price tag, for a higher priced item with a lower priced sales ticket.
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Total inventory
A complete listing of all of the merchandise a retailer owns. Inventory may be physically on-hand at a store or in a multichannel or omnichannel environment, located anywhere throughout the ecosystem.
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Transaction
An instance of buying or selling something-in retail, this generally refers to a customer buying or returning an item.
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Universal Product Code (UPC)
A barcode that contains specific product information including a description, price, tax status and relevant discounts or promotions.
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Upselling
The act of highlighting or revealing an extra value of a product or directing the customer's attention to other products that may better satisfy her/his need, even when they may be more expensive.
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Value
The subjective worth that an item or service has for the customer compared to other alternatives.
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Vandalism
The deliberate act of damaging or destroying company property.
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Vendor pricing
A pricing strategy that enforces the use of a manufacturer's suggested retail price (MSRP) to prevent competitive pricing back-and-forth between retailers. Some suppliers have minimum advertised price (MAP) conditions and may not allow retailers to sell their products if they price them below MAP. Apple is one such retailer/supplier.
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Virtual try-on
A way for customers to "try on" a product online via a phone, tablet, or computer.
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Visual merchandising
The branch of retail in charge of promoting specific products and services to increase sales through engaging visual displays. Through visual merchandising, retailers present products in the most attractive way possible in order to drive traffic, create interest, allow customers to make a connection with products and generate sales.
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Warehouse
A large building where a retailer keeps merchandise until it's needed in a store.
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Wardrobing
Also known as "renting," this is when someone purchases an item-usually a clothing item-for a special event, using it but keeping the tag on, and then returns it after the event.
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Warranty
A type of add-on service in which the manufacturer promises to repair or replace the item for a specific period of time, if needed.
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Whistleblower Protection Act
This act protects an employee from being fired or mistreated for reporting workplace problems or misconduct.
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Wholesaler
An entity that buys large quantities of products directly from the manufacturer and then sells smaller amounts of the products to different retailers.
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Workplace bullying
This consists of persistent actions directed toward a coworker which are intended to intimidate, humiliate, undermine or create risk to the health or safety of the employee. Bullying may involve verbal, nonverbal, psychological or physical abuse.
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Workers' compensation
The claim and benefit system for employees who are injured at work enabling them to receive partial pay, help with medical bills, etc.
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Workplace safety
Actions taken to prevent an injury and/or illness, including foodborne illness, to employees and customers in a workplace.
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Workplace violence
This refers to any act or threat of physical violence, abuse harassment, intimidation or other hostile, disruptive behavior that occurs in the workplace toward customers, other employees or other visitors in the store.
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Worth
The satisfaction that the customer feels after obtaining/experiencing the benefits from the purchased product or service.
