Retailing Chapter 7

Front 1

Demographics

Back 1

Objective, quantifiable, easily identifiable, and measurable population data.

Front 2

Life-Styles

Back 2

Ways that individual consumers and families (households) live and spend time and money.

Front 3

Discretionary Income

Back 3

Money left after paying taxes and buying necessities.

Front 4

Culture

Back 4

Distinctive heritage shared by a group of people. It passes on beliefs, norms, and customs.

Front 5

Social Class

Back 5

Informal ranking of people based on income, occupation, education, and other factors.

Front 6

Reference Groups

Back 6

Influence people's thoughts and behavior. They may be classified as aspirational, membership, and dissociative.

Front 7

Family Life Cycle

Back 7

How a traditional family moves from bachelorhood to children to solitary retirement.

Front 8

Household Life Cycle

Back 8

Incorporates the life stages of both family and nonfamily households.

Front 9

Personality

Back 9

Sum total of an individual's traits, which make that individual unique.

Front 10

Class Consciousness

Back 10

Extent to which a person desires and pursues social status.

Front 11

Attitudes (Opinions)

Back 11

Positive, neutral, or negative feelings a person has about different topics.

Front 12

Perceived Risk

Back 12

Level of risk a consumer believes exists regarding the purchase of a specific good or service from a given retailer, whether or not the belief is actually correct.

Front 13

Motives

Back 13

Reasons for consumer behavior.

Front 14

Outshopping

Back 14

When a person goes out of his or her hometown to shop.

Front 15

Cross-Shopping

Back 15

Occurs when consumers shop for a product category through more than one retail format during the year or visit multiple retailers on one shopping trip.

Front 16

Consumer Behavior

Back 16

The process by which people determine whether, what, when, where, how, from whom, and how often to purchase goods and services.

Front 17

Consumer Decision Process

Back 17

Stages a consumer goes through in buying a good or service: stimulus, problem awareness, information search, evaluation of alternatives, purchase, and post-purchase behavior. Demographics and life-style factors affect this decision process.

Front 18

Stimulus

Back 18

Cue (social or commercial) or a drive (physical) meant to motivate or arouse a person to act.

Front 19

Problem Awareness

Back 19

Stage in the decision process at which the consumer not only has been aroused by social, commercial, and/or physical stimuli, but also recognizes that the good or service under consideration may solve a problem of shortage or unfulfilled desire.

Front 20

Information Search

Back 20

Consists of two parts: determining alternatives to solve the problem at hand (and where they can be bought) and learning the characteristics of alternatives. It may be internal or external.

Front 21

Evaluation of Alternatives

Back 21

Stage in the decision process where a consumer selects one good or service to buy from a list of alternatives.

Front 22

Purchase Act

Back 22

Exchange of money or a promise to pay for the ownership or use of a good or service. Purchase variables include the place of purchase, terms, and availability of merchandise.

Front 23

Post-Purchase Behavior

Back 23

Further purchases or re-evaluation based on a purchase.

Front 24

Cognitive Dissonance

Back 24

Doubt that occurs after a purchase is made, which can be alleviated by customer after-care, money-back guarantees, and realistic sales presentations and advertising campaigns.

Front 25

Extended Decision Making

Back 25

Occurs when a consumer makes full use of the decision process, usually for expensive, complex items with which the person has had little or no experience.

Front 26

Limited Decision Making

Back 26

Occurs when a consumer uses every step in the purchase process but does not spend a great deal of time on each of them.

Front 27

Routine Decision Making

Back 27

Takes place when a consumer buys out of habit and skips steps in the purchase process.

Front 28

Impulse Purchases

Back 28

Occur when consumers buy products and/or brands they had not planned to before entering a store, reading a catalog, seeing a TV shopping show, turning to the Web, and so forth.

Front 29

Customer Loyalty

Back 29

Exists when a person regularly patronizes a particular retailer (store or nonstore) that he or she knows, likes, and trusts.

Front 30

4 factors affect the quality of a retail strategy?

Back 30

1.)identifying consumer characteristics, needs, and attitudes

2.)recognizing how people make decisions

3.)devising the proper target market plan.

Front 31

Precision shopping.

Back 31

Retail shopping is often viewed as a chore. Americans no longer regard shopping as a fun pastime. Consumers want to spend fewer hours cruising the mall in search of the perfect item and, instead, get what they need as quickly as possible.

Front 32

2 parts of the consumer decision process

Back 32

1.) the process itself
2.) the factors affecting the process.

Front 33

6 steps in the consumer decision process

Back 33

a.) Stimulus

b.) Problem awareness

c.) Information search

d.) Evaluation of alternatives

e.) Purchase

f.) Post-purchase behavior

Front 34

Completely unplanned impulse purchase

Back 34

A consumer has no intention of making a purchase in a goods or service category before he or she comes into contact with a retailer.

Front 35

Partially unplanned impulse purchase

Back 35

A consumer intends to make a purchase in a goods or service category but has not chosen a brand or model before he or she comes into contact with a retailer.

Front 36

Unplanned substitution impulse purchase

Back 36

A consumer intends to buy a specific brand of a good or service but changes his or her mind about the brand after coming into contact with a retailer.

Front 37

8 factors that affect consumers and their retail shopping behavior

Back 37

1.)State of the economy.

2.) Rate of inflation (how quickly prices are rising).

3.) Infrastructure where people shop, such as traffic congestion, the crime rate, and the ease of parking.

4.) Price wars among retailers.

5.)Emergence of new retail formats.

6.)Trend toward more people working at home.

7.)Government and community regulations regarding shopping hours, new construction, consumer protection, and so forth.

8.)Evolving societal values and so forth.

Front 38

Retail Information System (RIS)

Back 38

Anticipates the information needs of managers; collects, organizes, and stores relevant data on a continuous basis; and directs the flow of information to proper decision makers.

Front 39

Data-Base Management

Back 39

Procedure a retailer uses to gather, integrate, apply, and store information related to specific subject areas. It is a key element in a retail information system.

Front 40

Data Warehousing

Back 40

Advance in data-base management whereby copies of all the data bases in a company are maintained in one location and accessible to employees at any locale.

Front 41

Data Mining

Back 41

Involves the in-depth analysis of information so as to gain specific insights about customers, product categories, vendors, and so forth.

Front 42

Micromarketing

Back 42

Application of data mining whereby the retailer uses differentiated marketing and focused strategy mixes for specific segments, sometimes fine-tuned for the individual shopper.

Front 43

Universal Product Code (UPC)

Back 43

Classification for coding data onto products via a series of thick and thin vertical lines. It lets retailers record information instantaneously on a product's model number, size, color, and other factors when it is sold, as well as send the information to a computer that monitors unit sales, inventory levels, and other factors. The UPC is not readable by humans.

Front 44

Electronic Data Interchange (EDI)

Back 44

Lets retailers and suppliers regularly exchange information through their computers with regard to inventory levels, delivery times, unit sales, and so on, of particular items.

Front 45

Marketing Research in Retailing

Back 45

Collection and analysis of information relating to specific issues or problems facing a retailer.