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46 Cards in this Set

  • Front
  • Back
set of busines activities that ads value to the products and services sold to consumers for their personal or family use-->invovles sale of services
business that sells products or services or both to consumers for their personal or family use.
distribution channel
set of firms that faciliatet the movement of products from the point of production to the point of sale tot he ultimate consumer
vertical integration
firm performs more than one set of activities in the channel, such as investments by retailers in wholesaling or manufacturing
retailers perform functions to increase value of products and services
-provide an assortment of products and services
-breaking bulk
-holding inventory
-providing services
breaking bulk
to reduce transportation costs, break into smaller quantities
holding inventory
keep inventory so will be available.
providing services
offer credit
-display products
-multichannel retailers
saturation, US, Japan, Europe
-factors that affect
US-heavy saturation with big stores
Japan-small stores
-europe-in between. northern europe similar to US.
-factsr that have effect: social and political ; geography, market size -->japan, reduce unemployment-protect small businesses
-lower population density in us than europe and japan
-us retail market much larger than jap. and europe
intratype competition
competition b/t same type of retailers
number of different merchandise categoreies within a store or department.
scrambled merchandising
offering of merchandise not typically associated w/ the store type
intertype competition
competition b/t retailers that sell similar merchandise using different formats, such as discount and departmennt stores
retail strategy
how the firm plans to focus its resources to accomplish its objectives-->identify target market toward which the retailer will direct its efforts
-nature of the merchandise and services the retailer will offer
-how the retail will build a long-term advnatage over competitiors
advantages of location
-gain long-term competition
technologies are part of an overall inventory mgmt system that enables retailrs to
1. give customers a more complete selection of merchandise
2. decrease their inventory investment
customer relationship management
business philosphy and set of strateiges, programs, and systems that focuses on identifying and building loyalty with a firm's most-valued customers
retail mix
combination of factors retailers use to satisfy customer needs and influence their purchase decisions
4 elements of retail mix
-type of merchandise sold
-variety and assortment of merchandise sold
-level of customer service
-price of the merchandise
North American Industry Classification System (NAICS) codes
classifies all retail firms into a i hiearchial set of six-digit.
warehouse clubs
narrow assortment of relatiey inexpensive sports clothing
-offers limited assortment of food and general merchandise w/ little service at low prices to ultimate consumers and small businesses
-reduce inventory holding by carrying limited assortment of fast-selling items
-2 types of members: wholesale members who own small businesses, individual members who purchase for their own use
number of merchandise categories retailer offers--breadth of merchandise
number of idfferent items in a merchandise category-depth of merchandise
if you offer many SKU
inventory investment increase b/c reatiler must have bkacup stock for each SKU
combination stores
include conventional supermakrets, big-box food retailer, convenience stores-->food reatiler not really a food retailer
conventional supermarkets
self-service food stores offering groceries, etc. w/ limited sales of nonfood items such as health and beauty
larger conventional supermarkets with expanded service deli, bakery, seafood, and non food sections
-150,000-220,000 square-foot stores that offer a wide variety of food (30-40 percent) and nonfood merchandise (60-70)-->Wal-mart supercenter
-->broad assortments of grocery and general merchandise under one roof. -general merchandise bought on impulse b/c main reason go is for food.
- generally, merchandise has higher margins
-can be inconvenient b/c too big
very large food (60-70%), general merchandise (30-40%)
-usually stock less than super centers
-more food than merchandise (diff. from supercenters)
-emphasis on fresh items
-supermarket: more on dry groceries-cereal and canned
convenience stores
limited variety and assortmen of merchandise at a convenient location w/ speedy checkout
-can buy quickly, consumed within 30 min.
-typically receive delieveries every day
-charge higher prices
-most sell gas
-type has been growing in Japan and Latin America b/c prefer buying in smaller quantites b/c of space constraints
-trying to get into prepared foods market(higher marigns)
discount store
retailer that offers a borad variety of merchandise, limted service, low prices
-intense competition from specialty stores that ofcus on single category (home depot)
specialty store
concentrates on a limited number of complementary merchandise categories and provicdes a high level of service in an area typcially under 8,000 square feet
-for clothign stores: recently, weakest, slowest-growing areas b/c aging population (old peopel dont spend as much money on clothing),
category specialist/killers
discount store that offers a narrow variety but deep assortment of merchandise
-low prices
-intense competition as firms expand into regions origialy dominating by another firm
-in response, conenctrate on reducing costs by increasing operating efficiney and acquirign smaller chains to gain scale economies
home improvement center
category specialist offering equipment and material for do it yourself and contractors
department store
retailers that carry a braod variety and deep assortment, offer some customer services and are organized into separate departments for displaying merchandise
-similar to collection of specialty shops
leased department
area in retail sotre that is leased or rented to an independent firm;
-typically responsible for all retail mix deicison invovled in operating the dept. and pays the store a percentage of its sales as rent
-examples:beauty salon, shoes, jewelry, furs, etc.
-sales have stagnated, market share has fallen due to increased competition from discuont stores and specialty
-decline in perceived value for merchandise and services
-ocurring in europe and asian as well.
-response: delveop private-label and make it more up to date; try to be more fashion and reduce inventory levels
specialy stores that concnetrate on health and personal grooming merchandise
-sustained sales growth b/c aging population require more prescription drugs
-competition from pharmacies in discount stores and supermarkets, intnert
-response:drive-through, providng heatlh care assistance; repoire w/ customerse
off-price retailers
inconsistent assortment of brand name at low price
-have unique buying and merchandising practices->b/c dont ask for advertising allowance, return privliges, markdown adjustments, or delayed payments
-customers can't be sure of consistency->response:buy regular merchandise as well and sell at wholesale prices
-examples:closeouts and outlet stores
closeout retailers
off-price retailers that sell a braod but inconsitent assortment of general merchandise as well as paparel and soft home goods
-big lots
outlet sotres
off-price retailers owned by manufacturesr or by department or specailty sotre chains ->factory outlets(way to improve sales by getting rid of irregular, production overruns, merchandise returned by retailers-->able to avoid selling markdown in the store: keep image of high-price/high quality
value retailers
general merchandise discoutn stores that are found in either lower-income urban or rural areas and are much smaller than traditional discount stores
-example:dollar genearl
-low-income that can't afford to buy large-size packages,
-vendors making specail small packages for them.
-specialize in giftware, party, craft; not consumption
electronic retailing
retail format in whcih the retailers communicate w/ customers and offer products and srvices for sale over the internet
cataloug retailing
nonstore retail format in which the retail offering is communicated to a customer through a catalg
-can be attractive b/c start-up costs are low
-difficult for samller cataloug and direct-mail to compete w/ large, well-established firms that have embraced a multichannel strategy
-mailing and printing costs are very high
-difficult to get consumers' attention as they are mailed so many things
-length of time required to desin, distribute, make it difficult to respond to new trends
direct-mail retailers
communicate w/ their customers using letters and brochures
general merchandise catalgo retaiers
offer a braod variety of merchandise in catalogs that are preiodically mailed to their customers
specialty catalgo retailers
focus on specific categories of merchandise such as fruit, plants