Retail Management A Strategic Approach: Chapter 4

Front 1

Retail Institutions

Back 1

the basic format or structure of a business.

Front 2

what are the different ownerships of retailers

Back 2

Independently Owned
Chain-owned
franchisee-owned
leased departments
Vertical marketing system
Consumer cooperative

Front 3

Independent Retailer

Back 3

Owns one retail unit. there are 2.3 independent retailers in the U.S.

Front 4

Ease of entry

Back 4

Low capital requirements, and relatively easy licensing provisions

Ease of entry leads to high competition

Front 5

Chains

Back 5

a retailer who operates multiple outlets under common ownership.

Front 6

Franchising

Back 6

involves a contractual arrgangement between a franchisor and a retail franchisee, which allows the franchisee to conduct business under an established name and according to a given pattern of business.

Front 7

Product/trademark franchising

Back 7

a franshisee acquire the the identity of a franchisor by agreeing to ell the latter's products and/or operate under the latter's name.
Examples: Auto-dealers, Gas stations

Front 8

Business format franchising

Back 8

A more interactive relationship between franchisor and franchisee. Franchisee receives assistance on site location, quality control, accounting systems, startup practices, management training, and responding to problems besides the right to sell goods an services.

Example: McDonalds.

Front 9

What are the three structural arrangements which dominate retail franchising?

Back 9

manufacturer-retailer
Wholesaler-retailer
Service sponsor-retailer

Front 10

Manufacturer-retailer

Back 10

manufactureer gives independent franchisees the right to sell good and related services through a licensing agreement.
auto dealers, gas stations

Front 11

Wholesailer-retailer: Voluntarty

Back 11

wholesaler sets up a franchise system and grants franchises to individual retailers
Auto stores, radio shack

Front 12

Wholesaler-retailer: Cooperative

Back 12

a group of retailers sets up a franchise system and shares the ownership and operations of a wholesaling organization
Ace hardware

Front 13

Service sponsor-retailer

Back 13

a service firm licenses individual retailers so they can offer specific service packages to consumers.
Hertz, hotels, fast food

Front 14

constrained decision making,

Back 14

Franchisors limit franchisee involvement in the strategic planning process

Front 15

Leased department

Back 15

a department in a retail store--usually a department, discount, or specialty store-- that is rented to an outside party.

Front 16

Vertical marketing system

Back 16

consists of all the levels of independently owned businesses along a channel of distribution.

Front 17

What are the different types of Vertical marketing systems?

Back 17

Independents system
Partially integrated system
fully integrated system

Front 18

Independent system

Back 18

Three levels of independently owned firms: manufacturer, wholesalers, retailers

Front 19

Partially integrated system

Back 19

two independently owned businesess along a channel perform all production and distribution functions

Front 20

fully integrated system

Back 20

one firm performs all production and distribution functions

Front 21

Channel control

Back 21

one member of a distribution channel dominates the decisions made in that channel due to the power it possesses

Front 22

Consumer Cooperative

Back 22

is a retail firm owned by its customer members