Marketing Test 5 Chapter 16

Front 1

Retail outlet

Back 1

more than a place to buy something. The retailer adds or subtracts value from the offering with its image, inventory, service quality, location, pricing, and assortment of goods

Front 2

retailing is BIG business

Back 2

1 in 5 US workers are in retailing. There are over 1.2 million retail firms, but only about 8 % of them have annual sales greater than $2.5 million, in other words, most retail business in the US is small business

Front 3

number 2 big business in 2006

Back 3

home depot

Front 4

US retail and food services sales for march 2008

Back 4

381.4 billion

4.6 trillion this year

Front 5

wheel of retailing

Back 5

a hypothesis that new retailers usually enter the market as low status, low-margin, low-price operators but eventually evolve into high-cost, high-price merchants

Front 6

retail life cycle

Back 6

a theory that focuses on the various stages that retailers pass through form introduction to decline
1. introduction stage
2. growth stage
3. maturity stage
4. decline stage

Front 7

growth stage

Back 7

sales and profit rise
attracts more competition

Front 8

3 factors motivate innovative merchants to reinvent the way they do business

Back 8

1. demographics
2. technology
3. globalization

Front 9

demographics (3)

Back 9

changing retailing practices in each of the following ways
1. demanding greater conveniences
2. there is increasing catering to specific age segments
3. there is a growing recognition of ethic diversity

Front 10

number 2 global retailer

Back 10

carrefour

Front 11

the top retail format

Back 11

supermarket

Front 12

merchandise mix

Back 12

the total set of all products offered for sale by a retailer, including all product lines sold to all consumer groups

Front 13

scrambled merchandising

Back 13

a merchandising strategy that offers consumers a mixture of merchandise items that are not directly related to one another

Front 14

retailers use scrambled merchandising for one or more of the following reasons (4)

Back 14

1. convert stores into one-stop shopping centers
2. generate more traffic
3. realize higher profit margin
4. increase impulse purchases

Front 15

full-service retailers

Back 15

these retailers provide supporting services and trained sales assistants
(victoria secret)

Front 16

limited-service retailers

Back 16

in-between (wal-mart, old-navy, target)

Front 17

merchandise assortment

Back 17

the range of products sold

Front 18

merchandise depth

Back 18

the variety of choices available for each specific product line

Front 19

convenience stores

Back 19

neighborhood retailers that carry a limited number of frequency purchased items and cater to consumers willing to pay a premium for the ease of buying close to home

Front 20

supermarkets

Back 20

food stores that carry a wide selection of edibles and related products

Front 21

specialty stores

Back 21

retailers that carry only a few product lines but offer good selection within the lines that they sell

Front 22

convenience store industry sales TOP

Back 22

$569 billion

Front 23

cigarettes

Back 23

34.4 % of in-store sales

Front 24

discount stores

Back 24

general merchandise discount stores - retailers that offer a broad assortment of items at low prices with minimal service (wal-mart)

Front 25

department stores

Back 25

retailers that sell a broad range of items and offer a good selection within each product line

Front 26

part plan system

Back 26

a sales technique that relies heavily on people getting caught up in the "group spirit", buying things they would not normally buy if alone (tupperware)

Front 27

multi level network

Back 27

a system in which a master distributor recruits other people to become distributors, sells the companys product to the recruits, and receives a commission on all merchandise sold by the people recruited

Front 28

pyramid schemes

Back 28

an illegal sales technique in which the initial distributors profit by selling merchandise to other distributors, with the result that consumers buy very little products

Front 29

3rd quarter US eRetail sales were

Back 29

$34.7 billion

Front 30

benefits + limitations of E-commerce for marketers NOTE

Back 30

NOTE: consumer privacy protection is NOT one

Front 31

limitations for consumer on E-commerce (6)

Back 31

1. lack of security
2. fraud
3. cant touch items
4. colors dont match
5. expensive to order and return
6. potential breakdown of human relationships

Front 32

atmospherics

Back 32

the use of a color, lighting, scents etc.

Front 33

types of store location alternatives

Back 33

1. business districts
2. shopping center
3. free standing store
4. non-traditional

Front 34

measuring value

Back 34

look-to-click
click-to basket rate
basket-to-buy rate