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21 Cards in this Set
- Front
- Back
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Retailing
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The process by which goods and services are sold to consumers for their personal use
- The retailer adds or subtracts value from the offering with its image, inventory, service quality, location, and pricing policy |
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The wheel-of-retailing hypothesis
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Theory that explains how retail firms change, becoming more upscale as they go through their life cycle
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Demographics
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Retailers must find new ways to sell to diverse groups
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Globalization
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Offers access to growth markets, but firms need to adjust to different conditions around the world
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classification of retail stores
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a method by which retailers can benchmark performance
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classification methods
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Classifying by what they sell (the merchandise mix)
Classifying by level of service Classifying by merchandise selection |
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Merchandise mix
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The total set of products offered for sale by a retailer, including all product lines sold to all consumer groups.
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Limited-service retailers
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May offer credit service and merchandise return services but little else; the majority of shopper selection is done without assistance
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Full-service retailers
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Offer supporting services such as gift wrapping; trained sales associates assist buyers
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Merchandise breadth
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Number of different product lines
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Merchandise depth
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Choices available in each product line
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4 types of retailers
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Convenience stores
Supermarkets Specialty stores Discount stores General discount stores Warehouse clubs Factory outlet stores Department Stores |
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Nonstore retailing
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Any method used to make an exchange with a product end user that does not require a customer visit to a store
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direct selling
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An interactive sales process in which a salesperson presents a product to one individual or a small group, takes orders, and delivers merchandise
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4 Forms of direct selling
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- Door-to-door sales
- Party plan system - Multilevel networking (a master distributor recruits other people to become distributors) - Automatic vending |
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Business-to-consumer (B2C) e-commerce
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Online exchange between companies and individual consumers
Growth is still the name of the game |
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B2C e-commerce benefits
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Facilitates exchanges in global marketplace
Allows businesses to reduce costs Allows specialized businesses to succeed Makes real-time price information easily available |
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Consumer benefits of B2C e-commerce
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Increases convenience for consumers
24/7 shopping, less traveling Greater product access and choice Greater, faster access to information Pricing information, electronic communities Lower prices; virtual auctions Fast delivery Can fulfill experiential needs |
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B2C e-commerce limits from the firm’s perspective
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Security challenges and constant site maintenance
Developing countries with cash economies can’t easily pay for Internet purchases Online sales may cannibalize major retailer store sales Price competition is intense |
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Store image
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The way a retailer is perceived in the marketplace relative to the competition
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Atmospherics
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The use of color, lighting, scents, furnishings, sounds, and other design elements to create a desired store image
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