Mkt312-Midterm1-Set2

Front 1

direct selling

Back 1

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

Front 2

party plan system

Back 2

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

Front 3

multilevel networ

Back 3

people serve as master distributors, recruiting other people to become distributors in their network

Front 4

pyramid scheme

Back 4

develops when the firm and its program are designed to sell merchandise and services to other distributors rather than to end users

Front 5

teleivison home shopping

Back 5

retail format in whcih customers watch a TV program deomnstrating merchandise and then place order for the merchandise by telelphone
-cable cahnnels
-infomercials
-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

Front 6

infomercials

Back 6

tv programs that mix entertainment w/ p roduct demonstrations and then solicit orders placed by telephone

Front 7

direct-response advertising

Back 7

include advertisments on TV and radio that describe produts and provide an opportunity for consuerms to order them

Front 8

vending machine retailing

Back 8

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

Front 9

services retaiers

Back 9

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

Front 10

intangibility

Back 10

difficult to evaluate services before they buy or even after buy

Front 11

simultanerous production and consumption

Back 11

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

Front 12

perishability

Back 12

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

Front 13

inconsitency

Back 13

try to always provide high-quality services every time

Front 14

independen, single-store establishments

Back 14

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)

Front 15

wholesale-sponsored voluntary cooperative group

Back 15

-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

Front 16

retail chain

Back 16

company operating multiple retail units under common ownership and usually has centralized decision making for defining and implementing its strategy

Front 17

when large chain stores open, can actually help

Back 17

indepdnetent firms by bringin more consumers into the area

Front 18

franchising

Back 18

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

Front 19

multichannel retaier

Back 19

retailer that sells merchandise or services through more than one channel

Front 20

store channel advantages

Back 20

browsing, touching and feeling, personal service, cash payment, immediate gratification, entertainment and social interaction.

Front 21

catalog channel advantages

Back 21

conveneience, safety, quality of visual presentation

Front 22

electronic channel advantages

Back 22

broader selection-vast number of alternatives available to consumer, more information to evaluate merchandise-help them amke better decisions, personalization,

Front 23

electronic agent

Back 23

computer program that locates and selects alternatives based on some predetermined characteristics

Front 24

virtual communities

Back 24

networks of people who seek information, products, and services and communicate w/ each other about specific issues

Front 25

factors affecting the adoption of a new innovation such as shopping electronically are:

Back 25

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

Front 26

perceived risks in electronic shopping

Back 26

1. the security of cred card transactions on the internet
2. potentail privacy voilations

Front 27

resurces needed to sucessfully opearte an electronic channel

Back 27

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

Front 28

providing and managing assortments

Back 28

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

Front 29

offering unique merchandise

Back 29

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

Front 30

disintermediation

Back 30

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

Front 31

why become a multichannel retailer

Back 31

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

Front 32

share of wallet

Back 32

percentage of total purchaes made by a customer in your store-->

Front 33

issues of being a multichannel retailer

Back 33

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)

Front 34

buying process

Back 34

begins when customer recongize unsatisfied need; seek info about how to solve the need

Front 35

extended problem solving

Back 35

used when there is alot of risk and uncertainty; -> may visit several retailers before making a purchase decision

Front 36

limited problem solving

Back 36

purchase decision process invovling a moderate amount of effort and time
-some prior experience
-rely more on personal knowledge

Front 37

impulse buying

Back 37

decision made on the spot after seeing the item

Front 38

habitual decision makin

Back 38

purchase decision process invovlin little or no conscious effort
-used when decisions aren' very importatn, and invovle familiar stuff

Front 39

brand loyalty

Back 39

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

Front 40

store loyalty

Back 40

customers like and habitually vist the same store to purchase a type of merchandise

Front 41

functional needs

Back 41

directly related to the performance of the product-->rational,

Front 42

psychological needs

Back 42

associated w/ the personal gratification customers get from shopping and owning a product-->emotional

Front 43

stimulation

Back 43

background music, visual displays, demonstrations, etc.

Front 44

social experience

Back 44

centers of social activity where peoplce can meet and develop new relationships

Front 45

learning new trends

Back 45

people learn about new trends and ideas, informed about their eniornment

Front 46

status and power

Back 46

some customers have a need for status and power that's satsififed through shopping

Front 47

self-reawrd

Back 47

reaward themselves then they have accomplished something or want to dispel depression

Front 48

cross-shoppoing

Back 48

buy both premium and low-priced merchandise or patronizing expensive, status-oriented retailers and price-oreinted retailers