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55 Cards in this Set
- Front
- Back
How retailers add values |
1. Provide assortment 2. break bulk 3. hold inventory 4. offer services |
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Buy and store merchandise in large quantities from manufacturers and then resell the merchandise to retailers |
Wholesalers
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Firm performs more than one set of activities in the channel |
vertical integrations |
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retailer performs some distribution and manufacturing activities |
Backward integration
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Manufacturers undertake retailing activities |
forward integration
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Top five retailers in world |
1. Wal-mart 2. carrafour 3. Tesco 4. Metro 5. Kroger |
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the ceopetition between the same type of retailers |
Intratype competition |
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When retailers offer merchandise not typically associated with their type of store |
Scrambled merchandising |
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competition among retailers that sell similar merchandise using different types fo retail outlets |
Intertype competition |
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Elements of the retail mix |
1. Customer service 2. location 3. Store design and display 4. communication mix 5. merchandise management 6. pricing |
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set of decisions retailers make to satisfy customer needs and influence their purchase decisions |
retail mix
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function performed by retailers or wholesalers in which they receive large quantities of merchandise and sell them in smaller quantities |
Breaking Bulk |
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Classification scheme to collect data on business activitiy in each country |
North American Industry Classification System (NAICS) |
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The number of merchandise categories a retailer offers |
Variety |
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The number of different items offered in a merchandise category |
Assortment |
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Variety is often referred as |
Breadth of merchandise |
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Assortment is referred to as |
Depth of merchandise |
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Each different item of merchandise is called a |
Stock-keeping unit (SKU) |
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Large, self-service retail food store offering groceries, meat, and produce, as well as some nonfood items, such as health and beauty aids and general merchandise |
Conventional Supermarket
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Large, combination food and general merchandise stores |
Hypermarkets |
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Compared to Hypermarkets, Supercenters have a greater emhasis on... |
perishables |
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retailers that offer a limited and irregular assortment of food and general merchandise with little service at low prices for ultimate consumers and small businesses |
Warehouse Clubs |
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retailers that carry a broad variety and deep assortment, offer customer services, and organize their stores into distinct deparments |
Department Stores |
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national brand vendors sell them merchandise that is not available elsewhere |
Exclusive Brands |
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items develped and marketed by the retailer, abailable only in its stoers |
private-label brands |
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retailers that offer a broad variety of merchandise, limited service, and low prices |
Full-Line discount stores |
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big-box stores taht offer a narrow but deep assorment of merchandise |
Category Specialists (ex. Staples) |
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concentrate on a limtied number of completmentary merchandise categories and provide a high level of service |
Specialty stores |
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specialty stores that concentrate on health and beauty care |
Drugstores |
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small disc out stores that offer a braod variety but shallow assortment of household goods, health, and beauty care products |
Extreme-value retailers or dollar stores |
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Offer an inconsistent assortment of brand-name merchandise at a significant discount off the manufacturerer's suggested retail price |
Off-price retailers |
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end-of-season merhcandise that will not be used in following seasons |
Closeouts |
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merchandise with minor mistakes in construction |
Irregulars |
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each day, at the same time, members receive and email that annonces the deals available |
Flash Sales
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Off-price retailers owned by manufacturers or retailers |
Outlet Stores |
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off-price retailers owned by manufactureres |
Factory outlets |
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Firms that primarily sell services rather than merchandise |
Service Retailers |
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Four differences in the nature of the offerings provided by services and merchandise retailers |
1. simultaneous production and consumption 2. Intangibility 3. Perishability 4. Inconsistency of the offering to customers |
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the opportunity to complete a transaction |
Channel |
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primarily used to communicate information to consumers |
Medium |
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using more than one channel to sell and deliver merchandiseand services to consumers |
Multichannel retailing |
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Refers to a coordinated multichannel retail offering that provides a seamless customer experience when using all of the reailers shopping channels |
Omniretailing |
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89% of U.S. Retail sales by channel |
Store |
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nonstore retail channel in which the retail offering is communicated to customers through a catalog mailed to customers |
Catalog Channel
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Benefits of Multichannel Retailing |
1. Increased Assortments 2. Low-cost, consistent execution 3. Current Information |
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retail channel in which customers watch a TV advertisment that demonstrates merchandise and then place orders for that merchandise |
Direct-response TV |
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Retail channel in which salespeople interact with customers face-to-face |
Direct Selling |
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retail channel in which merchandise or services are stored in a machine and dispensed to customers |
Automated Retailing |
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Benefits of the store channel |
1. Touching and Feeling 2. Personal Service 3. Risk Reduction 4. Immediate Gratification 5. Entertainment and Social Experience 6. Browsing 7. Cash Payment |
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Benefits of Catalogs |
1. Safety 2. convenience 3. ease of use
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Benefits of Internet |
1. Safety 2. Convenience 3. Broad and deep assortments 4. Extensive and timely information 5. Personalization |
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Challenges facing multichannel retailers |
1. multichannel supply chains and Information systems 2. Centralized vs. Decentralized multichannel retailing 3. Consisten brand image across channels 4. Merchandise Assortment 5. Pricing 6. Reduction of Channel Migration |
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Occurs when a consumer goes into a store to learn about different brands and products and then searches the Internet for the same product at lower prices |
Showrooming |
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When customers gather information from one of its channels, then buy from a channel hosted by a competitor |
Channel Migration |
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When a manufacturer sells directly to consumers, thus competing directly with its retailers |
Disintermediation |