Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

48 Cards in this Set

  • Front
  • Back
direct selling
retail format in whcih a slaes person, frequently independent, contacts customer directly in a convenient location, either at customer's home or at work, and demonstrates merchandise benefits
-two special types are party plan and multilevel selling
party plan system
sales people encourage customers to act as hosts and invite firneds or co-workesr to a "party" at which the merchandise is demonstrated in a party atmosphere
multilevel networ
people serve as master distributors, recruiting other people to become distributors in their network
pyramid scheme
develops when the firm and its program are designed to sell merchandise and services to other distributors rather than to end users
teleivison home shopping
retail format in whcih customers watch a TV program deomnstrating merchandise and then place order for the merchandise by telelphone
-cable cahnnels
-direct-response advertising
-QVC, HSN, ValueVision
-most purchases are made by relatively small proportion of the viewers
-major advantage compared to cataloug:can see merchandise demonstrated
-targed to lower-income consumers-->inexpensive jewelry
tv programs that mix entertainment w/ p roduct demonstrations and then solicit orders placed by telephone
direct-response advertising
include advertisments on TV and radio that describe produts and provide an opportunity for consuerms to order them
vending machine retailing
nonstore format in whcih merchandise or services are stored in a machine and dispensed to customers when they deposit cash or use a credit card
services retaiers
major aspect of their offering is services vs. merchandises
-diff. b/t services and merchandising:1 intangilibilty,2 simultaneous production and consumptions, 3 perishability, 4 inconsitency of offering to customers
difficult to evaluate services before they buy or even after buy
simultanerous production and consumption
service has to make and deliver as consumer is consuming
-customers present when service is produced, may be part of production process-make own salad at salad bar
-customer consuming the service at the same time can affect the quality of the servic eprovided
creation and consumption of services are inseparable, services are perishable (can't be saved, stored, resold)
-have capacity constraint
-increase capacity, services retailers need to make major investment such as buying more airplanes
-demand varies over time
try to always provide high-quality services every time
independen, single-store establishments
mgmt. has direct contact w/ customesr and can respond quickly to their needs
-very flexible can therefore react quickly to customer needs
-corporate chains can do better at lower pricing, broader mgmt base (people who specialize)
wholesale-sponsored voluntary cooperative group
-where independent retailers will join up and get wholesaler offering
-offer member services such as store design and laoyout, inventory mgmt systems, employee trainingp rograms
retail chain
company operating multiple retail units under common ownership and usually has centralized decision making for defining and implementing its strategy
when large chain stores open, can actually help
indepdnetent firms by bringin more consumers into the area
contractual agreement b/t a franchiosr and a franchisee that allows the franchisee to operate a reatil outlet using a name and format developed and supported by the franchisor
-motivated to make store success b/c receive profits (After royalty)
-franchsor motvatied to devleop new products and systemand to promte the franchise b/c it receives a royalty on all the sales
multichannel retaier
retailer that sells merchandise or services through more than one channel
store channel advantages
browsing, touching and feeling, personal service, cash payment, immediate gratification, entertainment and social interaction.
catalog channel advantages
conveneience, safety, quality of visual presentation
electronic channel advantages
broader selection-vast number of alternatives available to consumer, more information to evaluate merchandise-help them amke better decisions, personalization,
electronic agent
computer program that locates and selects alternatives based on some predetermined characteristics
virtual communities
networks of people who seek information, products, and services and communicate w/ each other about specific issues
factors affecting the adoption of a new innovation such as shopping electronically are:
1 the ease w/ which customers can try the innovation
2 the perceived risks in adopting the innovation
3the advantages of the innovation compared to the present alternatives
perceived risks in electronic shopping
1. the security of cred card transactions on the internet
2. potentail privacy voilations
resurces needed to sucessfully opearte an electronic channel
1. well-known brand name and trustworthy image
2. customer information
3. complementary merchandise and services
4. unique merchandsise
5. information systems for effectively presenting info on web pages and managing the fulfillment process
6. distribution system to efficiently ship merchandise to homes and recieve and process returns
providing and managing assortments
making multipl-item purchases through an electonric channel, customers reduce their shipping costs
2. ideally suited for making recommendations to a customer based on the customer's primary purchase by offering a set of tiems that solvs a customer's problems
offering unique merchandise
low search sot, price compariosns are easy, offer unique merchandise to solve:
1. priavte-label
2. branded variants or co-branded merchandise
3. prepackaged assortmeents
when a manufacturere sells directly to consumers by by-passing reatialers
-bad b/c retailers get no money and retailers better well-suited for interaction w/ customers instead of
-reatailers can also provide braoder arry of product and services to solve customer problems
why become a multichannel retailer
1. give opportunity to reach new markets-good b/c use strong brand name
2. leverage skills and assets to grow revenues and profits(use locations for pickup)
3. electronic channel overcomes some limitations of their traditional formats (w/ kisoks, expand assortment available)
4. electronic channel enables retailers to gain valuable insights into their custoers' shopping behavior (more info=good for planning
5. share of wallet
share of wallet
percentage of total purchaes made by a customer in your store-->
issues of being a multichannel retailer
1. brand image(needs to be the same in all formats
2. merchandise assortment (expcet that stuff in store to be online, sometimes use internet to be more expansive,
3. pricing(expect pricing to be more consistent)
buying process
begins when customer recongize unsatisfied need; seek info about how to solve the need
extended problem solving
used when there is alot of risk and uncertainty; -> may visit several retailers before making a purchase decision
limited problem solving
purchase decision process invovling a moderate amount of effort and time
-some prior experience
-rely more on personal knowledge
impulse buying
decision made on the spot after seeing the item
habitual decision makin
purchase decision process invovlin little or no conscious effort
-used when decisions aren' very importatn, and invovle familiar stuff
brand loyalty
customers like and consiently buy a specific brand in a product categry
-reluctant to swtich to other brands if their favorite brand isn't available
store loyalty
customers like and habitually vist the same store to purchase a type of merchandise
functional needs
directly related to the performance of the product-->rational,
psychological needs
associated w/ the personal gratification customers get from shopping and owning a product-->emotional
background music, visual displays, demonstrations, etc.
social experience
centers of social activity where peoplce can meet and develop new relationships
learning new trends
people learn about new trends and ideas, informed about their eniornment
status and power
some customers have a need for status and power that's satsififed through shopping
reaward themselves then they have accomplished something or want to dispel depression
buy both premium and low-priced merchandise or patronizing expensive, status-oriented retailers and price-oreinted retailers